The bill tries the US Department of Veterans Affairs‘(VA) Home Loan Program with the addition of a partial claim option. Proponents of homes say that this has taken an extra weight and urgency after the Veteran Affairs Servicing Purchase (VASP) program was effectively stopped by the VA when it no longer accepted new applicants on 1 May.
The Mortgage banking association (MBA) came to the defense of the program after the news that Vasp could end. But it also meant a strong support for HR 1815, which was first introduced by Rep. Derrick van Orden (R-Wis.), The main sponsor of the bill and the chairman of the House Subcommissie for Economic Opportunities for Veteran Affairs.
Isaac Boltansky, director and head of public policy at Pennymacpraised the passage of the bill when it was reached by Housing.
“We are encouraged by the strong two -part support in the house and hopeful that the Senate will act quickly,” said Boltansky. “There is a clear need for this type of program at the VA and we hope that policy makers will move with the urgency that our veterans deserve from our nation.”
MBA also praised the development in a statement that was released later on Monday.
“MBA has been a fierce advocate for distracting experienced homeowners, who collaborate with a two -part group of legislators, [VA] Employees and our members to keep them in their homes, because the earlier solution for loss restriction of the VA was terminated during the pandemic without replacement, “said Bob Broeksmit, President and CEO of MBA.
Broeksmit described the need for a permanent partial claim option as ‘urgent’, cheered the passage of the bill as a ‘that the VA permanent authority gives to create a partial claim program that matches the loss mitigation options that are offered to borrowers’.
During the debate on the house floor, Republican and Democratic members expressed support for the bill. But when offering extra perspective, Rep. Mark Takano (D-Calif.) The Trump administration of creating a problem that will solve the bill.
“Because of the unilateral actions of President Trump and [VA] Secretary [Doug] Collins, more than 80,000 veteran servants and their families are now confronted with preventments on their houses, “Takano said on the floor.
He said that although he supports the bill and also encouraged fellow democrats to support it, “this legislation should expand existing options to make executions extremely rare and only in the most extreme cases. … Instead, this is a plaster that will probably arrive too late for many.”
Rep. Mike Bost (R-Oill.) Responded by repeating what his fellow republicans in Congress have maintained the VASP program -that it was set up with considerable errors during the BIDEN administration and that “continuing with Vasp would cost the taxpayers more than half a billion dollars in the following decade.”
“That is why, under my leadership, house republicans have cleared the alarm about the BIDEN administration program and the risk that it could bring to VA house loans,” Bost said.
Flávia Furlan Nunes has contributed reporting.
Note of the editors: This story has been updated with a statement from the MortGage Bankers Association.
