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The VA has its fix for a home loan debacle, but many vets who got hurt won't get help
Edmund Garcia, an Iraq War veteran, stands outside his home in Rosharon, Texas. Like many vets, he was told if he took a mortgage forbearance, his monthly payments wouldn’t go up afterward.
Joseph Bui for NPR
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Joseph Bui for NPR
Edmund Garcia, an Iraq War veteran, stands outside his home in Rosharon, Texas. Like many vets, he was told if he took a mortgage forbearance, his monthly payments wouldn’t go up afterward.
Joseph Bui for NPR
The Department of Veterans Affairs announced a long-awaited new program on Wednesday to help thousands of veterans who were left on the verge of losing their homes after a pandemic aid effort went awry.
But it appears that many who were harmed financially won’t qualify to get this new help.
“The purpose of this program is to assist the more than 40,000 veterans who are at the highest risk of foreclosure,” Josh Jacobs, VA undersecretary for benefits, said at a media roundtable introducing the Veterans Affairs Servicing Purchase program, or “VASP.”
What senior VA officials failed to say on their call with reporters is that the VA put veterans in that tough spot in the first place. In 2022, the VA abruptly ended part of its COVID mortgage forbearance program while tens of thousands of vets were still in the middle of it — trapping them with no affordable way to get current on their loans.
VASP is supposed to fix that problem, by allowing the VA to offer these homeowners loan modifications with interest rates that are well below the market rates on regular mortgages. The VA will own mortgages itself and will offer vets who qualify a modified home loan with a 2.5% interest rate.
But not everybody who got hurt is going to qualify. Most vets who have already ended up in much more costly modified loans won’t get the help.
The VA forbearance fiasco
In November, the VA halted foreclosures for all homeowners with loans backed by the VA after an NPR investigation revealed that the agency had left thousands of vets facing foreclosure through no fault of their own.
COVID mortgage forbearance programs were set up by Congress during the pandemic to help people with federally backed loans by giving them an affordable way to skip mortgage payments and then get current on their loans again.
But in late 2022, the VA abruptly ended its Partial Claim Payment (PCP) program, which had allowed a homeowner at the end of a forbearance to move the missed payments to the back of the loan term and keep the interest rate on their original mortgage.
That effectively turned a well-intentioned program into a bait-and-switch trap. Veterans say they were told before they took a forbearance that their regular monthly mortgage payments wouldn’t increase and their missed payments could be moved to the back of their loan term. But after the VA scrapped the PCP program, vets were told they needed to come up with all the missed payments at once.
“Almost $23,000? How am I gonna come up with that?” Edmund Garcia asked earlier this year in an interview with NPR. Garcia is a combat veteran who served in Iraq. He bought a house in Rosharon, Texas, with a VA home loan. After his wife lost her job during the pandemic, his mortgage company offered him a forbearance.
Edmund Garcia holds a photo of himself in 2000 as a specialist in charge of handling ammunition and supplies while he was in the Army.
Joseph Bui for NPR
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Edmund Garcia holds a photo of himself in 2000 as a specialist in charge of handling ammunition and supplies while he was in the Army.
Joseph Bui for NPR
The VA had other loan modification options, but those essentially required a new mortgage with a new interest rate, and rates were rising sharply — from around 3% up to around 7%.
Garcia was told that if he couldn’t pay back all the missed payments at once, he would have to accept a loan modification that would result in much bigger monthly bills. His old mortgage rate was 2.4%; the offer would increase that to 7.1% with payments $700 a month higher. Alternatively, he could get foreclosed on.
“I deal with PTSD, I deal with anxiety, and, you know, my heart is beating through my chest when I was having this conversation,” he told NPR. “My daughter … she’s asking, ‘Dad, are you OK?’ “
Now it appears that any veterans who succumbed to that pressure and accepted these higher-cost loan modifications will not be able to get help through the VA’s new rescue plan.
Vets pushed into high-cost loans won’t get help
“If you are not in default, this program is not for you,” John Bell, the director of the VA home loan program, told NPR at a press call this week. “And you have to be in default a certain amount of time.”
In other words, veterans who have been making payments on these higher-cost loans are not eligible. And it’s looking like that will exclude a lot of people.
Data obtained by NPR suggests that thousands of veterans ended up in modified loans with significantly higher interest rates following a mortgage forbearance.
The fine print to the VA’s new program also says that if a loan was modified, the borrower has to have made payments for at least six months, and then be in default for at least three months, to be eligible.
That doesn’t seem like the right approach to some policy experts.
“We definitely don’t think borrowers should have to pay six months on a bad, unaffordable modification,” said Steve Sharpe with the nonprofit National Consumer Law Center.
