GAO says VA needs a comprehensive plan to evaluate its foreclosure program

The Government Accountability Office found that the Department of Veterans Affairs has a high-level approach for evaluating its Partial Claim Program, but has not developed a comprehensive plan. GAO said VA and Congress will not have timely and credible evaluation results needed to make program decisions and identify changes that could improve outcomes for veteran borrowers.

The program is intended to help borrowers with VA-guaranteed loans avoid foreclosure. VA reimburses servicers for missed payments and certain fees so borrowers can become current on their loans. Borrowers repay the partial claim without interest when they sell or refinance the home, pay off the loan, or reach loan maturity.

The program became effective on June 15, 2026. Servicers have until November 28, 2026, to finish implementing it. VA officials said they intend to begin analyzing program trends and outcomes in December 2027. The program is authorized for 5 years, ending July 30, 2030, and requires congressional reauthorization to continue.

GAO said VA’s planned approach does not isolate the program’s effects on borrowers or consider program design questions. It said early planning also is important to ensure VA collects the data needed for evaluations. VA guarantees millions of home loans and bears financial risk when borrowers default and homes are foreclosed upon.

GAO said VA used experience from a temporary partial claim program for borrowers affected by the COVID-19 pandemic. VA and servicers encountered documentation problems and difficulty tracking partial claim amounts. VA changed the program model and revised its application and payment processes to address those issues. VA expects the changes to reduce administrative costs.

GAO reviewed VA policies, processes, plans, and data for its report published Tuesday 10 November 2026. GAO assessed VA’s efforts against Office of Management and Budget program evaluation standards. GAO interviewed VA officials and representatives of 10 organizations. It analyzed VA data from January 2022 through June 2026 and Home Mortgage Disclosure Act data from 2022 through 2025.