DSNews has an interesting article citing a recent report from the Urban Institute about HUD’s Distressed Asset Stabilization Program that calls it a “Win-Win for Borrowers, Investors and HUD.” The DASP program was instituted in 2010 in response to the massive amount of foreclosures resulting from the housing crisis as a way to sell distressed and/or nonperforming loans to investors.
Some takeaways:
“researchers from the Urban Institute concluded that all parties—HUD, the borrowers, and investors—stand to benefit when distressed loans are sold through DASP”
“The authors of the paper, Laurie Goodman (Director of Housing Finance Policy Center with Urban Institute) and Dan Magder (founder of Center Creek Capital Group), state that to properly evaluate DASP loan sales, one must keep in mind that DASP helps borrowers avoid foreclosure and encourages investors to pursue foreclosure alternatives, and that investors are able to better help borrowers than non-profits are.”
Click here to read the full story on DSNews, HUD’s Distressed Sales Program Weathers Criticism
Click here to read more about HUD’s DASP program