Also, the rules mean that if a veteran tried to pay a more costly loan modification for a few months, then defaulted and couldn’t afford it, they wouldn’t qualify.
“If they fail on an unaffordable modification, they should be able to access VASP,” Sharpe said.
He thinks the VA should extend the foreclosure moratorium on VA loans, which is set to expire at the end of May, both to give the VA time to consider fixing such issues and to give mortgage companies time to gear up and reach out to homeowners.
Still, Sharpe said, for those who do qualify, the VASP rescue plan should be a big help.
“It is great news that VASP has been released,” he said. “It is sorely needed because people have lacked a reasonable foreclosure alternative for a long time. … It’s exciting.”
VA Undersecretary Jacobs told reporters that a key difference with the new program is that the VA will hold the loans itself, rather than simply guarantee loans that are owned by investors. That’s what will allow the VA to set whatever mortgage rate it wants.
“These borrowers will have a consistent, affordable payment for the remainder of their loan at a fixed 2.5% interest rate,” Jacobs said.
Back in Rosharon, Texas, Edmund Garcia is wondering what happens next.
Edmund Garcia stands with his wife, Iris Garcia, inside their home, where they live with their four daughters. Iris lost her job during the pandemic and their mortgage company offered them a forbearance.
Joseph Bui for NPR
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Edmund Garcia stands with his wife, Iris Garcia, inside their home, where they live with their four daughters. Iris lost her job during the pandemic and their mortgage company offered them a forbearance.
Joseph Bui for NPR
“I was a little shocked to hear that I would have to qualify for this program,” Garcia told NPR this week.
The VA says borrowers should work with their mortgage company and contact a VA loan technician if they need help.
In Garcia’s case, he actually never accepted that more-costly loan modification. And it appears from a review of the rules that he should qualify for VASP. But there’s a catch. Under the rules, he’ll probably be put into a 40-year mortgage. That could end up happening to a lot of other veterans too.
“At the end I’ll be 82,” Garcia says. But he would still be very happy to get the help.
“This would be a huge relief for my family,” Garcia says. “And it feels like it’s within arm’s grasp.”
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‘Music makes everything better’: A Texas doctor spins vinyl to give patients relief
Dr. Tyler Jorgensen sets “A Charlie Brown Christmas” on a record player at Dell Seton Medical Center in Austin Texas. He uses vinyl records as a form of music therapy for palliative care patients.
Lorianne Willett/KUT News
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AUSTIN, TEXAS — Lying in her bed at Dell Seton Medical Center at the University of Texas at Austin, 64-year-old Pamela Mansfield sways her feet to the rhythm of George Jones’ “She Thinks I Still Care.” Mansfield is still recovering much of her mobility after a recent neck surgery, but she finds a way to move to the music floating from a record player that was wheeled into her room.
“Seems to be the worst part is the stiffness in my ankles and the no feeling in the hands,” she says. “But music makes everything better.”
The record player is courtesy of the ATX-VINyL program, a project dreamed up by Dr. Tyler Jorgensen to bring music to the bedside of patients dealing with difficult diagnoses and treatments. He collaborates with a team of volunteers who wheel the player on a cart to patients’ rooms, along with a selection of records in their favorite genres.
“I think of this record player as a time machine,” he said. “You know, something starts spinning — an old, familiar song on a record player — and now you’re back at home, you’re out of the hospital, you’re with your family, you’re with your loved ones.”
Daniela Vargas, a volunteer for the ATX-VINyL program, wheels a record player to the hospital room of a palliative care patient in Austin, Texas.
Lorianne Willett/KUT News
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The healing power of Country music… and Thin Lizzy
Mansfield wanted to hear country music: Willie Nelson, Merle Haggard, George Jones. That genre reminds her of listening to records with her parents, who helped form her taste in music. Almost as soon as the first record spins, she starts cracking jokes.
“I have great taste in music. Men, on the other hand … ehhh. I think my picker’s broken,” she says.
Other patients ask for jazz, R&B or holiday records.
The man who gave Jorgensen the idea for ATX-VINyL loved classic rock. That was around three years ago, when Jorgensen, a long-time emergency medicine physician, began a fellowship in palliative care — a specialty aimed at improving quality of life for people with serious conditions, including terminal illnesses.
Shortly after he began the fellowship, he says he struggled to connect with a particular patient.
“I couldn’t draw this man out, and I felt like he was really struggling and suffering,” Jorgensen said.
He had the idea to try playing the patient some music.
He went with “The Boys Are Back in Town,” by the 1970s Irish rock group Thin Lizzy, and saw an immediate change in the patient.
