- Challenges Senator Christopher Dodd (D-CT) and Senate Democrats to Take
            Action Supporting Those Most in Need of Assistance -
 - HUD Rule Would Obstruct Minority and Low-Income Family Home Ownership -

    WASHINGTON, Nov. 15 /PRNewswire-USNewswire/ -- During a press
conference in Washington D.C. today, Reverend Al Sharpton challenged Senate
Democrats and Senator Christopher Dodd, Chair of the U.S. Senate Committee
on Banking, Housing and Urban Affairs to oppose pending Department of
Housing and Urban Affairs (HUD) rules which would obstruct minority and
working class families from becoming homeowners. According to Rev.
Sharpton, the rules will unfairly impact minority families and Congress
should intervene on behalf of people that will be negatively impacted.
    Reverend Sharpton specifically called on the Senate to support a House
amendment lead by Congresswoman Maxine Waters (D-California) and
Congressman Gary Miller (R-California) that would block a controversial
proposal by HUD to ban private downpayment assistance programs. These
programs aid borrowers who qualify for government-backed FHA loans but do
not have access to the minimum down payment requirements of at least 3%.
    Private downpayment assistance exists as a much-needed alternative for
low-income, working and minority families who have little access to
capital, enabling these families to overcome an otherwise impossible
barrier to the FHA loans.
    "It is truly disturbing that at a time when pressures on the credit
market make home ownership even more difficult to attain for hard working
African American and Latino families, Senator Dodd and the Senate Democrats
have yet to take a stand in opposition to this hurtful rule," said Reverend
Sharpton. "With increasingly few opportunities as it is for those most in
need of assistance, I'm shocked that HUD is in favor of cutting the few
remaining avenues that enable these families to get into homes. However
what pains me the most is that one of our own Democrats, Chairman Dodd, has
yet to stand up and fight for the same people who he talks about protecting
everyday on the campaign trail. If Congresswoman Maxine Waters and
Congressman Miller have found the issue important enough to reach across
the isle and work together in opposition, Senator Dodd and Senate Democrats
must get on board too. Let's create an ownership society and not perpetuate
a rental society."
    To date, privately-funded downpayment assistance programs have helped
over 600,000 families become homeowners, and have been credited not only
for helping minority and low-income families buy homes, but also
stabilizing neighborhoods and cities and creating stronger families.
    As evidenced by the over 15,000 letters sent in opposition to HUD by
families across the country, downpayment assistance programs continue to be
a lifeline for families working to reach the dream of homeownership.
Further, broad opposition to this proposal by groups including the National
Association of Home Builders, the Mortgage Bankers Association, The US
Council of Mayors, and National Association of Counties speak to the
validity and importance of seller-funded downpayment assistance programs
    Reverend Sharpton also spoke out in opposition to HUD's recent Risk
Based Premium proposal which, beginning January 1, would base pricing and
eligibility for FHA insured mortgages on FICOS scores. According to a July
government study, if implemented, the rule would redline 32 percent of
African-American families and 20 percent of Latino families currently
utilizing FHA insured mortgages. The rule also requires a minimum
eligibility credit score of 620 for families that secure downpayment from
sources other than their family members, such as through private
downpayment assistance programs.
    Congresswoman Maxine Waters and Congressman Barney Frank (D-MA) have
been vocal opponents to this rule. Based on its Notice issued in September,
HUD is choosing to move forward with implementation without offering a
public comment period.
    Reverend Sharpton continued, "By moving forward with this rule, it
seems to me that this is yet another case of HUD disregarding the impact of
rule changes on minority and low income families that need the most help. I
challenge Secretary Jackson to re-examine the long term, damaging impact of
these actions that would essentially lock out thousands of families from
home ownership, and withdraw the proposal."

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