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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.
August 13, 2008
Clarification on October 1st DPA deadline from H.R. 3221
What happens on and after October 1st?
Nehemiah has confirmed with HUD/FHA that, contrary to information that has been circulating, the home
sale/closing date generally is irrelevant when determining whether downpayment assistance may be provided.
It is the credit/loan approval date that is relevant, as the law and HUD have made clear.
What is the precise definition of “credit approved” as described in the housing
bill (H.R.3221)?
If a loan is manually underwritten, the approval date is the day on which the underwriter signs the Mortgage
Credit Analysis Worksheet (MCAW) or the FHA Loan Underwriting and Loan Transmittal (LT).
When is the last day gift funds can be requested from Nehemiah?
As long as the mortgage lender receives the credit/loan approval in accordance with the law and HUD/FHA guidelines,
Nehemiah will provide gift funds regardless of the date.
August 1, 2008
Nehemiah Comments on New Bill (H.R. 6694) to Reform and Save DPA!
We are pleased to announce that a new bill, The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing
Authorization Act of 2008 (H.R. 6694) was introduced by several members of Congress on Thursday, July 31, 2008.
Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays sponsored this bill that if passed and
signed into law will allow downpayment assistance to continue indefinitely.
Scott Syphax, President and CEO of Nehemiah Corporation of America praised this group earlier today.
“Maxine Waters, Gary Miller, Al Green and Christopher Shays have demonstrated the willingness to
understand all sides of this issue and the courage and leadership to follow their conscience. All
those who understand the importance of working class American’s having their shot at homeownership,
need to work together to encourage our elected officials to pass this bill.”
“There are dire consequences to America waking up on October 1st without downpayment assistance. In fact,
300,000 working class families will be locked out of homeownership in the next year alone.”
Support New Bill (H.R. 6694) to Reform and Save DPA!
http://www.getdownpayment.com/outreach/mktg/6694.html
H.R. 6694 (PDF)
Legal review of H.R. 6694 by Patton Boggs LLP Attorneys at Law (PDF)
Legal review of H.R. 6694 by Weiner Brodsky Sidman Kider PC (PDF)
July 30, 2008
Housing Market and Consumers to Feel the Aftermath of Seller-Funded Downpayment Assistance Ban
- Nehemiah Pledges to Fight to Reinstate Programs -
The following statement was issued by Scott Syphax, president and CEO of The Nehemiah Corporation of America, the
largest and oldest seller-funded downpayment assistance provider, in response to President Bush signing the housing
bill into law this morning.
"As he signed the housing bill into law this morning, President Bush conceded with Congress that hard working
Americans who have not been able to save a downpayment are not worthy of homeownership. We hope that Congress and
President Bush wake up with a clear conscious tomorrow, knowing that millions of Americans will awake to a law that
leaves them with zero alternatives for attaining homeownership. Nehemiah has fought to keep seller-funded downpayment
assistance (SF-DPA) programs alive, recognizing that along with the rest of the industry, we have helped put more than
one million deserving American families in homes. Recent research by Zelman & Associates reports that 10-25% of
potential homebuyers will have no way of securing homeownership without SF-DPA, which will also undoubtedly have
far-reaching implications for the real estate industry at large. In the wake of the Housing Bill, we at Nehemiah
want to send a clear message: Nehemiah will continue to serve as a catalyst for economic empowerment and wealth
creation through homeownership. We will continue to fight for the rights of potential homeowners across this country.
We are willing to use every resource at our disposal to reinstate seller-funded downpayment assistance by taking the
fight back to the current Administration, or taking it to the next Administration if need be.."
July 28, 2008
Nehemiah Addresses President Bush: Save Seller-Funded Downpayment Assistance
- Eliminating Seller-Funded Downpayment Assistance Programs will Negatively Impact Generations to Come -
The following statement was issued by Scott Syphax, president and CEO of The Nehemiah Corporation of America,
in response to Congress passing the much debated Housing Bill to President Bush for approval, which would end
seller-funded downpayment assistance.
