HUD Resumes Fight To Delete DAP
Bank Lawyer’s Blog:
After carefully considering an adverse ruling by a federal district court judge over its failure to follow the procedures mandated by the Administrative Procedures Act, HUD has decided to thank the judge for outlining the course of action it now plans to follow in eliminating seller-funded downpayment assistance (DAP).
Last year, a federal judge in the District of
Columbia, issued a preliminary injunction against an earlier ban on
seller-assisted down-payment gifts proposed by the Department of
Housing and Urban Development. The judge ruled that HUD “failed to
provide a rational basis in support” of the ban.
HUD spokesman Brian Sullivan said in an interview that
the agency, “lost on a technicality. The court gave us a good road map
for how to get it done.”
Many observers believed that HUD shouldn’t have required two federal district court judges (another in California also issued a similar ruling) to tell it…