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For Immediate Release: October 23, 2008 CONTACT: Henry Fawell (410) 545-5830

AmeriDream responds to Greenspan testimony

Housing stabilization that Greenspan calls for must include downpayment aid

GAITHERSBURG , MD – Ann Ashburn, President of AmeriDream, Inc., today released the following statement in response to former Federal Reserve Chairman Alan Greenspan’s testimony before Congress regarding the current U.S. financial crisis. Dr. Greenspan identified the stabilization of the U.S. housing market as a key condition for economic improvement.

“We agree with Dr. Greenspan that housing prices must stabilize for our economy to recover,” said Ashburn. “Homebuyers currently have little incentive to enter the housing market. Fortunately, we can fix this problem: Congress must reauthorize downpayment assistance funded in part by sellers, commonly known as DPA, which was eliminated October 1 st of this year. A bipartisan coalition in Congress has introduced H.R. 6694 to achieve this goal. H.R. 6694 will bring creditworthy “main street” homebuyers – each of whom qualifies for an FHA loan – back to a housing market that desperately needs them. Without DPA, more than 300,000 homebuyers will remain on the sidelines annually. I urge aspiring homeowners and housing industry professionals to contact their members of Congress and tell them to support H.R. 6694. Our housing market depends on it.”

Dr. Greenspan testified today that, “a necessary condition for this crisis to end is a stabilization of home prices in the U.S. They will stabilize and clarify the level of equity in U.S. homes, the ultimate collateral support for the value of much of the world’s mortgage-backed securities.  At a minimum, stabilization of home prices is still many months in the future. But when it arrives, the market freeze should begin to measurably thaw and frightened investors will take tentative steps towards reengagement with risk." His entire testimony can be read here: http://oversight.house.gov/documents/20081023100438.pdf

Learn more about downpayment assistance at: http://www.supporthomeownership.com

BACKGROUND: AmeriDream, a 501(c)(3) charity, was established in 1999 to provide housing-related programs to low and moderate income individuals and families. Many recipients are first-time homebuyers, minorities, legal immigrants, women headed households, and single-parents, achieve homeownership. AmeriDream provides a wide range of programs, including homebuyer education, loss mitigation counseling, community development, and privately-funded down payment assistance. These programs are provided at no cost to the taxpayer. AmeriDream not only seeks to help families purchase homes, but also provide them with the education and other resources needed to be responsible homeowners.