House Democrats urge review of mortgage policies for veterans

A dozen Democrats pressing a federal housing regulator for more information from mortgage servicing companies whether veterans were denied access to assistance programs when they relocated. 

House Oversight and Government Reform Committee ranking member Elijah Cummings (D-Md.) along with several other lawmakers sent a letter to Edward DeMarco, the acting director of the Federal Housing Finance Agency (FHFA) which oversees Fannie Mae and Freddie Mac, requesting “any information your agency has collected, along with any information you have received from other federal agencies, relating to these allegations, including the identities of the mortgage servicing companies who engaged in these actions.”

Thursday's letter follows one sent to DeMarco on Sept. 27 asking federal housing regulators to review the challenges facing service members who receive Permanent Change in Station (PCS) orders and may be unable to sell their homes quickly at prices that will enable them to pay off their mortgages.

The FHFA responded on Oct. 11 that mortgage servicing companies “are telling service members they cannot receive any assistance unless they are delinquent on their mortgage” and “have apparently suggested that PCS orders do not qualify as a hardship" under Fannie and Freddie's borrower assistance programs.” 

Both actions run “counter to explicit guidance” from Fannie Mae and Freddie Mac and are “incorrect,” according to FHFA.

In July, Cummings issued a report about the growing problem of illegal foreclosures against U.S. service members and convened a forum.