The nation's primary trade group representing mortgage brokers is sponsoring a rally to reinstate seller-funded down payment assistance.
The National Association of Mortgage Brokers is co-sponsoring a Washington, D.C., rally to bring back DPA paid for by home sellers on government-insured loans.
H.R. 3221, The Housing and Economic Recovery Act of 2008 -- which was signed by President Bush in July -- eliminates DPA on loans insured by the Federal Housing Administration on Oct. 1.
FHA loans with seller-funded DPA wind up in foreclosure at three times the rate of loans made to borrowers who make their own downpayments, FHA Commissioner Brian Montgomery told the National Press Club in June.
In August, Rep. Al Green of Texas, Rep. Gary Miller and Rep. Maxine Waters, both of California, and Rep. Christopher Shays of Connecticut introduced H.R. 6694, which restores DPA.
The rally, to be held at noon on Wednesday at the Upper Senate Park, is being held in support of the bill.
Today's statement indicated that eliminating DPA will have a disproportionate negative effect on blacks.
Other sponsors of the rally include the National Association of Black Mortgage Brokers, the National Urban League and Nehemiah Corporation of America.
Legislation Aims to Bring DPA Back
Just as seller-funded downpayment assistance appeared to be on its way out the door, new legislation has been introduced to bring it back.
FHA Takes Big Hit on DPA Loans
The Federal Housing Administration reported that it has taken a massive loss on loans tied to seller-funded downpayment assistance and warned these loans could put the agency out of business.