{"id":4310,"date":"2008-09-09T15:48:01","date_gmt":"2008-09-09T22:48:01","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4310"},"modified":"2008-09-09T15:48:01","modified_gmt":"2008-09-09T22:48:01","slug":"nehemiah-and-ameridream-may-be-restored-by-end-of-the-month","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4310\/nehemiah-and-ameridream-may-be-restored-by-end-of-the-month\/","title":{"rendered":"Nehemiah and AmeriDream May Be Restored By End of the Month"},"content":{"rendered":"

Tomorrow’s Mortgage Industry March on Washington<\/a>, to save the seller-contributed down payment assistance programs, may be for naught.\u00a0 It looks like the deal’s been cut already.<\/p>\n

Last month, I explained that House Financial Services Commmitee Chair, Barney Frank, was maneuvering to save the seller-contributed down payment assistance program<\/a>.\u00a0 Chairman Frank wanted to restore these programs and held risk-based pricing (higher upfront MIP) as his leverage. \u00a0\u00a0 HUD Secretary Preston wanted risk-based pricing and held the seller-assisted DPA programs hostage.\u00a0 Apparently, the HUD Secretary flinched this past weekend and signaled that he would bless the restoration if he got what he wanted.<\/p>\n

Rumor has it that Chairman Frank is working with Central California Congressman Dennis Cardoza, and his builder buddies, to green light this prior to the October 1, 2008 deadline.\u00a0 The deadline was part of Chairman Frank’s original compromise in the last enacted housing law.\u00a0 Frank made a stink about risk-based pricing, defeated it, and held it as a chit.<\/p>\n

The new program appears to be exactly what I thought it might be; tiered credit scoring for pricing and qualification.\u00a0 What we learned two weeks ago was that the default risk, associated with 100% financing, can be mitigated through strict adherence to published underwriting guidelines.\u00a0 In layman’s terms, that means if you’re getting a break on the down payment, you better have good credit and a strong ability to repay the loan.\u00a0 That’s logical; it’s true risk-layering and is the cornerstone of “make sense underwriting”.<\/p>\n

What don’t I like about this development?<\/strong> I hate the hypocrisy associated with the seller-assisted DPA programs.\u00a0 As Sean Purcell, said, it violated the “spirit” if not the letter of the FHA rule<\/a>.\u00a0 I also dislike the incessant lobbying our industries have done to promote this hypocrisy. I’d much rather have seen HUD offer 100% financing rather than to perpetuate this flagrant abuse.\u00a0 I detest the “wink-wink, nudge-nudge” characteristic of these “charities”.\u00a0 That’s why I never got involved in the industry’s “political movement” to restore these programs.<\/p>\n

Alas, it isn’t law, yet.\u00a0 Chairman Frank should have the support of his side of Congress but the Senators haven’t signaled that they’re playing Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tomorrow’s Mortgage Industry March on Washington, to save the seller-contributed down payment assistance programs, may be for naught.\u00a0 It looks like the deal’s been cut already. Last month, I explained that House Financial Services Commmitee Chair, Barney Frank, was maneuvering to save the seller-contributed down payment assistance program.\u00a0 Chairman Frank wanted to restore these programs […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[],"class_list":{"0":"post-4310","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4128,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4128\/racing-the-clock-on-dpa-programs-will-the-dems-save-the-day\/","url_meta":{"origin":4310,"position":0},"title":"Racing the Clock on DPA Programs: Will The Dems Save the Day?","author":"Brian Brady","date":"August 27, 2008","format":false,"excerpt":"I had some fun, yesterday, with a report about the down payment assistance ban and the First-Time Homebuyer Tax Credit.\u00a0 I poked fun at the hypocritical nature of the Down Payment Assistance Programs and speculated that the Tax Credit might be collateral for a \"tax refund loan\", thereby, facilitating the\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":519,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/519\/the-seller-really-pays-for-the-buyers-agent-definitely-not-when-the-buyer-pays-out-of-pocket-but-what-if-the-buyer-really-did-pay-for-the-buyers-agent-from-the-buyers-side-of-the-hud-1\/","url_meta":{"origin":4310,"position":1},"title":"The seller really pays for the buyer’s agent? Definitely not when the buyer pays out of pocket. But what if the buyer really did pay for the buyer’s agent from the buyer’s side of the HUD-1?","author":"Greg Swann","date":"October 7, 2006","format":false,"excerpt":"There's a lot of discussion of Buyer Broker compensation going on around the RE.net, and I want to draw attention to it while I can. I have some further thoughts of my own, but I'm not sure I'll be able to get to them today. It's Saturday, after all. One\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1659,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1659\/divorcing-the-real-estate-commissions-is-simply-a-matter-of-hud-1-bookkeeping-effected-by-the-mortgage-lender\/","url_meta":{"origin":4310,"position":2},"title":"Divorcing the real estate commissions is simply a matter of HUD-1 bookkeeping effected by the mortgage lender","author":"Greg Swann","date":"July 15, 2007","format":false,"excerpt":"In a charmingly romantic post this morning, Jonathan Dalton gets bogged down in the all-too-common idea that divorcing the Realtors' commissions would impose some new financial burden upon buyers, resulting in their loss of representation. This is false. Although we operate by the fiction that the seller pays the real\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1669,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1669\/how-not-to-divorce-the-real-estate-commissions-la-buyer-figures-out-who-pays-the-commissions-but-seems-not-to-grasp-the-nature-of-the-listing-agreement\/","url_meta":{"origin":4310,"position":3},"title":"How not to divorce the real estate commissions: L.A. buyer figures out who pays the commissions but seems not to grasp the nature of the listing agreement","author":"Greg Swann","date":"July 17, 2007","format":false,"excerpt":"Via Freakonomics, the L.A. Land weblog at the Los Angeles Times has a shaggy-dog story about a buyer who came up with a brand new way to shoot herself in the foot: Pay all the commissions herself, regardless of the terms of the listing agreement and the HUD-1 procedures currently\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1283,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1283\/who-pays-the-buyers-agent-once-weve-divorced-the-commissions-we-can-stop-worrying-about-it\/","url_meta":{"origin":4310,"position":4},"title":"Who pays the buyer’s agent? Once we’ve divorced the commissions, we can stop worrying about it","author":"Greg Swann","date":"April 9, 2007","format":false,"excerpt":"Joke Number one: Q: If you came upon the Buddha in the guise of a hot dog vendor, what should you say? A: Make me one with everything. Joke number two: Q: Top Drawer Listing Agent, why do you charge a 7% commission to list a home for sale? A:\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":521,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/521\/the-fetal-flat-fee-contract-language\/","url_meta":{"origin":4310,"position":5},"title":"The fetal flat fee: Contract language . . .","author":"Greg Swann","date":"October 7, 2006","format":false,"excerpt":"The first transaction we do with the flat fee as a matter of policy will probably come together tomorrow or Monday, but, as I had mentioned, Cathy has been playing with the idea. She has a contract in play right now, so I had to write language for the Buyer-Broker\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4310"}],"version-history":[{"count":5,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4310\/revisions"}],"predecessor-version":[{"id":4318,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4310\/revisions\/4318"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}