Predatory lending targeting veterans affects thousands of home buyers

Source: Ken Harney, Washington Post (Paid Registration)

According to officials, some lenders active in the Department of Veterans Affairs (VA) home-mortgage program have been inducing borrowers to refinance their loans frequently to generate fat fees for the lenders themselves, rather than benefiting veterans with lower costs or better loan terms.

But it gets worse: Abuses in the VA mortgage-lending arena have spilled over onto borrowers in the much larger Federal Housing Administration (FHA) market, which primarily serves first-time home purchasers and others who lack significant cash for a down payment.

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