DPAgroundswell

Hip Hop Mogul Russell Simmons Defends DPA

People around the country are concerned that downpayment assistance is being eliminated on October 1st.

In 2007, USA Today named Russell Simmons one of the “Top 25 Most Influential People of the Past 20 Years,” calling him a “hip-hop pioneer” for his groundbreaking vision that has influenced music, fashion, finance, television and film, as well as the face of modern philanthropy.

Russell Simmons believes in helping people achieve the American dream. He believes in downpayment assistance.

Watch him speak on this issue.

50 Days/50 Ways to Save DPA: Day 38

Tell Your DPA Story
Share your passion with the rest of the Groundswell community. Whether you're a gift recipient, housing professional, or have been touched in another way, tell us your story. Share why you care at the DPA Groundswell Blog—make it personal, make it real.

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50 Days/50 Ways to Save DPA: Day 36

Catch Up on DPA News

Today you should take a few minutes to read up on the blog (http://savedpanow.typepad.com/dpagroundswell) and check out the news page on this site. A lot of attention has been drawn by the great work accomplished by you and other members of the movement. Check out how the media has responded to your work and the campaign to save DPA. Challenge the media when it presents unbalanced coverage through a letter to the editor or a public comment on a blog.

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Bill to Save Downpayment Assistance Passes House Financial Services Committee

H.R. 6694 Will Move to the Floor for a Full Vote

Financial Services Committee Markup - HR 6694

The discussion of HR 6694 starts at 9:20 minutes into the video.

WASHINGTON D.C. – September 16 – A Bill that would save seller-funded downpayment assistance from being eliminated on October 1 passed the House Financial Services Committee today on a voice vote amidst strong bipartisan support. The Bill, The FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008, or H.R. 6694, is expected to move to the floor for a full vote in the coming days.

“We continue to believe that reinstating downpayment assistance (DPA) will ensure that working-class families that have nowhere else to turn for help will still be able to own a home,” said Scott Syphax, president and CEO of the Nehemiah Corporation of America, the largest and oldest provider of downpayment assistance.

“The strong bipartisan support demonstrated during today’s hearing speaks to the growing sentiment that the original Housing Bill was wrong to ban DPA. As H.R. 6694 continues to move through the House and onto the Senate, we urge members of Congress, like so many others, to vote to ‘amend – not end’ these important programs and correct the mistake made through the initial ban.”

The October 1 ban was written into law by President Bush when he signed H.R. 3221 Housing and Economic Recovery Act of 2008 on July 30, 2008. H.R. 6694 was introduced in the House of Representatives by Congressmen Green, Miller and Shays and Congresswoman Waters on July 31, 2008. If enacted into law, it will allow downpayment assistance to continue indefinitely.

Contact:

Emily Porro

(212) 446-1874

eporro@sloanepr.com

Sloane & Company

Rep. Al Green (D-TX) Says "Mend DPA, Don't End DPA"

Organizations Join Together to Mobilize for Rally to Save Downpayment Assistance

Congressman Al Green and Others Call on Congress to Pass H.R. 6694

Study Finds Ban on Seller-Funded Downpayment Assistance Disproportionately Hurts African American Families

Click Here to Watch the Videos

Minority Advocates Respond -WASHINGTON D.C. – September 11– During a rally in Washington D.C. yesterday, Congressman Al Green, along with members from the National Association of Black Mortgage Brokers, National Urban League, National Association of Mortgage Brokers and Nehemiah Corporation of America, called on Congress to pass H.R. 6694, which would save seller-funded downpayment assistance from being eliminated October 1.

Seller-funded downpayment assistance programs have played an integral role in the housing industry and the lives of more than one million families, particularly minorities and female-headed households.

“Homes are finally becoming affordable again, making it an ideal time for working class families to move from renting to owning their homes,” Congressman Green said. “Seller-funded downpayment assistance has helped more than one million Americans who are able to afford a monthly payment but do not have the downpayment needed to become homeowners. Seller-funded downpayment assistance helps hardworking Americans achieve the dream of homeownership with no cost to taxpayers. However, with the elimination of downpayment assistance, these families have lost a crucial path toward achieving the American dream.”

