Dodd still siding with Bush, punishing the poor for housing crises

By: jhow
Published On: 11/13/2007 5:24:48 PM

I've written about the downpayment assistance issue before, with support from several of the most popular Black bloggers. The Bush Admin and HUD Secretary Alphonso Jackson has been trying to close down the downpayment program-- which allows nonprofits to help qualified first time home buyers with getting the downpayment they need to move into their first home. The GAO reports that if the Bush admin is allowed to close downpayment assistance, then 40% of African-American homebuyers and potentially 30% of Latinos will be unable to utilize FHA loans and will be unable to become homeowners.

In the house, Democrats Maxine Waters and Barney Frank have championed a bill to block Alphonso Jackson's regressive efforts. In the courts, a Federal judge ruled October 31st that HUD cannot issue its rule banning downpayment assistance because of lack of a public hearing and with concern for how many people would be adversely affected.

Now with those kind of odds, shouldn't the Bush admnistration be backing down? No- and that's because they still have support in the Senate. Banking Committee Chairman Chris Dodd is still siding with the Bush administration, echoing Republican Senator Richard Selby by saying he thinks downpayment assistance ought to go...

Clearly, Eliminating downpayment assistance is just another way to put Blacks into a modern day sharecropping system the apartment renting plantation. Without rich parents and inherited wealth, many minorities are trapped in cycles of poverty...never owning assets and always renting...

We must keep up the fight. Foreclosures are blanketing the country, creating an even more desperate environment for those seeking a home. Downpayment assistance is the best way people can AVOID the predatory loans and subprime mortgages which have caused the bubble to burst. Taking downpayment assistance away will only exacerbate problems.

Housing should be a number one issue at the debate this Thursday in Las Vegas. Nevada has the worst rate with one foreclosure filing in every 61 households, while the nationwide rate is one foreclosure filing for every 196 households. Sign this petition and act now!

Comments



Dodd's side (Matt Browner Hamlin - 11/16/2007 7:18:05 PM)
I'd like to set the record straight on Senator Dodd's position on down payment assistance.

First, your attacks have been targeted at Senator Dodd and have painted him as siding with Bush. That's just not true. The FHA Modernization Act passed out of the Banking Committee 20-1, with all Democrats supporting it  - a good indication that that Dodd is not supporting the President but rather leading on an issue important to every segment of society and critical to ensure that people are able to find affordable housing and achieve the dream of homeownership.

The Center for American Progress, hardly a pro-Bush bastion, praises the legislation.


  The Federal Housing Administration Modernization Act of 2007 would give the FHA more flexibility to insure mortgages for higher-risk borrowers and step up its role in solving the mortgage meltdown. And a valuable amendment added by Sen. Jack Reed (D-RI) will provide struggling borrowers with financial counseling to help them refinance if it's included in the final draft of the bill.

Second, I think you're misrepresenting what these programs do. A recent Washington Post article noted that these programs often make housing costs significantly higher. "Such programs allow home sellers to give money to charities, which in turn assist buyers with their down payments. The sellers pay the charities a service fee, but often recoup the money by charging a higher price for the homes, usually 2 or 3 percent more, or an amount equal to the down payment, according to a 2005 study by the Government Accountability Office."

But most important is what Chris Dodd will do as President. He's for expanding homeownership for all Americans and has a plan to make it easier for people to get down payment assistance without endangering them financially.


  "As President, he [Dodd] will also expand down payment assistance through creation of a Shared Equity Trust in which homeowners receive grants to reduce the cost of purchasing a home in exchange for agreeing to share home price appreciation with the Trust upon future sale."

You can read his full homeownership plan here: http://chrisdodd.com/issues/homeownership/

Lastly, as you've copied and pasted an identical diary about two dozen times at different progressive community sites, I'm posting this response in multiple locations to ensure everyone can see Dodd's side of the story, complete with links and sourcing.