Bloomberg Businessweek

Selling Veterans on Cash-Out Loans

The VA is worried that refinancings could be “subprime lending under a new name”
Kandell’s company specializes in VA loans

Eric Kandell is making his pitch to veterans. Wearing a red T-shirt, with the words “Low VA Rates” emblazoned across his chest, he looks fit and muscular, as if he had stepped off an Army base himself. In this YouTube video and others, he tells current and former service members how they can take tens of thousands of dollars in cash out of their homes. They can pay off credit cards, remodel a kitchen, install a swimming pool, or travel to Las Vegas. “Do whatever you want,” he tells them. “Imagine your home is like an ATM.”

Kandell is targeting borrowers from the U.S. Department of Veterans Affairs mortgage program. He’s the 43-year-old president of a company whose very name is a come-on: Low VA Rates LLC. It’s among the lesser-known financial outfits dominating the business of selling cash-out VA mortgage refinancing, which

You're reading a preview, sign up to read more.

More from Bloomberg Businessweek

Bloomberg Businessweek3 min readPsychology
A Smarter Second Act
Starting a new career involves some guessing and finger-crossing. Can you really know if you’ll enjoy 60-plus hours a week as a business owner, consultant, or manager? Mismatches are common. “I get a lot of clients who finished a second degree and th
Bloomberg Businessweek3 min read
Facebook’s Two Faces
A comprehensive history tells the story Zuckerberg & Co. want you to hear—but then holds those claims up to reality
Bloomberg Businessweek6 min read
SoftBank Cash Couldn’t Save the Pizza Robots
Two years ago a truck covered with large photos of pizza pies nosed its way onto a long Bay Area driveway. It was ferrying Alex Garden, the chief executive officer of Zume Pizza Inc., to the home of SoftBank Group Corp. CEO Masayoshi Son. Zume’s pitc