Rep. Veronica Escobar Questions VA Secretary Collins on VASP Termination

VA's Termination of VASP

• 📌 Representative Veronica Escobar questioned VA Secretary Collins regarding the termination of the Veterans Assistance Servicing Program (VASP).
• 💡 VASP had assisted approximately 17,000 veterans in avoiding foreclosure on their mortgages.
• ⚠️ Public reports indicate nearly 90,000 VA loans are seriously past due, with about 33,000 already in foreclosure.

VA Secretary's Explanation for Termination

• 🎯 Secretary Collins stated that VASP was initiated internally by the VBA last year using redirected funds, not by Congress.
• 🏦 The program was terminated due to concerns that the VA should not be involved in the mortgage loan business, citing significant financial exposure and liability.
• 💰 The VA assumed $5.4 billion in mortgages, with estimates suggesting continued operation could have reached $17 billion, and concerns about managing acquired properties.
• ⚖️ Continuing VASP would have required congressional approval for billions more and presented legal and liability issues, especially with vacant properties.

Alternatives and Future Support

• 💬 Collins mentioned that the VA is exploring other ways to help veterans facing mortgage issues, potentially involving other agencies, rather than directly assuming mortgages.
• 🤝 The VA is open to discussions and legislative efforts, such as partial claims, to provide relief without incurring significant liability.
• 🚫 It was clarified that VASP termination is unrelated to homelessness programs and specifically addresses veterans who purchased homes but fell behind on payments.

VASP Program Status and Data

• 📊 Approximately 5,000 veterans had applied for VASP assistance but had not yet been processed when the program stopped accepting new applications on May 1st.
• ✅ No veterans who were already in the VASP program were removed; the termination only halted new enrollments.
• 📝 Representative Escobar requested follow-up information on the number of veterans awaiting VASP assistance, guidance provided after termination, and the number of veterans who entered foreclosure or serious delinquency post-cancellation.