"It is a sad day for America when our elected officials pledge their allegiance not to the hardworking families
who drive this country, but to bailing out special interests and Wall Street firms who in fact created this housing
crisis. As evidenced by the actions of Congress on Saturday and the Housing Bill being passed to the President, it is
clear the thousands upon thousands of pleas made by families and non profit groups have fallen on the deaf ears of
Senators Shelby and Dodd, and those of our Administration. HUD has spent more than ten years fighting to shut us
down rather than work with us to determine how to improve a downpayment assistance program that has help more than
1,000,000 American families. Our leaders are ignoring a basic fact: seller-funded downpayment assistance is the only
remaining safety net available to millions of families today seeking home ownership. Killing these programs will not
only negatively impact generations of low-to-moderate income Americans who would have been able to use homeownership
as a tool to create wealth, stature and self esteem, but to our economy as a whole. President Bush, we strongly urge
you to send the Bill back to Congress and not to succumb to the pressure to sign a disastrous Housing Bill at the
expense of America's working families."
July 22, 2008
H.R. 3221 Housing & Economic Recovery Act of 2008 an Immediate Threat to Downpayment Assistance!
The Senate & House appear to have reached a compromise on H.R. 3221 Housing & Economic Recovery Act of 2008
that includes language eliminating downpayment assistance (DPA). If this bill passes and is signed into law
DPA will no longer be available. Although President Bush is threatening to veto the bill, many believe he
will sign it if it gets to his desk.
The consequences will be devastating! By FHA's own estimates, DPA comprises nearly 40% of FHA's volume. This means
more than 300,000 working class families will be locked out of homeownership in the next year alone. Communities
across America will take the brunt of the $50 billion in lost real estate sales, not to mention the indirect
impact on the real estate, mortgage and building sectors that will be forced to shed tens of thousands of jobs due to
this dangerous legislation.
Act now! As of this moment, the battle isn’t over yet. This bill can be defeated with your help.
- Please go our website: http://www.getdownpayment.com and click on the Urgent Action Needed button.
- You will see an easy to use letter writing tool where you can make your opinions known. Your letter will be sent to you elected officials in Washington, D.C.
- After submitting your letter, click on the “Elected Officials” link at the top where you can obtain the phone numbers for your two Senators and your Congressional Representative.
- Call them and explain the devastating economic impact losing DPA would have on your company and your local economy.
H.R. 3221 Housing and Economic Recovery Act of 2008
(Engrossed Amendment as Agreed to by Senate*)
(*This phrase accompanies the final copy of a bill that has been passed by one house and certified by the
Clerk of the House or the Secretary of the Senate. It includes the amendments to the text from floor action.)
Instructions To Find H.R. 3221:
- Go to Library of Congress - Thomas
- Enter HR 3221 in the Search box
- Select Bill Number from the drop-down menu and click Search.
- From the results list choose #4 - Housing and Economic Recovery Act of 2008
Letter from Scott Syphax regarding Housing Bill Threatening Downpayment Assistance
http://www.getdownpayment.com/outreach/mktg/11th_hour.html
July 11, 2008
Senate Housing Bill Banning Seller-Funded Downpayment Assistance Passes,
Nehemiah Corporation of America Responds
The following statement was issued today by Scott Syphax, President and CEO of Nehemiah
Corporation of America in response to the Senate’s passage of its Housing Bill that included
language that would ban private downpayment assistance programs.
