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President Donald Trump signed the VA Mortgage Program Reform Act on Wednesday, solidifying a partial claims program aimed at preventing veterans from losing their homes to foreclosure.
The new partial billing program under the Veterans Affairs Bureau (VA) mortgage program allows veterans who are late in making mortgage payments to make those payments to the tail end of their loan.
Additionally, the partial claims program is about to replace the Veterans Services Purchase (VASP) program created under the Biden administration in 2024, but the Trump administration existed in May.
Under the VASP program, VA acquired delinquent VA loans from mortgage servicers, adjusted the loans, and provided borrowers with a fixed 2.5% interest rate during the loan period.
However, the VASP programme faced scrutiny from Republicans. Republicans accused it of being established without opinion from Congress, putting the entire VA Mortgage Guarantee program at risk and claiming it would be costly for taxpayers. In total, the VA estimated that it had purchased more than 17,000 mortgages totaling over $5.48 billion under the VASP.
The House of Representatives passed a version of the VA Mortgage Program Reform Act in May, and the Senate passed a version of the measure in July.
“This bipartisan and bilateral legislation will help veterans facing economic hardships and provide VAs with a better tool to stay home and avoid foreclosures. The VA mortgage program has provided one of the best benefits VAs have to offer, helping veterans and their families build housing committees since they published the veterans committee in 1944.
This is a broken news article and will be updated.
Diana Stancy is a political reporter for Fox News Digital, covering the White House.
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