U.S. Sens. Lisa Blunt Rochester and Mike Rounds are leading the introduction of the Veterans Housing Stability Act, a measure that will help keep veterans and servicemembers in their homes by reestablishing a vital program through the U.S. Department of Veterans Affairs (VA).
May 1 marked the expiration of the Veterans Affairs Servicing Purchase (VASP) program, a mortgage assistance option that allowed borrowers to obtain an affordable payment when delinquent on their mortgage. On April 23, 2025, the U.S. Department of Veterans Affairs (VA) issued Circular 26-25-2, announcing the termination of VASP as of April 30, 2025 at 11:59 p.m. Effective May 1, 2025, VA Secretary Douglas A. Collins announced the VA is no longer accepting VASP submissions, and the VA is rescinding the prescribed steps for considering veterans for hardship assistance, removing consistency, and transparency from the process.
The Veterans Housing Stability Act:
- Reestablishes a partial claim program at the Department of Veterans Affairs.
- Allows the VA to assist veteran borrowers to get current on their loans and keep their homes. Arrearages would be acquired by the VA, placed into a separate lien, and could be paid off when a veteran sells their home or finishes paying off their loan.
- Provides veterans with similar loss mitigation options to borrowers with FHA and USDA mortgages.
During the COVID-19 pandemic, the VA helped U.S. veterans keep their homes by providing forbearances on most VA borrowers through the VA’s COVID mortgage forbearance program. The Partial Claim Program, established during the pandemic, helped veterans with financial difficulty stay in their homes. However, as of 2022, the VA ended its Partial Claim Program, leaving thousands of veterans who may have paused or missed their mortgage payments at risk.
“Our nation has a sacred obligation to serve our veterans, just as they have served our nation. We absolutely cannot afford to have our veterans, and their families kicked out of their homes,” said Sen. Blunt Rochester, a member of the Senate Banking, Housing, and Urban Affairs Committee. “To make matters worse, I was deeply alarmed when I learned the Trump administration decided to end VASP, a critical program that provided additional protections for veterans facing foreclosure. This legislation is an urgent fix that would ensure that our veterans and servicemembers remain safely in their homes.”
Sen. Richard Blumenthal, a longtime champion for veterans and Ranking Member of the Senate Veterans’ Affairs Committee, joined the legislation as a cosponsor.
“Veterans facing painful financial hardship deserve a viable solution to get their mortgages current and keep their homes,” said Sen. Blumenthal. “Right now, potentially tens of thousands of veterans are at-risk of losing their homes as a direct result of Secretary Collins’ reckless and reprehensible decision to end the VASP Program. Our legislation will create a replacement program to avoid preventable foreclosures, and ensure our most vulnerable veterans have a last resort option to continue paying their mortgage and keep their homes.”
As of May 1, 2025, the VA estimates that 71,981 VA home loans nationwide are deemed seriously delinquent (mortgage payments that are 90 days past due). The top five states where VA loans are most delinquent include:
- Texas with 8,504 delinquent VA loans
- Florida with 8,052 delinquent VA loans
- Georgia with 4,206 delinquent VA loans
- California with 4,147 delinquent VA loans
- North Carolina with 3,257 delinquent VA loans
Donna Schmidt, Managing Director of DLS Servicing, “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. This gives the veteran borrower the same benefits already provided to FHA and Rural Housing Service borrowers and it is years overdue.”
The Veterans Housing Stability Act is endorsed by both the National Consumer Law Center (NCLC) and the Center for Responsible Lending (CRL).
“The Veterans Housing Stability Act of 2025 clarifies the VA’s authority to help Veteran borrowers who need assistance to save their homes,” said Steve Sharpe, Senior Attorney at the NCLC. “The mortgage relief options available for Veteran borrowers are much less favorable than the options available to other borrowers, and that is unacceptable. This bill will help close the gap.”
Mike Calhoun, President of the CRL added: “With the expiration of VASP, tens of thousands of veterans and their families are now at significant risk of losing their homes. The Veterans Housing Stability Act of 2025 would preserve veteran homeownership and save government money by avoiding preventable foreclosures. Congress should enact the bill quickly.”
Click here for the full text of the Veterans Housing Stability Act.
