VA to cover extra costs amid home loan confusion

Associated Press

COLUMBIA, S.C. (AP) - The U.S. Department of Veterans Affairs says it will cover extra costs for veterans who struck deals on home loans and faced the possibility of higher fees amid confusion over a federal law change.

The problem involves a Sept. 8 notice from the Department of Veterans Affairs loan operations that said fee rates would be lower beginning Saturday. Congress delayed that lower rate until November.

The change would have forced lenders who already had deals on home loans to increase the fee or pay it themselves. It could have taken longer to close mortgage deals because the fees changed the loan's terms.

VA spokesman Josh Taylor said Saturday fee differences will be waived if veterans had closed loans at lower rates than required with new legislation.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.