A task force has been created to investigate lenders that are ‘churning’ VA refinance loans to veterans that may not need to refinance or even be benefiting from the refinance to begin with.
A VA loan allows veterans a special type of benefit that not only allows the lender to finance a home with no down payment, but also the ability to have any closing cost fees incorporated into their mortgage - truly allowing them to become homeowners with no money down. Along with that, VA loans offer lower than average interest rates. A great benefit, right?
The issue at hand is that the same benefits that are implemented in VA loans are not implemented when you refinance. This is where the investigation comes into play.
It has been discovered that lenders are pressuring veteran homeowners into refinancing their home after only having their original mortgage for a short period of time - meaning they may not even need to refinance in the first place - for a refinance loan that may in fact make them pay more, despite having a slightly lower monthly payment.
The task force was then created when Senator Elizabeth Warren sent a letter to Ginnie Mae President, Michael Bright, questioning the lender's’ true motives. Bright promptly responded with a Task Force to investigate the situation.
Our heroes deserve better. Along with offering the perfect match for VA loans, Mortgage Advisor strives to provide the best mortgage information possible to everyone looking to purchase or refinance a home. Contact us today with all your home loan needs.