20 Million VA Loans and Counting

longknife

Diamond Member
Sep 21, 2012
42,221
13,094
2,250
Sin City
by CJ @ 20 Million VA Loans and Counting | A Soldier's Perspective,

Today the Department of Veterans Affairs announced it has guaranteed 20 million home loans since its home loan program was established in 1944 as part of the original GI Bill of Rights for returning World War II Veterans. The 20 millionth loan was guaranteed for a home in Woodbridge, Va., purchased by the surviving spouse of an Iraq War Veteran who passed away in 2010.

Given the current low interest rates, the program has grown significantly in the past five years, with 71 percent more purchases and 20 times as many refinances processed in fiscal year (FY) 2012 than in FY 2007. Currently, there are 1.7 million VA guaranteed home loans in existence with a total value of $284 billion. VA has guaranteed 540,000 mortgages in 2012.

“The 20 millionth VA home loan is a major milestone and is a testament to VA’s commitment to support and enhance the lives of Veterans, Servicemembers, their families and survivors,” said Allison A. Hickey, VA’s undersecretary for benefits. “As a result of their service and sacrifice, as a group, they prove to be disciplined, reliable, and honorable—traits that are ideal for this kind of national investment.”

The program makes home ownership more affordable for eligible Veterans, Servicemembers, and surviving spouses by providing access to lower cost financing. VA loans are also attractive within the mortgage industry because they protect lenders from loss if the borrower fails to repay the loan.

Mortgages guaranteed by VA have had the lowest foreclosure rate for the last 17 quarters and the lowest delinquency rate for the last 14 quarters compared to all other types of home loans in the nation, including prime loans, according to a report by the Mortgage Bankers Association.

Much of the strength of VA’s home loan program stems from the efforts of VA employees and its industry partners nationwide to ensure Veterans receive every possible opportunity to remain in their homes and avoid foreclosure. Since 2009, VA’s efforts have resulted in over $8 billion in savings to taxpayers in foreclosure avoidance.

Veterans may obtain a certificate of eligibility for a VA-guaranteed home loan through the joint Department of Defense—VA web portal eBenefits at www.ebenefits.va.gov. To obtain more information about the VA Home Loan Program, visit the program’s home page at Loan Guaranty Home Loan Program Home.

:clap2:
 
400%? - Granny says dey oughta close `em down fer usury...
:eek:
Lenders find ways around law that protects troops from high interest rates
May 15, 2013 - Seven years after Congress banned payday-loan companies from charging exorbitant interest rates to servicemembers, many of the nation’s military bases are surrounded by storefront lenders who charge high annual percentage rates, sometimes exceeding 400 percent.
The Military Lending Act sought to protect servicemembers and their families from predatory loans. But in practice, the law has defined the types of covered loans so narrowly that it’s been all too easy for lenders to circumvent it. “We have to revisit this,” said Sen. Dick Durbin, D-Ill., who chairs the defense appropriations subcommittee and is the Senate’s second-ranking Democrat. “If we’re serious about protecting military families from exploitation, this law has to be a lot tighter.”

Members of the military can lose their security clearances for falling into debt. As a result, experts say, servicemembers often avoid taking financial problems to their superior officers and instead resort to high-cost loans they don’t fully understand. The Department of Defense, which defines which loans the Military Lending Act covers, has begun a process to review the law, said Marcus Beauregard, chief of the Pentagon’s state liaison office.

The act mainly targets two products: payday loans, usually two-week loans with annual percentage rates often above 400 percent, and auto-title loans, typically one-month loans with rates above 100 percent and secured by the borrower’s vehicle. The law caps all covered loans at a 36 percent annual rate.

That limit “did do a great deal of good on the products that it covered,” Holly Petraeus, the Consumer Financial Protection Bureau’s head of service member affairs, said in an interview. “But there are a lot of products that it doesn’t cover.” Representatives from payday and other high-cost lenders said they follow the law. Some defended the proliferation of new products as helpful to consumers.

A 400 Percent Loan
 

Forum List

Back
Top