VASP Wound Down — VA Servicing Purchase Program & Home Retention Waterfall Rescinded

Effective 2025-05-01 Chat mode Any AI tool Change Narrow

Chat mode — Open a new chat, upload your P&P and the machine-readable regulation in this kit. Copy and paste the prompt below and AI does the labor-intensive comparison: where the rule changed, where your P&P is stale or in standing conflict, and the redlines to fix it.

VA is winding down the Veterans Affairs Servicing Purchase (VASP) program. Per VA Circular 26-25-2, VA stopped accepting VASP submissions on May 1, 2025, issued no VASP payments after September 30, 2025, and rescinded the VA Home Retention Waterfall. VA is standing up a statutory replacement - the VA Partial Claim Program (38 U.S.C. 3737).

If your VA servicing, default, and loss-mitigation P&Ps still present VASP or the Home Retention Waterfall as an available option, they are now stale. This kit finds those references - grounded in the verbatim VA M26-4 Chapter 9 text - and points you to the replacement program so your P&Ps and borrower-facing workflows reflect what VA actually offers today.

📎 Download & attach

Download these from the corpus and attach them into the prompts as each step says.

1 - Find and flag stale VASP references in your P&Ps

Upload the machine-readable VA Purchase chapter CSV plus your VA servicing / default P&P document(s), paste this, and it flags every clause that still treats VASP or the Home Retention Waterfall as available.

You are a mortgage compliance analyst. I have given you two things: (1) the VA Servicer Handbook M26-4 Chapter 9 (VA Purchase / VASP) as a machine-readable file where each row is a section with the EXACT handbook text and its source; and (2) my firm's VA servicing / default & loss-mitigation P&P document(s). CONTEXT you may rely on: VA has wound down VASP - per VA Circular 26-25-2, VA stopped accepting VASP submissions on May 1, 2025, issued no VASP payments after September 30, 2025, and rescinded the VA Home Retention Waterfall; the statutory replacement is the VA Partial Claim Program (38 U.S.C. 3737).

Go clause by clause through my P&P and flag every clause that (i) offers, references, or relies on VASP or the VA Home Retention Waterfall as an AVAILABLE loss-mitigation option (STALE), or (ii) routes a borrower to VASP as a current step (STALE/CONFLICT). For each, quote my firm's clause and the controlling handbook text from the provided file, and state the redline direction: remove VASP / Home-Retention-Waterfall as available, note the wind-down, and cross-reference the replacement VA Partial Claim Program where a partial-claim step now belongs. If a point isn't in the provided file, say so - do not infer it.

Then DOUBLE-CHECK YOUR OWN WORK: (a) confirm every quote you attribute to the handbook is a verbatim substring of the provided file, and drop any that is not; (b) list anything you could not ground in the provided text rather than guessing.

OUTPUT: a prioritized table - finding, verdict (STALE / CONFLICT / OK), affected P&P + location, the quoted authority, and what must change - followed by the self-check. This is a working draft for compliance/attorney review, not legal advice.

2 - (Optional) Change-log entries

Run after step 1 for the audit-trail record - the Appendix A log an examiner expects.

You are a mortgage compliance analyst. From the analysis above, produce a P&P Change Log entry (Appendix A format) for each P&P that needs revision: date; change driver (VASP wind-down, VA Circular 26-25-2 - VA stopped accepting submissions May 1, 2025, no payments after September 30, 2025, Home Retention Waterfall rescinded); the P&P and section affected; a plain-language summary of the change; and reviewer / approver and date [FIRM TO COMPLETE]. This is the record that lets an examiner see what changed, when, and why.