Current through Reg. 49, No. 12; March 22, 2024
(a) The board
must approve all fees and interest rates charged in connection with the
program, by any party. These include, but are not limited to:
(1) All fees charged by any party to a
veteran receiving a loan under this program must be approved by the board,
including fees, expenses, and interest rates charged by the participating
lending institution on its portion of the loan to the veteran. Fees and
expenses approved by the board may be made a part of the veteran's loan
installment payments.
(2) All fees
and expenses charged to a participating lending institution under this program
by the administrator.
(b) The board finds that it protects the best
interests of the program if all fees, expenses, and interest rates are set by
resolutions adopted by the board from time-to-time as it deems advisable.
(1) Within a reasonable period of time, the
board shall either approve or disapprove any proposed changes to any fees,
expenses, and interest rates charged by a participating lending
institution.
(2) All fees,
expenses, and interest rates shall be limited to the maximum extent practical
to those that would be collected by the participating lending institution in
the normal course of its residential mortgage lending business.
(3) The administrator shall incorporate in
the program and servicing guide (the "guide") for participating lending
institutions provisions for the maximum that may be charged. In the
alternative, the administrator shall incorporate in the guide the procedures
for computing the maximum fees, expenses, and interest rates which
participating lending institutions may charge veterans. The contracts between
the board and the participating lending institutions shall incorporate the
guide.
(4) Violation by a
participating lending institution of the board's requirements as to maximum
fees, expenses, and interest rates may result in revocation of the board's
approval of the lending institution as a participant in the program, or such
other remedies as may be available to the board.
(c) The board may require that the veteran
make a down payment to be paid at closing. The veteran shall satisfy the
participating lending institution's requirements as to down payment for the
particular type of loan being made by the participating lending
institution.
(d) Principal and
interest that becomes delinquent shall be subject to a penalty fixed by the
board on its portion of the loan. The participating lending institution may set
late payment penalties as permitted by law on its portion of the
loan.