The October 1 ban was written into law by President Bush when he signed H.R. 3221 Housing and Economic Recovery Act of 2008 on July 30, 2008. H.R. 6694 was introduced in the House of Representatives by Congressmen Green, Miller and Shays and Congresswoman Waters on July 31, 2008. If enacted into law, it will allow downpayment assistance to continue indefinitely.

“I strongly believe that we can mend the seller-funded downpayment assistance program rather than end the program, which is why I introduced a bill to save downpayment assistance, H.R. 6694. I ask that my fellow Members of Congress support these programs and pass this legislation, restoring hope for millions of Americans,” added Green, a member of the Congressional Black Caucus.

“By eliminating downpayment assistance programs this Administration has single-handedly managed to shut down the only effective, market-based program that is designed to assist African Americans in enjoying the benefits of homeownership. Led by the efforts of others, however, there is an opportunity to reinstate these programs by passing H.R. 6694, “said Jeff Johnson, Chief Correspondent for BET.

“Seller-funded downpayment assistance has given African Americans and other minorities the ability to build equity, financial stability and a stronger future for their children through homeownership. There are still three weeks until the ban takes place on October 1 and each day should be dedicated to raising awareness and getting this bill passed to restore seller-funded downpayment assistance.”

Recent analysis by Matrix Global Advisors, an independent research and consulting firm in Washington, D.C., shows minorities, particularly African Americans, will be disproportionately affected by the elimination of downpayment assistance (DPA).

"According to the analysis provided to us from the DPA firms, Congress has taken the extraordinary step of eliminating a widely used and effective tool for moderate and low income Americans to take part in the American Dream,” said Joy Jamison, National Association of Black Mortgage Brokers President.

“Studies clearly show that home ownership is the cornerstone for strong communities and many of our citizens will be permanently locked out of home ownership if a mechanism for seller-funded assistance is eliminated. We urge Congress to re-evaluate and restore this critical tool that is being utilized to assist our citizens to fully participate in the American Dream."

The research, which analyzes public data provided by the Department of Housing and Urban Development on FHA-insured loans, finds that more than 40 percent of all African Americans who receive FHA loans rely upon seller-funded downpayment assistance. Further, 27 percent of Hispanics that secure these loans use DPA. The data also reveals that African Americans, when compared to other demographic groups, do not receive similar levels of down payments assistance through government, employers or family members.

“With the goal of helping underserved Americans become homeowners, downpayment assistance providers have aided more than 1 million families. Roughly 40 percent of the 300,000 families Nehemiah has directly served have been minorities,” said Scott Syphax, president and CEO of the Nehemiah Corporation of America, the largest and oldest provider of downpayment assistance.

“We believe in working families and recognize that many of them do not have wealthy relatives to provide them with a downpayment. Nehemiah’s faith in these families has been reaffirmed by the fact that 90 percent of our homeowners have not faced foreclosure. This study clearly illustrates the impact that DPA has on homeownership opportunities for minorities. The Administration has an opportunity to right this wrong by supporting H.R. 6694 and reinstating DPA indefinitely.”

Joining the fight to reinstate DPA is the Hip-Hop Action Summit. Dr. Ben Chavez pledged support of the programs and H.R. 6694 on behalf of the Summit at yesterday's event.

“The Hip-Hop Action Summit knows seller-funded downpayment assistance has been instrumental in helping working Americans, especially minorities, become homeowners. Right now a million families have benefited from downpayment assistance and we want to double and triple that number in the future,” Dr. Ben Chavis, President and CEO of the Hip-Hop Action Summit said. “I believe in building equity; I believe in equal opportunity; and I believe H.R. 6694 can ensure that all Americans are guaranteed those rights through the power of homeownership.”

