"This change is necessary because VA is not set up or intended to be a mortgage loan restructuring service," said a VA spokesperson.

Correspondent production made up 46.1% of the group’s government-insured volume in the fourth quarter.

The volume of single-family mortgage servicing tied to Ginnie Mae rose 7.3% on an annual basis to $2.541 trillion as of the end of 2024.

FHA activity fell 16.8% while VA production was down 15.1% from January.

The bill would cap purchases under the VASP program to 250 loans annually.

“The government’s being run by great people, they’re going to do great things going forward,” said Mat Ishbia, chairman and CEO of United Wholesale Mortgage.

Borrower payoffs reflect heavy refinance activity in the Ginnie program.

Late on Jan. 27, the Trump administration ordered a pause for federal loan and grant activity, but the vague wording of the order prompted uncertainty for the mortgage market.

FHA servicing volume increased by 2.5% on a quarterly basis, hitting $1.39 trillion at the end of the fourth quarter of 2024.

Rep. Derrick Van Orden, R-WI, said unelected VA officials shouldn’t have the authority to “write a $16 billion or $17 billion check” through creation of a loan-modification program.