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The VA has its fix for a home loan debacle, but many vets who got hurt won't get help

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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.

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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.

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“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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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“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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Flood sirens blare in South Central Texas as rivers reach perilous heights

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Flood sirens blare in South Central Texas as rivers reach perilous heights

A person views the Guadalupe River after flash flooding occurred along its banks on July 16, 2026 in Center Point, Texas. Flash floods swept across parts of Central Texas, prompting evacuations and triggering multiple water rescues.

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Dangerous floods are hitting South Central Texas — a region that just marked one year since more than 130 people died in catastrophic flooding. Gov. Greg Abbott says at least two people have died in the current emergency.

More than 230 rescues have been made, the governor said Thursday evening, adding that more than 2,350 responders and 1,400 vehicles have been deployed.

A wide swath of Texas is under flood alerts, from the Kerrville area south to Uvalde and beyond to Laredo. In parts of Uvalde County, muddy floodwaters covered roads and fields and rose nearly as high as houses’ rooftops, according to a video posted by Texas Department of Public Safety.

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With heavy rains expected to continue into Friday, Abbott said Uvalde and Johnson City are at the greatest risk of life-threatening floods overnight.

“The people in that area need to be very cautious,” Abbott said.

In some cases, communities that endured flooding on Wednesday are being deluged once again.

“Showers and thunderstorms continue developing and moving into areas that are currently experiencing dangerous flooding conditions,” the National Weather Service office in San Antonio and Austin said.

NPR member stations in Texas are covering the floods. In some cases, residents tell reporters that flooding exceeds levels they saw in 2025.

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In Kerrville, the city police department said in a noon update that while high water had mostly receded, the emergency is ongoing, with numerous road and bridge closures. The agency urged residents not to venture out.

“There is a lot of people driving around to take a look and that is not helpful,” the police said.

At least one summer camp has evacuated, according to the Texas Newsroom, and state lawmakers say they’re seeing an improved safety response to the floods, thanks to an increase in disaster resources such as funding for warning systems and flood mitigation.

The Guadalupe River rose at terrifying speed near Comfort, Texas, Thursday morning — from 5.46 feet at 5 a.m. CT to 37.05 feet at 8:05 a.m. — according to the U.S. Geological Survey.

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Trump’s ‘American Flag Blue’ in the Lincoln Memorial pool is already gray — and the Olympic canoer ‘vandal’ is fighting his arrest | Fortune

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Trump’s ‘American Flag Blue’ in the Lincoln Memorial pool is already gray — and the Olympic canoer ‘vandal’ is fighting his arrest | Fortune

The newly drained Lincoln Memorial Reflecting Pool’s bottom surface has noticeably faded since it was lined with a protective coating in a color President Donald Trump called “American flag blue” this spring.

An Associated Press reporter and photographer viewed the fenced-off Reflecting Pool on Wednesday from the top of the Washington Monument. The new liner appears grayer than when the pool was repainted and refilled with water in early June. Debris that had been visible earlier this week after the pool was drained is now largely gone, after work crews removed it.

Trump’s problem-plagued effort to revamp the landmark has stretched well past his initial goal of having the Reflecting Pool ready by July 4 for the nation’s 250th birthday.

The president at first suggested his renovations would cost $1.5 million, but the bill ballooned to more than $16 million by June.

Trump had said the repairs would last a century, but within days of the project’s initial completion last month, the water was beset by an algae bloom and pieces of the new coating appeared to be peeling off the bottom.

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Ohio-based Green Water Solutions, also known as Greenwater Services, was given a $1.7 million contract to install a water-purification system in the Reflecting Pool, while Virginia-based Atlantic Industrial Coatings was awarded $14.7 million to repaint and waterproof the pool’s concrete floor.

Vandalism charges were levied against a former Olympic canoeist

Trump has repeatedly blamed vandals for the peeling paint, though critics allege it’s from shoddy repair work.

