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Nehemiah Applauds FDIC Chair Sheila Bair for Calling Attention to Foreclosure Fallout

SACRAMENTO, Calif., Nov. 20 /PRNewswire/ -- The following statement was issued today by Scott Syphax, president and CEO of the Nehemiah Corporation of America, in response to Congressional Testimony from Sheila Bair, Chair of the Federal Deposit Insurance Corp. (FDIC) this week. Ms. Bair stressed the overwhelming strain foreclosures are putting on families and communities across the country.

"As families and communities struggle under the overwhelming weight of foreclosures, it is imperative that the Administration consider reinstating seller-funded downpayment assistance (DPA). Before its elimination last month, DPA helped more than a million hardworking families become homeowners. If given the option, hundreds-of-thousand more working families would happily take advantage of depressed prices and purchase foreclosed homes, deflating the overstock of inventory that is fueling the housing crisis. Further, distressed families could easily refinance out of risky adjustable rate mortgages into low-interest, fixed FHA mortgages using DPA. I applaud Chairwoman Bair for offering solutions to the foreclosure fallout and call upon our elected officials to open their eyes to the role that DPA can play in alleviating stress on the economy and families in this foreclosure crisis."

Seller-funded downpayment assistance was eliminated on October 1, 2008 as part of the Housing and Economic Recovery Act of 2008. The Nehemiah Corporation is the largest and oldest provider of seller-funded downpayment assistance in the country.

SOURCE Nehemiah Corporation of America