On Tuesday, September 18, 2007 the Office of Management and Budget signed off on HUD’s proposed rule that will exclude any source of downpayment that comes from a party that also benefits from the sale of the property. This rule is expected to completely eliminate all seller-funded downpayment programs.
Several observers point out […]

SACRAMENTO, Calif., Sept. 18 /PRNewswire-USNewswire/ — The following
statement was issued today by Scott Syphax, President and CEO of Nehemiah
Corporation of America in response to the passage of the Expanding American
Home Ownership Act of 2007, which included an amendment by Congressman
Miller supporting private downpayment assistance programs. The amendment
opposes a controversial proposal by the U.S. Department of […]

Below is the announcement sent out by HUD. This extension was in response to the request by Subcommittee Chairwoman Maxine Waters (CA) to extend the comment period by 30 days. Rep. Waters also recommended adding language to the FHA reform bill (H.R. 1852) that would override HUD’s proposed DPA rule.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 […]

This response by Ameridream founder Chris Russell to HUD’s proposed rule FR-5087-P-01 was forwarded to us to post.
Secretary Alphonso Jackson
Department of Housing and Urban Development,
451 Seventh Street, SW.,
Room 10276,
Washington, DC 20410-0500
RE: Proposed rule 24 CFR PART 203 [Docket No. FR-5087-P-01] RIN 2502-AI52
Standards for Mortgagor’s Investment in Mortgaged Property
Dear Mr. Secretary,
As the Founder and Former […]

There will be a hearing by the House Committee on Financial Services on Friday June 22, 2007 at 10am. This hearing will hear both sides of the DPA issue as it relates to HUD. This hearing seems to stem from the great volume of comments generated by HUD rule FR-5087-P-01. You can watch the hearing […]

With an already softening real estate market, the Department of Housing and Urban Development, (HUD) appears to be putting the final nail in the coffin, throwing the country into a real estate recession. On Friday, May 14, 2007 HUD issued a Federal Register Notice titled, “Standards for Mortgagor’s Investment in Mortgaged Property”. The […]

On Friday May 31, the Mortgage Bankers Association of America, held a conference on government loans. A well attended break-out session was specifically addressing the so-called “seller funded” DPA programs that have proliferated over the last ten years.
While it was pointed out that the default rate is higher with DPA programs, very little new […]

The Neighborhood Gold and Buyers Fund down payment assistance program will cease to provide down payment assistance as of July 3rd 2007. This announcement was sent out in an email where they claimed they were taking a voluntary step to comply with the IRS Revenue Ruling 2006-27 which ruled that providing seller funded down payment […]

On April 23rd 2007 the IRS made its first posting of non-profit organizations that do down payment assistance programs. There are many more that have given up their 501-c -3 designation but the revocation must be printed in their formal bulletin before it can go on the list. A major point to this Revenue Ruling […]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR PART 203
[Docket No. FR-5087-P-01]
RIN 2502-AI52
Standards for Mortgagor’s Investment in Mortgaged Property
AGENCY: Office of the Assistant Secretary for Housing–Federal Housing
Commissioner, HUD.
ACTION: Proposed rule.
———————————————————————–
SUMMARY: Through this proposed rule, HUD submits, for public comment,
specific standards governing a mortgagor’s investment in property for
which the mortgage is insured by the Federal Housing Administration
(FHA). […]