Critics Say HUD Bid to Restrict Down Payment Programs Skirts Law

American Banker, May 6, 2019–Hannah Lang (subscription)
The National Homebuyers Fund and the Chenoa Fund, the latter of which is fighting the policy in court, say HUD tried to avoid scrutiny last month when it imposed new restrictions outside a formal rulemaking process. HUD’s mere letter to lenders seeking to “clarify” preexisting rules could threaten the funds’ very existence, they say.