The law provides gap protection that was removed when the administration shut down the VA Servicing Purchase Program in May.
President Donald Trump signed the VA Home Loan Program Reform Act into law last week after the bipartisan legislation passed both chambers of Congress. The Department of Veterans Affairs will put delinquent payments at the end of loans with zero percent interest, known as a “partial claim” or subordinate lien.
The bill provides gap assistance after the Veterans Affairs Servicing Purchase (VASP) Program was cancelled by the president’s administration in May. At the beginning of April, 75,000 veteran borrowers had missed three or more payments on VA-backed mortgages. 43,000 VA loans were delinquent in June without a program in place to provide assistance.
The new law eases foreclosure concerns for veterans and permanently suspends the VA prohibition against buyer-paid realtor commissions.
Senator Jon Ossoff of Georgia, who co-sponsored the bill, stated, “Veterans’ benefits are earned. This is a sacred contract between the American people and those who make tremendous sacrifices in defense of our nation.”
As the Lord Leads, Pray with Us…
- For Secretary Doug Collins to receive God’s guidance as he heads the VA Department.
- For President Trump and members of his administration as they seek to provide relief from foreclosure for veterans.
- For members of Congress as they take their August recess and work in their home districts.
Sources: National Mortgage Professional, WSB-TV, Consumer Affairs
