Previously, I mentioned that VA had issued a request for comments on proposals to update the fees a veteran could pay in connection with their mortgage. If you missed that one you can read all about it HERE.
It’s about time. VA allowable fees haven’t been updated in over 60 years. Maybe it’s about time for a facelift.
The MBA also thinks so. Writing to the VA on behalf of its members and the mortgage lending industry, MBA put forth their reasoning as to why the VA program needs some updating.
According to MBA’s Senior VP of Residential Policy, Pete Mills, a re-evaluation of the current VA fee policy would help to ensure that the VA loan program continues to effectively serve the needs of veteran homebuyers. MBA notes that although the current fee policy has been effective, in some cases, it now hinders many veterans from using the VA loan program.
Things have changed quite a bit since 1954 when the current fee policy was developed. Today consumers have many more protections against unwarranted fees and unreasonable costs. The current fee policy needs to be amended so the program may be used to better serve those who have served our Country. They deserve better.
If you haven’t provided comment, shame on you. The deadline was yesterday. However, I’d bet it wouldn’t hurt to send a note to the VA in support of MBA’s letter. The more voices in support of their plan, the better.
The VA Loan Guaranty Program is vital to veterans and an important financing tool to help lenders, realtors, and builders. Let’s help VA bring the program into the current, digital age.
For your reading pleasure, you can view the full VA proposal HERE.