Recently I sent an email to my congressional district representative to let him know I support Down Payment Assistance Programs such as Ameridream. DPA is about to be gone and I think our politicians have little knowledge of the overall effect on our local real estate economy. In just the last 12 months, I have used Ameridream an average of once of month. Now these buyers will have to wait a much longer period of time to enter the buying market.
Here is Mr. Mitchell's response.
I do not think this guy has any real idea on what he voted on and how this will effect his constituents.
Here is his response letter:
July 24, 2008
Mr. Gary Earl Miljour
1205 E Vinedo Ln
Tempe, Arizona 85284-1531
Dear Mr. Miljour:
Thank you for contacting me regarding down payment assistance. I appreciate hearing from you on this issue.
Historically, home ownership has been an important way for families to build wealth and get ahead financially. More than two-thirds of Americans own their own home, and it is important that we continue to encourage home ownership.
Down payment assistance allows first-time and nontraditional home buyers to receive grants for down payments on affordable loans without the initial capital that is usually required.
Unfortunately, some companies that provide down payment assistance were helping lenders to make predatory loans in the height of the housing boom. The down payment assistance provided by some organizations allowed sub-prime lenders to persuade home buyers to assume more debt than they could otherwise afford. As a result, both the Internal Revenue Service and the Department of Housing and Urban Development issued rules to prevent this kind of coercion.
Please be assured that I will continue to press for more ways to help promote home ownership. Should related legislation come to the House floor for a vote, I will keep your interests in mind.
Again, thank you for taking the time to write to me about this issue. Please do not hesitate to contact me in the future with regard to this or any issue if you have additional comments or concerns.
If you would like to receive email updates about how I am working on behalf of Arizona's 5th Congressional District, I invite you to sign up for my newsletter at http://www.mitchell.house.gov
Harry E. Mitchell
Member of Congress
All I can say is "WOW", I feel much better now. This guy is truly looking out for our best interests. Politicians involved in mortgage banking and real estate is a trainwreck ready to happen.