Down payment assistance programs like The American Dream Down Payment Assistance are all but outlawed for use with any government insured loan programs.

It’s about damn time!

I can hear you now, “What’s wrong with charities helping home buyers by giving down payment assistance?”

In a word, it’s a scam…that’s why!

Paul Tharp writes in the New York Post yesterday on the plight of Countrywide Home Loan stock price taking a beating while the CEO, Mr. Angelo Mozilo, cashes in stock options worth more than $118 million! Anytime the executives start cashing out, you know there’s trouble.

I get the question: Is Selling My Home After I Buy Dangerous? a lot these days. Since the resale existing home market has weakened it just maybe too risky for most home owners.

I got a typical email where the writer says:

I’ve compiled a few resources on average mortgage rate data and yield spread premium starting with Congressional testimony from experts and ending with average mortgage rate resources online.

Be sure to read the Harvard Professor Jackson’s testimony if nothing else….

Mr. Olson’s Senate Testimony

HUD’s RESPA FAQ Site

Harvard Professor’s Conclusions on YSP

Remember this date: August 3rd, 2007. This is the day Jim Cramer melted down right along with the subprime home mortgage market and Bear Stearns. I wrote an article about a month ago on the Bear Stearns implosion due to subprime home mortgage exposure, forecasting their demise, and here it is.

On July 19th, Fed Chairman Bernanke testified before the Senate Banking, Housing and Urban Affairs chaired by Senator Dodd. In the Q and A portion of his testimony, Senator Carper asks Mr. Bernanke about the modernization of the FHA mortgage program. FHA mortgage programs have lost ground to more “adaptive” mortgage programs in the last few years. So much so, they have nearly fallen into obscurity. I wrote an article about a month ago if you’d like a refresher on the FHA home mortgage demise.

So on Mad Money last week Jim Cramer, the self-appointed genius stock picker, lost out to Yours Truly when it comes to shorting the home builders. Earnings are coming out this week on a number of home builders and I’ll be proven right again.

I notice a disturbing trend in the media and on TV in general. I first talked about this on our podcast for last week. It seems like when you hear the word “mortgage” on TV it always means something bad.

When people get taken advantage of it is by a “mortgage company”.