AISLE Submits Letter to VA with Feedback on VASP Program, Urges Consideration of Key Concerns

AISLE submitted a letter to the U.S. Department of Veterans Affairs (VA) on the VA Servicing Purchase Program (VASP) and offered suggested recommendations for consideration.  Per the VA Press Release published in November 2023, VASP will allow VA to purchase defaulted VA loans from mortgage servicers, modify the loans, and then place them in the VA-owned portfolio as direct loans. 

AISLE’s recommendations were based on the intent to assist Servicers and Borrowers once the program is published. Specifically, requesting tools for mortgage servicers to successfully implement the program once published.  Having additional tools once the program is published will ensure a smooth implementation for both Borrowers and Servicers. Below, you will find some of the recommendations for consideration that were referenced:  

• Requested the Agency allow mortgage servicers ample time to implement the new program, including recommendations of the following:

•  a 30-day pre-program launch review period; 
• Increase from 90-day implementation period to 120-day implementation period. 

• AISLE encouraged VA to allow mortgage servicers to make the preliminary decision on whether a Veteran qualifies for VASP in order to streamline servicing and program application. 
• AISLE offered data and general feedback on the note rate, which creates a sustainable monthly payment.  

​Members can click here to request a PDF copy of the full letter.