Case 1:06-cv-00547-MHS Document 54
Filed 07/18/11 Page 38 of 61
hundreds of HUD forms containing unallowable costs to the Government that proved the lenders were routinely and systematically hiding and shifting fees on lRRRL loans made in multiple states.
IMPACT OF VA LOAN FRAUD ON AMERICAN TAXPAYERS 78. Over I, 100,000 lRRRL loans have been guaranteed by the VA from 200 I to the present. According to the Office ofInspector General for the Department of Veterans Affairs ("V A-OIG"), the nationwide default rate for IRRRLs is 18% or higher. The total number of IRRRL loans going into default routinely exceeds 100,000 per year. According to the Government Accounting Office, the average number oflRRRL defaults occurring from 1996 to 2000 was 122,000 per year.
79. According to reports made annually to Congress, approximately 50% of the VA loans that go into default end up in a foreclosure proceeding. The average cost to the VA from a foreclosed guaranteed loan is approximately $22,000 per loan. The Government losses do not cease when foreclosure occurs. For example, in fiscal year 2009, the VA reported that the cost of managing the foreclosed properties obtained by the Government after default and foreclosure exceeded $16,000 per loan.
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