VA Launches New Partial Claim Program and Streamlined Loss Mitigation Framework
Issue Date: June 22, 2026
On June 15, 2026, the U.S. Department of Veterans Affairs (VA) launched the VA Partial Claim Program, authorized by the VA Home Loan Program Reform Act. The program allows mortgage servicers to bring a delinquent VA loan current without increasing the borrower’s monthly payment. After a three‑month trial payment period, the servicer advances the missed payments and is reimbursed by VA; that amount is then repaid when the home is sold, refinanced, or the loan is paid off. Servicers may begin implementing the program as of June 15, 2026, and must be fully compliant by November 28, 2026.
The Partial Claim Program is part of a new, streamlined, permanent loss‑mitigation framework that standardizes how delinquent VA loans are resolved through a structured “waterfall.” This framework includes repayment plans, traditional and extended loan modifications, including terms of up to 40 years, and disaster relief options.
The goal of VA’s updated approach is to create a more predictable, borrower‑focused system that prioritizes home retention while providing servicers with clearer guidance and more effective tools. The result is expected to reduce forced sales and strengthen long‑term housing stability for veteran homeowners.