Federal Down Payment Bill Clears Senate

(December 1) -- Legislation backed by the National Association of REALTORS to give low-income, first-time homebuyers down-payment assistance was approved by the U.S. Senate last week, moving the bill closer to enactment.

The bill would authorize $200 million annually for four years. According to Senate Banking Committee Chairman Richard Shelby, R-Ala., "This legislation will help many families that would not otherwise have the opportunity to own a home."

Minority families stand to benefit the most, according to the U.S. Department of Housing and Urban Development, as their homeownership rates lag behind that of the nation as a whole.

Proponents of the bill--which passed in the House in October--include the Mortgage Bankers Association, NAR, the National Association of Mortgage Brokers, Fannie Mae, and Freddie Mac.

Source: Los Angeles Times (11/30/03)