The Department of Veteran Affairs late last week celebrated its 20 millionth loan, and boasted that it also completed its second best year ever: 540,000 units of coverage, 52% of which were refinancings.
The VA, which has been guaranteeing loans since 1944, capped the milestone by holding a press conference Friday at the Virginia home of Elizabeth Carpenter, the widow of an Iraq War veteran. Ms. Carpenter was officially declared number 20 million.
In fiscal year 2012 mortgage bankers funded $119 billion of VA-backed loans, up from $75 billion in FY 2011. (The government’s fiscal year ends Sept. 30.)
During the press conference, the director of VA’s loan guarantee program Mike Frueh noted that nearly 1,600 lenders now participate in the
Over the years, VA has adapted to changes in the mortgage industry. “We continue to change,” he said. “So with the help of our lender partners, our Realtor partners, we can deliver the dream of homeownership to veterans, service members, their families and survivors.”
He noted that VA “leads the industry” when it comes to loss mitigation and foreclosure prevention. “For the last four years, we have had the lowest serious delinquency rate and the lowest foreclosure rate in the industry,” even though VA is a low down payment program, he said.
The Mortgage Bankers Association recently reported that 2.51% of VA loans are 90 days or more past due.
The agency has nearly 250 employees who work with mortgage servicers to “ensure veterans get every possible opportunity to avoid foreclosure and stay in their home,” the director said.
Since FY 2009, the agency has helped 246,000 defaulted borrowers avoid foreclosure.
