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CFPB tackles veteran complaints about VA refis

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Mortgage Professional America | 11 Nov 2016, 11:22 AM Agree 0
The CFPB has received thousands of complaints from veterans about the VA refinance process – mostly concerns about aggressive marketing and failure to deliver on promises
  • No More Churning | | 11 Nov 2016, 12:10 PM Agree 0
    There is a simple fix to the VA IRRL churning problem some very shaded companies have built their entire business model around. The solution is simple, put a minimum time period requirement in place before someone can do an IRRL. Hello VA, can you hear this??? I am constantly seeing veterans purchase a home with a VA mortgage to then be solicited 30 days after closing to do an IRRL - and lied to at the same time about their current rate and terms. Shame on these IRRL churning companies. This is the one place the CFPB really needs to crack down - worse than the old subprime days and they need to be shut down.
  • Scott | | 11 Nov 2016, 01:07 PM Agree 0
    Agree with No More Churning. Follow FHA's lead and require 6 months payments to be made prior to an IRRRL. This allows lenders to help pay for the Funding Fee and other closing costs without having a mortgage pre-pay early. Churning is very expensive for lenders and benefits originators more than borrowers. The Department of Veterans Affairs needs to fix this.
  • MortgageGuy | | 14 Nov 2016, 08:39 AM Agree 0
    I am a Mortgage Originator. VA recently changed this to require 6 months of payments before they'll allow an IRRRL. That combined with the ongoing surge in rates should put an end to these fools.
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