U.S. Congress
Here's a look at documents from all members of the U.S. House and the U.S. Senate
Featured Stories
Chairman Rouzer Opening Statement From Hearing on DOT Trucking Policies and Programs
WASHINGTON, March 27 -- Rep. David Rouzer, R-North Carolina, chairman of the House Transportation and Infrastructure Subcommittee on Highways and Transit, issued the following news release on March 26, 2025:
* * *
Chairman Rouzer Opening Statement from Hearing on DOT Trucking Policies and Programs
Opening remarks, as prepared, of Highways and Transit Subcommittee Chairman David Rouzer (R-NC) from today's hearing, entitled "America Builds: How Trucking Supports American Communities":
Today's hearing builds on the Subcommittee's efforts to examine key issues concerning our nation's surface transportation
... Show Full Article
WASHINGTON, March 27 -- Rep. David Rouzer, R-North Carolina, chairman of the House Transportation and Infrastructure Subcommittee on Highways and Transit, issued the following news release on March 26, 2025:
* * *
Chairman Rouzer Opening Statement from Hearing on DOT Trucking Policies and Programs
Opening remarks, as prepared, of Highways and Transit Subcommittee Chairman David Rouzer (R-NC) from today's hearing, entitled "America Builds: How Trucking Supports American Communities":
Today's hearing builds on the Subcommittee's efforts to examine key issues concerning our nation's surface transportationprograms as we work to develop and enact an on-time, multi-year surface bill. At our previous hearings, we received testimony on the importance of this subcommittee's programs to the American trucking industry, which has an instrumental role in the safe and efficient movement of goods across the highway system to each of our communities.
Today's hearing further examines these programs and their impacts with a specific focus on our motor carriers.
As predominant users of the highway system, truck drivers moved nearly two-thirds of all goods into our communities in 2023 - 12.9 billion freight tons worth an estimated $13.56 trillion.
In fact, 80 percent of communities across the country depend solely on trucks to receive their goods. More than likely, every member of this subcommittee represents a community that exclusively relies on trucking to stock their supermarket shelves, refill critical medicines at local pharmacies, and ensure retail stores have merchandise.
In North Carolina, 85.6 percent of communities are dependent on trucking, and the industry supports one in every 15 jobs across the state. I am grateful to those men and women who, day in and day out, take on the task of delivering for North Carolinians.
The trucking workforce's commitment to delivering for North Carolinians was on full display last year when Hurricane Helene ripped through our state - devastating communities, wiping out homes, and killing more than 100 people in my state. In the wake of the storm, truckers across the state and region rallied without hesitation to deliver much needed aid to our friends and neighbors.
The bottom line is that truckers deliver essential goods when disaster strikes and serve as a key partner in larger emergency coordination and relief efforts. While federal law provides for targeted regulatory relief from certain restrictions, we will continue to explore ways to help improve disaster response outcomes
Despite the importance of trucking to our communities and the supply chain at large, challenges continue to plague the trucking industry and the men and women behind the wheel.
I expect our witnesses today to detail some of the broad challenges the industry faces, including growing and retaining the truck driver workforce; ensuring seamless compliance with federal, state, and local rules and regulations; and addressing rising costs associated with moving goods from point A to point B for both small and large operators.
We have an opportunity in our surface bill to address such challenges in a smart and targeted manner while strengthening local communities and our economy. I look forward to working with my colleagues on the Subcommittee to make it easier for women and men to choose this profession. In doing so, we must explore ways to make it easier for individuals to train and test for a commercial driver's license (CDL), as well as build off the Safe Driver Apprenticeship Program established in the Infrastructure Investment and Jobs Act (IIJA) to allow 18- to 20- year-old drivers to cross state lines.
I look forward to hearing your ideas about how best to help the trucking industry continue to safely and efficiently deliver for all of our communities.
* * *
Click here (https://transportation.house.gov/calendar/eventsingle.aspx?EventID=408318) for more information, including video and witness testimony.
