There is a new bill that was signed by the president today that basically mirrored the old bill...except they updated the possibility of having the risk based pricing and possibility of allowing for seller-funded down payment assistance programs. I have mixed feelings about the seller-funded down payment assistance programs. I would like to see them stick around but have a minimum required down that other down payment assistance programs require. ($1,000 to 1% of the sales price) Something has to be invested by these buyers.
The President signed the Omnibus Housing Bill, Wednesday morning. There were no changes to the provisions of the bill as previously detailed in the section below. Lenders now must wait for HUD to issue mortgagee letters which will provide details as to how the provisions will be implemented. Additionally, we've learned that there is a small to moderate chance of some last minute additional legislative changes which include:
• Possibly allowing a modified version of RBP to be implemented only for those borrowers representing higher risk (e.g. - a single FICO benchmark would be established).
• Possibly allowing seller-funded DPAs for borrowers with an established minimum FICO and/or some minimal investment of the borrower's own funds.
Unfortunately, the outcome for the additional legislative changes will not be known until late September when the House and Senate reconvene. I will keep you apprised as I learn more.
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