Wednesday, September 17 2008
We have received this information from Don Lawrence, Home Loan Consultant with Countrywide Bank, FSB. We are always grateful to receive news on the real estate front so that we can serve our clients better. The seller-financed downpayment assistance plays an important part in our business and we hope that the reforms will be passed, as it is a vital tool especially in the lower priced homes. We will continue to update our readers on this issue as we get new information.
House Panel OKs Mortgage Lending Bill
On Sept. 16, the House Financial Services Committee approved the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008, which would allow down payments paid by builders and other sellers through nonprofit organizations to be used on FHA loans. A provision in the federal housing bill passed recently called for the elimination of seller-funded downpayment assistance, with critics insisting such loans are more vulnerable to default and supporters contending that the absence of such aid would stall the housing rebound. The full House is expected to vote on the bill soon.