FHA Training: Down Payment Assistance Should Be Saved

by Carl Pruitt

HR 6694 is being considered On Sept. 16, 2008 by House Financial Services Committee. The Committee and its chairman Barney Frank should be encouraged to get the bill out of committee quickly as possible to be voted on by the entire House of Representatives.

Lobbying groups representing wealthy rental property owners have issued press releases in opposition to HR 6694, the bill which would once again allow the use of seller assisted down payment programs like Nehemiah with FHA mortgages.

Of course rental property owners would love to see the opportunity to own a home taken away from potential home buyers who can prove the ability to pay but are unable to save for a down payment. To justify their opposition, these organizations use the same flawed and faulty data used by HUD which has already been dismissed as inaccurate by the courts when it has been challenged.

U.S. housing markets are already under fire from every direction, yet government officials are taking no action to protect the interests of the average citizen. Officials are putting all their efforts into programs designed to protect the interests of wealthy mortgage banking firms and real estate investors while giving only lip service to the troubles of average citizens.

HUD data has been proven unreliable. Data available directly from the lenders actually originating and servicing the loans indicates that stricter underwriting and better fraud control would essentially eliminate the difference in foreclosure rates between borrowers using down payment assistance and those making nearly meaningless 3% down payments.

Contact your Representative and Senators as soon as possible. Every possible effort should be exerted to save these beneficial down payment assistance programs.

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