HUD’s Announcement Regarding the Use of Nonprofit & Government Sponsored Seller Funded Assistance Programs with FHA Financing:

History:
In May 2007 HUD announced a proposed ruling which stated: "The proposed rule would establish that a prohibited source of downpayment assistance is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale: (1) The seller, or any other person or entity that financially benefits from the transaction; or (2) any third party or entity that is reimbursed directly or indirectly by any of the parties listed in clause (1)."

HUD's Final Ruling Prohibiting Sellers from Providing Downpayment Assistance:
On September 27, 2007 HUD announced a summary of their final rule. Following is an excerpt: "(1) Effective 30 days from the date of publication in the Federal Register (we assume October 31st), HUD will prohibit sellers or interested third parties that financially benefit from the transaction to provide downpayment assistance. By publication in the Federal Register, FHA is prohibiting downpayment assistance that is composed of funds provided by the seller or any other person or entity that financially benefits from the transaction or by any party that is reimbursed directly or indirectly by the seller or entity that financially benefits from the transaction. The prohibition is applicable regardless of the type of entity offering the assistance, meaning that both nonprofits and government entities (including Indian tribes) operating seller-funded gift programs would be unable to offer their assistance to FHA borrowers. (2) Special Implementation Date for Nehemiah: “Pursuant to an April 1998 settlement agreement resolving litigation between the Nehemiah Progressive Housing Development Corporation (Nehemiah) and HUD, the effective date shall be six months after the date of publication in the Federal Register (approximately April 1, 2008) for the Nehemiah downpayment assistance program described in the settlement agreement between Nehemiah and HUD." The Election

The Election Committee

The election committee would like to Thank those of you that have agreed to run for the 2008 Board of Directors this year. Ballots will be mailed out the week of October 8th. One Vote per Member Company. Any recommendations for Hall of Fame or Member of the Year please contact Holly Hutchison via email at holly.l.hutchison@southernohiomortgagellc.com.