* * *
Original text here: https://transportation.house.gov/news/documentsingle.aspx?DocumentID=408334
Amidst Threats to Faith-Based Community Protection Grants, Moskowitz Co-Leads Bipartisan Letter Urging Admin Against Funding Cuts That Florida Houses of Worship Rely On
WASHINGTON, March 27 -- Rep. Jared Moskowitz, D-Florida, issued the following news release:
* * *
Amidst Threats to Faith-Based Community Protection Grants, Moskowitz Co-Leads Bipartisan Letter Urging Admin Against Funding Cuts That Florida Houses of Worship Rely On
WASHINGTON, DC -- Congressmen Jared Moskowitz (D-FL-23), Josh Gottheimer (D-NJ-05), and Mike Lawler (R-NY-17) recently joined together to push the Trump Administration to safeguard FEMA's Non-Profit Security Grant Program (NSGP), a key source of security funding for houses of worship and faith-based nonprofits across Florida. Their
... Show Full Article
WASHINGTON, March 27 -- Rep. Jared Moskowitz, D-Florida, issued the following news release:
* * *
Amidst Threats to Faith-Based Community Protection Grants, Moskowitz Co-Leads Bipartisan Letter Urging Admin Against Funding Cuts That Florida Houses of Worship Rely On
WASHINGTON, DC -- Congressmen Jared Moskowitz (D-FL-23), Josh Gottheimer (D-NJ-05), and Mike Lawler (R-NY-17) recently joined together to push the Trump Administration to safeguard FEMA's Non-Profit Security Grant Program (NSGP), a key source of security funding for houses of worship and faith-based nonprofits across Florida. Theirletter to Acting FEMA Administrator Cameron Hamilton--joined onto by 76 other members of the U.S. House of Representatives--comes as the Trump Administration considers drawdowns in funding for Federal Emergency Management Grant programs like this one.
"All across America, we're seeing an increase in antisemitic hate crimes, including at my own synagogue in Parkland," Congressman Moskowitz said. "We need to be doing everything we can to protect places of worship that face continuous threats. As a former emergency manager who helped facilitate these funds for the state of Florida, I know how important FEMA's Non-Profit Security Grant Program is to protecting faith-based communities. I want to ensure that these grants get to the non-profits and houses of worship that need them, and I want assurance that these grants won't be impacted when the Administration finishes its review of FEMA projects."
The temple in Parkland, Florida, that Moskowitz belongs to was targeted in October 2023 by five individuals wearing ski masks and shouting "Kill the Jews" and other antisemitic obscenities at congregants. In 2023, there were 2,699 reported hate crimes based on religion, of which around two-thirds were driven by antisemitism--the highest number ever recorded by the FBI since it began collecting the data in 1991.
The Non-Profit Security Grant Program (NSGP) has provided life-saving funding to protect faith-based communities and institutions. From bollards to prevent vehicular attacks, reinforced doors to keep intruders out, CCTV cameras to monitor threats, and emergency alert systems that allow rapid response, the NSGP has ensured faith-based institutions are equipped with vital tools to prevent loss of life in the case of an attack.
There are numerous examples that demonstrate the impact of NSGP. In July 2023, when an armed gunman attempted to breach the Margolin Hebrew Academy in Memphis, NSGP-funded access control doors prevented the shooter from entering the school. In 2021, when gunfire struck the Jewish Family Service building in Denver, NSGP-funded window filming stopped the bullets.
Congressman Moskowitz has been a leading voice in Washington for calling out rising threats to the Jewish community. In February, he also joined Reps. Lawler and Gottheimer to re-introduce the Antisemitism Awareness Act to protect Jewish students.
For more information on the letter led by Reps. Moskowitz, Gottheimer, and Lawler, click HERE.
