Trump's VA strands thousands of veterans by ending a key mortgage program
Source: NPR
May 1, 2025 5:00 AM ET
The U.S. Department of Veterans Affairs, as of Thursday, has ended a new mortgage-rescue program that so far has helped about 20,000 veterans avoid foreclosure and keep their homes.
The move leaves millions of military veterans with far worse options than most other American homeowners if they run into trouble paying their home loans. And it comes at a time when nearly 90,000 VA loans are seriously past due, with 33,000 of those already in the foreclosure process, according to the data and analytics firm ICE.
At issue is the VA Servicing Purchase program, or VASP. It was put in place during the Biden administration after missteps by the VA left homeowners with no affordable way to catch up on their VA-backed home loans if they fell behind. VASP rolls the homeowners' missed payments into a new, low-interest rate loan that the VA then owns outright. With today's higher mortgage rates of around 7%, it is often the only affordable option for homeowners with VA loans.
But Republicans in Congress have been critical of the VASP program, saying it puts too much taxpayer money at risk. In a statement this week to NPR, the VA said, "[As of May 1rst,] the program, which was unilaterally created by the Biden Administration and lacks congressional authority, will stop accepting new enrollees."
Read more: https://www.npr.org/2025/05/01/nx-s1-5382448/va-veterans-affairs-mortgages-foreclosure-vasp
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