On May 19, 2025, the House of Representatives passed H.R. 1815, the VA Home Loan Reform Act, introduced by Congressman Derrick Van Orden. This bill provides relief for over 80,000 veterans, who had participated in the Veterans Affairs Servicing Purchase (VASP) Program.

This legislation would allow the Department of Veterans Affairs (VA) to create a permanent partial claims program to help veteran homeowners catch up on missed mortgage payments.

H.R. 1815 would also update funding levels for the VA’s Grant and Per Diem Program, which supports services for veterans experiencing homelessness.

The VASP Program was initiated as a pandemic emergency solution. It allowed the VA to acquire delinquent loans and offer borrowers a fixed 2.5 percent interest rate. By May of 2024, the VA purchased over 17,000 loans worth over $5.5 billion.

Economic Opportunity Subcommittee Chairman Van Orden, argued that the VASP program was financially unsustainable. He said the VASP Program attempted to solve relatively small mortgage delinquencies by purchasing entire loans at significantly higher costs to taxpayers.

The House Committee on Veterans’ Affairs Congressman Mike Bost and Representative Van Orden contended that H.R. 1815 is a viable alternative that they believe will be more cost-effective and better aligned with the VA’s mission.

“This is a fiscally responsible solution to ensure that veterans in financial hardship have access to the tools they need to stay in their homes,” said Congressman Bost.

Congressman Mark Takano supports H.R. 1815 but criticized the decision to end VASP before an alternative was ready. Rep. Takano said up to 80,000 Veterans are now at risk of foreclosure and called on Congress to provide interim relief until the new program is implemented.

The VA Press Secretary, Peter Kasperowicz, said the VA is not structured to act as a mortgage servicer and that ending VASP was necessary to protect funding for other services. Veterans enrolled in VASP before May 1, 2025, will not be affected by the VASP program’s closure.

“The National Coalition for Homeless Veterans (NCHV) applauds the House of Representatives for its bipartisan commitment to swiftly ensuring that VA has the tools it needs to support veterans in a housing crisis and veterans facing homelessness,” stated NCHV CEO Kathryn Monet.

“This work is a continuation of the commitments Congress made to veterans in The Elizabeth Dole Act. We encourage the Senate to pass this legislation quickly, to minimize the harm that inaction will inevitably bring to veterans in a housing crisis,” continued CEO Monet.

“We also urge the Appropriations Committee to ensure VA is provided sufficient funding to fully implement these provisions,” concluded Monet.

The Congressional Budget Office projects the new partial claims program could save the government around $170 million over ten (10) years by reducing costs related to loan defaults.

Supporters of the bill, such as the National Coalition for Homeless Veterans, are urging the United States Senate to pass it quickly to protect Veterans from losing their homes.

My Opinion: On November 23, 2023, April 25, 2024, and June 12, 2024, the Clermont Sun newspaper published editorials on the VASP Program and the significant problems that over 80,000 veterans will be facing.

Passage of H.R. 1815, the VA Home Loan Reform Act, is now the only alternative to stop veteran foreclosures. Congress knew back in 2023 that there were many problems with VASP – but nothing was done.

BioSketch: John Plahovinsak is a retired Army veteran, who served from 1967 to 1999. He serves on the Disabled American Veterans (DAV) Department of Ohio’s Legislative Committee. He can be contacted at [email protected].