Rosemary, I enjoyed your well-written post very much..you chose an excellent topic!

Eric - thank you! And I appreciate your stopping by.

When I was at the American Dream site the other day I saw this but didn't focus on it.  I didn't internalize what a big deal this is.  I'm surprised that more people are not commeinting on this.  This is a big deal.

We've put people in these programs and they are excellent - they should look at the ARMS instead of these seller assist programs (most which have fixed rates). Don't know what the stats are for # of these types in foreclosure verses ajustable rates that are coming due?

Kate - I know it is a big deal and I am not sure why it is not of importance to more but I am sure in the next few days and weeks it will be a bigger deal either way HUD goes with their decision.  I cannot figure out the commenting system here on AR but I hope that the words is out and those that can take action will. Thank you for stopping by.

Jeff & Grace: I have sent a message to my Nehemiah contact to see if I can get some stats on how they have helped.  I am sure there is some data that will be useful to know.  Thank you for stopping by.

HUD has not issued their final rule.  Non-profit DPA's are continuing to provide safe, sound alternatives to homebuyers.   There is excellent information and a call to action at www.ahaanow.org.   

C. Parker - exactly.  They are still helping but the threat is there.  I truly hope this does not happen and HUD leave the DPAs as they are.  They are a resource to help people, had nothing to do with the mortgage meltdown. I believe they are looking for reasons in the wrong places.  Coming up with eliminations that will only hurt the economy more.

These programs were developed with the full knowledge of HUD's Office of General Counsel.   Significantly, in 1998, HUD's Office of General Counsel reviewed the downpayment assistance process and found it was in compliance with HUD's guidelines.   There are numerous HUD Mortgagee Letters, letters that spell out ongoing policy decisions, address the legitimacy of these programs.   As a matter of fact, HUD has not only made favorable statements about DPA programs in the past; HUD actually has utilized DPA programs itself when selling some of its own inventory of properties.

There is very little basis in fact for the criticisms crafted by Secretary Jackson of HUD for his justification for the elimination of these vital programs that currently comprise over 40% of FHA production.    Line for line, each statistic he cites can be refuted with actual industry data.

Clearly, the economic impact of the loss of these programs would be catastrophic to future homeowners, as well as to the FHA, whose only alternative is a zero down product with premium pricing that leaves homebuyers in a negative equity position right out of the gate.  Anyone with a brain can see the subprime mess replaying itself all over again should that come to pass.

Non-profit DPA Programs continue to provide downpayment gifts.   Lawsuits have already been filed to stop this action by HUD.   In addition, many of our Congressional leaders have come out in support of these privately funded programs, and there is strong support from many housing industry leaders.    For the sake of homeownership, it is imperitive that privately funded DPA's will prevail; HUD's actions are overturned; and homebuyers can continue to have a safe, economically sound alternative when seeking downpayment assistance.   For more information and information on how to have your voice heard, go to www.ahaanow.org,

Thank you C Parker for your comment, it adds light to the issue and I believe everyone needs to know more about this.  I will visit www.ahaanow.org and I hope that others will too.  I will put it on my website as a reference for updates.  If you would like to send me something that you'd like me to put on my website I will do so. 

Again, thanks.