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HUD Updates
On March 5, 2008 US District Judge Friedman released his decision in favor of The Genesis Foundation. As a result, HUD is stopped from implementing the Rule against Downpayment Assistance Programs permanently. It's business as usual at Liberty Gold! Click here for judgement summary. (posted 3/5/08)
District of Columbia Court Case Ruling (posted 3/5/08)
Eastern District of California Court Case Ruling (posted 3/3/08)
Jerrold Mayer's Notification of the HUD Rule Injunction (posted 11/02/07)
HUD Defeated on Down-Payment Assistance (posted 11/02/07)
Genesis Foundation & Home Downpayment Gift Foundation Prevail (posted 11/02/07)
Injunction Approved by US District Court; Business as Usual for Genesis! (posted 10/31/07)
Oct. 15 Update from Kelly Schwedland (posted 10/15/07)
Oct. 2 Response from Kelly Schwedland, President (posted 10/2/07)
HUD Letter Guaranteeing All DPAs 6 Months (posted 10/2/07)
Timeline
- 3/5/08: Judge Friedman rules in favor of The Genesis Foundation.
- 3/3/08: Judge Karlton rules in favor of DPA.
- 10/31/07: Judge granted Injunction. Victory for DPA!
- 10/26/07: Genesis files an Injunction.
- 10/25/07: Judge grants Genesis' Motion to Intervene. HUD refuses to settle out of court.
- 10/23/07: Genesis files Motion to Intervene in order to become party to the lawsuit.
- 10/19/07: The Injunction was rescinded because HUD settled out of court with the filer of the Injunction.
- 10/19/07: The Genesis Foundation filed an Amicus ("friend of the court") Brief in order to address additional points of concern to help support and clarify the Injunction already filed.
- 10/10/07: Motion for Preliminary Injunction and a Motion for Temporary Restraining Order are filed. These motions can stop the Rule from being implemented.
- 10/2/07: HUD clarifies funding dates: "Therefore, in order for the homebuyer to use a gift that was derived from the seller, the homebuyer must have entered into a contract of sale (including any amendments to purchase price) before that date [Oct 31, 2007]."
- 10/1/07: Representatives Miller, Waters, and Green issue statement in support of DPA.
- 10/1/07: Lawsuit is filed against HUD.
- 10/1/07: HUD issued its Final Rule "Standards for Mortgagor's Investment in Mortgaged Property" eliminating seller-assisted down payment assistance programs.
FAQ
| Q: | What happens to my deal funding after October? |
|---|---|
| A: | We've won the Injunction so you may submit your deals with complete confidence that they will be insured by HUD. Injunction issued by US District Court on 10/31/07 (updated 10/31/07) |
| Q: | Will the lawsuit and pending injunctions lead to a permanent victory for DPA or is this just a short-term solution? |
| A: | The Injunction is designed to prevent implementation of the Ruling which does provides us with an intermediate period where we can operate normally until the Courts can ultimately rule. The Courts can decide in favor of homebuyers and seller-funded downpayment assistance programs which would allow us to operate permanently. (updated 10/31/07) |
| Q: | What is Congress' role in HUD's Ruling? |
| A: | There is presently legislation that has been introduced protecting downpayment assistance and we expect Congress to move rapidly in our favor (and the favor of homebuyers). Congressional action will trump HUD's administrative ruling. View Congressional response to HUD Rule (updated 10/25/07) |
