AR blogger Fred Chamberlin has just reported it as well but there has been a bill introduced in Congress that would allow SFDPA's to continue indefinitely. The bill seems to exhibit a lot of give and take with HUD in that it calls for 620 minimum scores and less than 680 scores could be assessed higher mortgage insurance rates. The bill also states these programs will offer homebuyer counseling when requested. All seem like good ideas. Read Fred's post here:
http://activerain.com/blogsview/621381/DOWN-PAYMENT-ASSISTANCE-MAY
A copy of the email from Nehemiah's Scott Syphax follows:
Support New Bill (H.R. 6694) to Reform and Save DPA!
Dear Gerardo,
As we mentioned earlier this week, the President signed H.R. 3221, Housing and Economic Recovery Act of 2008, into law. The bill contains a provision (SEC. 2113) that forbids FHA from insuring mortgages in which the downpayment comes directly or indirectly from an interested third party (such as the seller), beginning October 1, 2008. As of this date, the minimum downpayment will be increased from 3% to 3.5%.
We are pleased to announce that a new bill, The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) was introduced by several members of Congress on Thursday, July 31, 2008. Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays sponsored this bill that if passed and signed into law will allow downpayment assistance to continue indefinitely.
Scott Syphax, President and CEO of Nehemiah Corporation of America praised this group earlier today.
"Maxine Waters, Gary Miller, Al Green and Christopher Shays have demonstrated the willingness to understand all sides of this issue and the courage and leadership to follow their conscience. All those who understand the importance of working class American's having their shot at homeownership, need to work together to encourage our elected officials to pass this bill."
"There are dire consequences to America waking up on October 1st without downpayment assistance. In fact, 300,000 working class families will be locked out of homeownership in the next year alone."
In order to save downpayment assistance, we need to come together NOW to convince Congress to pass H.R. 6694 that allows downpayment assistance to continue.
Two Ways To Take Immediate Action...
Write Your Elected Officials
Please take a minute to submit your comment regarding the urgent need to pass H.R. 6694 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 Representative 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
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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.
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Click on the link for the bill to see it, and do know time is of the essence. If this bill is to succeed we will need to pressure lawmakers to fast track it before they adjourn.
Many of us have complained about this. Now is our chance to make a difference!
Gerry Suarez, Jr.
Your HUD Loan Pro!
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