About Government Refinance and Home Purchase Programs

Neil Roland for Bloomberg recently reported that plans to cease a down payment assistance program have been blocked in federal court for now. Here is the full story are reported in the Charlotte Observer:

A federal court temporarily stopped the government from canceling a down-payment assistance program used by hundreds of thousands of low- and middle-income homebuyers.

The U.S. Department of Housing and Urban Development was set to end the decade-old program, saying it leads to higher prices and a disproportionate number of foreclosures. The program lets nonprofit organizations including AmeriDream Inc. and Nehemiah Corp. of America fund down payments and be reimbursed by the sellers of the homes.

“HUD failed to supply a reasoned analysis for its departure from its longstanding policy,” the U.S. District Court for the District of Columbia said Wednesday in ordering a preliminary injunction. The agency also “failed to consider reasonable proposed alternatives,” the court said.

White House representatives address congress about the rising foreclosures and mortgage difficulties in the US. Martin Crutsinger of the AP wrote this about it:

WASHINGTON (AP) — The Bush administration assured Congress on Friday that it is aggressively working to deal with a rising tide of mortgage foreclosures in the country.

Officials, however, said homeowners threatened with the loss of their homes must do their part by actively seeking help to avert foreclosures.

Robert K. Steel, Treasury’s undersecretary for domestic finance, and Brian D. Montgomery, an assistant secretary at the Department of Housing and Urban Development, said the administration has a comprehensive plan and is working with an industry group formed to deal with the looming foreclosure crisis.