By JIM DAVENPORT
COLUMBIA, S.C. (AP) — The U.S. Department of Veterans Affairs will cover extra costs for veterans who struck deals on home loans and faced the possibility of higher fees amid confusion over a federal law change, the agency said Saturday.
The problem involves a Sept. 8 notice from the Department of Veterans Affairs loan operations that said certain fees would be lower beginning Saturday. But Congress delayed those lower fee rates from taking effect until November in legislation awaiting President Barack Obama’s signature.
Lenders, who didn’t know about the change, made loan deals based on the lower rate, including Scott Thigpen, who runs The Citizens Bank in South Carolina’s mortgage operations. Thigpen said Veterans Affairs created a problem that left lenders with the choice of imposing higher fees on mortgages heading into closing and delaying those deals or absorbing the higher costs.
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