Lehi, UT (Vocus) April 17, 2010
Two approved nationwide VA loan lender's are currently caught in a tug of war. Freedom Mortgage and Flagship Financial Group are both VA approved LowVARates lenders in good standing with the Department of Veterans Affairs.
Both lenders have weathered the recent economic storm associated with the housing meltdown and the financial crisis which was started in 2007.
Flagship Financial Group LLC is an approved VA lender which focuses much of its efforts on assisting eligible veteran homeowners refinance their current VA home loan to a lower interest rate via the VA streamline refinance.
Freedom Mortgage, a wholesale lender, is also dedicated to assisting veteran homeowners with their VA home loan needs. The unique lending environment in which both of these VA lenders find themselves has made it more difficult than in the past to facilitate loans for veterans who find themselves overseas.
Flagship Financial has been working rigorously with a Mr. Jeff P. who currently finds himself stationed in Singapore working for the United States government. Mr. Jeff P's loan was approved for a VA refinance by Freedom Mortgage and this loan was originated and processed by Flagship Financial Group. When the loan was ready for a closing to be scheduled, Flagship Financial intended to have the veteran go to the US Embassy in Singapore so he and his wife could execute the closing docs and take advantage of the lower interest rates. However, Freedom Mortgage finds itself under increased scrutiny from its mortgage investors who must embody and service the VA loan on the secondary market. Due to these increased credit overlays and requirements from the secondary market investors, Freedom Mortgage will not allow a veteran with a VA loan to execute his mortgage documents while being stationed overseas.
Owner of LowVARates, Eric Kandell, understands the frustrations of both the veteran and mortgage lender.
“Both lenders have been excellent to work with and will no doubt continue to provide excellent VA loan rates and service to veterans,” Kandell said. “We urge the Department of Veterans Affairs to come down hard on wholesale lenders and investors who will not honor the service that our nation’s veterans are rendering while overseas.”
If interest rates happen to increase prior to Jeff P.’s returning from Singapore then he and his wife may have missed an opportunity to refinance at historically low interest rates.
Flagship Financial and Freedom Mortgage may need to petition the investors who are buying and servicing these VA loans in the secondary market. “There is no reason why an honorable veteran serving his country overseas should not have the ability to refinance his mortgage,” Kandell said. “They are sacrificing just as much or more then the veterans stationed in the U.S. and deserve VA loans.”
For the past 20 years LowVARates.com has been dedicated to serving veteran homeowners. We specialize in providing VA loans to qualified veterans for mortgage purchases and refinances. These loans provide lower interest rates and monthly payments than other traditional loans.
VA loans are currently the only program left that allows no-money-down loans providing a secure mortgage option guaranteed by the Federal Government. Our professional staff and loan officers will assist you to lock in low interest rates and take advantage of the unique opportunity provided through VA loans.
Director of Public Relations
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