Mortgage Daily Logo
mortgage news from industry experts

DPA Fight Goes On

DPA Fight Goes OnHUD grants temporary extension on seller assisted downpayments

October 24, 2007


The U.S. Department of Housing and Urban Development has granted AmeriDream Inc. another four months to continue providing seller assisted downpayments on government-insured loans. The move provides more time for the two parties to battle in court.

AmeriDream announced today that HUD gave it until Feb. 29, 2008, to continue providing seller assisted down payments on FHA-insured mortgages. The nonprofit company had originally been instructed to cease the controversial program after this month.

The move follows a lawsuit filed earlier this month against HUD and the agency’s chief, Secretary Alphonso Jackson, in which Gaithersburg, Md.-based AmeriDream claimed, “The regulation adopted by HUD is arbitrary and capricious.”

HUD had issued a final rule the day before the lawsuit was filed that prohibited sellers and other interested parties from contributing to a borrower’s downpayment on FHA loans.

Another lawsuit was filed on the same day as AmeriDream’s by competitor Nehemiah Corporation of America — even though Nehemiah was the only company to be granted a six-month extension by HUD at the time. Nehemiah’s President and CEO Scott Syphax issued a statement calling HUD’s ruling “outrageous” and suggesting groups including the National Association of Home Builders, the Mortgage Bankers Association, the U.S. Council of Mayors and the National Association of Counties were opposed to HUD’s decision.

“This agreement will facilitate litigation on an orderly schedule and provide the court with ample time to consider the merits of this important dispute,” today’s announcement from AmeriDream said. “AmeriDream asserts HUD’s regulation violates the Administrative Procedures Act, violates the equal protection component of the due process clause of the Fifth Amendment, and that HUD improperly prejudiced the outcome of the rulemaking proceeding.”

AmeriDream withdrew its motion for Preliminary Injunction and motion for Temporary Restraining Order as a result of HUD’s voluntary extension, according to a copy of a Stipulation and Order provided by AmeriDream.

Downpayment Assistance news

next story

back to current headlines

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts