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VA Home Loans

 

Veterans Affairs Servicing Purchase (VASP) Program Closeout FAQs for Servicers

These frequently asked questions (FAQs) and answers aim to provide approved, detailed information for the mortgage industry about the Veteran Affairs Servicing Purchase (VASP) program's close out process. The Program ended on May 1, 2025.

VASP was created to assist Veteran borrowers facing financial challenges with their mortgage loans by purchasing loans and providing more manageable terms. The program was aimed at helping Veterans avoid foreclosure on VA-guaranteed home loans.

The decision reflects a need for VA to focus on its core mission, which is the VA home loan guaranty. VA is not structured to serve as a mortgage loan restructuring service.

On May 1, 2025, VA will no longer accept VASP submissions, with or without a trial payment plan (TPP), in the VALERI application.

Yes, VA remains committed to helping Veterans facing mortgage issues and will continue to provide comprehensive support to help Veterans avoid foreclosure.

VA released Circular 26-25-2 on April 23, 2025: Veterans Affairs Servicing Purchase (VASP) Program Wind Down.

The servicer must submit all the required documentation to process the VASP for payment. All documentation must be uploaded into the VALERI application within six business days of an accepted VASP with no TPP or TPP complete event. If the servicer fails to provide the complete set of required documents within six business days, including the necessary information beyond the VASP payoff, the request will be denied.

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