http://fhaappraisersbatonrouge.com/ – Baton Rouge FHA Appraisers – FHA Down Payment Assistance Ban Update
Source: Carl Pruitt FHA Loan Advice
The comment period for HUD’s rule banning the use of seller assisted down payment programs is still underway but in the meantime, as I noted in my previous post today, House Financial Services Committee Chairman Barney Fran, D-Mass., recently told The Washington Post (registration required) that the House has agreed to accept Senate provisions that ban seller funded downpayment assistance on FHA loans and impose a 12-month moratorium on the charging of risk-based premiums by the FHA. The White House has also dropped opposition to the bill, so it is now on the fast track to passage.
Here is the text of an email sent out today by the Nehemiah Corporation, the largest of the down payment assistance groups:
Dear Friend,
I am turning to you in the 11th hour, urging you to take action to oppose a
housing bill that will eliminate downpayment assistance. The Senate and House of
Representatives are fast-tracking this bill. See the Washington Post article
below. Upon the President’s signature, downpayment assistance will be shut down
in the United States. Failure to act now will ensure the immediate death of
downpayment assistance.In recent weeks, I have come to you requesting your help in defeating HUD in
their attempt to eliminate downpayment assistance. HUD and the Senate are now
attempting to ci rcumvent the rule making process by going after downpayment
assistance via legislation. This course of action is being pursued in spite of
the strong support of the Congressional Black Caucus, the Congressional Hispanic
Caucus, the U.S. Conference of Mayors and Congresswoman Maxine Waters.The consequences will be devastating! By FHA’s own estimates, DPA comprises
nearly 40% of FHA’s volume. This means more than 300,000 working class families
will be locked out of homeownership in the next year alone. Communities across
America will take the brunt of the $50 billion in lost real estate sales, not to
mention the indirect impact on the real estate, mortgage and building sectors
that will be forced to shed tens of thousands of jobs due to this dangerous
legislation.Act now! Please call your Congressional Representative, Senators, trade
associations and community groups IMMEDIATELY to voice your support for
downpayment assistance and your opposition to this bill. Urge your legislators
to oppose these provisions that would ravage your local economy by bringing the
housing sector to a screeching halt.Locate your elected officials.
1. Enter Your Zip Code and click “Go”.
2. Click on the link of the Representative you would like to call and then click
on the Contact tab to find their Washington D.C. office phone number.Sincerely,
Scott C. Syphax
President & CEO
Nehemiah Corporation of America
For those interested, the website Nehemiah has set up to help locate and contact your Representative is located here.
