FHA Book

DPA Opposition Getting Mainstream Attention

When it comes to finding FHA news articles, the Wall Street Journal seems to be becoming my new Seattle P-I or CNNMoney.com. The WSJ had another FHA article today, this time focusing specifically on the risks of putting zero down on a home. The article, which has an accompanying blog post, focuses on the reasons why eliminating DPA could be critical to the survival of FHA, and the response from the DPAs and other supporters, particularly those who are closely tied to minority and poverty issues. Others feel that the programs need to be changed, but not eliminated:

Seller-funded groups and supporters in Congress say that such programs should be regulated but not shut down, a proposal that HUD hasn’t shown much interest in in recent years. “If there’s a problem, let’s fix it,” says Rep. Gary Miller (R., Calif.), a vocal defender of the program and a former home builder and developer.

Whether or not DPAs will go away, the article concludes with a sure bet:

Rep. Frank said in an interview that he believed a compromise could be reached with the Senate that would preserve the program but with tougher lending requirements. “No one is talking about leaving it untouched,” he says.