Press Statement Re: FHA DASP Announcement

WASHINGTON, DC / ACCESSWIRE / June 30, 2016 / Today, the Federal Housing Administration (FHA) announced a suite of changes to its Distressed Asset Sales Program (DASP) that will significantly improve the program’s effect on homeowners, neighborhoods, and the housing market. These changes include requiring buyers of delinquent mortgages to offer principal reduction and sustainable modifications to qualified homeowners, prohibiting buyers from walking away from vacant properties, instituting a series of changes aimed at increasing the number of note sales to nonprofits and municipalities, and increasing the transparency of the program.

In response to the FHA announcement, Rob Grossinger, President and CEO of the National Community Stabilization Trust (NCST), issued the following statement:

“We commend FHA for listening to concerns about how distressed assets are handled in struggling communities. Today’s changes will support better outcomes for homeowners and communities alike.

Given NCST’s special focus on vacant or highly distressed properties, I particularly appreciate the prohibition on note buyers walking away from properties before foreclosure sale. This prohibition will stem the proliferation of blighted properties that limit recovery in struggling communities, and it also appropriately aligns FHA requirements applicable to servicers of these loans both before and after sale.

Also, I’m very heartened by the enhanced opportunities for municipalities and nonprofits to participate, both through the auctions and through direct sales. Finding a way to move notes into the hands of those with boots on the ground in local neighborhoods will aid in homeowner retention, vacancy prevention, and community development.

Finally, providing pool-level and demographic data will provide researchers, municipalities, and local organizations with critical information to assist them in their community stabilization efforts.

We look forward to continued collaboration with FHA on additional ways to ensure that the note sale program best supports efforts to assist homeowners, neighborhoods, and local housing markets.”

NCST is a non-profit organization that aims to restore vacant and abandoned properties to productive use and protect neighborhoods from blight. For more information, visit us at www.StabilizationTrust.org.

For interviews or more information, please directly contact:

Rob Grossinger, NCST President at 202-706-7500, or

Julia Gordon, NCST Executive Vice President, at 202-669-0424

CONTACT: Sally Powell Schall | Director, Communications
214-710-3411 | spowellschall@stabilizationtrust.org

SOURCE: National Community Stabilization Trust

ReleaseID: 441869