June 5, 2025
A new article by The Mortgage Point’s Erick C. Peck—“Bill Aims to Revive VASP Program for Vets Facing Foreclosure”—sheds light on a critical piece of legislation that could reshape the future of loss mitigation for veteran homeowners.
The article covers the introduction of the Veterans Housing Stability Act, a bipartisan bill led by Senators Lisa Blunt Rochester and Mike Rounds that seeks to reinstate a partial claim program through the Department of Veterans Affairs (VA). The timing couldn’t be more urgent: the VA’s controversial VASP program ended on May 1, 2025, leaving more than 70,000 veteran borrowers in serious delinquency with limited options to avoid foreclosure.
The new legislation aims to create a more stable and effective path forward—one that mirrors the loss mitigation solutions already available to borrowers with FHA and USDA loans. It would allow the VA to acquire arrearages, place them into a separate lien, and give veterans a fighting chance to stay in their homes.
Our own Donna Schmidt, CEO of DLS Servicing, was quoted in the article, emphasizing the importance of swift congressional action:
“This needs to pass as soon as possible. The House has already unanimously passed a similar bill, and the Senate must do the same. Our veterans deserve our prompt replacement of the overly expensive and difficult to complete VASP program.”
At DLS, we see firsthand the gaps in the system—and how they disproportionately impact veterans. For years, we’ve supported calls for a streamlined, fair, and consistent loss mitigation solution that doesn’t force servicers to choose between doing the right thing and assuming unreasonable risk. This bill could be the fix that’s long overdue.
We’re encouraged to see growing awareness in Washington and coverage like this from The Mortgage Point—and we’ll continue advocating for the tools servicers need to support those who’ve served us.
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