Anti-DAP Bandwagon Gains Speed
Bank Lawyer’s Blog:
Support for the FHA’s efforts to ban seller-funded downpayment assistance (DAP) in connection with FHA-insured loans is gaining steam. The front page of today’s The Wall Street Journal had a lengthy article on the subject that showed how certain homebuilders are using DAP to make “100% financing” pitches designed to move unsold inventory.
“I just smell a massive taxpayer burden coming,” says Sen. Christopher
Bond (R., Mo.), who calls the programs “too good to be true.”
No kidding, Chris! Of course, the halls of Congress always smell like something crawled into the ventilation system and died. Upon investigation, it’s usually discovered to be the dreams of the American taxpayer, so there’s no telling what you’re actually smelling.
We’ve made ourselves clear ad nauseum about our dislike of DAP. Inasmuch as misery loves company, we’re happy to report that we’re not alone.
“The inescapable fact is that seller-funded down-payment assistance is
particularly…