Bill includes critical language encouraging HUD to collect data from governmental entities providing down payment assistance
WASHINGTON – CBC Mortgage Agency (CBCMA) today applauds the unanimous passage (31-0) of legislation that includes language encouraging the Department of Housing and Urban Development (HUD) to collect data on which governmental entities provide down payment assistance to FHA borrowers.
The appropriations bill, the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2020, provides funding for HUD for FY2020. The bill includes report language that addresses the longstanding uncertainty around the performance of down payment assistance (DPA) programs provided by government entities across the country. The language encourages HUD to require loan originators to collect and report to HUD the tax identification numbers for governmental entities providing DPA, a requirement already in place for non-profits that provide DPA. This new data would allow HUD to accurately track and manage DPA programs.
“Adequate data collection is necessary to the proper management by HUD of government DPA,” said Michael Whipple, vice president of CBC Mortgage Agency. “Collecting this data will allow HUD to provide better oversight of these programs and better manage risk to the FHA fund and protect taxpayers. Collecting this data for a sufficient period is a critical first step for HUD to take before it begins any rulemaking on government DPA. We thank Senator Collins (R-ME), the Chair of the T-HUD subcommittee and Senator Reed (D-RI) for their willingness to address this critical issue.”
CBCMA, which operates an industry-leading DPA program, the Chenoa Fund, has been urging data collection to increase transparency among governmental entities for many months. According to CBCMA, collecting more granular data on down payment assistance programs, like the Chenoa Fund and over 1300 other programs across the country, would help HUD determine what of any action needs to be taken to protect the FHA Mutual Mortgage Insurance Fund.
“Ultimately, more data leads to increased transparency – and that’s good for the government, borrowers, and taxpayers,” Whipple added.
About CBC Mortgage Agency
CBCMA provides secondary financing to borrowers, who are receiving loans insured by the Federal Housing Administration (FHA). CBCMA takes great care to ensure that the FHA loans perform well, including providing education as well as 12 months of counseling to borrowers after the purchase of their home. In addition, CBCMA regularly reviews its credit standards to ensure that the borrowers it assists are credit worthy.
CBCMA is a wholly owned subsidiary of Cedar Band Corporation, a federally chartered corporation wholly owned by the Cedar Band of Paiutes, a federally recognized American Indian band. For more information about CBCMA and its programs, visit chenoafund.org.