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Disclaimer: The summaries below are developed by the Nehemiah Corporation of America to provide our view of the events surrounding the most significant potential legislation and rules facing downpayment assistance. Our summaries provide a brief explanation of each event accompanied by a link to the full documentation.
March 11, 2008
United States Hispanic Chamber of Commerce
Supports Downpayment Assistance Programs
The United States Hispanic Chamber of Commerce (USHCC) submitted a letter
to Senators Chris Dodd and Richard Shelby, Chairman and Ranking Member of
the Senate Banking, Housing and Urban Affairs Committee, urging the
preservation of the language related to private downpayment assistance
programs (DAPs) contained in HR 2875.
The letter stated that DAPs are a crucial alternative for low-income,
working and minority families who otherwise have very limited access to
capital.
Letter in PDF
March 3, 2008
Nehemiah WINS Lawsuit against HUD
Judge Lawrence K. Karlton of the United States District Court for the
Eastern District of California upheld Nehemiah’s motion for summary judgment.
The Court Clerk's Office is directed to enter judgment and close the case.
The U.S. Department of Housing and Urban Development’s (HUD) rule to ban private
downpayment assistance as proposed in the “Standards for Mortgagor’s Investment in Mortgaged
Property” regulation published October 1, 2007, is permanently set aside.
Since May 2007, Nehemiah has led the fight against this controversial rule. We
took action by educating influential people and organizations regarding the truth
about downpayment assistance. We asked for our homebuyers and industry partners
to help us by voicing their support and the response has been overwhelming. Nehemiah
thanks each of you for support.
Press Release
Letter from Scott Syphax regarding Nehemiah's Court Victory
U.S. District Court for the Eastern District of California Judgment (pdf)
Reps. Miller and Green Respond to Court Decisions Striking Down HUD Downpayment Assistance Rule (pdf)
February 29, 2008
It’s business as usual at Nehemiah, the HUD
rule injunction remains in effect.
On October 31, 2007, Judge Friedman of the United States District Court
for the District of Columbia issued an injunction prohibiting HUD from
implementing the downpayment assistance rule.
Initially the judge said that he expected to issue a ruling on or before
February 29, 2008. However, on February 28, 2008, Judge Friedman confirmed
in an oral statement that the injunction will remain in effect with respect
to any downpayment assistance provider until such time as a decision is
made to the contrary by the court, even if it comes after February 29.
January 17, 2008
Court Case Update on HUD Rule
On October 31, 2007, Judge Friedman of the United States District Court
for the District of Columbia issued a ruling prohibiting HUD from
implementing the downpayment assistance rule.
Earlier this month, Judge Friedman heard final arguments in another
downpayment assistance company’s
suit against HUD. The judge has taken the case under advisement and will have
a decision by February 29, 2008.
In the meantime, Nehemiah’s complaint against HUD is proceeding through
the Ninth District Federal Court.
December 6, 2007
Nehemiah Corporation of America Responds to
President's Foreclosure Relief Plan
The following statement was issued by Scott Syphax, President and CEO of
Nehemiah Corporation of America in response to President Bush's foreclosure
relief plan.
"We applaud President Bush's foreclosure relief plan as a modest step in the
right direction underscoring the importance of stronger underwriting standards,
mortgage education and the need for greater controls in order to protect
homebuyers. As the largest provider of private downpayment assistance in the
homeownership industry, we have long been active proponents of these measures,
but not at the expense of homeownership for low to moderate income families.
Specifically, while HUD Secretary Jackson advocates the President's proposal,
HUD's own moves to ban private downpayment assistance and to implement risk
based premiums work against low to moderate income and minority families,
including women headed households, attempting to reach the American Dream.
Congressional opposition to HUD's ill-advised regulatory proposals is a direct
reflection of how counterproductive they would be to the goal of promoting
homeownership. As Congress looks toward finalizing the FHA Modernization Act
in the coming weeks, we urge members to weigh their decision closely with
regard to the lasting impact of their actions on countless American families,
and to adopt the language put forth in the House Bill passed a few months ago
supporting private downpayment assistance programs."
- Scott Syphax, President and CEO of Nehemiah Corporation of America, the
largest and oldest private downpayment assistance provider.
October 31, 2007
Nehemiah Corporation of America Comments on
Preliminary Injunction Barring HUD from Banning Private Downpayment
Assistance
The following statement is in response to the United States District Court for
the District of Columbia issuance of a preliminary injunction barring the U.S.
Department of Housing and Urban Development (HUD) from enforcing the "Standards
for Mortgagor's Investment in Mortgaged Property" regulation published
October 1, 2007.
