The U.S. District Court for the Eastern District of California has ruled against the Department of Housing and Urban Development's ban on private, seller-funded downpayment assistance. Commenting on the ruling, president and CEO of DPA pioneer Nehemiah Corporation of America, Scott Syphax called it "a major and conclusive judgment," and a heartening decision that reaffirms "that downpayment assistance is a lifeline" to the families in need. "This decision preserves access and supports the use of sensible and reasonable approaches to homeownership for millions of working-class families," he said. "As we have said before, we look forward to working with HUD to support deserving families across the country." The ban on seller-funded DPA was imposed by HUD in the Standards for Mortgagor's Investment in Mortgaged Property, published Oct. 1, 2007.

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