The New York Times says the following about Shaun Donovan Housing Urban Development (HUD) Secretary....
"He developed a national reputation as an innovator along the way, holding to a middle ground between free-market forces that opposed government controls and liberal groups that believed only government and nonprofits could be counted on to provide housing for the working class."
"Mr. Donovan has experience in all facets of the affordable housing market, having worked in both the nonprofit and private sectors and in academia as a scholar of housing policy. He has even worked as an architect in New York and Italy."
Really? So far the Good Faith Estimate going into effect January 01, 2010 certainly is different but innovative? The consumer or the working class folks won't think so. Now he wants to increase the down payment from 3.5% to 5% for the FHA loan and what result does he seek....more home sales? Are you kidding me? Definitely kills the chance for the down payment assistance program from coming back in any meaningful way. IF it were to come back I will bet you they will allow assistance of 1.5% pushing back the required down of 3.5%...wouldn't that be rich!?
The "Architect" by all accounts is a smart guy but clearly is not the right guy as evidenced by the 'stuff' coming out of HUD. He needs to go. Sorry that simple but if we get one more academic pile thrown at this calamity it will further delay the recovery and during the delay the other geniuses in congress will probably decide to throw more TARP money out there hoping it will stick. Let's hope not!
At least Vicki Golder of the National Association of Realtors gets it and testified on the hill making the case to keep down payment where its at.
I still advocate for the return of the down payment assistance program too. I want to remind people the down payment is not the reason for this financial calamity....OK? So stop the crap about down payment. Lenders from the beginning of time always want to prove the person asking for a loan has the ability to PAY IT BACK and they check that by looking at how much the person makes each month. No this is not rocket science but at HUD they seem to think so.
Mr. Donovan clearly has no private sector experience in lending in fact I doubt he has much longevity in the private sector at all - it seems his thing has always been housing projects and design in his public works jobs and I think he should stick to that. Obama needs to find a mortgage professional to run HUD. I am available if anybody asks....
SO WHAT DO YOU THINK?
Write your representative and tell them to get off the dime.
I wish us all well.