Comments on: New Effort To Bring Back Downpayment Assistance http://www.fhaloanpros.com/2008/08/new-effort-to-bring-back-downpayment-assistance/ The Unofficial Guide to FHA Loans & Mortgages Tue, 06 Jan 2009 19:11:02 +0000 http://wordpress.org/?v=2.6 By: Cindy Randall http://www.fhaloanpros.com/2008/08/new-effort-to-bring-back-downpayment-assistance/#comment-23546 Cindy Randall Wed, 27 Aug 2008 15:46:10 +0000 http://www.fhaloanpros.com/2008/08/new-effort-to-bring-back-downpayment-assistance/#comment-23546 With whom should be send out comments to, to support this issue? With whom should be send out comments to, to support this issue?

]]> By: Thomas Paine http://www.fhaloanpros.com/2008/08/new-effort-to-bring-back-downpayment-assistance/#comment-22854 Thomas Paine Sat, 16 Aug 2008 16:55:54 +0000 http://www.fhaloanpros.com/2008/08/new-effort-to-bring-back-downpayment-assistance/#comment-22854 quote: HUD’s “own inspector general cited as unreliable. In short, FHA undercounts the number of DPA loans by up to three times and divides that number into the number of claims it pays.” :endquote Isn't anyone checking the math here? This would result in UNDERSTATING the foreclosure rate of DPAs not overstating. Check HUD's Reading Room on its web site; look under the SnapShot data for originations. As you can see, DPA loans are identified with a nonprofit tax ID field of the so called charitable operation that provided the "gift." If this field is not being filled out by the lender, then the loan would be considered to have a regular borrower provided down payment. If such a misidentified loan were to be foreclosed, it would be counted as a foreclosure and claim of a loan involving a borrower provided down payment not a false gift based loan from Nehemiah et al.; thereby leaving Nehemiah's foreclosure count UNDERSTATED not overstated sheeesh! Why do I keep seeing this nonsensical statement being made AND REPEATED without challenge? Is anyone conscious out there? quote:

HUD’s “own inspector general cited as unreliable. In short, FHA undercounts the number of DPA loans by up to three times and divides that number into the number of claims it pays.”

:endquote

Isn’t anyone checking the math here? This would result in UNDERSTATING the foreclosure rate of DPAs not overstating. Check HUD’s Reading Room on its web site; look under the SnapShot data for originations.

As you can see, DPA loans are identified with a nonprofit tax ID field of the so called charitable operation that provided the “gift.” If this field is not being filled out by the lender, then the loan would be considered to have a regular borrower provided down payment.

If such a misidentified loan were to be foreclosed, it would be counted as a foreclosure and claim of a loan involving a borrower provided down payment not a false gift based loan from Nehemiah et al.; thereby leaving Nehemiah’s foreclosure count UNDERSTATED not overstated sheeesh!

Why do I keep seeing this nonsensical statement being made AND REPEATED without challenge? Is anyone conscious out there?

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