Cornerstone’s SVP of Default speaks with MarketWatch
In a recent MarketWatch article, Cornerstone Servicing’s Senior Vice President of Default, Walt Kieschnick, shared his insights on the impact of the recently discontinued Veterans Affairs Servicing Purchase (VASP) program—an initiative designed to help VA borrowers avoid foreclosure through significantly reduced monthly payments.
The piece outlines how VASP allowed the VA to purchase loans from servicers and restructure them into more affordable terms. “Other loss-mitigation options available to homeowners do not offer the same amount of payment reduction as VASP does,” Walt said, highlighting the program’s ability to deliver significant aid to veterans on the verge of foreclosure.
Cornerstone Servicing began processing VASP applications immediately when the program launched in October 2024 and has since completed over 165 VASP workouts. With nearly a quarter of the company’s portfolio made up of VA loans, Walt underscored the concern many in the industry share: “If VASP goes away with no replacement, we could see delinquencies rise on VA loans [for people] that are experiencing hardship.”
As the industry navigates the uncertainty around future tools for VA homeowners, Cornerstone remains committed to supporting veterans through thoughtful, proactive servicing solutions.
—–