Veteran Mortgage Payments Rise After VA Program Ends
What happened
The end of a low-interest program resulted in increased mortgage payment rates for veterans who had modified their VA-backed loans after financial hardship. An investigation found that over 15,000 veterans saw their monthly payments rise by at least $150, and 63 percent of those who received a loan modification experienced a payment increase. For loans backed by Fannie Mae and Freddie Mac, the payment increase was 2 percent.
From rawstory.com
Why it matters
The program end, which followed a decision by the Trump administration, prompted discussions involving Fannie Mae and Freddie Mac. The resulting higher payment rates for veterans on loans backed by these companies could increase their risk exposure.
From rawstory.com
Who's involved
- Derrick Van OrdenLed the push to end the low-interest program
- Donald TrumpHis administration made the decision to end the Veterans Affairs program
- Fannie MaeLoans backed by Fannie Mae saw a 2 percent payment increase
- Freddie MacLoans backed by Freddie Mac saw a 2 percent payment increase
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Fannie MaeSpeculative
Fannie Mae could face increased risk exposure due to the higher payment rates for veterans on loans it backs.
- Freddie MacSpeculative
Freddie Mac could face increased risk exposure due to the higher payment rates for veterans on loans it backs.
- Veterans United Home LoansSpeculative
Veterans United Home Loans might see reduced market viability for specialized lenders due to increased veteran mortgage payment rates.
Keep exploring
The entities involved
- House
-
Freddie Mac
American government-sponsored enterprise
-
Fannie Mae
government-backed financial services company