Ensuring VA Repays Veterans Wrongly Charged Home Loan Funding Fees

WASHINGTON- U.S. Senators John Boozman (R-AR) and Jon Tester (D-MT) introduced legislation to ensure veterans who were incorrectly charged fees for their Department of Veterans Affairs (VA) home loan are reimbursed.

Congress exempted veterans who receive VA disability compensation from paying a funding fee to defray the cost of administering a VA home loan. Despite this exemption, the VA Office of Inspector General (OIG) found the VA charged more than 70,000 disabled veterans more than $286 million between 2012 and 2017. The OIG investigation discovered the Veterans Benefits Administration has known since 2014 that thousands of veterans may have been improperly charged the funding fees. The VA has yet to repay $189 million to more than 53,000 veterans.

“Veterans rely on the VA to properly administer benefits they earned in service to our country. The department’s failure to uphold this responsibility has unduly burdened disabled veterans. This bill ends the VA’s practice of unlawfully charging veterans who qualify for funding fee waivers. Ensuring the VA implements a process to reimburse veterans who weren’t required to pay in the first place and prevent veterans from unfair penalties in the future must be a priority,” Boozman said.

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