* * *
Original text here: https://moskowitz.house.gov/posts/moskowitz-gottheimer-and-lawler-push-to-safeguard-femas-nonprofit-security-grant-program
Carey, Miller Introduce Bill to Accelerate Assistance to Families and Children in Need
WASHINGTON, March 27 -- Rep. Mike Carey, R-Ohio, issued the following news release on March 26, 2025:
* * *
Carey, Miller Introduce Bill to Accelerate Assistance to Families and Children in Need
WASHINGTON, D.C. - Today, U.S. Reps. Mike Carey (R-Ohio-15) and Max Miller (R-Ohio-07), both members of the House Ways and Means Committee, introduced legislation to expedite the disbursement of payments to families in need through the Temporary Assistance for Needy Families program (TANF). The bill, titled the Improve Transparency and Stability for Families and Children Act, would require states to
... Show Full Article
WASHINGTON, March 27 -- Rep. Mike Carey, R-Ohio, issued the following news release on March 26, 2025:
* * *
Carey, Miller Introduce Bill to Accelerate Assistance to Families and Children in Need
WASHINGTON, D.C. - Today, U.S. Reps. Mike Carey (R-Ohio-15) and Max Miller (R-Ohio-07), both members of the House Ways and Means Committee, introduced legislation to expedite the disbursement of payments to families in need through the Temporary Assistance for Needy Families program (TANF). The bill, titled the Improve Transparency and Stability for Families and Children Act, would require states toallocate and distribute federal funding they receive for TANF within three years.
"Delays in TANF fund distributions can threaten critical assistance to low-income families trying to make ends meet for their children," Rep. Carey said. "My bill, the Improve Transparency and Stability for Families and Children Act, would streamline the process to make sure these resources reach their intended target without getting held up by delays in the states and would create concrete deadlines and standards that need to be upheld. I encourage my colleagues to join me in passing it."
"The Improve Transparency and Stability for Families and Children Act will ensure vital resources are targeted to struggling families in a timely manner while bringing needed accountability and transparency to the system," Rep. Miller said. "I applaud Congressman Carey and the work of the Ways and Means Committee that will create more efficiencies for both American families and taxpayers."
"The TANF program provides a lifeline to families all across our nation that have fallen on hard times, yet the current system allows states to sit on those benefits instead of providing support to folks in need. I applaud Congressman Carey's work on the Improve Transparency and Stability for Families and Children Act as a much-needed step toward better efficiency and accountability to bring TANF in line with other federal grant programs by requiring the support quickly flow to those in need, providing basic financial safeguards for taxpayer dollars," House Ways and Means Committee Chairman Jason Smith (R-Mo.-08) said.
BACKGROUND:
Unlike other grant programs, there is no current obligation or liquidation deadline for states to spend TANF funds. This has resulted in multiple states failing to properly use their TANF funds to create programs to help lift individuals out of poverty.
The Improve Transparency and Stability for Families and Children Act sets a two-year period by which TANF funds must be designated for use, with an additional year before the money must be spent.
The bill also allows states to allocate 15% of their TANF funding toward a "rainy day fund," which is to be used in case of crisis.
Rep. Carey previously introduced this bill in the 118th Congress.
Full text of the bill can be found here.
* * *
Original text here: https://carey.house.gov/2025/03/26/carey-miller-introduce-bill-to-accelerate-assistance-to-families-and-children-in-need/
Bacon, Houlahan, Panetta, Bergman Reintroduce the Unity Through Service Act
WASHINGTON, March 27 -- Rep. Don Bacon, R-Nebraska, issued the following news release on March 25, 2025:
* * *
Press Releases
Bacon, Houlahan, Panetta, Bergman Reintroduce the Unity Through Service Act
The bipartisan, bicameral reintroduction coincides with the Fifth anniversary of the National Commission on Military, National, and Public Service's final report.
