Survivors of veterans with VA-backed loans face inaccurate information, delays, and other frustrations when dealing with mortgage servicers, a new report found, complicating an important financial process during a time of grief.

Some homeowners faced “pressure to refinance at higher interest rates rather than helping them manage existing mortgage” after the death of a loved one or a divorce, a December report from the Consumer Financial Protection Bureau (CFPB) states. Examples involving VA-backed loans included:

• A Missouri widow who was told she would need to refinance her loan to remove her dead husband’s name from the mortgage.
  
  
• A divorced couple in Oklahoma whose mortgage servicer would not accept their divorce decree as part of the loan assumption process.
  
  
• An Illinois homeowner whose loan assumption required 20 phone calls to his mortgage servicer, “each time with call lengths over 15 minutes,” and had yet to be resolved.

“Assumptions are a fundamental feature of a VA-guaranteed loan, and when a veteran passes away, their qualified surviving spouse should be able to assume the loan without further delay,” said Joshua Jacobs, VA’s undersecretary for benefits, in a CFPB press release accompanying the report. “It’s unacceptable that anyone would target surviving spouses in their time of need. VA has published guidance to remind holders and servicers of assumption guidelines — and we’ve outlined how VA will address any failure to comply with these requirements.”

Surviving spouses can learn more about their VA loan eligibility at this link.

[RELATED: What Is a VA Loan Assumption?]

The report outlined examples of VA- and non-VA loan assumption irregularities, to include pressure to refinance, multiple requests for the same documentation, and denials of requests to remove original borrowers from the loan despite proper procedures being followed.

While the VA does not service loans, VA-backed borrowers who cannot resolve assumption-related disputes with mortgage servicers can call (877) 827-3702 to connect with their nearest VA Regional Loan Center for guidance.

Servicers found to be delaying the process or providing false information regarding their loans could face punishments up to including legal sanctions.

[FROM VA.GOV: Noncompliance in Processing Assumptions (PDF)]

VA- and non-VA-backed loan-holders who have been pressured into refinancing a loan or faced unreasonable delays during the assumption process can file a CFBP complaint via the bureau’s website or by calling (855) 411-2372.