Rick Parker

So long as the homebuilders are in the mortgage business there will continue to be NO ADVOCACY for the homebuyer. With the builder controlled underwriting, appraising, settlement services, home owner association, home owner insurance, escrowing taxes at the unimproved rate and perhaps other lesser evils, the homebuyers don't have a chance. With Realtors being bonused heavily from the production homebuilders, the buyers can fall victim to the allure of the smell of fresh paint and carpet for all the wrong reasons. Home builders create the illusion of value by offering trememdously over valued "incentatives" but you have to use their mortgage company. This is just plain wrong. No group, public or private, legislators, bankers, want to stand up against the homebuilder associations State or National on this issue. Down Payment Assistance is and always has been designed to be a concession to the sale, NOT an add on the the sales price or an inflator to the builder's (shareholder, CEO, etc.) bottomline. Again the home builders control the mortgage lending which controls the appraisal. What's wrong with allowing for DPA but not when the seller and the lender are the same or even related by whatever scheme, accord, affiliation, controlled business arrangement, joint venture or other such foolishness. How about having the appraiser and underwriting review the MLS activity to make sure that the REALTORs haven't increased the list price to "compensate" DPA or seller CONCESSIONS. This shouldn't me a tough piece. The DPA providers desperately need the home builder business as that is over 80% of the DPA book. It seems that if we petitioned HUD or our legislators to look into this problem. A big part of the problem is that the NAHB - Nat'l Assoc of Home Builders has an incredible Politcal Action Committee, that means the legislators get their campaigns funded by special interest groups. The entirety of the DPA arguement is really basic and is just another example of our lawmakers inability to look at root cause analysis of problems and creating overwhelming regulation, system and process. Just for fun, the next time you see a video news story on foreclosures from your favorite news outlet, examine the age of the properties in the video. Don't be surprised to notice that they are primarily new homes. Rick Parker, President Directors Mortgage Company Texas 817-498-5098 PS. With respect to the post above me, I remember when the FHA UPMIP was 3.8%