Washington, D.C. - Today, Representatives Don Bacon (R-NE), Chrissy Houlahan (PA-06), Jimmy Panetta (D-CA), and Jack Bergman (R-MI), reintroduced the Unity Through Service Act. The reintroduction marks the fifth anniversary since
... Show Full Article
WASHINGTON, March 27 -- Rep. Don Bacon, R-Nebraska, issued the following news release on March 25, 2025:
* * *
Press Releases
Bacon, Houlahan, Panetta, Bergman Reintroduce the Unity Through Service Act
The bipartisan, bicameral reintroduction coincides with the Fifth anniversary of the National Commission on Military, National, and Public Service's final report.
Washington, D.C. - Today, Representatives Don Bacon (R-NE), Chrissy Houlahan (PA-06), Jimmy Panetta (D-CA), and Jack Bergman (R-MI), reintroduced the Unity Through Service Act. The reintroduction marks the fifth anniversary sincethe release of the National Commission on Military, National, and Public Service's final report, which first recommended the bill's provisions. The bill was also reintroduced in the Senate by Jack Reed (D-RI) and Todd Young (R-IN).
This bipartisan, bicameral bill would establish the Interagency Council on Service to coordinate reviews of current programs and plan new strategies for recruitment. The legislation would authorize a joint advertising and recruitment program between the Department of Defense, the Corporation on National and Community Service, and the Peace Corps in order to share information. Moreover, the bill would help transitioning service members find future service opportunities and create a quadrennial report to Congress about public service initiatives.
"I know first-hand the importance and value of service to your country as a retired Air Force General. We have seen a decline in the number of young Americans signing up to serve in our nation's armed forces and public service, and this commission will help to answer the question of 'why?' We need to be able to attract qualified individuals with critical skills necessary to serve," said Bacon.
"Having served in the Air Force and as a Teach for America educator, I know the profound impact national service can have to improve someone's life and community," said Houlahan. "This bipartisan legislation is an important step that will revitalize national service in this country. The bill will boost the ongoing collaboration between America's military, public, and national service organizations to create new opportunities for our citizens to serve. Through service, I know we can reforge the bonds of unity that tie us all together."
"Ever since the pandemic, the number of Americans participating in volunteer work has been on the decline," said Panetta. "I'm proud to work alongside Rep. Houlahan on the Unity Through Service Act which would implement elements of our larger Inspire to Serve Act to establish an Interagency Council on Service to promote opportunities for military service, national service, and public service. In service to others, we perpetuate our democratic values and I look forward to continuing to fight for impactful legislation to better mobilize Americans volunteering for the betterment of their community and country."
"The Unity Through Service Act will be a bridge between service entities, providing education, support, and coordination between our military and civil service," said Bergman. "This legislation will drive enthusiasm to serve our Nation among young people. I'm proud to help lead this bill to will continue advancing our military capabilities."
The bill is also endorsed by notable public service organizations.
"As we celebrate the fifth anniversary National Commission on Military, National, and Public Service's Inspired to Serve report, With Honor Action is proud to endorse the Unity Through Service Act. As a veteran-founded and veteran-led organization, we strongly believe in the critical role that service, both in and out of uniform, plays in our democracy. By creating an Interagency Council on Service and coordinating efforts across federal agencies, this bill strengthens civic engagement and promotes service opportunities for all Americans," said Rye Barcott, CEO of With Honor Action. "We applaud the leadership of Representatives Chrissy Houlahan and Jack Bergman for their continued service to our nation."
"On behalf of our nation's State and Territorial Service Commissions, we thank Rep. Houlahan (D-PA), Rep. Bacon (R-NE), Rep. Bergman (R-MI), and Rep. Panetta (D-CA) for their support of the bipartisan Unity Through National Service Act. National service enables Americans to address critical issues in our communities and instills a sense of mission and purpose in those that serve. We look forward to engaging with the Interagency Council on Service to advise the President on ways that national, military, and public service partners - and importantly our states - can work together to promote and expand opportunities to serve our country and improve those experiences," said Kaira Esgate, CEO of America's Service Commissions. "Critically, the Council would also develop new interagency partnerships to address national challenges and support the transition between branches of service and into careers. We urge Congress to advance this bipartisan legislation as soon as possible."
