FHA Problems With NDPA Overstated?

Federal research has overstated the problems of Federal Housing Administration loans with nonprofit downpayment assistance, according to a study commissioned by AmeriDream, an NDPA provider based in Gaithersburg, Md.The analysis, conducted by the George Mason University School of Public Policy, raises questions about the data and methodology of the government studies, AmeriDream said. It concluded that two key factors in defaults were absent in the federal studies: the financial situation of the borrower and the economic conditions of the area where the home is located. "This analysis raises concerns regarding the validity of research conclusions of three widely quoted reference documents on the performance of home loans of buyers receiving downpayment assistance from nonprofit DPA programs," said Stephen Fuller, professor of public policy and director of George Mason University's Center for Regional Analysis. "The limited loan performance measures, unrepresentative samples, inconclusive statistical tests, and aggregated demographic profile of homeowners reduce these studies' value in providing factual evidence regarding NDPA programs' performance." AmeriDream can be found online at http://www.ameridream.org.