The article reaffirms that the funding fee
for taking out a VA loan for the first time remains at 2.
QUESTION: Would GSA be willing to negotiate less than the one percent industrial funding fee for MAS/BPAs?
ANSWER: GSA recovers a one percent industrial funding fee for all orders placed under multiple award schedule contracts, including blanket purchase agreements.
The notice stated that the lenders would no longer consider themselves obligated to make further loans or extend letters of credit, that outstanding loans would bear interest at the default rate under the loan agreement until defaults were cured or waived and that additional extensions of credit would be subject to a 5% funding fee
Clinton plan: The president proposed raising the funding fee veterans must pay on VA-guaranteed home loans from 1.
Realtor position: Realtors in general oppose increasing the VA funding fee because such increases cut into housing affordability for veterans.
GSA should retain sole responsibility for enforcing general "policing" provisions such as the clauses relating to Price Reductions, Examination of Records by GSA, and Industrial Funding Fee.
Sales to state and local agencies that are based on FSS pricing, but that are not placed under the vendor's Schedule contract, should not be treated as FSS sales for industrial funding fee or any other purpose.
GAO said revenue from the fees, known as industrial funding fees
, exceeds the cost of operating the schedules by 53%.