VA Assumption Loans Part 2: Delays, Hardships, and Your Rights

See the original blog. VA Assumption Loans; A brief Overview

After handling many VA Assumptions Loans over the years both representing buyers and sellers, I’ve learned there are critical points every buyer, seller, and Realtor needs to understand. Not only do we handle majority of VA loans around JBLM we have other realtors reach out to use with some of the common problems with the VA assumption loan process.

Being advocates for military and veterans we did not lay down with big banks and the hardships they cause with VA assumption loans. So we are arming you with the info you and your realtor need to go after banks that cause hardships.

Most assumptions should wrap up in 45–60 days. That’s the normal window we’ve seen. Unfortunately, some banks and servicers are now stretching these out to 90+ days — creating unnecessary stress and hardship to veterans and military.

For military families, this often hits hardest during PCS moves, when every day matters.

A Real Example of the Problem

In one recent case, a top-20 national bank with over $200 billion in assets let a mutual accepted VA assumption contractor between a buyer and my seller sit on an underwriters desk untouched for 45. NO reviewing, updates, nothing. That’s not only unacceptable — it’s harmful.

We had to step in and fight aggressively to move the process forward and it was not the first time we had to take action to light a fire at these loan institutions.

These delays can create hardships for:

Buyers — risking the loss of their purchase.
Sellers — stuck paying extra months of mortgage payments. In our case client PCS (OCONUS) to another country, home vacant and vulnerable to squatters.
Veterans — unable to restore their entitlement until the file is finalized.
Navigating moving, temporary living, landlords notices, unknown move in out dates, start end services, etc.

Why It Happens

Here’s the truth: banks don’t profit from VA assumptions. There are no origination charges, no big incentives. As a result, lenders often understaff these departments and push assumptions to the “back burner.”

But that doesn’t excuse the delay. Lenders and servicers:

Chose to become VA-approved.
Accepted the obligation to process VA loans properly.
Owe veterans respect and timely service.

How to Push Back on Difficult Lenders

If you’re dealing with a lender that drags its feet, you’re not powerless. Here are the main rules and violations to know. You can contact many agencies that banks do not like to hear from.

Normal Timeline

45–60 days – Reasonable completion time.
Over 60 days – May indicate a violation.

Here is a list of possible violations that are common.

. CFPB Violations (Consumer Financial Protection Bureau):

Unreasonable Delay in Loan Servicing
Under RESPA (Regulation X), 12 CFR 1024, servicers must process assumption requests in a timely manner.
Failure to Communicate
Ignoring borrower or representative inquiries is a violation of servicing requirements under RESPA.
Unfair, Deceptive, or Abusive Acts or Practices (UDAAP)
Prolonged, unexplained delays that cause financial or emotional harm may be subject to UDAAP enforcement.

VA Guidelines Violations:
As outlined in the VA Lender’s Handbook (VA Pamphlet 26-7, Chapter 5), VA-approved servicers are expected to:

Process loan assumptions without unnecessary delay.
Provide required approvals and transfer liability efficiently.
Adhere to VA expectations for communication and servicing.

Other Regulations

TILA (Reg Z): Requires accurate, timely disclosures.
ECOA (Reg B): Prevents practices that disproportionately harm veterans or military families.
CRA (12 USC § 2901): Banks must meet credit needs of their communities, including veterans.
OCC Compliance: Federally chartered banks carry additional fair-lending obligations.

Final Word

VA loan assumptions remain a powerful tool — for veteran buyers to take advantage of low rates, and for sellers and veterans to transfer benefits responsibly.

The key is working with the right team. With 14+ years of VA experience and 300+ 5-star reviews, we’ve guided countless military families through the process — even when lenders drag their feet.

If you face delays or stonewalling, remember:

You have the rules and regulations on your side.
You can escalate through the VA and CFPB.
You don’t have to do it alone.

Veterans deserve better. And we’ll always fight to make sure they get it.

✅ Steps to Take if Your VA Loan Assumption Is Stuck

First and foremost my disclosure is to recommend you speak with an attorney on all matters pertaining to your real estate transactions.
Start with communicating to the lender you know your rights and send them a warning in writing you are prepared to file for violations with CFPB and the VA and whoever else is necessary. This usually will grab their attention
Track the Timeline – Note when the lender received your file. If it passes 45 days without movement, it’s time to push.
Document Everything – Keep emails, call logs, and request receipts. Paper trails matter if you escalate.
Escalate Internally – Ask to speak with a VA loan assumption specialist or department manager.
Cite the Rules – Reference RESPA, VA Handbook (26-7), and CFPB standards when pushing back.
File a Complaint – If there’s no progress by 60 days, submit complaints to the VA Regional Loan Center and the CFPB.
Work with an Experienced Agent – A knowledgeable VA Realtor® can push lenders faster and help avoid missed deadlines.

If you are considering buying or selling with a VA assumption loan be sure to visit our original VA assumption loan blog. This helps set the tone of the process however it is still necessary to have the right team on your side. Connect with us we would be happy to help you succeed in a VA assumption loan.

Cyrus Bonnet – Veterans Agents

CEO | Veteran | Broker

Est 2011

Disclaimer:
The information provided in this blog is for general informational purposes only and should not be construed as legal, financial, or professional advice. Real estate laws and regulations can vary by state and situation. You are strongly encouraged to consult with a qualified attorney, real estate professional, or financial advisor before making any decisions or taking action based on the content of this article.

