HUD Suspends Downpayment Assistance Rule Change

Housing Finance
The Department of Housing and Urban Development (HUD) issued a notice to lenders on July 23 announcing it is suspending a previously announced rule change that would restrict the operation of downpayment assistance programs beyond state borders. HUD said that the policy change announced in April was suspended “until further notice.” Earlier this week, a federal judge in Utah granted a motion to order the suspension of the HUD rule after a Utah tribe filed suit alleging that the new rule was discriminatory because government agencies and lenders can only offer downpayment assistance within a limited geographic range.

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