Reimbursement for Loan Origination Fee Question

[McRay]

I won my appeal for disability about a month after I purchased a home. I recently found out that I am eligible for reimbursement, so I contacted the lender, PennyMac Home Mortgage and provided my benefits letter as proof I was eligible. They told me they would apply and the fees I paid would be applied to my mortgage balance. I questioned them about that, since I had to use funds out of my savings for the fees, and received a reply that was the 'way' the VA does it. A little research brought up a document https://www.va.gov/oig/pubs/VAOIG-18-03250-130.pdf and this:

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VBA has requested a legal opinion from VA’s Office of General Counsel to determine whether VA has the authority to issue funding fee refunds directly to veterans in cases where there is a loan balance. The Under Secretary stated having this authority would increase the efficiency in completing refunds timely and would determine the procedural and policy changes implemented going forward. The Under Secretary also stated Loan Guaranty Service has a contingency plan ready for implementation depending on the outcome of the General Counsel’s legal opinion.

So, my question is if anyone has any more information on this? I could use the money.

Thanks

 

[Bwaveteran]

I read that OIG report and what your lender is going to do, is recommend for the refund funding fee.

 

”A plan to consistently obtain documentation and verify lenders apply funding fee refunds to veterans’ loan balances in a timely manner.”

You could ask the lender not to apply your fee to your balance and rather take a refund instead.

 

Edited July 11, 2019 by Bwaveteran

[McRay]

I already asked them and they said they would apply refund to the loan balance. I'm considering re-financing so that should make things even more complicated.

[Buck52]

I had a loan that took out property tax   when I was suppose to be 100% exempt from the property tax because of my 100% service connected ratings...finally they got it all straiten out but they never refund the property tax  the applied it to the loan balance, I could fight them on this because  the property tax was suppose to be figure in with the loan but there were no property tax to be figured in  because of the exemption

bunch of nickel heads working this loan. 

[Bwaveteran]

6 hours ago, McRay said:

I already asked them and they said they would apply refund to the loan balance. I'm considering re-financing so that should make things even more complicated.

Gezzz..I hope not for your sake. Be great if that funding fee gets refunded during your re- financing. 

 

[McRay]

Yeah, the money would help. Somehow, it always seems to work in favor of big biz and not the vet, tho