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Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Downpayment Assistance Programs
Downpayment Assistance: Who's Providing the Funds?
By Amilda Dymi
The downpayment assistance providers marketplace appears to be going through tough
times lately, given that many have left the market, others have been trying to reinvent themselves, and also because
of competition from some of the largest lenders who are providing downpayment and closing assistance options to
borrowers of low-to-moderate income.
Curiously, while the DPA industry as such is somehow becoming less and less visible,
the downpayment is increasingly recognized as one of the most important barriers to homeownership and thus getting
increased attention from legislators, federal entities and financial institutions that operate in the mortgage
marketplace.
For example: the downpayment comes into play when it comes to achieving the Bush
Administration's goal to increase national homeownership rates by adding 5.5 million new minority homeowners by
the end of the decade. It is no surprise to see support for "The Expanding American Homeownership Act"
which aims to modernize the FHA so it can reach out to more borrowers and to eliminate the 3% minimum downpayment
currently required with an FHA loan.
In addition, Countrywide is helping borrowers by offering closing cost grants, Esperanza USA offers financial education
along with downpayment options, while PMI's tool helps compare loans so customers can choose the lower downpayment.
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