Reaction was swift to the HUD ruling yesterday to bar nonprofit’s from helping homeowners with down payment assistance on the FHA program. AmeriDream and Nehemiah Corp. of America have filed a suit. Below is a section about Nehemiah’s complaint reported at the Sacramento Bee: Nehemiah, which says its down-payment program has helped some 230,000 low-income and minority homebuyers, sued the [...]
Posts under ‘Fraud’
Killing the FHA Program
For a few years now the IRS has had issue with down payment assistance programs which borrowers use to meet the 3% required down payment on a FHA loan. Basically, the IRS doesn’t think these assistance programs are non-profits. Since FHA only allows non-profits to contribute towards this 3% the whole thing falls apart if the [...]
The Feds Finally Turn on the Radio
They may be listening to your phone calls, reading your e-mails and peeking into your shoes at the airport, but the Feds apparently never listened to the radio. Well, they just tuned in and heard something they didn’t like. Yesterday the FTC issued a warning to lenders claiming those ridiculously low interest rate programs. You know the one [...]
