We have received a few responses back from our Washington delegation regarding our request that they consider supporting the new DPA bill.  Essentially they blow smoke, and alude to the mantra that DPA's are bad done by bad mortgage people.  Kiss DPA goodbye.

Here is the response, which was almost exactly like Senator Murray's from Washington:

August 6, 2008

Dear Mr. Mortgage Guy:                           

Thank you for contacting me regarding the Foreclosure Prevention Act of 2008.  I appreciate hearing from you about this important issue.

As you know, H.R. 3221, the Foreclosure Prevention Act of 2008 has passed the House and Senate and is expected to be signed by President Bush in the near future despite prior veto threats.  As you mentioned, this bill prohibits down-payment assistance from the seller or a third party benefiting financially from the transaction or a third party being reimbursed by transaction participants.  This component of the legislation is intended to reign in irresponsible lending practices and prevent default loans.  The FHA is reporting above-average default rates for seller-assisted down-payment programs which will force the FHA to request a government subsidy for the first time in the agency's 74-year history.  Please know that I understand your concerns about the importance of helping first-time homebuyers and I will look for responsible ways to assist homebuyers in achieving their dreams.

You may be interested to know of the Expanding American Homeownership Act of 2007, H.R. 1852, which was introduced into the House this Congress. This bill aims to expand opportunities for home ownership by increasing maximum Federal Housing Administration (FHA) loan limits, extending mortgage terms from 35 to 40 years and reforming the FHA mortgage insurance program. In other words, this bill attempts to adjust FHA limits to reflect housing prices as they stand today and in the process captures potential homeowners who would otherwise turn to predatory lenders. This bill passed overwhelmingly in the House, with my support, by a vote of 348 to 72 and has moved to the Senate for further consideration.

I would like to share with you two measures in the House to address the problems which have been occurring in the Housing market as well. First, the FHA Housing and Homeowner Retention Act (H.R. 5830) which would expand the FHA program to help refinance at-risk borrowers into viable mortgages and require the Federal Reserve Board to conduct a study on the need for an auction or bulk refinancing mechanism.  This measure has passed out of the House Committee on Financial Services and awaits consideration before the House. It is my hope that the House acts quickly to pass this measure and that the House and Senate versions of these bills can soon be reconciled. The second measure of note is the Neighborhood Stabilization Act of 2008 (H.R. 5818) which would provide loans and grants to states and cities to deal with problems associated with large numbers of foreclosures in neighborhoods across the country. With my support, this legislation moved quickly through the House and has been referred to the Senate Committee on Banking, Housing, and Urban Affairs.

Please continue to contact me about the issues that concern you, as I both need and welcome your thoughts and ideas.  As a service to my constituents, I maintain a website which contains valuable resources and information on Congressional activities. Please feel free to visit the website at http://www.house.gov/inslee for information on recent issues and to learn more about the services my office provides.

I encourage you to contact me via email, telephone, or fax, because security measures are causing House offices to experience delays in receiving postal mail.  My email address is: Jay.Inslee@mail.house.gov.  Please be sure to include your full name and address, including your zip code, in your message.

Very truly yours,

JAY INSLEE
Member of Congress