On October 31st 2007 a federal judge issued an order stopping the Department of Housing and Urban Development from enacting a rule prohibiting seller-financed mortgage down-payment assistance programs. This comes from two seperate suits filed against HUD. One suit was filed by Ameridream and the second by the Penobscot Indian Nation Grant America Program. Nehemiah has also filed suit in California Federal court.

HUD then released a statement that all DPA programs can still be used until this matter is resolved. The court should likely hear the case before the end of February 2008. Until this time it is business as ususual for the programs.

Below is the notice sent out by HUD

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This is to notify you that FHA is not permitted to implement the downpayment assistance rule at this time. Judge Friedman of the United States District Court for the District of Columbia issued a ruling enjoining HUD from implementing the downpayment assistance rule, which was to go into effect today. This injunction is
applicable to everyone affected by the Rule. HUD will provide further guidance as appropriate.

To read the downpayment assistance rule (enjoined) in its entirety and for more information please visit: http://hudclips.org/sub_nonhud/cgi/pdf/4846a.pdf