"National service is a powerful force for uniting Americans in common purpose, and the Unity through Service Act represents an important step forward in ensuring more people can serve," said AnnMaura Connolly, President of Voices for National Service. "By elevating service and fostering greater collaboration across agencies, this bill will help strengthen national service programs, open new pathways to service, and enable more Americans to contribute to their communities and country. The Voices for National Service community is grateful to Representatives Houlahan, Bacon, Bergman, and Panetta for their leadership and their continued commitment to expanding opportunities for service."
The full text of the bill can be found here.
A one-pager on the Unity Through Service Act can be found here.
* * *
Original text here: https://bacon.house.gov/news/documentsingle.aspx?DocumentID=2623
American Enterprise Institute Senior Fellow Peter Testifies Before House Veterans' Affairs Subcommittee
WASHINGTON, March 27 -- The House Veterans' Affairs Subcommittee on Economic Opportunity released the following testimony by Tobias Peter, co-director of the Housing Center and senior fellow at the American Enterprise Institute, from a March 11, 2025, hearing on veteran care and benefits related legislation:
* * *
Chairman Van Orden and Ranking Member Pappas, and distinguished Members of the Subcommittee, thank you for the opportunity to testify today.
The VA Loan Program: Managing Mortgage Risk and Policy Considerations The VA loan program has consistently outperformed other government-backed
... Show Full Article
WASHINGTON, March 27 -- The House Veterans' Affairs Subcommittee on Economic Opportunity released the following testimony by Tobias Peter, co-director of the Housing Center and senior fellow at the American Enterprise Institute, from a March 11, 2025, hearing on veteran care and benefits related legislation:
* * *
Chairman Van Orden and Ranking Member Pappas, and distinguished Members of the Subcommittee, thank you for the opportunity to testify today.
The VA Loan Program: Managing Mortgage Risk and Policy Considerations The VA loan program has consistently outperformed other government-backedmortgage programs--including FHA, Fannie Mae, and Freddie Mac--in managing mortgage risk.
During the aftermath of the Great Financial Crisis, VA loans recorded default rates:
* Nearly 50% lower than FHA loans, despite serving borrowers with comparable risk profiles.
* Nearly 45% lower than Fannie Mae and Freddie Mac's loans when adjusted for differences in risk profiles.
Even in recent years, under less stressful market conditions, the VA's serious delinquency rates have remained about half the level of those of FHA, despite serving borrowers with comparable risk profiles. (See Appendix 1 for more details.) While the precise reasons for this disparity are complex, several factors likely contribute:
* More prudent underwriting standards, particularly the VA's residual income requirement, which ensure borrowers have sufficient income after expenses.
* The VA's appraisal process, including its Tidewater Initiative, is veteran-focused and promotes more accurate appraisals, while reducing the risk of inflated valuations.
* The military background of VA borrowers, which may correlate with greater financial discipline and stability.
* Unlike the FHA, which insures 100% of the loan amount, the VA guaranty has a stop loss of 25% of the loan amount. This aligns the private servicer's loss mitigation interests with those of the VA and the veteran.
VA Loan Servicing at a Crossroads Despite these strengths, VA loan servicing faces significant challenges. While no one wants to see foreclosures, especially among veterans, it is essential to recognize that a housing finance system without the possibility of foreclosure is inherently unsustainable--much like "religion without hell."
Without accountability, the system risks morphing into an entitlement program, distorting market incentives and ultimately undermining long-term stability for both veterans and taxpayers.
Moreover, history has shown that government programs often begin with a limited scope, only to expand beyond recognition and sustainability due to constant program expansion--the federal student loan program being a prime example.
Expanded loss mitigation programs carry significant risks:
* Short-term reductions in delinquency and default rates may be illusory, as borrowers may continue struggling even after intervention.
