MBA warns of foreclosure spike as VA discontinues VASP

The VA announced on Thursday that it will discontinue a mortgage-assistance program aimed at helping veterans avoid foreclosure. However, the VA has provided limited information, leaving it uncertain whether a new support program will take its place.

Mortgage Bankers Association (MBA) President and CEO Bob Broeksmit, CMB, released the following statement on the VA's reported plans of a phase-out of its Veterans Affairs Servicing Purchase (VASP) program:

“Halting the VASP program will increase the number of veterans facing foreclosure unless the VA and Congress implement a permanent partial claim option as soon as possible. Any characterization of VASP as a ‘lender bailout’ is patently false and entirely inappropriate.”