Blogging About Loans: Update on DPA struggle with HUD!

An office of elite mortgage lending professionals with a common interest and goal focused on providing customer service that exceeds expectation. Thereby building our business from repeat and referral opportunities. Ruth Vogt. LMB 100023827. NMLS 257576. Regulated by the Division of Real Estate. Fairway Independent Mortgage is an Equal Housing Opportunity.

Update on DPA struggle with HUD!

HUD was ordered on October 31, 2007 by a Federal Judge to hold the implementation of FR5087 which would have eliminated seller-assisted Down Payment Assistance on FHA loans allowing DPA programs to be used through February 29, 2008!


Q. How long can I use DPA?

A. As long as the Purchase Contract is dated by February 29, 2008, HUD has stated that they will accept DPA related transactions.

Q. What's next?

A. For all DPA's that are an official party of the lawsuit, there is a 4 month window of opportunity; however it is up to the Courts to ultimately decide if DPA is to operate permanently.

Q. What about the status of HR 1852?

A. This Bill has passed the House, with amendments that support the existence of DPA, The Senate Banking Committee is reviewing the Bill and it appears that they are not as supportive, however the Bill has not come up for a full vote. There are intense lobbying efforts in support of DPA coming from House members as well as others.

Here's an interesting look at the breakdown of DPA programs that lenders are using:

AMERIDREAM                          21%   
NEHEMIAH                              17%
A Myriad of Other Programs      31%

Even though Nehemiah and Ameridream are well known in the marketplace, we have used American Home Grant's DPA and have been very pleased with their service.

 Stay tuned as the story continues to unfold...


Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.

Ruth Vogt Colorado Mortgage Lender Ruth Vogt, Sales Manager

 #LMB100023827, NMLSR# 257576

 Equal Housing Opportunity. 

 Regulated by the Division of Real Estate.  303-881-7849.


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Comment balloon 5 commentsRuth Vogt • November 14 2007 06:18PM


great information,thanks for posting
Posted by Dave Woodson, Not the Average Agent (Dave Woodson) over 11 years ago
Thanks for the info. I was waiting to see what the outcome is. So, we can still use DPA on FHA loans? Last i heard the only accpeetd one is nehemiah.
Posted by Luis Garcia, St.PetersburgSeminoleClearwaterMortgages (Colonial Bank) over 11 years ago

Only the DPA programs named in the injunction can be used. Included in this specific injunction were Partners In Charity, Futures Home Assistance Program, Sovereign Grant Alliance, Genesis Foundation, Home Downpayment Gift Foundation, Freedom Home Baptist Church, Dove Foundation. There may be other injunctions as well. I can not be certain I've named all.

Posted by Ruth Vogt, 719-592-0855 Apply 24/7 (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) over 11 years ago

That's a flat out lie! 

 All DPA programs that have not been revoked by the IRS, are still acceptable for use with FHA loans.  The court enjoined HUD from enforcing the rule, period. It does not only apply to the ones that jumped on AmeriDream's bandwagon.

Further the Grant America Program received an injuction in their case at the same time.  It appears that the shill for HDGF conveniently left them out.

Posted by Anonymous over 11 years ago
OUCH! I was only relaying info off a copy of the court injunction that I had received a copy of. My most sincere apologies if I have offended anyone.
Posted by Ruth Vogt, 719-592-0855 Apply 24/7 (Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate.) over 11 years ago