Mike Bost

The Trump administration's May 2025 shutdown of the VA Servicing Purchase (VASP) program, which had let struggling veterans roll missed mortgage payments into a new loan at a low fixed rate, has left thousands facing sharply higher payments. An NPR investigation found more than 15,000 veterans who got loan modifications after VASP ended saw payments rise by at least $150 a month, with over 700 facing increases of $1,000 or more — far higher rates than for conventional Fannie Mae and Freddie Mac loans. Industry groups had warned the VA against ending VASP without a replacement ready. A new Partial Claim Program launched over a year later, but it does not help veterans already stuck in costlier modified loans, and foreclosures on VA loans have since hit a 10-year high.