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And the soap opera goes on. In response to HUD’s Oct. 1st issuance of a rule set to take effect on October 31st effectively banning seller funded down payment programs such as Ameridream and Nehemiah provide, the two are seeking injunctions to stop the rule from taking effect. I agree with them that HUD could not have picked a worse time to issue such a rule with the housing market reeling, but unfortunately HUD has backed the rule change with statistics showing that such programs increase defaults. Therefore, changing the rule would not seem to be capricious as the non-profit agencies claim unless they can show the statistics to be incorrect. Guess we will have to wait and see!


Filed under: Down Payment Assistance • FHA Updates • HUD Regulations

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