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Straight from the ivory towers of those fleecing the vets. Must have missed the mortgage churning programs? Ever seen a VA appraisal? But, morons without a clue are always weighing in regarding how the government “helps” it’s victims.
I have seen plenty of VA appraisals and nobody is putting a gun to the heads of vets who are taking out VA mortgages. While there are undoubtedly some mortgage lenders who take advantage of any borrowers they can by churning loans, including VA borrowers if they are able to do so. However, the VA loan program is a great deal for veteran borrowers and the default rate on VA mortgages is far lower than FHA or GSE loans with the same borrower characteristics, which would not be the case If veterans were getting fleeced on a large scale.
So, you have the data on VA default rates, or just assuming what the VA tells the public is the whole story? Ever hear about the records being altered to cover the fact that vets were dying in waiting rooms waiting for medical treatments? If people are willing to kill others to cover their lack of performance, they won’t hesitate a minute over allowing political donors to fleece them out of a few dollars.
They didn't change his appraisal. They changed the NOV.
Geez, take the tin foil hat off pal.
Perhaps one of the reasons the VA loan program functions well is because they use the round-robin VA panel of approved appraisers. The former FHA panel system that was similar worked well until "lender select" won out, and after that , in my area, I saw flip sales and inflated prices in FHA loans. It must have been bad all over because FHA started ordering two appraisals on a flip sale.
The main reason that the VA mortgage system works pretty well is that the borrowers are all active military and veterans and people who served in the military tend to be more disciplined and less likely to be deadbeats than the general population.....the low VA default rate has nothing to do with property values or valuations as most VA loans are 100% LTV and thus it is much more likely for a VA loan to be underwater than a non-VA loan in a down market regardless of the appraisal.
citation, please. I'm not aware of any study that compares veteran buyers against non-military buyers RE credit score, etc.?
The low default rates have less to do with VA borrowers being 'better' than the rest of the crowd, and more to do with VA's residual income test (which actually tests the veteran's ability to repay), the VA's loss mitigation efforts (VA steps in directly to assist in these matters), debt payment by servicers in the event of default, etc.