* Encourages riskier lending practices, with some already advocating for more generous loan terms despite high default risks.
This is particularly concerning, given that 54% of VA first-time borrowers have less than one months' of reserves (assets remaining after deducting closing costs, gifts, and down payments), leaving them financially vulnerable in the event of unexpected hardships.
* Increases housing demand without addressing supply constraints, further inflating home prices.
* Places taxpayers at greater risk, as federal backing means losses are ultimately borne by the public.
Recent Biden administration initiatives reflect a trend toward socializing mortgage finance. I commend this committee's leadership for seeking to reverse some of these concerning developments.
Concerns with the VA Servicing Purchase (VASP) Program The VASP program could set a negative precedent for direct lending by the VA, potentially reshaping the entire veteran housing finance system--at the expense of veterans, taxpayers, and private servicers.
The VA is apparently using its statutory authority to adopt a more interventionist approach to foreclosure prevention. As my AEI colleague Philip Wallach recently testified, this approach amounts to an "extraordinarily generous form of relief," potentially tempting borrowers holding mortgages with 7-8% interest rates to undertake strategic default. The program's protections against such default, however, appear insufficient, creating moral hazard.
This represents a philosophical shift from the VA's traditional role of guaranteeing private loans in Ginnie Mae securities to directly managing veteran mortgages--a step toward socialized lending with potentially unintended consequences, including:
* Potentially disrupting the current alignment among private servicers, the VA, and veterans in managing loss mitigation efforts. If this were to happen, default rates within the VA program--particularly under financial stress--could begin to mirror those of FHA, Fannie Mae, and Freddie Mac, undermining the program's historically stronger performance.
* Increased taxpayer exposure in the event of widespread defaults, as the VASP program merely defers financial risk rather than addressing its root causes. By kicking the can down the road, VASP could amplify long-term losses, creating a greater financial burden on taxpayers in the future.
* Higher taxpayer costs, as lowering the interest rate to 2.5% on a VASP loan can be extremely expensive. To my knowledge, the VA has not disclosed the per-loan cost of this rate reduction, making the total financial impact unclear.
* Looser lending standards, increasing overall mortgage risk and the likelihood of defaults.
* Increased risk of political interference, leading to expanding benefits and growing financial liabilities over time.
* Servicers potentially exiting the market due to diminished roles and crowding out of traditional lenders, which could reduce competition and limit financing options for veterans, ultimately leaving them with fewer choices and less flexibility in the mortgage market.
* Potentially disadvantaging veterans over time as the VA assumes the role of direct lender and servicer, despite lacking the expertise required for large-scale loan management.
The parallels between VASP and the federal student loan program are clear:
* The 2010 Student Aid and Fiscal Responsibility Act made the government the sole student loan lender through the Direct Loan Program, thereby eliminating private underwriting.
* Unrestricted borrowing fueled tuition inflation and rising defaults.
* Income-driven repayment shifted costs to taxpayers, with forgiveness after 10-25 years.
* Moral hazard increased as borrowers expected partial or full loan forgiveness.
Just as the student loan program evolved into an unsustainable entitlement, VASP marks the first step down a similar path, eroding private-sector discipline in favor of costly, taxpayer-funded federal intervention.
Given that the VA intends this program to serve "more than 40,000 Veterans" and that it likely is already well underway, I commend the committee's leadership for its efforts to limit its scope by:
* Capping VA loan purchases at 250 per fiscal year, and
* Mandating the VA to study within 180 days the sale of acquired VASP loans to the private sector, where they can be managed more efficiently.
Furthermore, it is likely a vast overstatement to claim that all borrowers currently seriously delinquent on their VA loans will inevitably lose their homes to foreclosure if the VASP program is curtailed.
