Loan Guarantee Monitoring Unit
The VA Loan Guarantee Program has many employees waiting to help a veteran with all the details of buying a home and using their entitlement. However, sometimes people make mistakes and in these cases the Veteran’s Administration has the Loan Guarantee Monitoring Unit to keep a watchful eye for any problems or errors. The Loan Guarantee Monitoring Unit was established in order to watch out for the interests of the veterans who are using the VA Home Loan Guarantee Service and the Government so that the lenders and all other people involved follow proper procedures when using this benefit.
Performance audits are done on lenders to make sure they are complying with all the laws of the VA Home Loan Guarantee Program. The Loan Guarantee Monitoring Unit has done audits that have resulted in:
- Finding loans that have been processed that did not meet the VA Home Loan Program requirements.
- Finding overcharges where the lender charged the borrower too much money or charged them for something they are not allowed to, and then the monitoring unit helps the veteran get their money refunded back.
- Making sure that the lenders meet the standards of the program for loans.
- Making sure that the money is recovered from any defaults on loans that occurred because the lender gave a mortgage loan to someone who should never have qualified for the loan in the first place.
- Improving the quality of loans by education lenders about the VA Home Loan Guarantee Program policies and procedures.
Performance audits are administered to lenders in their own offices and in the office of the Loan Guarantee Monitoring Unit which is in Nashville Tennessee. The monitoring unit looks at the lender’s appraisal and valuation process for loans to make sure they are meeting the requirements of the Home Loan Program. They also look at the loan closing process, the loan underwriting, and the processing of the loan to be sure that the veteran is being treated fairly by the lender and all of the necessary loan procedures are being met.
Basically, the Loan Guarantee Monitoring Unit polices the activities of VA approved lenders in order to make sure that everyone involved in the process of the loan is being treated fairly and following the rules. For more information on the Loan Guarantee Monitoring Unit go to http://www.homeloans.va.gov/monunit.htm