Fox News now reports the Department of Veterans Affairs owes an estimated $189 million to 53,000 disabled veterans.

These veterans were charged home loan fees they were exempt from paying and entitled to refunds for years. Those refunds range from $5,000 to $20,000 according to a recently released IG audit of the VA Home Loan program.

Some leaders within VA were aware of the problem but failed to take steps to ensure the refund failure was timely resolved. Managers in the program told IG inspectors they were aware of the issue but had other priorities.

“OIG finds it troubling that senior (Veterans Benefits Administration) management was aware that thousands of veterans were potentially owed more than $150 million yet did not take adequate actions to ensure refunds were issued,” the IG report says.

From 2012 to 2017, the agency collected almost $300 million in VA home loan origination fees from 73,000 veterans who were exempt from the fees.

So far, auditors have learned nearly 20,000 veterans have submitted claims for refunds receiving nearly $100 million to date.

VA Secretary Robert Wilkie has promised internal protocol will prevent this problem from continuing.

“Through an internal quality improvement effort, VA has put a plan in place to better inform veterans through key communications when the law allows VA to waive the fee for a veteran,” the announcement quoted VA Secretary Robert Wilkie as saying.

The Loan Guarantee program was part of the GI Bill initiative in 1944 to help returning WWII veterans finance homes. The loans are made by private lenders. VA guarantees a portion of the loan to buyers who are eligible for the benefit. The associated fees for the benefit are collected by the lender and transmitted to the agency.

The VA Home Loan is a fantastic benefit for veterans exiting the military to help them afford a reasonable home without requiring as much of a down payment as most conventional loans.

For the past 6 years, the Veterans Benefits Administration has focused primarily on resolving the disability compensation claims and appeals backlog. The number of claims predicably ballooned after the newest wars in the Middle East started almost twenty years ago. Almost ten years ago, claims for herbicide exposure created a massive backlog.

Since that time, the agency pushed hard and fast on disability claims but other benefits platforms have suffered including economic benefits like the GI Bill and Vocational Rehabilitation & Employment.

The VA Home Loan refund debacle is just one of many problems that resulted from the agency’s fixation on fixing the disability claims system. However, with the new appeals review system coming online, it seems unlikely other benefits platforms will receive timely attention in the near term.

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38 Comments

  1. Hmmm, makes one wonder what VA upper echelon was thinking, when they illegally took monies for housing. Then didn’t return it.
    Maybe this is another case of fraud by a government agency. WHY do I state that? Here’s my answer:
    *”https://libertynewsnow.com/guess-what-the-government-is-wasting-billions-on/article16808/amp”*
    I believe the VA needs a reputable audit company to do a complete audit [on one of the most corrupt government agencies around!]!

    • Here’s another article on the VA housing scandal/scam VA pulled on veterans:

      *”https://www.military.com/daily-news/2019/06/07/inspector-general-finds-va-overcharged-disabled-vets-home-loans.html”*

    • This video comes from “The Josh Bernstein Show”! The “founder of the John Birch Society” had some words on what our government was up to back in 1958! To bad “We the People” didn’t listen:

      *”https://youtu.be/j2UV2yDPBn4″*

    • Good News for Accountability, now, the Department of Veterans Affairs needs to refund money to the veterans. Yes and yes. Most importantly is to step to resolve the situation by doing what is right. Best.

      • Dont bet on it. Thats one thing you find with the VA, is that they can screw you for decades before its found out

    • If you were a disabled Veteran back in 1989 then you should be exempt. Call the Regional Loan Center contact number and/or your lender or look at your closing disclosure documentation and see if you were charged a funding fee. If you were, get with your lender or the VA and request a refund.

    • All the OIG needs to do is AUDIT all employees working w VA Home Loans at VA, look for newly purchased boats, houses, other big toys, vacations, or even a freshly lined in ground pool with Veteran gravestones….the answer the OIG seeks lurks right in front of them unless they too, are blinded by nepotism.

    • Call the local VA hotline, 1- (800), in your district. Explain it has to do with a refund on your purchase of your home!
      Then watch the assholes try their best to say: “Sorry, I don’t know what your talking about!”
      That seems to be every fuckin VA employees statement. Especially when they’re caught doing a crime!

  2. I bought a home in 2015, how do I find out if I’m due a refund , disabled veteran,thanks and enjoy your day

  3. To reiterate:
    I believe the VA needs a reputable audit company to do a complete audit [on one of the most corrupt government agencies around!

    With that being said, Thank you to those involved in discovering this $184 million dollar scam. I see progress! I’m happy – lil by lil, bit by bit things will get better – it’s in our true nature to do good in a fallen world.

    We embrace a challenge! It is far too easy to be corrupt. For those who are not, we have the job of setting the example to make things ethical and moral. Now that’s a challenge and one we can find satisfaction in achieving!

    Peace out

    • Progress, I will believe it when I see it. When the veterans receive the refunds in hand is when I will really believe it. Always lip service and not complete follow through.

  4. That’s $189 million that the VA knowd about, or weren’t able to get away with. Any bets the number is more? See? I do have faith in my government – faith that they are lying.

  5. Where you apply for that refund? The one that VA charged us for our home loan. Anyone knows? Thx

  6. To y’all who are possibly owed money. I’ll guarantee y’all the VA will do their damnest to keep from paying y’all back.
    Their favorite expression, especially when caught is:
    “Sorry, I don’t know anything about that!”
    OR;
    “Sorry, you’ve reached the wrong department. And, I don’t know who could help you!”
    Or:………..
    The list is endless on their excuses! So, don’t expect them to help you recover anything your owed!

    • You are correct Crazy Elf. Probably take the Supreme Court to really get the VA to produce the correct amounts to each veteran. Just like it is going to more than likely take the Supreme Court to get the handcuffs removed from me.

