CEO of Major VA Mortgage Company Defends the VA IRRRL
LINDON, Utah, Dec. 7, 2017 /PRNewswire/ -- Recent negative discussions about VA lenders and their products prompted the CEO of Low VA Rates, Eric Kandell, to join the conversation in order to clear misunderstandings.
In his think piece, Mr. Kandell specifically addressed negative comments made by another lender in an opinion article published in October by National Mortgage News, as well as those made by Senator Elizabeth Warren in her September 6th letter to Michael Bright, the Acting President and COO of Ginnie Mae.
Mr. Kandell defended the VA IRRRL when he said: "The VA IRRRL . . . was actually created to help struggling veterans lower their rates and payments. Not financially exploit them as Sen. Warren claims."
Going further, Mr. Kandell then explained that the negative focus on the VA IRRRL is misleading, as the majority of veteran complaints are about payment struggles, not refinance offers: ". . . in 2016 less than 7% of all complaints from veterans to the CFPB had to do with receiving a credit offer to refinance their loan.
"In contrast, over half of the 2016 complaints involved 'making payments' or having 'problems when . . . unable to pay.'"
In the past, the focus on the VA IRRRL lead to increased restrictions on refinances, a move, Mr. Kandell said, that ended up locking veterans in to higher rates.
With Ginnie Mae once again considering additional refinancing restrictions, Mr. Kandell has this to say: "If Ginnie Mae places further restrictions on the frequency veterans are able to refinance their loans using the VA IRRRL . . . it will actually lead to greater exploitation from lenders, as we've already seen with these types of restrictions."
To solve the problem, Mr. Kandell said that either Ginnie Mae or the VA's newly created task force should create a report detailing the range of interest rates all lenders give to veterans at closing. Those offering higher rates can then be forced to give veterans larger credits.
About Low VA Rates
Low VA Rates is a leading lender for VA home loans. They help both active and prior members of the United States military get great rates on their mortgage, so affordable homeownership is a reality for all servicemen and women.
For more details, please contact:
Director of Marketing
Low VA Rates
Tel: (866) 569-8272 ext. 521
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