#Middlebury #Veterans
by Freddy Groves
Scams targeting veterans who are refinancing VA-guaranteed mortgages have gone on for far too many years. Now the Department of Veterans Affairs is trying to do something about it. It’s just hooked up with Ginnie Mae to take a close look at all the complaints. As a veteran refinancing a VA home loan, you have certain benefits, and lenders who offer those loans are supposed to follow the rules.
Complaints received by the Consumer Financial Protection Bureau fall into two main categories, aggressive lenders and deceptive lenders.
Aggressive Lenders: Since lenders are protected by the VA guarantee, they can be aggressive in going after veterans to refinance. They want your business, whether you’re interested or not. One way to get their (unwanted) attention is to actually do a refinance. Veterans have reported continued harassing calls and requests to do yet another refinance.
Deceptive Lenders: Lenders lie about the interest rate, and it’s only later that the true interest rate becomes apparent. Lenders stall and drag their feet when a rate is locked in, causing the rate to rise. Then the veteran either has to accept the higher rate or bring more money to the closing. Lenders also lie about whether a veteran is actually qualified, waiting until far into the process before revealing the truth. Lenders also play fast and loose with escrow monies, causing the veteran more grief and expense.
The task force will be looking at these tactics, especially “loan churning,” which is repeated refinancing to get more fees out of the veteran.
If you’re about to refinance, go online to the Consumer Financial Protection Bureau (www.consumerfinance.gov) and learn about your rights.
If you have a complaint or you’re being harassed by lenders, contact the CFPB service member office at consumerfinance.gov/complaint; email military@cfpb.gov; or call toll free 855-411-CFPB (855-411-2372).
(c) 2016 King Features Synd. Inc.
