The DPAs (or DAPs, as they are also called) are fighting the ban imposed by HUD. The Bank Lawyer’s Blog offers an anlaysis of the situation:

…this is only a preliminary injunction. If HUD sticks to its guns, either the district court will eventually see the light or an appellate court will eventually correct his erroneous thought process.

I’m still sticking to my earlier hot opinion: “AmeriDream will lose its lawsuit to overturn the FHA’s decision, and seller-funded DAP will be a no go from now on. Bank on it.” Unfortunately for the taxpayers, the “now” in “from now on” may be many months in the future. In the interim, look forward to more losses funded by your tax dollars, as DAP loans continue to default.

Now I know that many out there think that the ban on DPAs is screwing lower-income families, but with the lower down payment standards that will hopefully be implemented in the near future, they would have no purpose anyways. Not to mention, anyone can see that when a seller pays the down payment and then jacks up the house price, the buyer loses.

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