SOURCE: Primary Residential Mortgage, Inc.

July 08, 2008 18:10 ET

Primary Residential Mortgage, Inc. Watches Developments on FHA Down Payment Assistance Program

SALT LAKE CITY, UT--(Marketwire - July 8, 2008) - Efforts to ban seller-funded down payments on mortgage loans insured by the Federal Housing Administration (FHA) continue to be debated on Capitol Hill. The FHA argues that these programs inflate home prices and triple the chance that a home will end up in foreclosure. Supporters of these programs say that seller-funded down payments help many first-time homebuyers, including minorities.

"Primary Residential Mortgage recognizes the concerns brought forth by the FHA. Every effort should be made to ensure that a borrower is qualified to carry a loan, so as to avoid late payments and possible foreclosures," says Dave Zitting, President and CEO of Primary Residential Mortgage, Inc. "We also feel that many factors go into whether a homebuyer is a good candidate for an FHA mortgage loan. Ability to raise the required 3% down payment is just one of those factors. If a borrower can demonstrate other characteristics that qualify them for a loan, yet they cannot generate the full down payment, we want to give them options. Therefore we have reservations about a complete ban on seller-funded down payments. Homeownership is such a core principle in our society, and Primary Residential Mortgage wants to give that opportunity to as many responsible people as we can."

HUD's Federal Housing Administration will reopen the public comment period on the proposed rule that would ban seller-funded down payment assistance programs. To read more about this rule and how to submit public comment, please follow this link: STANDARS_FOR_MORTGAGORS_INVESTMENT_IN_MORTGAGED_PROPERTY/STANDARDS%20FOR%20MORTGAGOR'S%20INVESTMENT%20IN%20MORTGAGED%20PROPERTY.DOC

Zitting adds, "Whatever the outcome is, we fully respect FHA's stance on this matter, and will fully back their decision."


Headquartered in Salt Lake City, Utah, Primary Residential Mortgage, Inc. (PRMI) was founded by Dave Zitting, Jeff Zitting, and Steve Chapman in 1998. Serving all segments of the market, PRMI is a privately held, debt-free company that focuses primarily on the retail production of traditional mortgage products. Since its inception, PRMI has evolved into a nationwide multi-billion dollar operation with 1200 employees working in over 220 branches. The company is licensed in 47 states. Branches operate under the PRMI brand or as DBAs as part of PRMI's division program.

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