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by CareyBot

Federal regulators on Monday renewed their efforts to ban seller-funded down-payment assistance on FHA-guaranteed loans, publishing a proposed rule and reopening the public comment period on the plan until Aug. 15. The Department of Housing and Urban Development says allowing sellers or others with a financial stake in the sale of a home to fund down payments inflates home prices and triples the chance that a home will end up in foreclosure. A federal district court judge in March blocked HUD from implementing a final rule banning the practice that was published in the Oct. 1 Federal Register, saying HUD had not fully explained why it was reversing course from past policies. Nehemiah Corp. of America and two other nonprofits that operate seller-funded down-payment-assistance ...