Metro East Sun

House Committee on Veterans’ Affairs Chairman Mike Bost and Subcommittee on Economic Opportunity Chairman Rep. Derrick Van Orden issued a joint statement regarding the recent decision by Department of Veterans Affairs (VA) Secretary Doug Collins to phase out the Veterans Affairs Servicing Purchase (VASP) program. The VASP program was launched under the Biden-Harris administration with the intention of addressing lender bailouts but has been criticized for potentially undermining the VA Home Loan program's future.

Chairman Bost and Rep. Van Orden expressed their concerns stating: “Since 1943, the VA home loan program has helped millions of veterans, and their families, own a home. The Biden-Harris administration wrongfully jeopardized the future of this benefit by allowing billions of dollars to be used towards bailouts for lenders by creating the VASP program.” They emphasized the significance of this phase-out decision: “Today, the Trump administration rightfully put an end to VA’s VASP program. This action underscores House Republicans’ intent to establish a partial claims program at VA to ensure veterans’ can stay in their homes if they’re in financial hardship while still protecting the American taxpayer.”

The history of the VASP program and its implications have been subjects of concern among House Republicans. In February 2024, the Subcommittee on Economic Opportunity expressed issues about the transparency surrounding the creation of the VASP program. The program, designed during the Biden-Harris administration, authorized the VA to purchase loans on a large scale, exceeding $5.4 billion as of May 31, 2024. Concerns were raised about the program's financial viability and its impact on taxpayers and veteran homeowners.

In comparison, a partial claims program was suggested as a more cost-effective option for addressing loan delinquencies. House Republicans have long advocated for this alternative, highlighting that it could resolve delinquent loans at a reduced expense to taxpayers.

The decision to phase out the VASP program signals a shift towards reinforcing the integrity of the VA home loan program and securing support for veterans facing financial challenges, as outlined by Chairman Bost and Rep. Van Orden.