November 4, 2021
  • November 4, 2021

Ad exaggerates benefits of Veterans Loan program

By on June 30, 2021 0

The Claim: Biden, Congress Created a “Generous Mortgage Relief Program” for Veterans

As home selling prices continue to rise increase Across the country, articles claiming Congress established a “generous mortgage relief program” for veterans surfaced on social media.

The claim follows that of President Joe Biden American Rescue Plan Act of 2021, which allocates about $ 10 billion to help homeowners struggling financially.

An article, titled “BIDEN IS ON A ROLL,” argues that if veterans cannot wait for this help, they can instead take advantage of a Congressional relief program.

“If you can’t wait for the help, Congress is offering seasoned homeowners a generous mortgage relief program. You will be happy to see how much you could save, ”said a video posted on May 5 via the Veteran Loans Online Facebook page.

The organization is also running paid Facebook ads with a similar claim.

Comments on the page include numerous complaints that the company provided personal information to mortgage companies without authorization. On January 16, 2020, a user wrote, “click the bait by taking advantage of the veterans.”

The video from Veteran Loans Online is misleading because it refers to a program used to refinance an existing VA loan. He’s been around for decades and is unrelated to Biden.

USA TODAY has contacted Veteran Loans Online for comment.

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Promotion is misleading

The program referenced by Veteran Loans Online is a loan refinancing program that was introduced over 40 years ago to help homeowners with loans guaranteed by the Department of Veterans Affairs reduce their monthly mortgage payments.

Veterans Loans Online is managed by LowerMyBills, a third-party company that collects customer information and provides it to the loan companies, who then issue the loans. In January 2020, Stories of lead debunked a similar advertisement about Congress creating a Veterans Mortgage Relief Program, in which LowerMyBills confirmed that the program referenced in the posts is the Interest rate reduction refinance loan (IRRRL).

The program streamlines the administrative refinancing process, but it does not give direct access to banks or to veterans-only interest rates. And that has nothing to do with Biden, as the post indicates.

“This is your classic bait and switch,” said Brian reese, a former active-duty Air Force officer and US veterans benefits expert. “It is false and misleading” to present the program and to link it to Biden as the announcement does.

Reese said the IRRRL program applies to anyone with a mortgage on their primary residence backed by the VA.

“It’s a VA program, and they advertise it, but the VA is not a mortgage lender. You still have to go through an authorized mortgage lender,” Reese said. “Veterans should make sure they read the fine print before committing to any of these deals.

Reese, who is also the founder of VA Claims Insider, said that depending on the authorized mortgage lender, there could be additional costs on this loan for refinancing or other interest rates.

“Every mortgage lender is different,” he said.

At his location, LowerMyBills promotes IRRRL as requiring “very little paperwork and almost no out-of-pocket expense”. He does not define it as a “generous mortgage relief program”, as his subsidiary advertises.

the connections included in the post, purporting to provide calculations for new home payments, lead to websites with warnings that the company is not a lender or broker, and that information provided by the company does not constitute not apply for a mortgage.

The IRRRL program, commonly known as “Streamline”, is supported by the Department of Veterans Affairs and was introduced in 1980 through changes to Veterans Disability Compensation and Housing Allowances.

LowerMyBills did not respond to requests for comment.

Groups warn against refinancing VA loans

VA refinance loan scams appear frequently online. the Consumer Financial Protection Bureau and Virginia warn veterans to be cautious when seeing VA home loan offers that “may sound too good to be true.”

“Some lenders marketing VA mortgage refinances may use aggressive and potentially deceptive advertising and sales tactics,” read a November 21, 2017 article. blog post of the CFPB and VA consumer group. “Lenders can advertise a rate just to get you to respond, or you can receive a VA mortgage refinance offer that gives you a limited benefit while adding thousands of dollars to your loan balance.”

Traffic signs of a scam include extremely low interest rates, skipped mortgage payments, no disbursements or waiting periods and thousands of dollars in cash back, according to MilitaryBenefits.info.

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Our rating: partly false

An advertisement claiming that veterans can take advantage of a “generous mortgage relief program” tied to Biden and created by Congress is PARTLY FALSE, our research shows. The post refers to the IRRRL program and a pandemic relief bill, but the two are not related in any way. IRRRL is real and has been around for decades as a refinancing option that could potentially cut down on paperwork. But that has nothing to do with Biden. The benefits of the program largely depend on the third party mortgage lender, and hidden costs and fees could be included.

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