Change Interpolation in specific directions

I would like to have a smooth interpolation when the camera moves up (like when the player jumps), but a much lower level of interpolation when it is moving down (like when the player is falling). I know I can change damping in the X and Y, but can I change it based on the direction of Y?

There is no out-of-the-box way to have the vcam do asymmetric damping on an axis.

The easiest way to introduce such nonstandard things is to make a "shadow" target for the player and use that as a target for the vcam. The shadow target has a custom script on it that matches the player's position and rotation, plus any custom differences you would like to implement (such as lag based on direction of movement).