VA Home Loan Navigator Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9404 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9404

  To amend chapter 37 of title 38, United States Code, to direct the
 Secretary of Veterans Affairs to provide support services to veterans
 in navigating housing loan benefits administered by the Secretary of
               Veterans Affairs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             June 23, 2026

  Ms. Escobar (for herself and Mr. Bergman) introduced the following
     bill; which was referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL

  To amend chapter 37 of title 38, United States Code, to direct the
 Secretary of Veterans Affairs to provide support services to veterans
 in navigating housing loan benefits administered by the Secretary of
               Veterans Affairs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``VA Home Loan Navigator Act''.

SEC. 2. BORROWER SUPPORT SERVICES FOR HOUSING LOANS ADMINISTERED BY THE
              SECRETARY OF VETERANS AFFAIRS.

    (a) In General.--Chapter 37 of title 38, United States Code, is
amended by inserting after section 3737 the following new section:
``Sec. 3738. Borrower support services for housing loans
    ``(a) Establishment.--The Secretary shall establish a program under
which the Secretary shall provide services described in subsection (b)
to veteran borrowers and other eligible borrowers to assist such
borrowers in navigating the housing loan benefits under this chapter.
    ``(b) Authorized Services.--The services described in this
subsection include--
            ``(1) education regarding the housing loan benefits under
        this chapter;
            ``(2) assistance obtaining or resolving issues relating to
        a certificate of eligibility for such benefits;
            ``(3) counseling regarding the origination, refinancing,
        and closing processes for housing loans;
            ``(4) guidance regarding appraisal requirements, property
        standards, and loan documentation;
            ``(5) assistance navigating loan servicing matters;
            ``(6) counseling relating to loss mitigation options and
        foreclosure prevention;
            ``(7) coordination between borrowers, mortgage servicers,
        and the Department of Veterans Affairs; and
            ``(8) education regarding costs, fees, and financial
        obligations associated with housing, including commissions of
        brokers.
    ``(c) Voluntary; No Cost.--Receipt of services described in
subsection (b) shall be provided only to borrowers who choose to
receive them and shall be provided at no cost to the borrower.
    ``(d) Use of Entities Designated by the Secretary.--(1) The
Secretary may provide the services described in subsection (b) through
entities designated by the Secretary under subsection (e) and may enter
into contracts or other agreements with such organizations to provide
such services.
    ``(2) In providing such services, an entity so designated--
            ``(A) shall act solely as an independent, neutral
        intermediary; and
            ``(3) may not act as an agent of, or on behalf of, any
        mortgage lender, servicer, or real estate professional.
    ``(e) Designation of Entities.--(1) The Secretary may designate an
entity under this subsection only if the entity--
            ``(A) is approved by the Secretary of Housing and Urban
        Development as a housing counseling agency;
            ``(B) is a nonprofit organization with a primary mission of
        serving veterans, members of the United States Armed Forces, or
        military families;
            ``(C) demonstrates expertise in Department of Veteran
        Affairs home loan benefits;
            ``(D) demonstrates expertise in housing counseling,
        financial literacy, foreclosure prevention, rental guidance,
        and housing issues affecting the military and veteran
        community;
            ``(E) demonstrates the capacity to provide services on a
        multi-State or national basis;
            ``(F) demonstrates the capacity to develop, administer, and
        oversee training, certification, and performance standards for
        the individual counselors providing services under this
        section.
    ``(2) In selecting entities for designation under this subsection,
the Secretary shall prioritize entities with demonstrated experience
delivering housing counseling and financial literacy services to the
military-connected community.
    ``(f) Certification of Individual Counselors.--(1) The Secretary
shall, in consultation with the Secretary of Housing and Urban
Development, certify individuals as counselors authorized to provide
services under this section. In doing so, the Secretary shall--
            ``(A) specify the requirements that the individual must
        meet for initial certification and recertification, including
        requirements relating to continuing education and ongoing
        training; and
            ``(B) require such an individual to be recertified not less
        frequently than every three years.
    ``(2) The Secretary may enter into contracts or other agreements
with nonprofit organizations to carry out the activities under this
subsection.
    ``(g) Independence of Services.--(1) An entity providing services
under this section--
            ``(A) shall ensure that such services are operationally and
        financially independent from mortgage origination, servicing,
        and real estate brokerage activities; and
            ``(B) shall not refer or direct any borrower receiving such
        services to any entity affiliated with or related to the entity
        providing such services.
    ``(2) Paragraph (1) does not prohibit an entity that provides
services under this section from maintaining separate lines of
business, including affiliated entities engaged in mortgage or real
estate activities, as long as the entity has implemented firewalls or
other controls as the Secretary considers appropriate and all other
requirements of this section are met.
    ``(h) Conflict-of-interest Protections.--(1) An entity designated
under subsection (e), and any employee, officer, or contractor of such
an entity, shall not--
            ``(A) receive any compensation, referral fee, or other
        remuneration, directly or indirectly, from--
                    ``(i) a mortgage lender or mortgage servicer;
                    ``(ii) a real estate broker or agent; or
                    ``(iii) any entity providing loan modification,
                refinancing, or foreclosure-related services;
            ``(B) refer a borrower to any specific commercial provider
        in exchange for anything of value; or
            ``(C) engage in any activity that compromises the
        independence of the services provided under this section.
    ``(2) Each entity designated under subsection (e) shall provide
clear and timely disclosure to borrowers and to the Secretary of any
actual or potential conflicts of interest, including any affiliated
business relationships.
    ``(3) The Secretary shall establish procedures to ensure services
under this section are provided in a manner that preserves borrower
choice, ensures full transparency, and complies with applicable Federal
consumer protection laws.
    ``(i) Coordination With Housing and Urban Development.--To the
maximum extent practicable, the Secretary shall carry out the
activities under this section in consultation with the Secretary of
Housing and Urban Development and in a manner that makes effective use
of the housing counseling activities of the Department of Housing and
Urban Development, including the certification, training, and reporting
activities of the Department of Housing and Urban Development, subject
to any changes that the Secretary considers appropriate to account for
the authorities, missions, and operations of the Department of Veterans
Affairs.
    ``(j) Enforcement.--The Secretary may--
            ``(1) suspend or revoke the designation of any entity, or
        the certification of any individual, under this section; and
            ``(2) refer cases of fraud, abuse, or unlawful activity to
        the Attorney General.
    ``(k) Report.--Not later than two years after the date of the
enactment of this Act, and on annual basis for each of the next four
years thereafter, the Secretary shall submit to the Committee on
Veterans' Affairs of the Senate and the Committee on Veterans' Affairs
of the House of Representatives a report on the program under this
section. The report shall evaluate the effectiveness of the program
with respect to--
            ``(1) borrower satisfaction;
            ``(2) utilization of housing loan benefits;
            ``(3) foreclosure prevention outcomes;
            ``(4) loss mitigation completion rates;
            ``(5) redefault rates following loss mitigation; and
            ``(6) cost-effectiveness of services provided.''.
    (b) Clerical Amendment.--The table of sections at the beginning of
chapter 37 of title 38, United States Code, is amended by inserting
after the item relating to section 3737 the following new item:

``3738. Borrower support services for housing loans.''.
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