On April 18 HUD stunned the Affordable Homeownership Market with their announcement issuing new rules for down payment assistance on mortgages issued by the Federal Housing Administration (FHA Loans). This left borrowers and lenders alike scrambling to understand the ramifications. Just yesterday, The Chenoa Fund and corporate backers filed an injunction to immediately halt the new rules and we now have a stay of 90 days.
The mission of Affordable Housing is to provide safe and decent housing opportunities. This mission is supported by many great works of agencies in the US, many who we directly support through our products and services. Each look out for their contingency and create programs that will meet the VERY specific needs of their borrowers.
It is a well-known fact that affordable housing homeownership programs need down payment assistance, a favorable interest rates, and the homebuyer/homeownership education and services to meet the need of the first-time homebuyers. This trifecta plus the commitment of the lending population to carry that mission with them are key to a successful program and more importantly making the ‘American Dream’ a reality for many Americans.
For some years, however, the market has seen much scrutiny over DPAs and who is funding them and how they are funded. It is important that a borrower receive the proper disclosure of funding availability and that honorable lending practices continue to support the buyers.
As members of the HFAs program team, eHousingPlus reinforces the mission of each agency to ensure accurate communication and information is available to the lenders before, during and after the initial borrower engagement. Our work with the lenders is paramount. Our Lender Leadership Committee provides us with insight to continuously develop synergies with their workflow translating affordable requirements into easy to follow steps that mirror commercial lending practices. We work together with the agency to promote the programs, train lenders and partners and answer questions on the RULES of each program to ensure COMPLIANCE requirements are met.
Click here to be directed to the HUD Single Family News source documents.
To learn more about eHousingPlus and the HDS Companies, visit our websites at hdscompanies.com or call us at 888-326-7680.