"We are extremely disappointed and astonished by the full Senate’s decision to ban privately-funded
downpayment assistance programs through the passage of its Housing Bill. This decision turns a blind eye to the
overwhelming success of these programs and their role in helping hundreds of thousands of working families become
homeowners. Moreover, the Senate has trivialized the tremendous bipartisan support from members of the House,
community organizations, caucus groups and families nationwide who are dependent on such programs. Increasingly,
there are no other options for thousands of qualified low and moderate income homebuyers in this country today to
achieve what middle class and wealthy Americans see as their birthright. Despite what the Administration and members
of the Senate falsely profess, privately funded down payment assistance is not the reason that FHA is looking at a
budget imbalance in the coming years. As Congress works to finalize the Housing bill in the coming weeks, we
unequivocally urge members to weigh their decision closely with regard to seller-funded downpayment assistance
programs overall, and to consider the lasting impact of their actions on countless American families working to reach
homeownership.”
- Scott Syphax, President and CEO of Nehemiah Corporation of America, the
largest and oldest private down payment assistance provider.
June 10, 2008
Congressional Black Caucus Supports Downpayment Assistance Programs
The Congressional Black Caucus (CBC) submitted a letter to Senators Chris Dodd
and Richard Shelby, Chairman and Ranking Member of the Senate Banking, Housing
and Urban Affairs Committee, encouraging the Senate to work with the House to
preserve the downpayment assistance (DPA) programs to ensure that hundreds of
thousands families achieve homeownership, as realized by the FHA Modernization
Legislation (H.R. 1852) passed in the House.
Seller-funded DPA providers are the principal source of downpayment assistance
for low- and moderate-income families seeking FHA loans.
The CBC encourages the Senate to strike Section 113 of housing package proposal,
S.2636, the Foreclosure Prevention Act of 2008 to prevent the elimination of
DPA programs.
Letter in PDF
June 9, 2008
Nehemiah Corporation of America Responds to
Re-Submission of HUD Rule Banning Private Downpayment Assistance
The following statement was made in response to HUD’s resubmission of a
rule banning private downpayment assistance.
“It is astonishing that HUD has the temerity to resubmit its rule
banning private down payment assistance, given that two district courts
have thrown out the rule, downpayment assistance has received extremely
strong bipartisan support in Congress and has been championed by a number
of significant and influential consumer and policy groups including the
US Conference of Mayors, National Urban League and Congressional Hispanic
Caucus. It is clear that the priorities of Commissioner Montgomery do not
lie with low to middle income families to whom he is sworn to serve.
At this time, it is critical that the consumer groups, policy makers,
government and elected officials, real estate industry and those who serve
first time homebuyers in this country stand up and fight this rule that
will do serious damage to a particularly vulnerable group with little
political capital at this crucial time.
Programs like Nehemiah’s are putting people in homes, generating wealth
and strengthening communities. The government can not and should not be
in the business of restricting access to homeownership. Montgomery’s
proposed rule would shut down an enormously successful program and slam
the door on hundreds of thousands of families and their opportunity for
homeownership in this environment. Nehemiah and other supporters of
downpayment assistance have fought and will continue to fight on behalf
of those who are capable and deserving of becoming homeowners. We will
not watch Commissioner Montgomery or HUD sever the only lifeline available
to the low to moderate income families.”
- Scott Syphax, President and CEO of Nehemiah Corporation of America, the
largest and oldest private downpayment assistance provider.
May 9, 2008
Congressional Hispanic Caucus Supports Downpayment Assistance Programs
The Congressional Hispanic Caucus submitted a letter to the Chairman
Barney Frank and Ranking Member Spencer Bachus of the House Committee on
Financial Services, expressing concerns about language in the Senate-passed
Housing Foreclosure Prevention Action of 2008, S.2636, which would
negatively impact many Hispanic homebuyers. Section 113 of the bill
contains a provision that would eliminate downpayment assistance gifts
from non-profit seller-funded downpayment assistance providers (DPA) for
those borrowers who would otherwise qualify for an FHA-insured loan.
The letter stated that DPAs are a crucial alternative for minority
families, low-income and working families with limited access to capital.
The Congressional Hispanic Caucus encourages the Senate to provide better
regulation for DPA entities as done in the House-passed FHA Modernization
Legislation, H.R. 1852.
Letter in PDF
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.
