By Eric Dehm
The VA home loan program can lead to veterans owning the home of their dreams. It can also lead to a never ending financial nightmare if veterans are not careful about how, and who, they finance and refinance their home.
The American Legion’s John Kamin, during a recent appearance on ConnectingVets’ The Morning Briefing, says that the Legion has been doing some investigating when it comes to how some lenders deal with VA loans. In looking into this issue, they’ve found some serious problems.
“We’ve learned that the Department of Veterans Affairs has been tracking for over a year that service members have been sold a flood of costly and risky mortgages,” Kamin said, “and hasn’t been able to do much to stop it.”
The lending practices, which the Legion describes as predatory, may seem innocuous at first glance. Veteran homeowners tend to think of VA loans as immune to outside threats, and because of that confidence, often don’t recognize the predatory offers in their own mailboxes.
“The junk mail that many of us get offering you these cut rates (for refinancing), we see it with credit cards and we see it with home loans,” Kamin said. “What we’ve learned is that the VA home loan is uniquely suited for predatory loaning schemes and that’s where we see the ‘mortgage churning’ aspect come into play.”
To learn more about mortgage churning, what to watch out for when getting or refinancing a VA home loan, and more, listen to the full interview with Kamin and American Legion spokesman Joe Plenzler below. To download and listen later on your computer or mobile device, click the share button and select “download” from the options.