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Military complaints about mortgages on the rise – CFPB

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Mortgage Professional America | 30 Mar 2016, 06:30 AM Agree 0
Servicemembers, veterans and their families are having more issues with their mortgages, according to a report released by the CFPB
  • | | 30 Mar 2016, 02:15 PM Agree 0
    The bank isn't responsible for "refunding" the VA funding fee.
    Here are the guidelines from the VA hand book:

    If the veteran has a pending disability compensation claim at the time of mortgage
    closing, the funding fee must be remitted as if the borrower was not exempt.
    Advise the veteran to contact the VA Regional Loan Center to request a refund if it is later
    determined that the veteran is entitled to compensation retroactively to a date
    prior to mortgage closing.
  • | | 30 Mar 2016, 05:16 PM Agree 0
    Depending how original VA funding fee was paid, either financed or paid in cash will determine how the refund is returned. If it was financed, VA will send the money back to the lender. The lender will then credit this amount to reduce the mortgage balance. If the funding fee was paid in cash, it will be refunded directly to the Veteran. The refund process via the lender method can take 2-3 months to fully process.
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