SUPERSEDED — 38 U.S.C. § 3737 as enacted by Pub. L. 119-31 (July 30, 2025), before Pub. L. 119-37 — VA Partial Claim Program

va-38usc-3737-partial-claim-superseded-2025

Full verbatim text of new 38 U.S.C. § 3737 (“Partial Claim Program”), enacted by Section 3 of the VA Home Loan Program Reform Act, Public Law 119-31 (July 30, 2025). Captured section-by-section from the Public Law PDF: establishment and eligibility (a); partial claim described — Secretary purchase and subordinate secured interest (b); administration — 25%/30% caps, one-claim rule, arrearages-first application, servicing contract (c); loan-holder document duties and compensation (d); default, borrower liability, entitlement reduction and foreclosure (e); decisions of the Secretary (f); compliance certification and post-payment audits (g); guidance for certain loans (h); rule of construction (i); and five-year termination (j).

Superseded — retained for reference. The operative requirements have moved to the current rule (see the description above).

This register: .xlsx .csv

Verbatim regulatory text (26)

Verbatim provisions from SUPERSEDED — 38 U.S.C. § 3737 as enacted by Pub. L. 119-31 (July 30, 2025), before Pub. L. 119-37 — VA Partial Claim Program — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

38 U.S.C. §3737(a) — Establishment of the Partial Claim Program and loan eligibility

The Secretary shall carry out a program, to be known as the ‘Partial Claim Program’, under which the Secretary may make a partial claim, described in subsection (b), with respect to a loan— ‘‘(1) guaranteed under this chapter; ‘‘(2) regarding the primary residence of the borrower; and ‘‘(3) that the Secretary determines is in default or at imminent risk of default.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Establishment of the Partial Claim Program and loan eligibility · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(b) — Partial claim described: Secretary purchases a portion of the indebtedness

is the purchase by the Secretary of a portion of indebtedness under the loan, through a transaction under which the Secretary— ‘‘(1) pays to the holder of the loan the amount of indebted- ness, subject to subsection (c), that the Secretary determines necessary to help prevent or resolve a default; and ‘‘(2) receives a secured interest in the property that serves as collateral for the guaranteed loan, which is subordinate to the first lien guaranteed loan for such property.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Partial claim described: Secretary purchases a portion of the indebtedness · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(b)(1) — Secretary pays the amount necessary to help prevent or resolve a default

subject to subsection (c), that the Secretary determines necessary to help prevent or resolve a default; and

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Secretary pays the amount necessary to help prevent or resolve a default · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(b)(2) — Secretary receives a secured interest subordinate to the first lien guaranteed loan

receives a secured interest in the property that serves as collateral for the guaranteed loan, which is subordinate to the first lien guaranteed loan for such property.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Secretary receives a secured interest subordinate to the first lien guaranteed loan · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(c)(1)(A) — Partial claim may not exceed 25 percent of unpaid principal balance

the amount of a partial claim under this section with respect to a loan guaranteed described in subsection (a) may not exceed 25 percent of the unpaid principal balance of the loan on the date on which the partial claim is made.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Partial claim may not exceed 25 percent of unpaid principal balance · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(c)(1)(B) — 30 percent cap for borrowers delinquent March 1, 2020 through May 1, 2025

In the case of an individual who failed to make a payment on a loan guaranteed under this chapter during the period beginning on March 1, 2020 and ending on May 1, 2025, the amount of a partial claim under this section may not exceed 30 percent of the unpaid principal balance of the guaranteed loan as of the date that the initial partial claim is made.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — 30 percent cap for borrowers delinquent March 1, 2020 through May 1, 2025 · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(c)(2)(A) — Only one partial claim per loan

Subject to subparagraph (B), the Secretary may make only one partial claim per loan.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Only one partial claim per loan · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(c)(2)(B) — Additional partial claim permitted for major-disaster delinquency

The Secretary may make an additional partial claim on a loan guaranteed under this chapter in the case of an individual who failed to make a payment on such loan during— ‘‘(i) a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170); or ‘‘(ii) the period of 120 days following such a major disaster.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Additional partial claim permitted for major-disaster delinquency · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(c)(3) — Partial-claim amount does not count against, and is not applied to, the guaranteed portion

An amount paid to the holder of a loan as a partial claim— ‘‘(A) shall not count against the amount of a loan that may otherwise be guaranteed under this chapter; and ‘‘(B) may not be applied to the portion of the loan that is guaranteed under this chapter.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Partial-claim amount does not count against, and is not applied to, the guaranteed portion · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(c)(4) — Holder must apply the partial-claim amount first to arrearages

shall apply the amount paid by the Secretary for the partial claim first to arrearages, if any, on the guaranteed loan.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Holder must apply the partial-claim amount first to arrearages · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(c)(5) — Servicing contract must provide quarterly statements to the holder

Any such contract shall provide that such entity shall provide quarterly statements to the holder of the loan for which the Secretary makes the partial claim.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Servicing contract must provide quarterly statements to the holder · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(d)(1) — Holder must prepare, execute, transmit, receive, and record loan documents

