Senator Hassan Cosponsors Bipartisan Legislation to Protect Veterans from Predatory Home Lending

WASHINGTON – Senator Maggie Hassan cosponsored the bipartisan Protecting Veterans from Predatory Lending Act of 2018 to protect veterans from predatory home loan practices by requiring lenders to demonstrate a material benefit to consumers when refinancing their mortgage through the VA home loan program. The bill was first introduced by Senators Thom Tillis (R-NC) and Elizabeth Warren (D-MA).

“The men and women who have sacrificed bravely in defense of our freedoms should never have to face predatory financial attacks when they return to civilian life,” Senator Hassan said. “The VA home loan program has helped millions of veterans achieve the American dream of home ownership, and it is critical that we maintain the integrity of this program for current and future veterans. This bipartisan legislation helps provide the consumer protections veterans need and cracks down on bad actors who take advantage of both veterans and American taxpayers.”

The Department of Veteran’s Affairs (VA) home loan program was designed to provide veterans and servicemembers with the opportunity to purchase their own home through a VA insured mortgage from a private lender. VA loans have lower credit score requirements than other mortgages, and often don’t require down payments. Since its inception, it has insured more than 20 million home loans to help veterans become homeowners.

However, today a small number of lenders are abusing the program by utilizing misleading advertising tactics and engaging in a practice known as “churning” – the refinancing of a home loan over and over again to generate fees and profits for lenders at the direct expense of veterans and their families, often without their knowledge. 

The American Legion, Veterans of Foreign Wars of the US (VFW) and the Mortgage Bankers Association (MBA) support efforts to address this issue.

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