Braley Urges House Panel to Probe Reports of Banks Charging Vets Illegal Home Financing Fees PDF Print E-mail
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Written by Jeff Giertz   
Friday, 14 October 2011 10:12

Braley writes Veterans Affairs Committee leaders to request Congressional inquiry 

 

Washington, DC – Today, Rep. Bruce Braley (IA-01) urged leaders of the House Veterans Affairs Committee to launch a probe into allegations that banks and mortgage companies have been charging veterans illegal home financing fees, potentially defrauding veterans and taxpayers of hundreds of millions of dollars.

A whistleblower lawsuit unsealed this month in Atlanta federal district court alleges that several banks and mortgage companies, including Bank of America and J.P. Morgan Chase, intentionally concealed attorney’s fees they charged to applicants of home loans backed by the Department of Veterans Affairs.  VA rules explicitly prohibit lenders from charging attorney’s fees or settlement closing costs on these types of loans.

“If a bank intentionally preyed on veterans who’ve put their lives on the line for this country just to pad their profits, that’s beyond the pale,” Braley said.  “These allegations raise serious questions about the scope of possible fraud.  A staggering number of veterans could have been impacted by this alleged scam.  These reports warrant a prompt and thorough investigation by the Veterans Affairs Committee.”

 

Reports indicate that over the last 10 years, more than 1.2 million VA-backed loans have been made to veterans.  Up to 90 percent of those loans might have been affected by the alleged fraud.

Braley made the request for a probe in a letter to House Veterans Affairs Committee Chair Jeff Miller and Ranking Member Bob Filner.

A scanned copy of his signed request can be found at the following link: http://go.usa.gov/9kU

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