House Our Heroes Act
- Sponsor
- Rep. Van Orden, Derrick [R-WI-3]
- Committees
- Veterans' Affairs Committee (primary)
- Last action
- Jul 30, 2026
Bottom line
The House Our Heroes Act provides the VA with new tools and temporary flexibility to help veterans avoid foreclosure and improve financial stability for those with struggling VA-guaranteed home loans.
What it actually does
This bill authorizes the Secretary of Veterans Affairs to offer educational courses to veterans with delinquent or foreclosed VA-guaranteed home loans, covering topics like credit improvement, financial management, and loss mitigation options. Additionally, for loans defaulted between May 1, 2025, and November 28, 2026, it grants the Secretary temporary flexibility to make partial claims or modify loan terms without adhering to the usual mandatory sequence of loss mitigation options.
Proponents argue
Supporters argue that this bill will provide crucial support to veterans facing housing insecurity by equipping them with financial literacy and offering the VA more agile tools to prevent foreclosures. They contend that proactive educational measures combined with flexible loss mitigation options will help veterans retain their homes and avoid the long-term financial distress associated with foreclosure, ultimately benefiting both veterans and the VA by reducing the costs of property acquisition and resale.
Opponents contend
Critics might express concerns that expanding the VA's authority for partial claims and loan modifications, especially by bypassing the mandatory sequence, could lead to increased financial exposure for the federal government without sufficient oversight. They may argue that while the intent to help veterans is laudable, the temporary nature and broad discretion could create inconsistencies or unintended financial burdens on the VA's loan guarantee program, potentially encouraging moral hazard or increasing overall program costs.
The bill is short and clearly written, making it highly accessible for a reader to understand its provisions and implications quickly.
Section 2(a)
Educational Courses for Delinquent or Foreclosed VA Loan Holders
This section amends existing law to allow the Secretary of Veterans Affairs to provide educational courses to veterans whose home loans, guaranteed by the VA, are either delinquent (behind on payments) or have gone into foreclosure. These courses are designed to help veterans improve their financial health by offering information on how to raise credit scores, manage personal finances more effectively, and understand the various options available to mitigate losses on their VA-guaranteed loans.
Supporters argue
Supporters argue that providing financial education is a proactive and preventative measure that can empower veterans to avoid future financial distress and maintain homeownership. They believe that equipping veterans with knowledge about credit, finances, and available loss mitigation options will reduce the overall rate of foreclosures and delinquencies, ultimately saving the VA money in the long run.
Critics contend
No specific opposition is typically raised against educational programs aimed at financial literacy. However, some might question the effectiveness of such courses for all individuals or the administrative cost of implementation versus the direct impact on foreclosure rates, suggesting that resources might be better allocated to direct financial assistance.
Tradeoffs
The primary tradeoff involves the administrative cost and effort required to develop and deliver these courses versus the potential long-term benefits of reduced foreclosures and improved veteran financial stability. There's also the tension of whether education alone is sufficient to address complex financial challenges.
Section 2(b)
Temporary Expansion of VA Partial Claim and Loan Modification Authority
This section grants the Secretary of Veterans Affairs temporary, expanded authority for specific VA-guaranteed loans that are in default due to a missed payment between May 1, 2025, and November 28, 2026. During this period, the VA can make a partial claim or agree to modify the loan's terms (like interest rate or payment schedule) without being bound by the usual mandatory sequence of loss mitigation options outlined in existing law. This provides the VA with greater flexibility to respond to veteran loan defaults within this defined timeframe.
The Secretary of Veterans Affairs is authorized to make partial claims or modify loan terms for certain defaulted loans without adhering to the 'mandatory sequence prescribed under section 3732(d) of title 38, United States Code'. This waiver applies only to loans in default due to a missed payment between May 1, 2025, and November 28, 2026.
Section 2(b)
Why it matters:This is standard legislative practice for granting temporary, targeted waivers to existing regulations. It's not necessarily evasive, but requires specific knowledge of the referenced statute to fully grasp its impact.
Case for: Supporters argue that this specific waiver is crucial for the VA to respond effectively to a potentially unique period of economic stress or a surge in defaults, allowing for more rapid and tailored interventions to prevent foreclosures that would otherwise be constrained by a rigid sequence of options.
Case against: Critics might contend that even a temporary waiver of a mandatory sequence could introduce inconsistencies in how veterans are treated or open the door to less transparent decision-making. They may argue that the existing sequence is in place for a reason, ensuring a structured approach to loss mitigation that protects both veterans and taxpayer interests.
Estimated impact: This provision could significantly alter the VA's approach to a subset of defaulted loans during the specified 18-month window, potentially leading to more partial claims or modifications than would occur under standard procedures. The financial impact would depend on the volume of defaults and the specific actions taken by the VA.