MBA, HPC Send Letter to VA on VASP Implementation

The Mortgage Bankers Association and Housing Policy Council recently sent a letter to the Department of Veterans Affairs (VA) regarding more information and guidance about implementation of the Veterans Affairs Servicing Purchase (VASP) program.

MBA and HPC welcomed the announcement, including the VA’s recognition that servicers require sufficient time to implement the program, the letter stated. Mortgage servicers are committed to the successful launch and long-term viability of the VASP program and realize its potential to help struggling veterans, it noted.

Achieving these goals and setting up an effective VASP program will require all stakeholders to execute a complex loss mitigation and servicing transfer process. The groups say they are concerned with the lack of information and guidance on how to do so.

Among other guidance, the groups specifically encouraged the VA to: “Set clear expectations with veterans by publicly communicating that servicers and the VA are working diligently to quickly adjust their existing operations to support the new program before the mandatory compliance deadline.” They also asked that the mandatory compliance deadline be extended beyond Oct. 1 to provide six months from when complete guidance is published.

To read the full text of the letter and more information on the recommendations, click here.