HUD Extends Comment on DPA Proposal

At the request of Congress, the Department of Housing and Urban Development has extended the comment period on a proposed rule to ban seller-funded downpayment assistance on FHA loans.HUD extended the comment period 30 days, till Aug. 10, at the request of Reps. Maxine Waters, D-Calif., and Gary Miller, R-Calif., who said they are "opposed to an expedited rulemaking process in the absence of further congressional review." The two House Financial Services Committee members also demanded that HUD turn over internal documents related to its efforts to improve the performance of Federal Housing Administration single-family loans with downpayment assistance provided by nonprofit groups. Scott Syphax, president and chief executive of Nehemiah Corp., welcomed the extension. "The additional 30 days ensures Congress will have the necessary time to properly review the role downpayment assistance programs play in providing access to homeownership for tens of thousands of low- and moderate-income borrowers each year," he said.