The Government Accountability Office on Tuesday recommended the Department of Veterans Affairs create a comprehensive plan to evaluate its new program that helps veterans avoid home foreclosure.
Without a comprehensive plan, the VA and Congress will not have the credible information needed to make decisions about the Partial Claim Program before its five-year authorization ends on July 30, 2030, the GAO said. The report stated that early planning could help identify changes to improve outcomes for veteran borrowers, prevent foreclosure and reduce costs to taxpayers.
Under the program, the VA reimburses a loan servicer for a borrower’s missed mortgage payments and certain fees. This allows the borrower to become current on the loan. Borrowers repay that partial claim amount without interest when they sell or refinance the home, pay off the loan entirely or when the loan reaches maturity.
The program took effect on June 15, 2026. Loan servicers have until Nov. 28, 2026, to finish implementing it.
The VA previously offered a temporary partial claim program during the COVID-19 pandemic. According to the GAO, the VA used lessons from that temporary program to revise its application and payment processes. The VA expects these changes to reduce administrative costs.
While the VA intends to begin analyzing program outcomes in December 2027, the GAO said the department’s planned approach does not isolate the program’s effects on borrowers from other factors. The GAO recommended the VA expeditiously develop a comprehensive evaluation plan.
The VA did not provide comments on the report.