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May 2024 » thefivestar.com 69 May 2024 J O U R N A L Samoa, District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands. State regulators supervise roughly three-quarters of all U.S. banks and a variety of nondepository financial ser- vices. CSBS, on behalf of state regulators, also operates the Nationwide Multistate Licensing System (NMLS) to license and register nondepository financial service providers in the mortgage, money ser- vices businesses, consumer finance, and debt industries. The FHFA is an independent agency established by the Housing and Economic Recovery Act of 2008 (HERA), responsible for the supervision, regu- lation, and housing mission oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System, which includes the 11 Federal Home Loan Banks (FHLBanks) and the Office of Finance (OF). The FHFA was established to ensure that the government-sponsored enterprises (GSEs)—Fannie Mae and Freddie Mac—and the FHLBanks fulfill their mission by operating in a safe and sound manner to serve as a reliable source of liquidity and funding for hous- ing finance and community investment. Since 2008, FHFA has also served as conservator of both Fannie Mae and Freddie Mac. New Avenues to Collaboration "Information sharing between state regulators and federal supervi- sors is common sense given our shared interest in a vibrant, stable mortgage marketplace," said CSBS Board Chair Kruse, who also serves as North Dakota Commissioner of Financial Institutions. "Establishing information sharing opens the door to a more collaborative oversight process that is beneficial to all involved." State financial regulators are the primary regulators of nonbank mortgage companies. While each supervisory agency maintains specific authorities related to the mortgage industry, only state financial regulators have complete prudential authority over nonbank mort- gage companies. VA LAUNCHES NEW FORECLOSURE PREVENTION INITIATIVE B eginning May 31, 2024, the U.S. Department of Veterans Affairs (VA) will launch its Veterans Af- fairs Servicing Purchase (VASP) program, designed to assist more than 40,000 veterans experiencing severe financial hardship to avoid foreclosure and remain in their homes. VASP will be available to eligible veterans, active-duty servicemembers, and surviving spouses with VA-guaranteed home loans who are experiencing severe financial hardship. Through the VASP initiative, the VA will purchase defaulted VA loans from mortgage servicers, modify the loans, and then place them in the VA-owned portfolio as direct loans. These actions will help the VA work directly with eligible veterans to adjust their loans and monthly payments to stay in their homes. Through VASP, eligible borrowers will have a fixed 2.5% interest rate, which will provide a consistent, affordable pay- ment for the remainder of their loan. "This new program will help more than 40,000 veterans and their families stay in their homes, and there's nothing more important than that," VA Secretary Denis McDonough said. "We at the VA are com- mitted to doing everything in our power to help veterans avoid foreclosure, and that's exactly why we're launching VASP—to help the veterans who need it most." The Latest in VA Actions Prior to his role as head of the VA, McDonough served in the Obama administration as the 26th White House Chief of Staff from February 2013 to January 2017, managing White House staff and working across the Cabinet to advance the Obama-Biden agenda. Back in November, the VA called on mortgage servicers to pause foreclosures until May 31, 2024, while the VASP pro- gram was being finalized. In addition, the VA extended its COVID-19 modification program through May 31, 2024, and worked with Through VASP, eligible borrowers will have a fixed 2.5% interest rate, which will provide a consistent, affordable payment for the remainder of their loan.