Wednesday, October 03, 2007

FHA sued over charity gift program

Two big gift funds providers are suing the FHA according to Reuters. Here's the blurb:

"On Monday, HUD announced that it would ban some third-party funders from helping prospective borrowers meet a required downpayment test. Since HUD announced its plans, two of the largest such funders, AmeriDream Inc of Maryland and Nehemiah Corp of Sacramento, California have sued the federal agency saying the new rule is capricious."

The feedback I've heard from FHA lenders is that they think the program is great and they hope HUD will be forced to keep it available.

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