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There’s a huge debate going on right now about seller assisted down payment programs on FHA insured loans. Most of the program’s detractors are those who are on the outside looking in. The objections of those opposed to seller assisted down payment programs are not completely without merit. There have been some problems in the implementation of the program which have led to a higher than necessary foreclosure rate among those borrowers using the program. And yet foreclosure rates

Unfortunately, opponents of the program seem to completely ignore the advice of the people who are on the front lines of mortgage financing – mortgage originators. These opponents seem to think that just pointing out that mortgage originators stand to gain financially is enough to disqualify the originators’ opinions. Nothing could be further from the truth.

FHA mortgage originators are held to standards by HUD. Any company which has too high a percentage of originated mortgages go into default will get cut off from using FHA insurance altogether. Yet mortgage originators are still pushing to save the program because they are in a unique position to see the real benefits of the program. They are in a unique position to see firsthand all the factors which can contribute to foreclosure. They can see how to solve the problem without throwing the baby out with the bathwater.

The Nehemiah Corporation of America has set up a website where mortgage originators who want to help save down payment assistance programs can go to find out what they can do individually. It is filled with a lot of facts about the program that many people aren’t aware of and it has a day by day schedule of suggested activities that members of the housing industry can take to aid in the fight.

As usually happens, Congress has chosen a path of using the FHA program to bail out Wall Street mortgage banking interests and is selling it under the guise of helping out the common man. The public needs to put a stop to it and bring the FHA program back to its original purpose.

If you would like to help out in the fight, the Nehemiah Corporation’s website is located at;

http://www.dpagroundswell.org

FHA Down Payment Assistance: Deal Made To Save Down Payment Assistance?


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Filed under: Down Payment Assistance

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