Today, loan workouts are still available but much harder to achieve given today's higher mortgage rates. Yet there's a simpler, common-sense option for many struggling borrowers: selling the home. My analysis of servicer data shows that out of approximately 80,000 seriously delinquent VA loans, about 84% of borrowers would hold positive equity after selling their homes -- even after accounting for arrearages and transaction costs (see table)./1
This reflects the fact that most veterans purchased their homes years ago and have benefited significantly from rapid home price appreciation during the pandemic, along with steady principal paydown through amortization. Among those with positive equity, the average amount is $128,000, with a median of $97,000. But instead of encouraging sales that would preserve veterans' dignity -- as was traditionally the case -- the VASP program fosters government dependency while shifting the risk and losses onto taxpayers.
To be clear, 16% of seriously delinquent borrowers -- roughly 13,000 veterans -- would still face negative equity if forced to sell, with an average shortfall of $19,000 and a median of $14,000. But this is primarily due to transaction costs -- costs that are part of the risk and responsibility that come with homeownership, willingly accepted at the time of purchase. They are also far less behind on their payments and they also have the most to gain from the VASP's 2.5% mortgage rate as their rates are on average over 6%.
* * *
1 The current equity position is calculated as the difference between the estimated current home value and the unpaid principal balance. We estimate the current home value by adjusting the original loan amount and loan-to-value (LTV) ratio using ZIP-level changes from the FHFA Home Price Index. From this, we subtract all missed interest payments -- inferred from the loan term, note rate, loan age, and original loan amount -- as well as assumed transaction costs equal to 7% of the current home value. The data exclude any equity that a borrower may have extracted previously through a home equity loan or a HELOC.
* * *
Table: Estimated equity distribution of VA seriously delinquent borrowers if they sold their homes
Note: Data are for purchase and refinance loans and are as of Dec. 2024. The current equity position is calculated as the difference between the estimated current home value and the unpaid principal balance. We estimate the current home value by adjusting the original loan amount and loan-to-value (LTV) ratio using ZIP-level changes from the FHFA Home Price Index. From this, we subtract all missed interest payments -- inferred from the loan term, note rate, loan age, and original loan amount -- as well as assumed transaction costs equal to 7% of the current home value.
Source: ICE McDash and AEI Housing Center.
* * *
My analysis also compares the loan characteristics of the roughly 80,000 currently seriously delinquent VA borrowers to the broader VA loan portfolio. The data show a clear pattern: Seriously delinquent borrowers had significantly lower credit scores at origination -- about 51 points lower on average, with an average score of 673 --than those of borrowers who remain current, who have an average score of 723./2
The problem of borrowers with lower credit scores becoming seriously delinquent seems to have become significantly worse since 2020 (see chart)./3
This points to a deeper problem -- not simply borrower hardship, but a failure of too loose government underwriting standards that should be addressed at the front end, rather than through costly government programs after the fact. (See Appendix 1 for more details, which provides periodic tables of actual defaults under severe stress for various combinations of credit score, LTV, and DTI buckets at loan origination. For reference, the loans that are serious delinquent and were originated in 2022-2024 have an expected default rate of 22.5% under severe stress, while the ones that are not seriously delinquent have an expected default rate of 9.3% -- or about 2.5 times lower.)
* * *
2 The analysis controls for loan purpose and year of origination. The seriously delinquent borrowers also have about 2.4 ppts higher debt-to-income (DTI) ratios at origination than those that are not seriously delinquent, but DTIs are only reported in about 20% of loans.
3 Some of this effect may also be due to selection bias as seriously delinquent borrowers may have exited the VA loan book through foreclosure or home sale over the years. But the point remains that lower credit scores are a significant contributor to serious delinquency.
* * *
Evaluating the VA Home Loan Program Reform Act The proposed loss mitigation options offer a more structured and balanced approach compared to the VASP program, but they come with significant drawbacks:
* Establishes a waterfall for servicers, with partial claims as last resort.
