H.R. 9404

[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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