Recently, the Department of Veterans Affairs (VA) proposed a rule to amend its regulations governing its VA-guaranteed home loan program to modernize and enhance reporting requirements and oversight. The proposed changes will include updating the loan reporting process to use application programming interfaces (APIs). Specifically, the VA proposed amending its reporting regulation under 38 C.F.R. 36.4303, in part, requiring lenders to use APIs to report certain information regarding loans closed on an automatic basis and loans that require the VA’s prior approval. Additionally, the VA proposed amending its partial or total loss of guaranty at 38 C.F.R. 36.4328 to address circumstances when the VA may “assert a defense for partial or total loss of guaranty or insurance for lenders and holders” due to fraud, material misrepresentations, or other noncompliance by lenders. For example, the VA clarified that a material misrepresentation by a lender would permit the VA to adjust the maximum guaranty amount. Comments on the proposed rule must be submitted by January 21, 2025.