Those interested in backing H.R. 6694 should visit www.DPAGroundSwell.org.

The full analysis is available upon request.

Contact:

Amanda Kiely

(212) 446-1896

akiely@sloanepr.com

Sloane & Company

50 Days/50 Ways to Save DPA: Day 28

Post a Video

Create a 30 second video explaining why you think DPA needs to be saved. Inspire us with your personal story; persuade us with your economic argument; inform with your housing and real estate knowledge. Post the video on YouTube, then subscribe to our YouTube channel, DPAGroundswell, so that we can share your video with the Save DPA movement. If video-blogging isn't your thing, make a normal text post in any forum where people are discussing DPA. Post a link to your comments on the DPAgroundswell blog:
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Down Payment Program to End Soon

By David Barras

28 August 2008

WISH-TV

http://www.wishtv.com/Global/story.asp?S=8917841&nav=0Ra7

Home buyers beware. If you don't have it in your savings, finding the money for a down payment on a first house is about to get trickier.

Arbor Homes in Indianapolis figures about 30% of its customers have gotten what's called down payment assistance when buying a first home. Steve Hatchel is vice president of sales for Arbor Homes.

"Down payment assistance is a not for profit organization way of providing down payment assistance for home buyers who didn't have the funds to come up with their own down payment," said Hatchel.

The down payment assistance program allows the 3% down payment on an FHA loan to be paid by the seller. It is essentially a gift to the buyer. But on September 30, the program is over. And David May, a real estate broker in Indianapolis said it's a program that will be missed.

"I think it's going to change our market a little bit. I think it's going to reduce the number of first time home buyers entering the market," said May.

The reason for the change is that Congress passed a bill designed to stimulate the housing industry. And while they're taking away down payment assistance, they are providing another opportunity for first time home buyers.

"You actually can claim a $7500 credit against your taxes in 08 or 09," said Hatchel.

In the new program, you have to get your own down payment. Once you close on the house, you'll get a $7500 tax credit. The $7500 has to be paid back to the government over 15 years, but its interest free.

While the down payment assistance program doesn't end until September 30, in order to qualify you have to have final loan approval by then. So the process needs to start by about September 15. Some in the industry think it's a program that's been so successful that Congress may restore it down the road.

Rally for DPA at Sen. McCain's Office

From Cronkite News Service ...

"Dozens of real estate agents, mortgage brokers and others rallied Tuesday at the Tempe office of U.S. Sen. John McCain, urging him to support a bill that would allow seller-assisted down payments to continue.

The practice, which under a new law will be banned as of Oct. 1 for mortgages secured by the Federal Housing Administration, has been criticized as contributing to the rash of foreclosures nationally. The demonstrators said a large percentage of potential buyers will be unable to purchase homes without it. Andrew Shainker reports."

Check out the video.

The Great McCain Mac and Cheese Event!

Opposition is growing against the October 1 ban on seller-funded downpayment assistance, which has been responsible for enabling more than 42,700 families in Arizona to become homeowners. To show their concern, more than 100 local realtors and mortgage specialists descended upon Senator McCain’s Tempe office bringing non-perishable food items, such as boxes of macaroni and cheese, to demonstrate how borrowers will need to prepare low-cost meals at home to cut back on expenses and save money for a downpayment.

Check out this great video from the event: Click Here
(The lead-in to the rally is at 56.30 minutes and actual coverage is 63.18 to 66.08 minutes into the video of the newscast.)

The ban was written into law by President Bush when he signed H.R. 3221 Housing and Economic Recovery Act of 2008 on July 30, 2008. Seller-funded downpayment assistance is the last remaining program available to help low-to-moderate income working American families become homeowners. The program has helped more than a million African American, Hispanic, female-headed and low-to-moderate income families over the last decade. The realtors and mortgage specialists support H.R. 6694, which was introduced by several members of Congress on July 31, 2008. If passed and signed into law, it will allow downpayment assistance to continue indefinitely.