Trump has said, without citing evidence, that vandals made a “350-foot gash” in the liner and caused other problems. No large slash marks were immediately visible Wednesday from the Washington Monument view. It was not possible to do a more up-close inspection of the entire pool due to a dark fence surrounding the perimeter.

Interior Secretary Doug Burgum, whose agency oversees the National Park Service, said that after the water is drained and debris is cleaned from Independence Day fireworks, the plan for the pool is straightforward: “Repair the vandalism that was done. Fill it back up again.” He was speaking with conservative podcaster Katie Miller.

Court documents show that the National Park Service reported to the U.S. Park Police a June 9 incident in which a sharp knife or razor was said to have cut the pool’s new liner.

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Former Olympic canoe racer David Hearn pleaded not guilty last week in D.C. Superior Court to deliberately damaging the Reflecting Pool. Hearn has said he reached inside the pool to examine the peeled sealant and let go of a chunk when he was told to by a park worker.

His attorneys and other Trump administration critics have derided the case as an abuse of prosecutorial power and maintain he is being scapegoated for the poor job done fixing up the Reflecting Pool.

At least three other people have been charged in the same court with misdemeanors for allegedly removing pieces of paint from the pool, court records show. All three pleaded not guilty during initial court appearances.

The work on the Reflecting Pool is just one of a number of projects Trump has spearheaded across the nation’s capital. Most prominently, he demolished the White House’s East Wing to build a $400 million ballroom and plans to build a towering arch. between the Lincoln Memorial and Arlington National Cemetery.

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Argentina is back in the World Cup final after a thrilling semifinal win over England

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Argentina is back in the World Cup final after a thrilling semifinal win over England

Argentina’s Lionel Messi celebrates the team’s second goal by Lautaro Martínez during their World Cup semifinal against England on Wednesday in Atlanta. Argentina defeated the English 2-1 to advance to Sunday’s final against Spain.

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ATLANTA — Argentina, the death-defying defending World Cup champion, will play for a second consecutive title after scoring two late goals to beat England in the semifinal, 2-1.

For a fourth straight knockout game, Argentina survived a heart-stoppingly close call. First was Cape Verde, the African island nation underdog, who took the champions to extra time. Then was the furious miracle comeback after Egypt took a 2-0 lead. Then, in the quarterfinal, a shorthanded Switzerland squad forced extra time despite a 72nd-minute red card.

This gutsy Argentina squad prevailed in all three games, and Wednesday, they pulled it off yet again. In the 55th minute, England took a 1-0 lead when forward Anthony Gordon tapped in a cross.

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But, as the clock ticked up, Argentina turned up the intensity. A relentless onslaught yielded near miss after near miss before finally midfielder Enzo Fernández scored off a rocket from outside the penalty area to equalize the game at 1-1 in the 85th minute.

Then, in stoppage time, forward Lautaro Martínez sent the Argentina crowd into delirium with a header off a cross from 39-year-old superstar Lionel Messi, who assisted on both goals.

“I think that this team plays the best when we are facing a difficult situation, with adversity, ” said Argentina coach Lionel Scaloni afterward. “We had a challenging game, a challenging situation. There was blood in the water, and we went for it.”

In Sunday’s final they will face Spain, which defeated France on Tuesday 2-0 to contend for their second-ever title.

England's Anthony Gordon celebrates scoring his team's first goal during the World Cup semifinal against Argentina on Wednesday in Atlanta.

England’s Anthony Gordon celebrates scoring his team’s first goal during the World Cup semifinal against Argentina on Wednesday in Atlanta.

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Wednesday’s game, the sixth meeting between these two teams at the men’s World Cup, was the newest chapter in their storied rivalry. That history includes the infamous “Hand of God” goal scored by Diego Maradona in the 1986 World Cup, four years after a war between the two countries over the Falkland Islands. The British won the war, but the sovereignty of the territory is still under dispute.

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