Mortgage lender to cover related VA loan origination fees
American Financial Resources, a Parsippany, N.J.-based mortgage lender, will pay any required agent fees for U.S. Department of Veterans Affairs loans for its brokers and correspondents on all AFR-related VA loan submissions starting Veterans Day.
As the total number and dollar amount of VA purchase loans has grown the past six fiscal years, AFR's program could result in more lenders offering similar deals to get a larger share of an uptrending market. The number of VA purchase loans surged 59% since 2013 as the dollar volume grew to $103.4 billion from $56.6 billion, according to Veterans United Home Loans.
"VA loans are appealing to eligible veterans and their qualified spouses because they offer many benefits to help past and present military personnel purchase or refinance a home," Bill Packer, AFR's chief operating officer, said in a press release. "Covering the VA agent fees is another way for us to help our partners succeed, and in this case, as they help our nation's heroes truly come home."
Although the refinance share of VA loans was at its lowest level since 2014, 10% of the overall mortgage market is made up of VA loans. Fiscal year 2018 totaled 610,513 VA loans, with Florida accounting for the most with 54,409, California coming in second with 53,911 and Texas in third with 49,684.
"All of us at AFR consider it a privilege to assist eligible veterans and their families as they explore home financing options," said Packer. "Originators should focus on educating veterans and their families of the benefits available to them, and ensuring they obtain the best possible financing package, without worrying about an agent fee interfering with the process."