In a ruling by Judge Karlton ruled in the Nehemiah case of Nehemiah v. Alphonso Jackson that the HUD rule is to be set aside. This means if HUD wants this or similiar rule they will have to go through the whole rule making process again. Alphonso Jackson was also disqualified from participating in any rule making process in the future involving DPA because of his prejudice.

This is a big win for DPA and it can continue to do business indefinitely. The next road block for DPA will be in the FHA Modernization Act where the Senate version would outlaw the use of DPA on FHA loans. The House seems to be bending in comittee. We will have to watch this closely.