Apparently the Nehemiah program is being reviewed by HUD. This program is very popular as it is designed to lower the cash required for FHA purchases through grants which originate from sellers. FHA is now coming to the conclusion that these programs may represent a circumvention of the seller contribution limits. Anyone in the mortgage business certainly could have told HUD this.

HUD also continues to look at the default rates on loans originated by certain lenders and has suspended 27 lenders from the program and placed another 53 on "credit watch" status…. Up-dates as they occur...