would allow for Down Payment Assistance Programs indefinitely. Lest we forget Hart, Ameridream, Grant America, etc...

I was in a conference call regarding it today and they are rallying the troops to get it done. You can rest assured that they will not go quietly into the night, this is their lively-hood.

They've fought some pretty impressive battles to date that ultimately ended up with Court rulings in their favor.

So, I guess for now we have to stay tuned.

 

 
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10 Comments on Nehemiah is already pushing for a New Bill that...

JUL
30
2008
3 Featured Posts Localism Sponsor

Wayne -

I would certainly figure the DPA's are fighting for their existence. Were you on a conference call with one of those companies or someone else? Give us the scoop on this......

7:52pm • #1

Nehemiah had a conference call for anyone interested in this topic. You can also go to their site at www.getdownpayment.com for more information and updates.

I merely listened in to keep myself abreast of the situation and coming developments regarding such.

They're pushing hard to try and overcome the newly signed law with legislation targeted at legalizing Down Payment Assistance programs.

I haven't found out anything regarding HART, AmeriDream, or Grant America as of yet, but one can only assume they are actively involved with such an undertaking also.

When I hear more I'll try to post it.

10:06pm • #2
JUL
31
2008

This is a copy of the email I received yesterday- links included:

Act Now to Save Downpayment Assistance!

Take Action Now



Dear Gerardo,

This week the President signed H.R. 3221, Housing and Economic Recovery Act of 2008, into law. The bill contains a provision (SEC. 2113) which forbids FHA from insuring mortgages in which the borrower's downpayment comes from a private downpayment assistance provider, beginning October 1, 2008. As of this date, the minimum downpayment will be increased from 3% to 3.5%.

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.

In order to save downpayment Assistance, we need to come together NOW to convince Congress to introduce and pass a bill that allows downpayment assistance to continue indefinitely.

Two Ways To Take Immediate Action...

Write Your Elected Officials

Please take a minute to submit your comment regarding the urgent need for legislation that allows for downpayment assistance to continue indefinitely.

Submit your comments through our Legislative Alerts and Updates page.

Call Your Elected Officials

A phone call to your U.S. Senators and House Representatives will make a huge impact to save private downpayment assistance programs.

Locate your elected officials

•1.    Go to Elected Officials

•2.    Enter Your Zip Code and click "Go".

•3.    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. and District office phone number.


Stay Informed
Sign up to receive future email updates as they become available.

Should you have any questions, our Customer Service Department is available at 877-634-3642 from 9:00 a.m. - 8:00 p.m. EST to answer your questions. 

 

Gerry Suarez, Jr.

Your HUD Loan Pro!

7:36am • #3

I received the same prior to the conference call.

It's going to be interesting to see how things unfold.

8:26am • #4
AUG
06
2008

According to the conference call today with Nehemiah the New bill has been submitted to the House of Representatives only and has a minimum score requirement of 620.

 

9:21pm • #5
AUG
10
2008
Outside Blog

I don't think DPA programs help too many, but for those that benefit, it would be a shame to lose this!  It's one more way to make 'it' happen!

Signature 

BTW, Wayne, do you originate many RM's in FL?

12:00pm • #6
AUG
11
2008

Ron,

I would venture to say that DPA's help more people, both buyers and sellers than most realize. In an already depressed Real Estate market this certainly doesn't help "Turn Things Around".

Common sense dictates with an ever increasing restriction on loan products and credit availability one must not argue to help put themsleves out of business. I personally don't believe that DPA's ALONE cause an astronomical increase in FHA defaults. I base this on the fact that I have yet to see an indepth independent analiytical study to support such claims. If anyone knows where I can find one please point me in the right direction.

 

Regarding the Revereses in Florida. We are licensed in there, but I have yet to do one. Quite frankly, I haven't studied the market there for Reverses but have often wondered how many value issues there are for seniors trying to get a Reverse in Florida's current lending environment.

8:00am • #7
Outside Blog

I would venture a guess there is not specific correlation of PDA to defaults BUT many that get PDA's are probably struggling financially, or at least just qualify so if anything goes down, they struggle.  So that is probably more of an issue than the PDA itself.  As far as RM's, when the person qualifies (and that is difficult in today's market with depressed values) it can be a tremendous benefit not having to pay a mortgage anymore (most are in this situation - a FEW are free & clear or very low mortgage.)  When you consider a RM APR is about 4-6% for most that keep it at least 10 years (and my one blog shows many do not) it is a great bottom line product.  BUT that is with the expectation that the senior keeps it longer than many do,  so that is one thing I strongly stress to anyone I help get a RM.  I take it then, you do not originate RM in FL?!?!

Signature 

8:22am • #8
AUG
13
2008

Ron,

Good point regarding DPA.

Concerning RM's, I feel that this product can be of tremendous value to Seniors for several different reasons, but the one that often comes into the equation is when a Senior has a choice, sell or lose your home, in which case they must pay to live somewhere else, or do a Reverse Mortgage if possible an stay in their Home with no payments as long as they live there. When their budgets are being stretched to the max by things outside of their control, this can be their saving grace.

Regarding RM's in Florida, I don't currently do them there, but have not ruled it out.

7:47am • #9
Outside Blog

While the stretching their budget scenario is common place for a senior getting a RM, there certainly are others as well.  I have had a couple that had other property exceeding $1,000,000, but of course, they can only put the RM on their primary residence. While many do not get a RM as part of a specific financial planning, it can be done, and done effectively with the right planning.  I do not do any financial planning, but I have referred two people to try and accomplish that as well, because they had very specific needs.

Signature 

8:17am • #10

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Wayne Frazier

Dundalk Sparrows Point, MD

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