VA refunds millions in loan fees

VA refunds millions in loan fees

The U.S. Department of Veterans Affairs announced last week that it was refunding more than $400 million in loan fees that were incorrectly charged after a lengthy review of millions of mortgages issues over the last 20 years. The VA sent letters to those who would be receiving a refund.

Veterans and service members who utilize a VA loan must pay a small funding fee when applying but disabled veterans are exempt. An inspector general report released earlier this year showed that no fewer than 53,000 disabled veterans had been inadvertently charged the fees. That discovery prompted this more comprehensive study that is resulting in the mass refunds.

The VA also announced a new requirement that lenders ask veterans applying for a loan about their disability status. VA loans allow active and former military and their qualifying family members to purchase a home without needing a down payment.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.