16 Members Signed onto Letter Urging HUD Not to Impede on “Well-Performing Programs”
Today, CBC Mortgage Agency (CBCMA) applauded a letter sent by the Congressional Black Caucus and the Congressional Hispanic Caucus to U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson highlighting the importance of down payment assistance programs to low-to-moderate income and minority homebuyers. Over a dozen members signed onto the letter, sponsored by Congressman Emmanuel Cleaver (D-MO), underscoring concerns with HUD’s recent actions that could potentially reduce the availability of down payment assistance programs and calling for further data before taking future action.
Additional signers on the letter include: William Lacy Clay (D-MO), Joyce Beatty (D-OH), Alcee L. Hastings (D-FL), Barbara Lee (D-CA), Marcia L. Fudge (D-OH), Bennie G. Thompson (D-MS), Vicente Gonzalez (D-TX), Rashida Tlaib (D-MI), Al Lawson, Jr. (D-FL), Nanette Diaz Barragán (D-CA), Debbie Dingell (D-MI), Robin L. Kelly (D-IL), Darren Soto (D-FL), Lucille Roybal Allard (D-CA), and Bobby Rush (D-IL).
The letter noted, “Additionally, HUD indicated…that it is considering limiting national scope governmental entities providing secondary financing. It is critical that well-run programs, regardless of their scope of operation, be allowed to continue their mission of assisting minority borrowers. We ask that HUD collect performance data on individual government DPA programs so that it can identify those programs that are not performing well rather than eliminating programs simply because of their scope of operation.”
“As a provider of down payment assistance to homebuyers across the country, I commend Rep. Cleaver’s leadership on this issue, and the Congressional Black and Hispanic Caucuses for their continued support of Americans interested in buying a home,” said Michael Whipple, senior vice president of CBC Mortgage Agency. “Without accounting for the performance of the individual governmental DPA programs, broad-brush elimination tactics will ultimately harm homebuyers seeking financial assistance, and do nothing to protect the taxpayer.”
The letter also recognizes HUD’s responsibility to ensure the solvency of the Mutual Mortgage Insurance Fund (MMIF) and support HUD’s efforts to properly administer its programs. However, the letter urges HUD that if restrictions on secondary financing are necessary to protect the MMIF, those restrictions would not necessarily hinder well-performing programs who are responsibly assisting qualified borrowers.
“HUD has provided no data to support its claim that through eliminating the scope of programs such as CBCMA, it will improve the solvency of the MMIF,” said Whipple, who noted that CBCMA data shows that CBCMA-assisted loans perform as well as the general pool of government entity assisted FHA loans.
About CBC Mortgage Agency
CBCMA provides secondary financing to borrowers, who are receiving loans insured by the Federal Housing Administration (FHA). CBCMA takes great care to ensure that the FHA loans perform well, including providing education as well as 12 months of counseling to borrowers after the purchase of their home. In addition, CBCMA regularly reviews its credit standards to ensure that the borrowers it assists are credit worthy.
CBCMA is a wholly owned subsidiary of Cedar Band Corporation, a federally chartered tribal corporation wholly owned by the Cedar Band of Paiutes, a federally recognized American Indian band. For more information about CBCMA and its programs, visit chenoafund.org.