* However, it could create incentives for servicers to bypass traditional loss mitigation tools (e.g., servicer forbearance, repayment plans, loan modifications) and move directly to partial claims since they bear no financial risk leaving taxpayers on the hook.
* It also front-loads partial claims against the 25% stop loss, potentially disadvantaging veterans in the long run. If a veteran exhausts their entitlement early, they could have fewer loss mitigation options available 5, 10, or 15 years down the road, leaving them more vulnerable in future financial hardships.
* It is crucial to remember that the VA's 25% stop-loss provision has historically protected the program under financial stress, ensuring long-term sustainability.
* The inclusion of a sunset provision for the Partial Claim option in September 2027 is a notable strength, as it effectively limits taxpayer exposure when compared to the VASP program. The one-claim-per-loan limit further curbs long-term liability.
* However, there is no overall cap on the Partial Claim program, which could lead to moral hazard, encouraging some borrowers to take advantage of 0% loans and live payment-free for extended periods (especially if they restart payments within three years).
* Requiring reporting to Congress is a positive step toward oversight and evaluation.
* However, reporting should be ongoing, publicly accessible, and include all costs, in order to allow policymakers, researchers, and taxpayers to assess the program's effectiveness in time.
While VA Home Loan Program Reform Act is a clear improvement over the VASP program, it should not be considered as a long-term solution. Ultimately, a well-designed loss mitigation strategy should balance borrower relief with fiscal responsibility, preventing unnecessary taxpayer exposure. Proponents argue that forbearance and partial claim programs were successful during the pandemic, but the pandemic was not a true stress test because:
* Double-digit home price appreciation (HPA) artificially protected borrowers from foreclosure risk, which allowed borrowers to easily sell their homes.
* Historically low unemployment rates minimized delinquency rates.
* Pre-pandemic trends (2017-2019) saw an average of 15,000 completed VA loan foreclosures per year. Despite all loss mitigation efforts, 2023 still saw 10,000 completed foreclosures, proving that some defaults are inevitable and that expanded loss mitigation cannot eliminate risk.
* * *
A Better Path Forward: Sustainable Homeownership
The ultimate goal should be to provide every veteran a fair opportunity to succeed at homeownership without relying on government bailouts.
My research, analyzing 200,000 VA loans and 1,600,000 GSE loans originated in 2006-07 (just before the Global Financial Crisis, a true stress event), identifies several key factors that significantly reduce default risk:
Shorter Loan Terms:
* Loans with terms of 15-20 years reduced serious default rates by over 50%, particularly among borrowers with credit scores below 660.
Multiple Borrowers:
* Loans with two borrowers instead of one saw a 20-30% reduction in serious defaults, likely due to greater income stability and diversification within the household.
* Stable Housing Markets:
* In areas where lending practices were more prudent, home prices remained stable and did not experience significant declines, default rates were about 50% lower for the typical VA borrower.
* Adequate Liquid Reserves:
* Borrowers with sufficient liquid reserves demonstrated greater staying power, reducing defaults by several percentage points. Importantly, these findings are consistent with more recent loan data from 2013-2015, suggesting that these factors remain relevant predictors of loan performance across different market cycles.
The details of this analysis can be found in Appendix 1.
* * *
Conclusion:
Balancing Sustainability with Accessibility As this committee considers next steps, the choice is clear:
* Market-based solutions that promote sustainable homeownership, or
* A socialized housing finance system, with the long-term risks that entails.
While homeownership brings many societal and personal benefits, it must be sustainable--not forced. By focusing on responsible underwriting, prudent loan characteristics at origination, and borrower resilience, we can protect both veterans and taxpayers while ensuring a stable housing finance system for years to come.
In Appendix 2, I also offer brief comments on the Fair Access to Coops for Veterans Act of 2025, which may not represent a significant expansion of housing supply accessible to most veterans.
* * *
Original text here: https://docs.house.gov/meetings/VR/VR10/20250311/117985/HHRG-119-VR10-Wstate-PeterT-20250311.pdf
