Washington, D.C. — The U.S. Department of Veterans Affairs (VA) don announce say dem go terminate di mortgage rescue program wey don help almost 20,000 veterans to keep dem homes. Dis announcement come on April 3, 2025, and e fit leave many veterans wey dey face financial woes without support.
Di VA say di program, wey dem call di Veterans Affairs Servicing Purchase Program (VASP), go stop to accept new enrollees beginning from May 1, 2025. Dis program don provide affordable mortgage options to veterans wey don dey struggle to pay dem mortgage bills.
“Dis change na di necessary step because VA no suppose dey act as mortgage restructuring service,” di VA spokesperson talk. Critics, however, dey fear say dis move fit lead to high foreclosure rates among veterans wey need help.
Many veterans bin dey hope dis program go continue as di VA don’t report say about 40,000 veterans dey face di threat of foreclosure after dem cancel another part of a mortgage relief program during di pandemic.
Elizabeth Balce, wey represent di Mortgage Bankers Association, don warn say if dem scrap di VASP without another viable option, e go lead to unnecessary foreclosures. She talk say, “Without VASP, VA go don foreclosed on tens of thousands of borrowers. Di short answer na foreclosure. Period.”
Di sudden end of di program don leave many veterans stranded. Dem don reach out to dem mortgage companies during financial hardship, and dem been talk say di VA’s mortgage forbearance program allow dem skip some payments. But when mortgage rates spike from around 3% to 7% in 2022, di only affordable way for these veterans to get current na through di ‘partial claim’ wey allow dem move di missed payments to di end of dem loan term.
However, di VA abruptly end di partial claim program for October 2022, leaving veterans with no affordable means to catch up on their payments.
Di Republican Congress members don criticize di VASP program, dey say e dey risk too much taxpayer money. U.S. Rep. Mike Bost and U.S. Rep. Derrick Van Orden, two Republican representatives, argue say di Trump administration dey correct to end di program.
“Dis action show di intention of House Republicans to establish a partial claims program at VA to help veterans wey dey face financial hardship to remain in their homes,” dem talk.
Despite di criticisms, veterans’ groups and mortgage industry leaders don appeal to di VA to introduce a new program to replace di VASP. Dem dey fear sey if nothing replace di VASP, di veterans go have worse options than other American homeowners.
In di meantime, veterans still dey face uncertainty as VA officials no clarify di alternative plan for di veterans dem. Many don express concern say di end of VASP without another option wud lead to unnecessary hardships for military families across di country.
