SFDPA

AcronymDefinition
SFDPASeller Funded Down Payment Assistance
References in periodicals archive ?
Nehemiah Corporation may offer alternative products that will take the place of FHA's SFDPA program, Syphax says.
While many in the mortgage banking industry associate Nehemiah Corporation with SFDPA, the nonprofit organization is also the lead developer in the second-largest infill development in northern California, and its national community loan fund lends nationwide.
Ann Ashburn, president and chief executive officer of AmeriDream, argues that saying "something" will fill the place of SFDPA is not good enough.
And without SFDPA, the primary users of the program--including low-income, minority and women-headed households--will not get the boost they need to become homeowners, Ashburn says.
HUD has not fully taken into account what will happen to the Mutual Mortgage Insurance Fund (MMIF) if SFDPA is eliminated, Ashburn argues.
And it's not just borrowers who need to consider the influence of SFDPA.
In recent years, SFDPA has transformed into something else, as fraudsters have mimicked the FHA-approved program but taken things to a fraudulent extreme, Head adds.
While clearly those players weren't using legitimate SFDPA programs, critics such as Head suggest the fraudsters were inspired by reputable programs.
Congress is expected to complete action on the SFDPA issue by August.
Given HUD's experience that SFDPA loans default at three times the rate of other DPA loans, knowing that there are SFDPA loans involved in a sale of servicing rights or whole loans would help potential buyers better plan to help borrowers should they encounter trouble.
Mortgage banking companies involved in offering financing in the form of new home-purchase SFDPA deals are also feeling the pain from past deals.
The suit alleges the company violated the Real Estate Settlement Procedures Act (RESPA) by improperly requiring homebuyers to use Beazer Mortgage as part of a SFDPA program and illegally increasing the cost of the homes and settlement services it sold.