Industry News

DOJ sues down-payment-assistance company

Alleges Illinois company made 'false and misleading statements'

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The U.S. Justice Department has filed a civil injunction lawsuit seeking to bar West Dundee, Ill.-based Partners in Charity from making false and misleading statements in promoting its down-payment-assistance program, the department said today. The department filed a lawsuit in the U.S. District Court for Northern District of Illinois, in Chicago, seeking to bar PIC from making such statements to house sellers promoting a program that assists buyers to fund the purchase of a house. PIC company officials were not immediately available to comment on the suit. PIC is a tax-exempt organization that enters into contracts with house sellers under which PIC agrees to provide funds to assist house buyers in making down payments on the purchase of a house, a practice known as "down-payment assistance," according to the government's complaint. Funds for down payments on houses are often cited as a major hurdle keeping many prospective home buyers from buying a home. PIC advertises...