VA Faces More Criticism Of 'Vendee' Loan Program.(Veterans Affairs criticized for mortgage lending to buyers of its foreclosed properties)

Mortgage Servicing News | December 1, 2002| | Copyright

The Department of Veterans Affairs' practice of making mortgage loans directly to buyers of its foreclosed properties continues to rankle the Bush administration, which has been trying to shut down the "vendee" loan program for the past two years.

Recently, the VA tried to solicit public comments on the benefits of the vendee program, but the Office of Management and Budget blocked its publication in the Federal Register. The VA wanted to "know whether or not eliminating the vendee loans would be a cost-effective measure," said Keith Pedigo, director of the VA's ...

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