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Matt Browner Hamlin, a paid blogger for the Dodd Presidential campaign, has been attempting to white wash his boss's actions on downpayment assistance programs. I have been trying to shine some light on Dodd's refusal to join with Democrats in the House to prevent Bush's Secretary of HUD, Alphonso Jackson, from nixing downpayment assistance programs.
Hamlin is attempting the transparent strawman that opposition to Dodd and HUD equals opposition to the FHA reform bill. No, the problem is that within the bill, Dodd is pushing a provision in the Senate which allows HUD to eliminate downpayment assistance programs. The House version, supported by Rep. Maxine Waters, Rep. Gary Miller, and Rep. Barney Frank denies HUD from implementing their painful ruling. We all support reform to help allay problems relating to the housing crises, but we shouldn't be exacerbating conditions for minorities by abandoning the programs that work.
The program has overwhelmingly served poor African American and Latino families. Over 600,000 people have become first time homeowners from the program in the last decade. The accusation is that in some areas the program has been used to inflate housing prices and lead to foreclosures. However, according to an independent report by Experian, the largest and most credible downpayment assistance programs actually have lower default rates than the FHA portfolio.
Here is a Reuters article on the momentum building to stop Dodd from quietly pushing a provision within the FHA reform bill to allow HUD to destroy downpayment asssistance programs. Once the public really gets an understanding of what he is doing, pushing more people into predatory loans and keeping FHA insured loans far out of reach for those who need them most, I doubt many people fill believe much Dodd has got to say on many other issues...
Community activists on Thursday called on Senate Democrats to help stop the U.S. government from banning certain mortgage down payment assistance programs designed to put low income and minority families into home ownership.
The ban, set out by the Department of Housing and Urban Development, has drawn tough criticism and legal action from the groups that provide this mortgage assistance to low-income home buyers. Lawmakers in the House, opposed to this ban, have introduced measures to keep this homeowner assistance in place but there has been no specific action so far in the Senate.
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