As one vendor put it: “Loss mitigation was behind the scenes for a while because everyone was saying that foreclosures are low and bankruptcies are stable. Well, that’s not the case anymore."
According to Dave Stevens, a former FHA commissioner, DPA provided by government entities, such as Chenoa, is one of the only scalable options to help those without the means to purchase a property.
HUD's delinquency report shows that 11.50% of loans in the seriously delinquent category involved DPA provided by relatives, while only 9.07% of those with DPA financed by government entities were in the seriously delinquent category.