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Main Content

VA Assumption Loans Part 2: Delays, Hardships, and Your Rights

VA Assumption Loans Part 2: Delays, Hardships, and Your Rights

See the original blog. VA Assumption Loans; A brief Overview

Being advocates for military and veterans we did not lay down with big banks and the hardships they cause with VA assumption loans. So we are arming you with the info you and your realtor need to go after banks that cause hardships.

Most assumptions should wrap up in 45–60 days. That’s the normal window we’ve seen. Unfortunately, some banks and servicers are now stretching these out to 90+ days — creating unnecessary stress and hardship to veterans and military.

For military families, this often hits hardest during PCS moves, when every day matters.

A Real Example of the Problem

In one recent case, a top-20 national bank with over $200 billion in assets let a mutual accepted VA assumption contractor between a buyer and my seller sit on an underwriters desk untouched for 45. NO reviewing, updates, nothing. That’s not only unacceptable — it’s harmful.

We had to step in and fight aggressively to move the process forward and it was not the first time we had to take action to light a fire at these loan institutions.

These delays can create hardships for:

Buyers — risking the loss of their purchase.

Sellers — stuck paying extra months of mortgage payments. In our case client PCS (OCONUS) to another country, home vacant and vulnerable to squatters.

Veterans — unable to restore their entitlement until the file is finalized.

Navigating moving, temporary living, landlords notices, unknown move in out dates, start end services, etc.

Why It Happens

Here’s the truth: banks don’t profit from VA assumptions. There are no origination charges, no big incentives. As a result, lenders often understaff these departments and push assumptions to the “back burner.”

But that doesn’t excuse the delay. Lenders and servicers:

Chose to become VA-approved.

Accepted the obligation to process VA loans properly.

Owe veterans respect and timely service.

How to Push Back on Difficult Lenders

If you’re dealing with a lender that drags its feet, you’re not powerless. Here are the main rules and violations to know. You can contact many agencies that banks do not like to hear from.

Normal Timeline

45–60 days – Reasonable completion time.

Over 60 days – May indicate a violation.

Here is a list of possible violations that are common.

. CFPB Violations (Consumer Financial Protection Bureau):

Unreasonable Delay in Loan Servicing Under RESPA (Regulation X), 12 CFR 1024, servicers must process assumption requests in a timely manner.

Failure to Communicate Ignoring borrower or representative inquiries is a violation of servicing requirements under RESPA.

Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) Prolonged, unexplained delays that cause financial or emotional harm may be subject to UDAAP enforcement.

VA Guidelines Violations: As outlined in the VA Lender’s Handbook (VA Pamphlet 26-7, Chapter 5), VA-approved servicers are expected to:

Process loan assumptions without unnecessary delay.

Provide required approvals and transfer liability efficiently.

Adhere to VA expectations for communication and servicing.

Other Regulations

TILA (Reg Z): Requires accurate, timely disclosures.

ECOA (Reg B): Prevents practices that disproportionately harm veterans or military families.

CRA (12 USC § 2901): Banks must meet credit needs of their communities, including veterans.

OCC Compliance: Federally chartered banks carry additional fair-lending obligations.

Final Word

VA loan assumptions remain a powerful tool — for veteran buyers to take advantage of low rates, and for sellers and veterans to transfer benefits responsibly.

The key is working with the right team. With 14+ years of VA experience and 300+ 5-star reviews, we’ve guided countless military families through the process — even when lenders drag their feet.

If you face delays or stonewalling, remember:

You have the rules and regulations on your side.

You can escalate through the VA and CFPB.

You don’t have to do it alone.

Veterans deserve better. And we’ll always fight to make sure they get it.

✅ Steps to Take if Your VA Loan Assumption Is Stuck

First and foremost my disclosure is to recommend you speak with an attorney on all matters pertaining to your real estate transactions.

Start with communicating to the lender you know your rights and send them a warning in writing you are prepared to file for violations with CFPB and the VA and whoever else is necessary. This usually will grab their attention

Track the Timeline – Note when the lender received your file. If it passes 45 days without movement, it’s time to push.

Document Everything – Keep emails, call logs, and request receipts. Paper trails matter if you escalate.

Escalate Internally – Ask to speak with a VA loan assumption specialist or department manager.

Cite the Rules – Reference RESPA, VA Handbook (26-7), and CFPB standards when pushing back.

File a Complaint – If there’s no progress by 60 days, submit complaints to the VA Regional Loan Center and the CFPB.

Work with an Experienced Agent – A knowledgeable VA Realtor® can push lenders faster and help avoid missed deadlines.

Cyrus Bonnet – Veterans Agents

Welcome to Soldiers Agents Inc. Joint Base Lewis McChord’s Comprehensive Real Estate Website and Dedicated Military - Veteran Realtors

Unreasonable Delay in Loan Servicing
Under RESPA (Regulation X), 12 CFR 1024, servicers must process assumption requests in a timely manner.

Failure to Communicate
Ignoring borrower or representative inquiries is a violation of servicing requirements under RESPA.

Unfair, Deceptive, or Abusive Acts or Practices (UDAAP)
Prolonged, unexplained delays that cause financial or emotional harm may be subject to UDAAP enforcement.

VA Guidelines Violations:
As outlined in the VA Lender’s Handbook (VA Pamphlet 26-7, Chapter 5), VA-approved servicers are expected to: