Despite new veteran partial claim bill, some advocates call for VASP revival
Housing
issues
for
U.S.
veterans
continue
to
be
a
major
topic
of
conversation
among
housing
advocates
and
lawmakers.
Despite
Monday’s
passage
of
a
bill
to
establish
a
partial
claim
option
for
veterans,
some
are
still
calling
for
the
reinstatement
of
the
Veteran
Affairs
Servicing
Purchase
(VASP)
program.
VASP
was
started
last
year
under
the
Biden
administration,
but
it
was
a
target
of
severe
criticism
from
Republicans
who
said
it
would
create
a
moral
hazard
and
was
fiscally
unsustainable.
The
program
was
effectively
discontinued
by
the
U.S.
Department
of
Veterans
Affairs
(VA)
when
it
stopped
accepting
new
applicants
on
May
1.
While
industry
advocates
hoped
to
salvage
VASP,
a
new
effort
to
establish
a
partial
claim
for
veterans
emerged.
The
bill
was
swiftly
passed
by
the
House
of
Representatives
on
Monday
despite
some
Democratic
misgivings.
But
some
housing
advocacy
organizations
—
and
some
House
lawmakers
—
say
that
finding
a
path
forward
for
VASP
is
an
essential
tool
for
helping
veterans
avoid
foreclosure.
On
Tuesday,
members
of
the
National
Consumer
Law
Center
(NCLC)
and
the
National
Fair
Housing
Alliance,
alongside
lawmakers
from
the
House
Committee
on
Veterans
Affairs,
gathered
to
urge
the
VA
to
restore
the
VASP
program.
“The
administration’s
abrupt
cancellation
of
the
VASP
mortgage
assistance
program,
for
Veteran
borrowers
in
need,
puts
tens
of
thousands
of
Veteran
families
with
VA
home
loans
at
risk
of
losing
their
homes,”
said
Alys
Cohen,
a
senior
attorney
at
NCLC.
“The
VA
Home
Loan
Program
is
a
benefit
that
Veterans
have
earned through
service
and
sacrifice
to
give
them
housing
stability,”
she
added.
NCLC
did
not
specifically
mention
the
House
bill
passed
on
Monday,
but
it
has
urged
for
a
partial
claim
program
for
veterans
to
be
implemented
immediately.
While
the
new
measure
shows
signs
of
progress
for
filling
the
gap,
it
has
yet
to
earn
a
vote
in
the
Senate
and
it’s
unknown
whether
the
new
bill
will
have
a
long
reconciliation
process.
After
that,
if
a
reconciled
bill
passes
both
chambers,
it
can
then
proceed
to
the
president’s
desk
to
be
signed
into
law.
But
the
advocates
warn
that
action
is
needed
now
to
help
veterans
avoid
adverse
outcomes
if
they
have
delinquent
mortgages.
“We
are
committed
to
working
with
Congress
on
establishing
a
new
hardship
program,”
Cohen
said.
“But
simply
cancelling
VASP
without
a
replacement
will
throw
tens
of
thousands
of
veterans
out
of
their
homes.”
During
Monday’s
debate
on
the
House
floor,
Rep.
Mark
Takano
(D-Calif.)
expressed
support
for
the
new
bill
but
described
a
similar
scenario
as
he
called
for
additional
action.
“Regardless
of
how
quickly
we
move
in
this
chamber
or
in
the
Senate,
it
is
going
to
take
time
to
stand
up
this
replacement
program,”
he
said.
“Meanwhile,
we
will
see
veterans
lose
their
homes,
all
for
a
very
flimsy
reason.”
