VA Loan Closings May Be Hampered by Fee Snag

COLUMBIA, S.C. (AP) – A delayed plan to lower fees on veterans’ home loans may bring higher costs and delays in loan closings. The problem involves a notice from the Department of Veterans Affairs loan operations which said rates would be lower beginning Saturday. But Congress delayed that lower rate in a bill awaiting President Barack Obama’s signature. Bankers who already have set terms for lower fees for people seeking mortgages may have delay closings, tell their customers to pay more or swallow the fees. Banker Scott Thigpen said the change would have meant closing delays and $1,200 in higher fees for a Sumter veteran. U.S. House Committee on Veterans Affairs Committee spokeswoman Amy Mitchell said Friday the flap should never have happened.