An Update from Ameridream as a Viable Down Payment Assistance Program

I do not usually like to do like to continue a discussion from another post, but I have been getting so many calls myself about if Ameridream will be in existence at the end of the month, that I thought I would share what I have gathered from Ameridream themselves.

First of all, there has been some great posts that have already covered this topic, and I would not feel right talking further without referencing these other posts.

Jeff Belonger has a great post about this recent challenge: HUD / Down Payment Assistance programs -- DPA & Nehemiah -- Alive for a while....

Tom Burress, also wrote a great post about this recent challenge: HUD Ends Most Down Payment Assistance Programs!!

Here is what I got my Ameridream Representative has shared. To paraphrase, Ameridream as most Down Payment Assistance Programs are fighting HUD on this ruling. They have all filed injunctions in court against HUD. Also the provisions that allow the Nehemiah program to continue until March 31, 2008 should also apply to all other DPA's that are licensed as a true non-profit entity.

See attached information below from Ameridream,

We want you to know we appreciate your efforts to help deserving individuals and families achieve the dream of homeownership and we appreciate your confidence in choosing AmeriDream as your DPA partner.

By now you may have heard that HUD issued its final Rule on Monday, October 1st , a Rule that attempts to eliminate legitimate down payment assistance providers like AmeriDream. The Rule states that it will be effective 30 days from issuance.

It is important for you to know that AmeriDream is still "doing business as usual."

AmeriDream has filed a suit in the U.S. District Court for the District of Columbia to block the rule. In pleadings filed with the court, AmeriDream stated that the HUD regulation is contrary to the clear intent of Congress, contrary to HUD's own historic practices and interpretations, and governing judicial precedents. In addition, the Rule is not reasonably supported by HUD's explanations and justifications, and fails to offer a rational basis for rejecting alternative approaches.

Not only has HUD disregarded the leadership of Members of Congress who support down payment assistance, but also ignored the voices of over 15,000 individuals and families as well as highly respected organizations such as the U.S. Conferences of Mayors, the National Associations of Counties, the Mortgage Bankers Association, and the National Urban League.

AmeriDream's mission has always focused on successfully protecting and advancing homeownership opportunities for the homebuyers we serve. That being said, AmeriDream has challenged this action taken by HUD as it denies the dream of homeownership to many minorities, lower income families, single parent households, and first-time homebuyers as well as your ability to serve them.

You should also know that AmeriDream is committed to informing you about any changes that affect our ability to provide down payment assistance.

You can help us show support for DPA by continuing to promote it as an effective way to increase homeownership throughout the United States. Please contact your leaders in Congress and voice your support of down payment assistance. Again, thank you for choosing AmeriDream as your gold standard DPA partner. I look forward to working with you again this month.

I want to again share with everyone that if DPA's go away that this could have negative effects for more first time homebuyers. Please share this post with as many as possible and support DPA programs.