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Bill

HR 9404

VA Home Loan Navigator Act

119th Congress Introduced by Jack Bergman and 5 co-sponsors

Creates a voluntary, no-cost VA program to educate and guide borrowers on VA home loan benefits, with independent counseling and lender/servicer safeguards.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 9404

Summary of HR 9404 — VA Home Loan Navigator Act

Purpose and intent

  • Establish a new program within the Department of Veterans Affairs (VA) to provide borrower support services for housing loan benefits administered by the VA.
  • Aim: help veteran borrowers and other eligible borrowers navigate VA home loan benefits, improve understanding of costs and obligations, and support loan origination, servicing, and foreclosure prevention processes.

Key provisions and changes

  • Create new VA program: Section 3738 added to Chapter 37 of title 38, United States Code.
  • Authorized services (non-exhaustive list):
    • Education on VA housing loan benefits.
    • Assistance obtaining or resolving issues related to a certificate of eligibility.
    • Counseling on origination, refinancing, and closing of housing loans.
    • Guidance on appraisal requirements, property standards, and loan documentation.
    • Help navigating loan servicing matters.
    • Counseling on loss mitigation and foreclosure prevention.
    • Coordination between borrowers, mortgage servicers, and the VA.
    • Education about housing costs, fees, financial obligations, and broker commissions.
  • Voluntary and no-cost: Services are offered to borrowers who opt in and are provided at no cost.
  • Use of designated entities:
    • VA may designate independent, neutral entities to provide services under a federal framework, via contracts or agreements.
    • Designated entities must act as independent intermediaries and not as agents for lenders, servicers, or real estate professionals.
  • Designation criteria for entities:
    • Eligible designation by VA if the entity is approved as a HUD-approved housing counseling agency, is a nonprofit serving veterans/military families, and demonstrates expertise in VA loan benefits and housing counseling, financial literacy, foreclosure prevention, etc.
    • Preference for entities with experience serving the military-connected community and the capacity to operate nationally or multi-state and to train and certify counselors.
  • Counselor certification:
    • VA, in consultation with the Department of Housing and Urban Development (HUD), will certify individual counselors, specify initial and ongoing certification requirements, and require recertification at least every three years.
    • Nonprofit organizations may be contracted to carry out certification activities.
  • Independence and conflicts of interest:
    • Designated entities must be independent from mortgage origination, servicing, and real estate brokerage activities.
    • Prohibitions on referrals to affiliated entities for compensation.
    • Clear disclosure of actual or potential conflicts of interest to borrowers and to VA.
    • Procedures to ensure borrower choice, transparency, and compliance with consumer protection laws.
  • Coordination with HUD:
    • VA should coordinate with HUD to align activities with HUD’s housing counseling programs, utilizing HUD’s certification, training, and reporting where appropriate.
  • Enforcement and oversight:
    • VA can suspend or revoke designation or counselor certification.
    • Fraud, abuse, or unlawful activity may be referred to the Attorney General.
  • Reporting and evaluation:
    • Not later than two years after enactment, and annually for the following four years, VA must report to Senate and House Veterans’ Affairs Committees on program effectiveness, including borrower satisfaction, utilization, foreclosure outcomes, loss mitigation completion and redefault rates, and cost-effectiveness.
  • Clerical amendment:
    • Adds a new section 3738 to the table of sections in Chapter 37.

Who is affected

  • Veterans and other eligible borrowers who use VA housing loan benefits, who may opt into the free borrower support services.
  • Designated nonprofit organizations and HUD-approved housing counseling agencies that may be designated to provide these services.
  • VA and, to a degree, HUD, through coordination and potential certification alignments.
  • Mortgage lenders, servicers, and real estate professionals, who must comply with independence and conflict-of-interest protections.

Procedural and timeline aspects

  • Introduction and referral: Introduced June 23, 2026; referred to the House Committee on Veterans’ Affairs.
  • Implementation timeline:
    • Section 3738 would be established upon enactment, with designation and certification processes for entities and counselors.
    • First mandated program performance report due within two years of enactment, followed by annual reports for the next four years.
  • Monitoring and enforcement mechanisms:
    • VA authority to designate, suspend, or revoke entities and certifications.
    • Fraud and abuse referrals to the Attorney General.
  • Reporting cadence:
    • Annual evaluations covering borrower satisfaction, utilization, foreclosure outcomes, loss mitigation metrics, redefault rates, and cost-effectiveness.

Potential impact and considerations

  • Pros:
    • Enhanced consumer understanding and navigation of VA home loan benefits.
    • Increased borrower protection through independent, neutral counseling and disclosed conflicts of interest.
    • Potential improvements in loan outcomes, foreclosure prevention, and financial literacy among veterans.
  • Considerations:
    • Effectiveness will depend on clear implementation of independence safeguards, robust counselor certification, and adequate funding.
    • The success of coordination with HUD could influence the quality and reach of counseling services.
    • Ongoing oversight and transparent reporting will be key to assessing impact.

This bill would be a structural addition to VA housing benefits administration, introducing a formal, voluntary, no-cost counseling and navigation framework designed to assist veterans and eligible borrowers throughout the life cycle of VA home loans.

Compiled from official sources — confirm details with the bill’s official record.

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