About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under Government Mortgage Financing Programs News

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.

Comments (0) Posted by G.R.A. Admin on Saturday, November 3rd, 2007

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