Biden administration launches VASP to prevent veteran foreclosures

The Biden administration launches the Veterans Affairs Servicing Purchase (VASP) program, an emergency mortgage rescue program designed to help veterans who fell into default after the COVID-19 forbearance programs ended. Under VASP, the VA purchases defaulted VA-backed loans from outside mortgage servicers and then modifies the terms, providing veterans a fixed 2.5% interest rate for the remainder of their loan. By early 2025, VASP helps more than 33,000 veterans avoid foreclosure and stay in their homes. Republican lawmakers in Congress criticize the program, claiming the VA has no legal authority to hold loans on its books.