Lendisphere

I’m still getting calls about it. 

“Carie, what’s up with the sweet new HUD program using the tax credit?”

And it breaks my heart.  When I hear the optimism on the other end of the telephone line, the naked joy about the prospect of down payment assistance for new buyers – it makes it very hard to smash all those hopes with the hard truth:  HUD’s new ML 2009-15 ain’t gonna happen.

Here’s how it started –  at the most recent NAR convention, HUD Secretary Donovan offered up a lovely idea:  that in the coming weeks, first-time home buyers would be able to borrow against their new $8000 tax credit they had coming, and use it to make their down payment!

Translation:  FREE MONEY!!

And, in fact, on Monday, May 11, HUD followed up this announcement with the issuance of Mortgage Letter 2009 -15 instructing lenders on how the program would work.

But in one of those quick government switcheroos with fingers pointing in every direction, by late in Tuesday evening , ML 2009-15 had been neatly and completely pulled.

Guess that makes HUD an Indian Giver.