The Secretary may require the holder of a loan for which the Secretary makes a partial claim under this section to take any actions necessary to establish the partial claim, including preparing, executing, transmitting, receiving, and recording loan documents.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Holder must prepare, execute, transmit, receive, and record loan documents · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(d)(2) — Secretary shall compensate the holder for required services

The Secretary shall compensate the holder of such a loan appropriately, as determined by the Secretary, for the services required of such holder under this subsection.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Secretary shall compensate the holder for required services · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(d)(3) — Authority exercisable without regard to other law governing expenditure of public funds

law not enacted expressly in limitation of this section that would otherwise govern the expenditure of public funds.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Authority exercisable without regard to other law governing expenditure of public funds · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(e)(1)(A) — Borrower who defaults is liable to the Secretary for any resulting loss

an individual who defaults on a loan for which the Secretary makes a partial claim made under this section shall be liable to the Secretary for any loss suffered by the Secretary resulting from such default. Such a loss may be recovered in the same manner as any other debt due the United States.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Borrower who defaults is liable to the Secretary for any resulting loss · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(e)(1)(B) — Secretary may reduce the borrower's guaranty or insurance entitlement on default

In the event of default by an individual on a loan for which the Secretary makes a partial claim made under this section, the Secretary may reduce the aggregate amount of guaranty or insurance housing loan entitlement available to the individual under this chapter.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Secretary may reduce the borrower's guaranty or insurance entitlement on default · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(e)(2) — Foreclosure of the United States' lien follows State or local law

Notwithstanding section 2410(c) of title 28, an action to foreclose a lien held by the United States arising under a partial claim made under this section shall follow foreclosure procedures in accordance with State or local law where the property involved is located.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Foreclosure of the United States' lien follows State or local law · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(f)(1) — Partial claims made in the sole discretion of the Secretary

Any partial claim made under this section shall be made in the sole discretion of the Secretary and on terms and conditions acceptable to the Secretary that are consistent with this section.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Partial claims made in the sole discretion of the Secretary · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(f)(2) — Secretary's decision is final and conclusive and not subject to judicial review

Any decision by the Secretary under this section is final and conclusive and is not subject to judicial review.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Secretary's decision is final and conclusive and not subject to judicial review · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(f)(3) — Decisions are not benefits decisions for purposes of section 511

For purposes of section 511 of this title, any decision under this section shall not be treated as a decision under a law that affects the provision of benefits.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Decisions are not benefits decisions for purposes of section 511 · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(g)(1) — Payment-processing standards based on holder certification of compliance

The Secretary may establish standards for processing payments under this section based on a certification by a holder of a loan guaranteed under such chapter that the holder has complied with all applicable requirements established by the Secretary.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Payment-processing standards based on holder certification of compliance · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(g)(2) — Random-sampling post-payment audits to ensure compliance

The Secretary shall carry out, on a random-sampling basis, post-payment audits to ensure compliance with all requirements under paragraph (1).

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Random-sampling post-payment audits to ensure compliance · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(h)(1) — Administrative guidance and additional requirements for certain loans before regulations

With respect to a loan described in paragraph (2), the Secretary may— ‘‘(A) before prescribing regulations, issue administrative guidance regarding the making of a partial claim relating to such loan; and

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Administrative guidance and additional requirements for certain loans before regulations · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(h)(2) — Certain loan defined as one in default on the date of enactment

A loan described in this paragraph is a loan that the Secretary determines was in default on the date of the enactment of this section.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Certain loan defined as one in default on the date of enactment · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(i) — Rule of construction preserving section 3732(a) and (d) authority

Nothing in this section shall be construed to limit the authority of the Secretary under sub- sections (a) and (d) of section 3732 of this title.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Rule of construction preserving section 3732(a) and (d) authority · source URL · snapshot 92b3af67a688be15

38 U.S.C. §3737(j) — Program terminates five years after enactment

The Secretary may not make a partial claim under this section after the date that is five years after the date of the enactment of this section.

Source: SUPERSEDED — 38 U.S.C. § 3737 — VA Partial Claim Program (Pub. L. 119-31) — Program terminates five years after enactment · source URL · snapshot 92b3af67a688be15

Get this regulation in your AI window

Put the verbatim text and its effective date in front of your assistant, instead of whatever it remembers.

Open in Claude Open in ChatGPT

Open in Claude shows the one-time setup: paste one address, no account with us. Open in ChatGPT asks ChatGPT about this page, with no setup. Either way it’s free.

Get notified if this rule changes

One email when SUPERSEDED — 38 U.S.C. § 3737 as enacted by Pub. L. 119-31 (July 30, 2025), before Pub. L. 119-37 — VA Partial Claim Program changes: what changed, the new verbatim text, and the effective date. Nothing else.

Double opt-in: we send a confirmation link first. Following one section does not subscribe you to anything else. Privacy.

Source of record: https://claudeforcompliance.com/regs/va-38usc-3737-partial-claim-superseded-2025/ · register va-38usc-3737-partial-claim-superseded-2025 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.