H.R.2963 - Foreclosure Assistance Immediately Reinstated for Veterans Act of 2025; FAIR Veterans Act of 2025 (119th Congress)
Summary
H.R. 2963, the "Foreclosure Assistance Immediately Reinstated for Veterans Act of 2025" or "FAIR Veterans Act of 2025," expresses the sense of Congress that the Department of Veterans Affairs (VA) should prioritize preventing foreclosures on homes purchased by veterans using VA-guaranteed loans. It emphasizes utilizing the Veterans Affairs Servicing Purchasing (VASP) program and other available authorities to help veterans retain their homes.
The bill amends Section 3732(a)(2)(A) of title 38, United States Code, to mandate that the Secretary of Veterans Affairs carry out the VASP program. This program allows the VA to pay the holder of the veteran's obligation the unpaid balance plus accrued interest and receive an assignment of the loan and security.
The bill aims to ensure that foreclosure is truly a last resort for veterans who have served the nation.
Expected Effects
The bill's primary effect would be to reinforce the VA's commitment to assisting veterans facing foreclosure. By amending the existing code to mandate the VASP program, the bill seeks to make it easier for veterans to keep their homes.
This could lead to a reduction in veteran homelessness and increased financial stability for veteran families. The change could also impact the VA's budget and administrative processes.
Potential Benefits
- Prevents foreclosures on veterans' homes, providing stability and security.
- Ensures the VA actively uses its authority to help veterans avoid homelessness.
- Potentially reduces stress and financial hardship for veterans and their families.
- Could improve the VA's public image and strengthen its relationship with the veteran community.
- May lead to a decrease in veteran homelessness rates.
Potential Disadvantages
- Could increase the VA's financial burden due to the costs associated with purchasing and servicing veteran loans.
- May create administrative challenges for the VA in managing the VASP program.
- Potential for moral hazard if veterans perceive the program as a guaranteed bailout, leading to less responsible borrowing.
- Possible delays in foreclosure proceedings, which could negatively impact lenders.
- The bill's effectiveness depends on the VA's ability to efficiently manage and implement the VASP program.
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause, as it aims to support veterans who have served the country. Congress has the power to legislate in areas concerning the military and veterans' affairs, as implied by Article I, Section 8, which grants Congress the power to raise and support armies and provide for a navy.
The bill does not appear to infringe upon any specific constitutional rights or limitations. It falls within the scope of Congress's enumerated powers to provide for the common defense and general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).