Senator Lisa Blunt Rochester introduces a bill to help protect veterans from foreclosure.
Blunt Rochester’s bill, the Veterans Housing Stability Act, brings back a version of a pandemic-era VA program for veterans who fell behind in their mortgage payments.
Blunt Rochester explains that the VA will put the past due payments into a second loan that won’t be due until later.
“Mortgages that had been acquired by the VA are placed into a separate lien and they can be paid off when the veteran sells their home or finishes paying off their loan," she said.
Blunt Rochester’s bill is co-sponsored by Republican Mike Rounds of South Dakota, among other senators. Blunt Rochester says she is proud to have a bipartisan bill that is also supported by the VA, the National Consumer Law Center and the Center for Responsible Lending.
“Republicans and Democrats are coming together to make sure we support our veterans and give them the options that other borrowers have as well," she said.
Blunt Rochester notes this proposal gives veterans similar options to homeowners with FHA and other government-backed mortgages.
This is Blunt Rochester’s second foray into housing policy. Earlier this year, she introduced a measure to provide resources to local governments to help them update their zoning codes to allow for more affordable housing.
The bill awaits assignment to a Senate committee for further action.
