House Advances VA Partial Mortgage Claims Bill for Veterans

The U.S. House of Representatives has passed H.R. 1815, a bipartisan bill to establish a permanent partial claims program within the Department of Veterans Affairs (VA) to assist veterans struggling with mortgage payments after the abrupt end of the Veterans Affairs Servicing Purchase (VASP) program. This new program would allow veterans to defer missed mortgage payments by moving them to the end of their loan term, potentially preventing foreclosures and saving the federal government millions over a decade. Advocates and lawmakers, including Rep. Mark Takano, criticized the prior termination of VASP without a replacement, warning it puts tens of thousands of veterans at risk of losing their homes and increasing costs to taxpayers. Republicans, including Rep. Mike Bost, supported the bill as a more fiscally responsible alternative to VASP, which they viewed as costly and inefficient. Consumer groups and mortgage industry leaders emphasized the urgent need for a permanent solution, highlighting the gap left by VASP's cancellation and the program's importance for veteran homeowners facing financial hardship. The legislation now awaits Senate approval amid ongoing concerns that the delay could result in preventable foreclosures among veterans.