“He was telling me old stories about his life. He was getting more honest and vulnerable about the health challenges he was facing,” Jorgensen said. “And it just struck me that all this time I’ve been practicing medicine, there’s such a powerful tool that is almost universal to the human experience, which is music, and I’ve never tapped into it.”
Dr. Tyler Jorgensen plays vinyl records as a form of music therapy for palliative care patients in Austin, Texas. Willie Nelson’s albums are a perennial hit.
Lorianne Willett/KUT News
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Creating new memories
Jorgensen realized records could lift the spirits of patients dealing with heavy circumstances in hospital spaces that are often aesthetically bare. And he thought vinyl would offer a more personal touch than streaming a digital track through a smartphone or speaker.
“There’s just something inherently warm about the friction of a record — the pops, the scratches,” he said. “It sort of resonates through the wooden record player, and it just feels different.”
Since then, he has built up a collection of 60 records and counting at the hospital. The most-requested album, by a landslide, is Fleetwood Mac’s Rumours from 1977. Willie is also popular, along with Etta James and John Denver. And around the holidays, the Vince Guaraldi Trio’s A Charlie Brown Christmas gets a lot of spins.
These days, it’s often a volunteer who rolls the record player from room to room after consulting nursing staff about patients and family members who are struggling and could use a visit.
Daniela Vargas, the UT Austin pre-med undergraduate who heads up the volunteer cohort, became passionate about music therapy years ago when she and her sister began playing violin for isolated patients during the COVID-19 pandemic. She said she sees similar benefits when she curates a collection of records for a patient today.
“We are usually not in the room for the entire time, so it’s a more intimate experience for the patient or family, but being able to interact with the patient in the beginning and at the end can be really transformative,” Vargas said.
Often, the palliative care patients visited by ATX-VINyL are near the end of life.
Jorgensen feels that the record player provides an interruption of the heaviness those patients and their families are experiencing. Suddenly, it’s possible to create a new, positive shared experience at a profoundly difficult time.
“Now you’re sort of looking at it together and thinking, ‘What are we going to do with this thing? Let’s play something for Mom, let’s play something for Dad.’” he said. “And you are creating a new, positive, shared experience in the setting of something that can otherwise be very sad, very heavy.”
Other patients, like Pamela Mansfield, are working painstakingly toward recovery.
She has had six neck surgeries since April, when she had a serious fall. But on the day she listened to the George Jones album, she had a small victory to celebrate: She stood up for three minutes, a record since her most recent surgery.
With the record spinning, she couldn’t help but think about the victories she’s still pursuing.
“It’s motivating,” she said. “Me and my broom could dance really well to some of this stuff.”
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Weather tracker: Further flood watches issued across California
After prolonged heavy rainfall and devastating flooding across the Pacific north-west in the past few weeks, further flood watches have been issued across California through this week.
With 50-75mm (2-3in) of rainfall already reported across northern California this weekend, a series of atmospheric rivers will continue to bring periods of heavy rain and mountain snow across the northern and central parts of the state, with flood watches extending until Friday.
Cumulative rainfall totals are expected to widely exceed 50mm (2in) across a vast swathe of California by Boxing Day, but with totals around 200-300mm (8-12in) possible for the north-western corner of California and western-facing slopes of the northern Sierra Nevada mountains.
Los Angeles could receive 100-150mm (4-6in) of rainfall between Christmas Eve and Christmas Day, which could make it one of the wettest Christmases on record for the city. River and urban flooding are likely – particularly where there is run-off from high ground – with additional risks of mudslides and rockslides in mountain and foothill areas.
Winter storm warnings are also in effect for Yosemite national park, with the potential for 1.8-2.4 metres (6-8ft) of accumulating snow by Boxing Day. Heavy snow alongside strong winds will make travel very difficult over the festive period.
Heavy rain, lightning and strong winds are forecast across large parts of Zimbabwe leading up to Christmas. A level 2 weather warning has been issued by the Meteorological Services Department from Sunday 21 December to Wednesday 24 December. Some areas are expected to see more than 50mm of rainfall within a 24-hour period. The rain will be accompanied by hail, frequent lightning, and strong winds. These conditions have been attributed to the interaction between warm, moist air with low-pressure systems over the western and northern parts of the country.
Australia will see some large variations in temperatures over the festive period. Sydney, which is experiencing temperatures above 40C, is expected to tumble down to about 22C by Christmas Day, about 5C below average for this time of year. Perth is going to see temperatures gradually creep up, reaching a peak of 40C around Christmas Day. This is about 10C above average for this time of year.
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