Alsobrooks, Tillis to introduce veteran home loan program bill in Senate

A bipartisan Senate duo will introduce legislation to help support veterans who utilize Department of Veterans Affairs (VA) home loan programs, according to the bill’s text exclusively obtained by The Hill.

Sens. Angela Alsobrooks (D-Md.) and Thom Tillis (R-N.C.) plan to introduce the VA Home Loan Navigator Act as soon as today — establishing a program to support borrowers through financial counseling and other services meant to help veterans through the loan process. Hundreds of thousands VA-backed home loans are granted each year with many veterans relying on VA support to afford housing.

“Our veterans have earned the opportunity to achieve the American dream of owning a home and we have a responsibility to ensure they have the resources and support they need to make it happen,” Tillis said in a statement to The Hill.

The VA home loan program — started in 1944 in an effort to aid servicemembers as they returned from war — has been amended a number of times to expand access, raise loan amounts and help homeless veterans.

But in recent years as pandemic era assistance programs end, foreclosure rates have been on the rise, putting veterans at risk.

The Alsobrooks-Tillis bill instructs the VA Secretary to partner with nonprofit organizations, who will be trained on the loan process and provide assistance to borrowers. The certified service providers will be able to provide individualized counseling for loss mitigation and foreclosure prevention, coordinate between borrowers, mortgage servicers and the VA and assist with VA loan eligibility issues.

Services are voluntary and at no cost to borrowers.

“The VA Home Loan Navigator Act will provide veterans with free, trusted guidance to help navigate the homebuying and mortgage process, understand their benefits, and address challenges that could put their homes at risk,” Tillis said.

Rep. Veronica Escobar (D-Texas) and Rep. Jack Bergman (R- Mich.) introduced a similar bill of the same name earlier this year. The House bill is not identical to the new Alsobrooks-Tillis bill, but both have the goal of providing support by partnering with outside organizations.

At least six other bills have been introduced during the 119th Congress that address VA home loans. The VA Home Loan Program Reform Act , which became law in July, works to avoid foreclosure on primary residences through a limited payment assistance program.

Alsobrooks told The Hill in a statement that Congress is obligated to do more to thank and provide for those who served the country. She said veterans deserve access to affordable health care, groceries, gas and housing.

“I am so proud to partner with my colleague Senator Tillis to introduce this critical legislation that will support veterans through the mortgage and loan process and make the American dream of owning a home a reality for those who have served our country,” Alsobrooks said.