STAGGERING FINDING IN THIS FEE FIASCO.
FIASCO.
FIASCO. >> Reporter: FOR MANY TWIN
CITIES VETERANS, THE UPTOWN
VFW'S HOME AWAY FROM HOME.
ASK AROUND HERE AND IT'S NOT
HARD TO FIND VETERANS LIKE
JAMES McCLURKIN.
JAMES McCLURKIN. WHO BOUGHT AN ACTUAL HOME USING
ONE OF THE BIGGEST BENEFITS
AVAILABLE TO THOSE WHO WERE
NATIONS UNIFORM THE VA
GUARANTEED HOME LOAN PROGRAM.
>> IN ADDITION TO NO DOWN
PAYMENT THESE LOAN SAVE YOU
MONEY DUE TO COMPETITIVE
INTEREST RATES AND LIMITED FEE
STARTS AT CLOTHING .
>> IT'S A FANTASTIC PROGRAM.
>> Reporter: WELL KARE11
INVESTIGATES DISCOVER THE
PROGRAM WIDELY PRAISED FOR
OPENING THE DOOR TO
HOMEOWNERSHIP FOR MILLIONS OF
VETERANS HAS A SECRET.
WHAT I'M HANDING YOU IS A
REPORT THAT CAME UP INTO, 2014.
THE REPORT ORIGINATED INSIDE
THE WHIPPLE FEDERAL BUILDING AT
THE VA'S ST. PAUL REGIONAL LOAN
CENTER WHERE IT'S BEEN AN OPEN
SECRET FOR YEARS.
BUT FOR VETERANS, IT'S A
BOMBSHELL.
BOMBSHELL. >> THIS IS SAD.
>> Reporter: KARE11 OBTAIN THE
INTERNAL VA REPORT LABELED
FUNDING FEE PAYMENT ANALYSIS
FROM A WHISTLEBLOWER.
IT SUMMARIZES RESEARCH DONE BY
VA LOAN SOONER EMPLOYEES HERE
IN MINNESOTA WHO DISCOVERED A
NATIONWIDE PROBLEM. BETWEEN
2006 AND 2014, VA
INAPPROPRIATELY COLLECTED
INAPPROPRIATELY COLLECTED APPROXIMATELY $150 MILLION ON
47,588 LOANS.
47,588 LOANS. >> OKAY.
>> OKAY.
>> OKAY. >> Reporter: HOW IT HAPPENED
SEEMS INNOCENT ENOUGH.
A VETERAN USING THE VA HOME
LOAN PROGRAM IS REQUIRED TO PAY
WHAT'S CALLED A FUNDING FEE UP
TO 3.3% OF THE LOAN AMOUNT.
IF YOU ARE A DISABLED VET, THAT
FUNDING FEE GETS WAIVED.
BUT THERE'S A GLITCH.
IF A VETERAN HAS ONLY APPLIED
FOR DISABILITY RATING, AND THE
CLAIMANT STILL PENDING WHEN
THEY GET THERE VA LOAN, THEY
HAVE TO PAY THE FUNDING FEE,
THAT CAN ADD UP TO SEVERAL
THOUSAND DOLLARS.
THOUSAND DOLLARS. BUT IF THEIR DISABILITY CLAIM
IS APPROVED LATER, THEY ARE DUE
A REFUND OF THAT FUNDING FEE.
WHEREAS THE VA'S OWN REPORT
DISCOVERED THAT DOESN'T ALWAYS
HAPPEN.
HAPPEN.
HAPPEN. REMEMBER, WE ARE JUST AN EIGHT
YEAR PERIOD THEY FOUND THE VA
OWES VETERANS $150 MILLION IN
REFUNDS.
REFUNDS.
REFUNDS. THE REPORT PROPOSE AN ACTION
PLAN TO FIX THE PROBLEM AND
REPAY VETERANS.
REPAY VETERANS. SO WHAT HAPPENED?
IT'S BEEN FIVE YEARS SINCE THIS
REPORT WAS DONE IN THE TWIN
CITIES DETAILING A SIMPLE WAY
TO IDENTIFY VETERANS DO REFUNDS.
BUT VA INSIDERS TELL US NOTHING
WAS DONE TO REPAY THOSE
VETERANS KNOWN TO BE OWED MONEY.
>> IF YOU'RE HOLDING SOMEONE
ELSE'S MONEY AND NOT TELLING
THEM HOW TO GET IT, YOU'RE
DOING IT ON PURPOSE.
>> Reporter: KARE11 REVIEW THE
RECORD SHOWS THAT THE REPORT
LANDED ON THE DESK OF TOP VA
LEADERSHIP INCLUDING THE THEN
DIRECTOR OF THE VA'S LOAN
PROGRAM MY GROUP.
EVEN THOUGH UNDER HIS WATCH
VETERANS WERE NOT NOTIFIED
ABOUT THE REFUNDS THEY
DESERVED, RECORDS SHOW GROUP
RECEIVED BONUSES IN 2014 AND
2015 TOTALING NEARLY $25,000.
SINCE THEN, FREW HAS BEEN
PROMOTED TO CHIEF OF STAFF FOR
VETERANS BENEFITS WHERE HE
MAKES 185,000 A YEAR.
WE EMAILED HIM FOR WEEKS ASKING
FOR AN INTERVIEW.
HE NEVER RESPONDED.
TWO DAYS AGO, KARE11 SUDDENLY
GOT A EMAIL FROM THE VA PRESS
SECRETARY THAT SAID HERE IS
VA'S COMMENT.
VA'S COMMENT. IT WAS THIS PRESS RELEASE IT
STATES, A MAJOR ISSUE UNDER
REVIEW IS OF VA CREDITS
BORROWERS WHO AFTER LOAN
CLOSING OR, WERE AWARDED
DISABILITY COMPENSATION WITH
RETROACTIVE EFFECTIVE DATES.
IT ALSO SAYS THEY ARE NOW
LOOKING AT MILLIONS OF LOANS
DATING BACK TO 1998.
BACK AT THE UPTOWN VFW, IT
STILL LEAVES THE MILLION-DOLLAR
QUESTION.
QUESTION.
QUESTION. WILL VETERANS OWED MONEY
FINALLY GET PAID BACK ?
>> IT'S A $150 MILLION QUESTION.
>>> SO FAR WE HAVE IT, BEEN
ABLE TO HELP ONE VETERAN COULD
REFUND FROM A LOAN OF 2009.
THE VA SENT HIM THIS CHECK YOU
SENT TO ME YESTERDAY IT'S FOR
NEARLY $700.
NEARLY $700. AMONG THE REFORMS OF VA
ANALYSIS WEEK THEY ARE GOING TO
DO A BETTER JOB THEY SAY
NOTIFYING VETERANS UPFRONT WHEN
THEY