Veterans need to be on the lookout for mortgage refinance scams involving Veterans Administration mortgages.
According to Ginnie Mae, vets are being lured into repeatedly refinancing their homes – in some cases, multiple times a year – which ends up costing them thousands more. In addition, they may be urged to switch from a long-term, fixed-rate mortgage to a riskier short-term, adjustable-rate loan.
Some predatory lenders are also being accused of offering “cash out” windfalls, teaser interest rates, and lower monthly payments. To make matters even more confusing, marketing materials may resemble information from the Department of Defense.
The VA is threatening stiff penalties for those lenders whose improper charges or fees lead to foreclosure. In addition, the Consumer Financial Protection Bureau is planning to fine and sue offending lenders, but as you know, the wheels of justice are often slow to turn.
If you are a borrower and have questions about any aspect of your VA mortgage, contact the VA Loan Guaranty Office at 1-877-827-3702, with hours of operation from 8am to 6pm, EST.
The Harris Firm would like to thank all our veterans for their service. And please, if you feel a lender has treated you unfairly, get professional advice from a trusted source.
