U.S. Rep. Raul Grijalva (D-AZ) recently said he commended U.S. Department of Housing and Urban Development Secretary Julian Castro after HUD announced enhancements to the Distressed Asset Stabilization Program (DASP), which has purchased severely delinquent loans since 2012.
In April, Grijalva wrote to Castro expressing concern over properties being sold off by the government at rock bottom prices to the same financial institutions that caused the housing market crash and suggested that HUD should better utilize community-based entities. The recently announced enhancements to DASP move in that direction by establishing a preferential bidding option program for nonprofit buyers.
“I am happy to see Secretary Castro changing DASP for the better, and moving toward fairer competition to ensure that the very entities that cratered our housing market do not now benefit from the mess they made,” Grijalva said. “This is about stabilizing neighborhoods and protecting consumers and the housing market from another crisis. I look forward to the impact of these new opportunities for homeowners in Arizona, including the mandatory offer of principal reduction.”