Thursday, March 06, 2008

Bloomberg reporting the FHA gift program survives...for now

Here's a blurb:

A second federal court Wednesday told the Bush administration it has to continue a down payment assistance program for more than 100,000 low- and middle-income homebuyers.

The Department of Housing and Urban Development violated federal law in adopting a rule last October that banned the program, the U.S. District Court for the District of Columbia said Wednesday.

The program lets nonprofit groups such as AmeriDream Inc. and Nehemiah Corp. of America fund down payments on Federal Housing Administration loans, and be reimbursed by the home sellers. On Monday, the U.S. District Court in Sacramento, Calif., also struck down the rule. Both courts sent it back to HUD to be reassessed.

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