November 13, 2019

November 12, 2019

Subscribe to Latest Legal News and Analysis

November 11, 2019

Subscribe to Latest Legal News and Analysis

HUD Announces Suspension of Effective Date for New Down Payment Assistance Requirements

As previously reported, recently a US District Court granted a preliminary injunction preventing the US Department of Housing and Urban Development (HUD) from implementing new requirements for government-provided down payment assistance in connection with FHA insured loans. The requirements were announced in Mortgagee Letter 2019-06 and originally were scheduled to go into effect for case numbers assigned on or after April 18, 2019. HUD later extended the effective date to July 23, 2019 as a result of the legal challenge.

HUD recently announced in Mortgagee Letter 2019-10 the suspension of the effective date of Mortgagee Letter 2019-06 until further notice. HUD also advises that mortgagees may continue to follow the guidance in HUD Handbook 4000.1 II.A.4.d.ii, which sets forth existing requirements regarding government-provided down payment assistance.

Copyright © by Ballard Spahr LLP

TRENDING LEGAL ANALYSIS


About this Author

Richard J. Andreano, Jr. , Ballard Spahr Law Frim, Washington DC,  Business and Finance attorney, Mortgage Banking, Consumer Financial Services, Fair Lending

Richard J. Andreano, Jr., is the Practice Leader of Ballard Spahr's Mortgage Banking Group. He has devoted 30 years of practice to financial services, mortgage banking, and consumer finance law.

Mr. Andreano advises banks, lenders, brokers, home builders, title companies, real estate professionals, and other settlement providers on regulatory compliance and transactional matters, Federal Housing Administration (FHA) issues, and administrative examinations, enforcement actions and investigations. He also works with litigation counsel on devising strategies for defense of class action...

202.661.2271