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DPA Update

Great news!

Chairman of the House Financial Services Committee, Barney Frank, has discussed publicly the fact that he has negotiated an agreement with HUD Secretary Steve Preston that will provide for the continuation of privately funded down payment assistance.

The agreement allows HUD to impose risk-based pricing on down payment assistance transactions which provides Secretary Preston the fiscal protection he seeks for the FHA insurance fund.

According to an Inman News article published today, Chairman Frank is quoted as saying “The FHA loved the ban on down-payment assistance (but) hated the ban on risk-based pricing,” Frank said at Saturday’s hearing. “That seemed to me to offer an opportunity. So (HR 6694) will replace both bans with middle ground — and it will pass the House, I can guarantee you. What you want to do now obviously is talk to your senators. We think it will go through there — it has the approval now of the Secretary of HUD.”

Thanks to the advocates of down payment assistance, there is significant momentum in this direction. We urge everyone to continue the campaign to save DPA by contacting their Senators and request a swift passage of pro-DPA legislation.

This is great news, but the fight isn’t over; please click here to contact your senators!

Read the entire article: http://www.inman.com/news/2008/09/10/congress-weighs-reprieve-seller-funded-gifts 

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