Two major downpayment assistance providers have sued the Department of Housing and Urban Development to block a final rule that prohibits seller-funded DPA on Federal Housing Administration loans starting Nov. 1.Nehemiah Corporation of America, Sacramento, Calif., and AmeriDream Inc., Gaithersburg, Md., filed separate lawsuits. "HUD's action to move forward with banning privately funded downpayment assistance programs is outrageous, and we have responded by filing a lawsuit in federal court to challenge the merits of HUD's damaging rule and to seek an injunction blocking implementation of this rule," said Nehemiah president and chief executive Scott Syphax. He pointed out that HUD received 15,000 comment letters opposing the DPA rule and that the House has just passed an FHA reform bill that creates new standards for DPA providers. (A Senate FHA reform bill would ban seller-funded downpayments on FHA loans.) Due to a 1998 settlement with HUD, Nehemiah is exempt from the HUD rule for six months and can still provide downpayment assistance on FHA loans until April 1.
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Doxo plans to fight the FTC complaint, which focuses broadly on consumer finance, but there are signs of confusion about the company's role in mortgages too.
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Members of the LGBTQ community were most likely to have experienced housing bias, according to a Zillow survey, which also found many people don't recognize how fair lending laws could help.
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Senior executives making over $151,000 would still be subject to such clauses should the rule go into effect this year.
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Christopher J. Gallo and his aide, Mehmet A. Elmas, allegedly withheld information in mortgage applications, hiding that borrowers were purchasing second home properties.
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Mortgage rates rose 7 basis points this week, Freddie Mac said, and more increases are likely following a weaker than expected gross domestic product report.
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Independent mortgage bankers lost the most money ever on every loan originated last year due to higher rates and lower volumes, an industry trade group said.
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