Veterans Overcharged on VA Home Loans

Military veterans refinancing their mortgages for a lower interest rate may have been cheated on fees by their bank. Recent reports confirm that certain banks have been overcharging service members and veterans for their mortgage refinancing costs.

Background:

As a way of thanking veterans for their military service, Congress permitted the Veterans Administration (VA) to guarantee no-money-down bank mortgages for veterans. This prohibited banks from charging fees totaling more than 1% of the loan amount. To deal with the fee cap when a veteran buys a home, the seller may pay some of the closing costs directly to the bank.

However, if a veteran refinances, the house isn't purchased from anyone so only the loan is rewritten. Without a seller to absorb the attorney's fees, banks must pay them out of their own pockets. Reports have surfaced that certain banks instead instructed their attorneys to include these fees in with the title search and exam fees, which can legally be passed on to the veterans who are borrowing the money. Doing so is not only unethical - it's against the law.

If you refinanced your VA home loan in the last 10 years, you may be due a refund. Mortgage documents and laws are complex, and it takes an experienced attorney well-versed in mortgage and real estate law to assist you in getting a refund if you’ve been overcharged. Zimmerman Reed has a long track record of holding unscrupulous mortgage companies accountable in court. We have represented homeowners across the country dealing with financial loss due to illegal mortgage practices. If you would like more information, or would just like a free initial consultation with a lawyer experienced in this type of litigation, please call 800.493.2827 or fill out an online free case review form below. We look forward to answering any questions you may have.