Over objections from House lawmakers, the Department of Housing and Urban Development on Monday issued a rule to end a down payment assistance program it said leads to higher prices and more foreclosures for homebuyers.
The program, which is to be discontinued Nov. 1, lets nonprofit organizations including AmeriDream Inc. and Nehemiah Corp. of America fund down payments for low- and middle-income homebuyers and be reimbursed by the sellers of the homes.
Nehemiah, the largest provider of down payment assistance under this program, said Monday that it filed a lawsuit in federal court in Sacramento seeking to block HUD from implementing the new rule.
