Predatory Lending

Posted Sat, 12/06/2008 - 23:59 by Administrator

HADD opposes H.R. 600, FHA Seller-Financed Downpayment Reform Act of 2009

Problems with Down Payment Assistance Programs lead to increased foreclosures, inflated property prices:

The following article is from the Implode site urging readers to oppose H.R. 600, the housing industry's attempt to bring back seller funded down payment assistance, aka SFDPA or DPA. http://ml-implode.com/sfdpacampaign.html

DPA's were banned by congress in 2008, at least in part due to high foreclosures. They attempt to skirt lending laws that forbid sellers and builders from contributing to a buyer's down payment to make a sale. DPA's have been compared to money laundering for sellers and builders. The companies that run DPA's are not always the charitable institutions they appear to be; the IRS has called some DPA's a scam: http://www.irs.gov/newsroom/article/0,,id=156675,00.html

HUD tried to shut down DPA's and was sued by two DPA organizations, Nehemiah and Ameridream: http://whistleblower.ml-implode.com/?p=189

DPA's are not to be confused w/true gift charities, or gifts from relatives. Banning DPA's did not, and will not, ban true gifts.

Text of the bill can be found at Open Congress and Washington Watch, and you can comment on it there:

http://www.opencongress.org/bill/111-h600/show

http://www.washingtonwatch.com/bills/show/111_HR_600.html