KOVH, in an urgent and rapid response to additional wording and findings for the VASP eligibility requirements, is the VHPSA Act. KOVH finds the serious gross and abusive ongoing efforts to protect lenders and investors, while ignoring the real and growing threats of homelessness and additional financial ruin for Americas true patriots, to be as Unamerican as you can get. Not only did Americans, much less the Veteran Families, NOT cause the COVID pandemic, but many of the families we serve as the voice and support platform for, will in fact NOT qualify for this program (leaving us/them at the mercy of #ProfitBeforePeople lenders and their investors, while the US government does nothing to hold them accountable. We continue to have NO oversight committee of these lenders and their investors, leaving veteran families facing further emotional and financial abuse and distress.
Having now read through all the wording of the program, KOVH stands firm infront of this Nations Veterans and their families, demanding accountability, immediate action to stop ALL VA foreclosures and the investigation into ALL the coming VA mortgage foreclosures before its too late. Furthermore, KOVH has written the following proposed policy, which we have deemed the VHPSA Act, that should be presented to congress and voted on BEFORE they head off to enjoy carefree and fabulously well paid lives courtesy of the very people they are supposed to represent. It is not just houses that will be lost, but homes, families, and ultimately lives.
Here is the KOVH Proposed Policy: Veteran Home Protection and Stability Act (VHPSA)
The Purpose: To provide comprehensive support for veterans and their families facing foreclosure or financial hardship by expanding access to critical mortgage relief programs, improving lender accountability, and ensuring that no veteran family is left without housing due to restrictive eligibility requirements.
Section 1: Expanding Access to VA Mortgage Relief Programs
1.1. Eliminate Bankruptcy Exclusion
Current Issue: Veterans in active bankruptcy are ineligible for critical programs like the Veterans Affairs Servicing Purchase (VASP), despite bankruptcy being a responsible tool to manage overwhelming debt.
Proposed Solution:
Veterans in active Chapter 13 or Chapter 7 bankruptcy shall be eligible for VA mortgage relief programs, provided they meet other program requirements (e.g., occupancy and proof of income).
Programs must accept veterans who have demonstrated the ability to resume or maintain modified payments under a court-approved bankruptcy repayment plan.
1.2. Automatic Enrollment for Pandemic-Affected Borrowers
Veterans whose financial hardship is directly linked to the COVID-19 pandemic (job loss, medical expenses, etc.) will automatically qualify for mortgage assistance without restrictions based on bankruptcy or other financial actions taken during the pandemic.
Section 2: Enhanced Lender Accountability and Transparency
2.1. Mandatory Loan Modification and Forbearance
Lenders servicing VA-guaranteed loans must offer loan modification or forbearance options for borrowers facing financial hardship.
Minimum Requirements:
Extend loan terms up to 40 years to reduce monthly payments.
Offer interest rate reductions or principal forbearance where necessary to ensure affordability.
Provide interest-free repayment options for deferred payments due to financial hardship.
2.2. Independent Oversight of Lenders
Establish an independent Veteran Mortgage Assistance Oversight Board (VMAOB) to monitor lender compliance with VA mortgage relief guidelines.
The VMAOB will have the authority to:
Impose fines on lenders who fail to offer or implement reasonable accommodations for veteran borrowers.
Audit lender practices and publish annual compliance reports.
Section 3: Veteran Foreclosure Prevention Fund
3.1. Emergency Financial Assistance
Create a Veteran Foreclosure Prevention Fund to provide direct financial assistance to veterans at risk of foreclosure.
Eligible uses include:
Temporary mortgage payment assistance.
Legal representation in foreclosure proceedings.
Financial counseling and budgeting support.
3.2. Collaboration with Nonprofits
Allocate federal grants to nonprofit organizations, such as KOVH (Keep Our Vets Housed), to provide outreach, education, and direct support to veteran families in need.
Nonprofits will serve as community partners to identify at-risk veteran households and connect them with available resources.
Section 4: Strengthening Protections for Veteran Homeowners
4.1. Moratorium on Foreclosures
Implement a mandatory 12-month foreclosure moratorium for veterans who apply for VA mortgage relief or bankruptcy protection. This period will allow veterans to stabilize their finances and negotiate loan modifications without the immediate threat of losing their homes.
4.2. Legal Protection from Discriminatory Practices
Prohibit lenders from penalizing or denying veterans access to relief programs based on their bankruptcy status, pandemic-related hardship, or use of other financial relief mechanisms.
Enforce anti-discrimination provisions through the Department of Veterans Affairs and the Consumer Financial Protection Bureau (CFPB).
In Conclusion:
The Veteran Home Protection and Stability Act (VHPSA) will provide the necessary support and protections for veteran families to avoid foreclosure, stabilize their financial situations, and maintain safe, affordable housing. By removing restrictive eligibility criteria, enhancing lender accountability, and providing direct financial assistance, this policy ensures that no veteran family is left behind.
Call to Action: We urge legislators to support and advance the VHPSA to protect the homes and livelihoods of those who have served our country and their families.
DECEMBER 31st, the pause on all VA foreclosures is lifted, leaving hundreds of thousands of veteran families facing homelessness.. Legislators must act now!!
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