January 17, 2023 — Letter

On behalf of the clients, communities, companies, and veterans we represent, we urge the VA
to prioritize allocating and seeking the budgetary resources necessary to expand the loss
mitigation options available under the VA Home Loan Guaranty Program to help veteran
borrowers avoid foreclosure. We believe your agency’s current loss mitigation tools and
resources are insufficient to meet the needs of veterans who require assistance to keep their

This is an urgent issue, as we estimate that there are between 100,000 and 130,000 seriously
delinquent (missed 3 or more payments) veteran borrowers with VA-backed mortgages.

Unfortunately, the options currently available to veteran borrowers are fewer and significantly
less effective than those available to other government-insured borrowers. Our organizations
find this situation troubling and worthy of immediate attention. Policy changes and solutions –
regulatory, statutory, or budgetary — are needed now.

We are encouraged that the VA has recognized these challenges in its advance notice of
proposed rulemaking on loss mitigation1 and is seeking public input on how it can improve its
existing options. Our view is simply that the VA Home Loan Program needs better loss
mitigation tools and additional resources.