sad, but true.. Harry doesn’t appear to have a clue

The changes in the mortgage industry have been coming at a break neck pace. Unfortunately, some of the people that vote on the bills don’t appear to have time to pay attention. When my friend Gary Miljour wrote to our Congressman Harry Mitchell asking about Down Payment Assistance loans, such as “Ameridream,” did he really say;
“Unfortunately, some companies that provide down payment assistance were helping lenders to make predatory loans in the height of the housing boom. The down payment assistance provided by some organizations allowed sub-prime lenders to persuade home buyers to assume more debt than they could otherwise afford. As a result, both the Internal Revenue Service and the Department of Housing and Urban Development issued rules to prevent this kind of coercion.” (emphasis mine)

I found this language on the Ameridream web site. “Those programs, operated by charitable organizations in accordance with current law and HUD guidelines, have helped more than one million FHA qualified, low and moderate income families and individuals buy their own homes since 2000.” The emphasis on “HUD guidelines” and “FHA qualified” is mine.
Who exactly runs HUD? Who determines FHA guidelines? Are these considered sub prime lenders? hhmmm.

click here to read Gary’s post and all of the comments..

Nick Bastian
Nick Bastian
Nick Bastian is a 26 year veteran of the real estate industry and enjoys his career very much. Nick is always available to "talk shop" with anyone that may have real estate related questions. "Just Call Nick" at 602-803-NICK (6425) - he's glad to help. Nick can also be found over on Instagram and Twitter ( @NickbastianAZ ) or out and about in the community making friends and having some fun.