Mortgage industry reacts to pending shutdown of VASP

VA Winding Down VASP Program

As previously reported, last year the U.S. Department of Veterans Affairs (VA) launched a Veterans Affairs Servicing Purchase (VASP) program, which VA characterized as a “last-resort tool” for VA home loan borrowers facing severe financial hardships. Pursuant to the program, VA purchases defaulted VA loans, modifies the loans, and then places them in the VA-owned portfolio as direct loans.... Continue Reading

Mortgage industry reacts to pending shutdown of VASP

Following news earlier this month that the U.S. Department of Veterans Affairs (VA) is moving to end the Veteran Affairs Servicing Purchase (VASP) program, the agency this week published a circular to outline the timeline for its closure. It features additional information about the planned end to VASP, including maintaining the previously reported end date for new enrollments on May 1. But the deadline for submitting a new VASP “event” is April…