Human Services News

From PR Newswire: Government and Policy:

HUD, which is attempting to eliminate these valuable programs as part of the 2008 housing stimulus package, testified before the House Committee on Financial Services today.

In attempting to convince Congress to eliminate charitable DPA programs, HUD ignores a public and independent report by the General Accounting Office stating that ninety-four percent of homebuyers using seller-funded DPA pay their mortgages without undue difficulty.

"Moreover, HUD refuses to release to Members of Congress and the public the internal data on which it bases its proposal to eliminate charitable DPA, a proven program that has helped more than one million low and moderate income Americans become homeowners, including many minorities and women.

"Finally, HUD misleads Congress on three key points.

-- First, the congressionally mandated independent actuarial review dated October 2007 contradicts Commissioner Montgomery's claim about the impact of DPA on the FHA mortgage fund.

-- Second, HUD argues that claim rates for FHA-insured loans doubled as downpayment assistance programs grew.

To the contrary, downpayment assistance programs account for a larger share of FHA-insured loans today because FHA lost considerable market share to zero-downpayment programs offered in the private mortgage market.

-- Third, contrary to Commissioner Montgomery's statement that the easy solution is to eliminate DPA, America's economy, housing market and low to moderate income families cannot afford such a convenient policy.

"Charitable DPA funded in part by seller participation works.

The program has helped more than one million families and individuals become homeowners since 2000 -- without using tax dollars -- and has generated more than $24 billion in economic benefit.

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