"This is fantastic news for the hundreds of thousands of low-to-moderate income
families struggling to realize the dream of homeownership. We believe that the
findings of the Court underscore the weakness of HUD's actions in developing
and implementing its rule in the first place, particularly while Congress is
still actively working on the subject, as well as HUD's failure to consider
reasonable proposed alternatives. We applaud the Court for recognizing the
importance of comments put forth in the 15,000 letters submitted by families
across the country, as well as by industry groups such as the National
Association of Home Builders, the Mortgage Bankers Association, the US Council
of Mayors, and National Association of Counties, and for recognizing the
important role downpayment assistance providers like Nehemiah play in ensuring
the future of homeownership for families working to reach the American dream.
Going forward, we welcome the opportunity to work constructively with HUD
toward the mutual goal of serving America's underserved families."
- Scott Syphax, President and CEO of Nehemiah Corporation of America, the
largest and oldest private downpayment assistance provider.
To date, privately-funded downpayment assistance programs have helped over
600,000 families become homeowners, and have been credited not only for helping
people buy homes, but also stabilizing neighborhoods and cities and creating
stronger families.
HUD Notice of DPA Rule Injunction
U.S. District Court Order Regarding HUD Rule
October 1, 2007
Nehemiah Corporation of America Responds To
HUD'S Rule Banning Private Downpayment Assistance Programs
The following statement was issued today by Scott
Syphax, President and CEO of Nehemiah Corporation of America in response
to HUD's unilateral decision, despite widespread Congressional and
popular support, to promulgate its rule to ban privately-funded downpayment
assistance programs effective October 31, 2007. Nehemiah is the oldest
and largest privately-funded down payment assistance provider, and to
date has provided gifts to almost one-quarter of a million families,
enabling each of them to become a homeowner.
"HUD's action to move forward with banning privately-funded downpayment
assistance programs is outrageous and we have responded by filing a
lawsuit in Federal Court yesterday to challenge the merits of HUD's
damaging rule and to seek an injunction blocking implementation of this
rule. It is inconceivable that HUD has taken this action in complete
disregard for the House's passage of legislation that would block it,
driven by strong bipartisan support from House Financial Services
Sub-Committee on Housing Opportunity Chair Congresswoman Maxine Waters
(D-California) and fellow committee member Congressman Gary Miller
(R-California). To date, privately-funded downpayment assistance
programs have helped over 600,000 families become homeowners, and have
been credited not only for helping people buy homes, but also stabilizing
neighborhoods and cities and creating stronger families. As evidenced by
the over 15,000 letters sent in opposition to HUD by families across the
country, programs like The Nehemiah Program continue to be a lifeline for
families working to reach the dream of homeownership. Further, broad
opposition to this proposal by groups including the National Association
of Home Builders, the Mortgage Bankers Association, the US Council of
Mayors, and National Association of Counties speak to the validity and
importance of seller-funded downpayment assistance programs. We remain
hopeful that the legislative process reaches a successful conclusion."
Pursuant to an April 1998 settlement agreement resolving litigation
between Nehemiah and HUD, the rule will go into effect six months after
the date of its publication for the Nehemiah downpayment assistance program.
During the six-month exemption period, Nehemiah will continue to provide
families in need with important downpayment assistance and lead the fight
against HUD's rule.
September 18, 2007
Statement from Nehemiah President and CEO on Expanding American Home Ownership Act of 2007
The following statement was issued by Scott Syphax,
President and CEO of Nehemiah Corporation of America, in response to the
passage of the Expanding American Home Ownership Act of 2007, which
included an amendment by Congressman Miller supporting private downpayment
assistance programs. The amendment opposes a controversial proposal by
the U.S. Department of Housing and Urban Development (HUD) to ban
seller-funded downpayment assistance programs.
In July, Congresswoman Waters and Congressmen Miller sponsored an
amendment blocking the HUD proposal which was included in an Appropriations
bill passed by the House.
“The passage of today’s amendment is yet another validation of the
widespread national support for private downpayment assistance programs.
The bipartisan support displayed by the House of Representatives through
Congressman Miller and Congresswoman Waters, the broad opposition to
banning these programs by groups including the US Council of Mayors and
the National Association of Counties, as well as the continued
outpouring of more than 15,000 letters by families across the country
continues to underscore the important role these programs play for low
to moderate income American families. As grant recipients, community
organizations and the industry continue to rally behind us in opposition
to this damaging proposal, we urge HUD to reconsider its move to ban
private downpayment assistance programs, which would in turn, end the
dream of homeownership for countless American families in need.”
