Bob Broeksmit Discusses the House VA Partial Claims Bill, House Reconciliation Package
In a new video, MBA President and CEO Bob Broeksmit, CMB, discusses two huge MBA advocacy wins before the long Memorial Day Weekend.
“The first is the House passage of the VA Home Loan Program Reform Act,” Broeksmit said. “MBA has been a fierce advocate for distressed veteran homeowners since the VA’s previous loss-mitigation solution was terminated in the wake of the pandemic without a replacement. Importantly, this bill creates general authority for the VA Home Loan Program to offer partial claims to distressed homeowners. This would bring the agency into alignment with FHA’s and the GSEs’ loss-mitigation options for servicers, putting veterans on equal footing.”
Broeksmit noted MBA staff and leadership and member firms within the VA Home Loan Working Group have been working “tirelessly” for months in the House and Senate to help forge a bipartisan consensus. “Several discussion drafts of the House proposal were refined last year and earlier this year based on our recommendations to make the bill more effective,” he said. “Our efforts, including letters, three MBA witness testimonies before the House Veterans Affairs Committee, effective media relations and a Mortgage Action Alliance call to action paid off.”
“Now, the work moves to the upper chamber. We are actively urging an engaged, bipartisan group of Senators to use the House bill as a vehicle for action on companion legislation as quickly as possible. This could be done by either adopting the bill in whole, or by producing companion legislation swiftly that could be adopted by both the House and the Senate.”
“As last week came to an end a number of legislative drafts were being considered for introduction by either Senate Veterans Affairs Committee Chairman Jerry Moran and his staff, and from other Senate Offices. We are engaged and pushing for movement in the Senate.”
Broeksmit said the second big win last week was securing numerous MBA-supported tax provisions within the One Big Beautiful Bill Act, the $3.8 trillion Congressional tax, energy and border security reconciliation package.
“Make no mistake: it’s no accident that our priorities were reflected in this massive package,” he said. “MBA’s Residential and CREF Policy teams, the Public Affairs team and many others played a significant role in communicating the need to preserve and enhance pro-real estate tax provisions.”
“Importantly, the bill preserves and in some cases enhances key elements of the 2017 Tax Cuts and Jobs Act that were identified as a priority by MBA’s Board-approved Tax Task Force. This includes making permanent the deduction for qualified residence interest and acquisition debt, a $500,000 homeowner exclusion on the gain from the sale of a residence, the continued use of Section 1031 Like-Kind Exchanges, and the continued deductibility of business interest for real estate.”
“There’s even more to like, including an expanded deduction from 20% to 23% for qualified business income under a permanent Section 199A, which is critical to maintaining tax parity between S-Corps and Partnerships versus C-Corps, needed enhancements to the Low-Income Housing Tax Credit Program, and a new round of Opportunity Zones with program tweaks.”
“Just line the VA Partial Claim Bill, it’s now the Senate’s turn,” Broeksmit said. “Any changes–which are likely–in a Senate-passed bill will then have to be mirrored
and approved again by the House before the package could be signed into law by President Trump.”
“We’re hearing the goal is to have it have it on the President’s desk by July Fourth, which would be quite a way to mark the nation’s–and my–birthday,” Broeksmit concluded.