  7. I’d like to run for office and promote I’d donate 90 percent of my Congressional salary to the homeless. Due I have a chance in hell and were would I start

  8. And we all concerned about . . .

    ONLY $189 MILLION?

    A drop in the bucket. Chump change. To be added to the rest of the clues of the VA problems.

    No one is calling the shots to make a VA Home Run.

    A change to where Vets would be cheering. Well you know, like winning a war from being threatened.

    VA stop the neglection in many areas of your purposed establishment. You’re imaging yourself like a fool, but cover your ass with a large PR budget.

    Therefore, fooling the Public with your propaganda, and fooling some dumn Vets too.

    And the Media, most are on the VA’s side. No friends of the living Veteran. Its cool to celebrate & honor the dead.

    THE LIVING ARE MORE IMPORTANT YOU FOOLS!!!

  9. I purchased home 2017. Closed Feb 10, 2017 : Veterans United and refi afterwards 2x’s. I believe I was a victim of fraud with the fees. Can u please let me know.
    Iconic mortgage and RMK mortgage . : I believe they got money from me all 3 of them. Should I look at my paperwork but I don’t know what I’m looking for

  10. I purchased home 2017. Closed Feb 10, 2017 : Veterans United and refi afterwards 2x’s. I believe I was a victim of fraud with the fees. Can u please let me know.
    Iconic mortgage and RMK mortgage . : I believe they got money from me all 3 of them. Should I look at my paperwork but I don’t know what I’m looking for..funding fees and other fees and appraisals

  11. I cannot stand a crook I cannot stand people that blatantly try can get people’s money especially veterans we go and protect and support and defend the Constitution of the United States and how dare these low lifes do that to us

  12. ~Off Topic BUT VERY RELAVENT~

    Listen up you sneaks, trolls, backstabbers;

    This is the view, the talk, the 4realz, tge hell-ion, the FOX reporting of the VA’s ineptability to adapt, in order to close the gaps in serving the 21st Century Veteran & all their secondary needs, the Vets love ones/caretakers, service animals, availabilty of up to date medical products & supplies, the management of accuracy in payments to Veterans, upkeep of facilities, and then VA employees.

    If you follow my logic, VA employees were an after thought. Plus, VA employees are in the healthcare industry, and the actions, behaviors, and objectives requires the VA employees to be focused more and to give more to Veterans.

    More than a meducal courtesy. VA needs to work more with VA, instead of ordering Veterans even more.

    More compassion, and understanding of how VA Policy’s can hurt a household, relationship, the training of a service dog, . . ., etc., and including the Vet in being invovled and having a guided say so over their own healthcare.

    Until.the VA leadership starts to recognize and implement REAL IMPACTING LIFE CHANGING POLICIES . . .

    We, us, them, they the VA can just forget it. We should overcome these reprobates and take back our fucking VA. Negotiate with medical terrorists?

    Go right ahead.

  13. Hello my name is Betty Moore. My husband David Moore is a 100% disabled Veteran and we bought our house in December of 2013. The first house we’ve ever bought. We are almost 100% Sure we were charged fees that we should never have been charged. Our realtor didn’t seem to know ALOT about VA loans. She picked the inspector for our house prior to buying the house. We had to pay him also. He gave us a book that had RECOMMENDATIONS on things that may need to be fixed/addressed prior to our purchasing the house. He said it was his job to turn things on and a long as it does he doesn’t have to go into further inspections. 2 months after we moved in We had to replace the intake unit for our heating and air unit. That was $3000 out of our pocket. I called the inspector and he said as long as it turned on that’s all he had to do. He did not report that specific things needed to be fixed per VA guidelines to pass inspection. A followup inspection was never done so now we have a house that the garage floods in hard rain because there’s no proper drainage. We didn’t know about and the breaker box is OLD and I’m pretty sure not up to code. We have had to pay an electrician to change out some of our inside sockets to 3 prong from 2 prong. All of our outlets were 2 prong. We haven’t had them all changed so we still have a lit of 2 prong.
    We don’t know what to do because we have never purchased a house before.

    Any info or guidance you may have would be GREATLY appreciated

    Thank you
    Betty moore
    Dalton, GA 30721

    • Betty,

      Home buying a personal and very expensive choice, but worth it. Unfortunately what you’re talking about isn’t something the VA can control when it comes to house repairs. Home repairs are the home owners responsibility. The VA doesn’t control who your inspector is, that is completely up to the owner. Your realtor should have provided you more information and to also contact the VA for help, because the VA will provide answers for all your housing needs.

  14. Call the Regional Loan Center contact number and/or your lender or look at your closing disclosure documentation and see if you were charged a funding fee. If you were, get with your lender or the VA and request a refund.

  15. Ben you state:
    “The VA Home Loan is a fantastic benefit for veterans exiting the military to help them afford a reasonable home without requiring as much of a down payment as most conventional loans.” – this is wrong!

    The VA home loan benefit is for both active duty and Veterans and do not require a down payment. Not as much of a down payment, but require NO down payment.

    Very simply, if you’re a disabled service connected Veteran by the date of closing, ensure your Certificate of Eligibility is updated to show “exempt” status on it and you’re exempt. From there ensure you don’t pay funding fees and if you do, then get with your lender and/or the VA to request a refund.

  16. Here’s the solution: let’s go away from the VA Home Loan program and now make ALL Veterans and Active Duty members pay 5-20% downpayment along with paying Private Mortgage Insurance (PMI). So the VA already saves active duty and Veterans thousands and thousands of dollars from having to pay a down payment or paying PMI, but yes….let’s just go away from the VA home loan program and all they do for Veteran.

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