Last Gasp for Ameridream
Posted on August 16th, 2008 by Jonathan Dalton
Received an e-mail from one my lenders yesterday detailing the wind-downs several large lenders are implementing for the end of Ameridream and other seller-assisted down payment (DPA) programs.
Chase, Franklin American, Citibank, Wells Fargo, US Bank and others are following roughly similar timelines:
- No rate locks on DPA loans after August 22.
- Loans in the pipeline must go to underwriting by September 12.
- Funding must take place by September 30 (the Congress’ rule, not theirs.)
At the same time, the effort to save the DPAs continues to roll forward with H.R. 6694. And this video’s now making the rounds detailing HUD’s amazing testimony on the “Housing and Economic Recovery Act?” Gee, why regulate the system when you can eliminate a program and keep thousands of would-be buyers out of the market (even as a $7,500 loan - not credit - is offered in the same legislation.)
Next week I’ll have my third Ameridream closing in the past 10 months. Good folks, all. All able to make their payments. All simply lacking the savings to pay for their own down payment. And none would be able to purchase October 1 thanks to the unique solution of amputating an arm to cure a tumor in the leg.
Brilliance.
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[…] buyer we’ve helped that used Ameridream is still in their home and making timely payments. Others report similar experiences. Fed about to shut down Down Payment Assistance […]
I am a loan officer and have closed several and not one has failed to write or call months after their closing to share how much they love their home, how grateful for the efforts put into the file to make it happen and many were reduced to tears of joy reflecting on how they never thought home ownership was possible for them. This program can instill the pride of ownership so many neighborhoods now lack.