Payments on loans guaranteed by the Department of Veterans Affairs are being held up.
The department has asked lenders not to submit payments on loans closed on or after Oct. 1.
The move was made as a result of legislation that has been passed in the House and the Senate but still awaits President Barack Obama’s signature, according to a notice from the agency.
However, the issue is expected to be resolved in the next few days.
“If the president signs the legislation, it will in effect keep funding fees at their fiscal-year 2011 rates through November 17, 2011,” the notice stated. “This means the changes set to take effect per Circular 26-11-12, might only be in effect for a very short time.”
VA said that in cases where loans have been closed with lower funding fees than allowed in the new funding bill, the Secretary of the Department of Veterans Affairs will waive the difference in fees under existing authority.
