Grijalva Commends Improvements to Distressed Asset Stabilization Program

WASHINGTON, D.C. – July 1, 2016 – (RealEstateRama) — Congressman Raúl M. Grijalva (D-AZ) released the following statement today after the Department of Housing and Urban Development announced enhancements to the Distressed Asset Stabilization Program (DASP), which has served to purchase severely delinquent loans since 2012. In April, Rep. Grijalva wrote HUD Secretary Julian Castro raising concerns about these properties being sold off by the government at rock bottom prices to the same financial institutions that caused the housing market to crash.

Grijalva suggested HUD should better utilize community-based entities. The enhancements announced today move in that direction by establishing a preferential bidding option pilot for non-profit buyers.

“I am happy to see Secretary Castro changing DASP for the better, and moving towards fairer competition to ensure that the very entities that cratered our housing market do not now benefit from the mess they made,” Rep. 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.”