NAMP Responds to Extension by HUD: Ameridream and Nehemiah Continue to Provide Assistant to Homebuyers.

Summary: With recent changes in HUD’s rules for DPA programs, the National Association of Mortgage Processors (NAMP) outlines the remaining number of possibilities for low- to moderate-income homebuyers to receive assistance in obtaining an FHA loan. Previously, HUD ruled to abolish the loophole, which allowed for charitable gifts to be provided to homebuyers who needed assistance meeting down payment on a home. DPAs such as AmeriDream and Nehemiah have spoken out against the issue, and have gained extension on the date HUD’s rule will go into effect. NAMP urges mortgage professionals to take advantage of opportunities to learn about what they can do to maximize the current FHA mortgage market.

Washington, D.C. (PRWEB) October 25, 2007 – Recent shifts made by HUD are notable, as they leave time for low- to moderate-income homebuyers to obtain a cash gift to assist in the home buying process. In light of these recent changes, The National Association of Mortgage Processors (NAMP) note that mortgage professionals may want to learn more about how to utilize the remaining approved alternatives to DPAs. Through their partnership with FHA Online University, NAMP highlights a course that is of specific use to professionals navigating the current mortgage market: FHA Processing – “ For Processors”. Says Bonnie Wilt-Hild, lead instructor for FHA Online University, “Although HUD has granted the extension to Ameridream and Nehimah, I do think it would be wise for mortgage professionals to continue looking for alternative sources for other acceptable DPA’s so as to be prepared should HUD decide not to extend program initiative beyond February, 2008”.

The recent development within HUD’s new rule, which grants an extension to AmeriDream and Nehemiah Corporation of America concerning the right to provide charitable down payment assistance, is a newsworthy development. Earlier this month, HUD issued a new rule to block the loophole which allowed for down payment assistance programs to provide charitable gifts toward homebuyer’s down payment requirements. Among these DPAs are AmeriDream and Nehemiah, organizations that have been functioning in this capacity since the mid-1990s. Originally, the impact of completely closing the loophole would mainly impact low-to-moderate income homebuyers, most of whom were first time buyers, who would have relied on such a charitable organization to meet the requirements for an FHA loan and down payment on a home.

Recent developments in this initiative have taken a turn, as AmeriDream and Nehemiah specifically spoke out against HUDs ruling with positive results. HUD has agreed voluntarily to push back the date for the new rule for AmeriDream and Nehemiah. AmeriDream has been given an extension on the effect of HUDs new rule until February 29, 2008, and Nehemiah an extension until April 1, 2008. In addition, HUD will recognize all applications with a sales contract that was signed previously to the effective date of October 31, 2007. Says Stacey Sprain, a Certified Ambassador Loan Processor (CALP) for NAMP, “I think it's great that AmeriDream has been granted extension by HUD. It's only fair that they be granted similar opportunity as Nehemiah because of their size and for all they have done through the years to assist homebuyers with home purchases. I have always used AmeriDream myself and I am a homeowner myself because of them.”

With the extension applying only to these two DPAs, all other programs must still adhere to the original October 31, 2007 rule date. In terms of other options for homebuyers who would have taken advantage of DPAs, it is important to remember that FHA still allows several grant programs, including programs administered directly by HUD. In 2008, ADDI will inject a proposed $1.97 billion for down payment assistance for American home purchasers. This incentive, combined with other available programs, will be more than enough to provide the necessary help to first time homebuyers who lack funds sufficient enough to purchase a home.

The partnership between NAMP and FHA Online University has been made in order to help mortgage professionals understand such aspects of the FHA mortgage market. As initiatives within the market continue to shift and change, a wide knowledge base of available programs and resources is proving to be a more valuable tool than ever. Mortgage professionals are encouraged to consider the wealth of opportunities, which remain available so that low- to moderate-income borrowers may continue to be served. In light of recent developments between HUD and DPA programs, it is important to take into account all options for homebuyers.

About NAMP. Based in the heart of Washington D.C., the National Association of Mortgage Processors (NAMP) is known throughout the mortgage processing industry as the voice of today's mortgage processor. NAMP is dedicated to assisting contract loan processors as well as in-house mortgage loan processors, in all aspects of their business. For more information, visit NAMP online at: http://www.mortgageprocessor.org.

About FHA Online University. FHA Online University offers live, instructor-led online FHA training classes to students nationwide. For more information, visit http://www.fhatraining.org/.