The temporary measure is expected to generate billions of dollars in VA funding fees between Jan. 1, 2022, and Oct. 1, 2027. It would offset new direct spending by $86 million over the five-year period.
The American Legion and the Iraq and Afghanistan Veterans of America have announced their opposition to the House legislation to hike the fees charged for VA home-loan guarantees.
HUD Secretary Ben Carson faced the ire of House Democrats over delays in sending disaster recovery funds to Puerto Rico and issues related to disparate impact and risk-based pricing.
VA lenders and servicers have been instructed to ensure that information regarding funding fee exemptions is current at the time of closing to avoid in-correct fee charges to disabled veterans.
Standard & Poor’s said its ratings of credit card ABS issued by Capital One and JPMorgan Chase will not be affected by the lawsuits filed against the lenders for allegedly violating New York’s usury laws.
The warning comes in the wake of a Government Accountability Office report identifying weaknesses in FHA’s oversight of HECMs, particularly in monitoring, performance assessment and reporting.
FHA insured at least $13 billion in loans to borrowers with unpaid federal tax debt, according to audit findings by the HUD inspector general. The potential loss on the problem loans could be as much as $6.1 billion, the IG said.
The White House has nominated FHA Commissioner Brian Montgomery as HUD deputy secretary. Meanwhile, interim Ginnie President Maren Kasper is stepping down by the end of next week.