August 7, 2007
Mortgage Bankers Association (MBA) Comments in Response to Proposed HUD Rule
On August 7, 2007, the Mortgage Bankers Association (MBA) issued comments in Response to Standards for Mortgagor’s Investment in Mortgaged Property: Proposed Rule, 72 Federal Register 24 CFR PART 203 (May 11, 2007), Docket No. FR-5087-P-01. MBA expressed strong support for seller funded downpayment assistance and offered recommendations to enhance the quality of loans with downpayment assistance for borrowers and FHA.
July 30, 2007
National
Association of Counties Opposes HUD Rule
Passes Resolution Supporting Down
Payment Assistance Programs
The resolution was adopted during NACo's 72nd Annual Conference and Exposition in Richmond, Va. Scott Syphax, President and CEO of Nehemiah Corporation of America, stated “Programs like Nehemiah’s are putting people in houses, creating wealth and strengthening communities. We welcome the support of NACo in our effort to repeal this terrible HUD rule which essentially slams the door on the one program that has been a proven lifeline to countless families seeking the American dream.”
July 24, 2007
H.R. 3074 – Amendment 16
An amendment to the HUD Appropriations bill (H.R. 3074 – Amendment 16), introduced by Representative Gary Miller (CA), passed in a July 24, 2007 voice vote on the floor of the U.S. House that says "None of the funds made available by this Act shall be used to take any action to issue a final rule or notice based on, or otherwise implement, all or any part of the proposed rule of the Department of Housing and Urban Development published on Friday, May 11, 2007, on page 27048 of volume 72 of the Federal Register (Docket No. FR-5087-P-01), relating to standards for mortgagor's investment in mortgaged property."
“With the passage of this amendment and the overwhelming support of the House of Representatives, the dream of homeownership for millions of Americans in need of down payment assistance is alive and well,” said Scott Syphax, president and CEO of Nehemiah. “This is the first step toward rescuing down payment assistance. With further cooperation from the senate and the President, we will be able to continue our work for years to come.”
June 27, 2007
U.S Conference of Mayors Pass Resolution Supporting Down Payment Assistance Programs
The U.S. Conference of Mayors (USCM) passed a resolution in support of privately-funded down payment assistance programs, in addition, the USCM calls on Congress to fight a controversial plan by the U.S. Department of Housing and Urban Development (HUD) to ban the programs. Scott Syphax, President and CEO of Nehemiah Corporation of America, stated “Down payment assistance has been a much needed and much sought after tool for hundreds of thousands of first time homeowners in the country for much of the last decade. We welcome the support of the USCM in our effort to repeal what we believe is a terrible HUD rule that will hurt the very people that HUD and FHA were organized to assist.”
June 22, 2007
Summary of Subcommittee Hearing on DPA Rule
Testimony by a HUD representative confirmed that the proposed rule stems from HUD's concern that privately-funded downpayment assistance inflates home appraisals, causing higher default rates which will impact the FHA Insurance Fund.
Maxine Waters (CA), Chairwoman of the Subcommittee on Housing and Community Opportunity, suggested that HUD extend the July 10 comment period deadline on the proposed rule for another 30 days. Representative Waters also recommended adding language to a FHA reform bill (H.R. 1852) that would override HUD's proposed DPA rule. Ms. Waters, along with several other committee members were concerned that HUD was trying to exchange downpayment assistance for the "zero down" loan product included in H.R. 1852.
Full
Story...
Hearing Transcript
Testimony by Scott Syphax, President and Chief Executive Officer, Nehemiah Corporation of America
June 20, 2007
National Urban League Supports Downpayment Assistance Programs
The National Urban League, the nation’s oldest and largest African-American economic development organization, submitted a letter to the U.S. Department of Housing and Urban Development (HUD) in support of privately-funded downpayment assistance programs. The letter stated that HUD’s proposed rule to end DAPs would deny thousands of potential homeowners the bridge they need to qualify for an FHA-insured mortgage.
May 17, 2007
Letter from Nehemiah President and CEO on DPA Rule
Nehemiah is deeply disappointed that the Department of Housing and Urban Development (HUD) proposed rule 24 CFR Part 203 on May 11, 2007.
HUD is attempting to take action that would adversely impact the hundreds of thousands of Americans that are benefiting from downpayment assistance programs. Not only does this ruling unfairly penalize low- and moderate-income (LMI) families, it will do further harm to the housing industry during a critical time.
The first step in the HUD ruling process is a 60-day Public Comment Period that ends July 10, 2007. The Nehemiah Program continues to operate normally and in full compliance with all applicable laws.
