Don Harris Responds to Greenspan with Lending Alternative; Launches New Down Payment...

Don Harris Responds to Greenspan with Lending Alternative; Launches New Down Payment Solution ITMO

SACRAMENTO, Calif.--(Business Wire)--
In response to former Federal Reserve Chairman Alan Greenspan's
call today for housing stabilization, AmeriDream president Ann Ashburn
cited the need to resurrect down payment assistance programs
eliminated by Congress October 1st of this year. Don F. Harris, who
created the original seller-funded down payment assistance model on
which AmeriDream and others are based, disagrees.

Harris, who revolutionized FHA mortgage financing and caused
Realtor Magazine to recognize him as one of the "25 Most Influential
People in Real Estate" in 2003, says don't resurrect the old model,
but instead use an alternative solution.

Known as ITMO, Indian Tribe Mortgage is a program offered by the
Lower Brule Sioux Indian Tribe of central South Dakota. Unlike the
banned seller-funded down payment assistance programs banned by the
Housing Recovery Act earlier this month, ITMO is a second mortgage
program offered by a government entity, a native American Indian
Tribe, and complies with existing regulations.

"ITMO addresses the concerns that resulted in the elimination of
seller-funded down payment programs, namely inflated sales prices and
poor loan performance," said ITMO founder Don F. Harris.

"I had hoped that a regulatory framework could have been enacted
to preserve it. The elimination of seller-funded down payments
necessitated a new solution, though. Simply stated, ITMO is that
solution."

"The Tribe is excited about bringing this product to the nation,"
said Shawn LaRoche, a member of the Lower Brule Sioux Tribal Council.
"This is an incredible economic development opportunity for the Tribe
and a chance to redress historic inequities by creating an
unprecedented partnership opportunity. We are grateful to be part of a
critical mortgage solution during these challenging financial times."

ITMO is the bridge between down payment and closing for some
homebuyers. The assistance program provides a silent second loan that
requires no monthly or amortized payments. The principal amount, plus
interest accruing at an annual rate of 3%, becomes due upon sale,
refinance or transfer. The loan is forgiven if none of these events
occur within the first seven years of ownership. In addition, if 50%
of the ITMO loan is repaid within 18 months from the purchase date,
then the remaining 50% of the ITMO loan is forgiven.

"ITMO is the financing tool that enables the borrowers, realtors,
mortgage brokers, lenders and secondary investors to bridge the gap,
solidify transactions, and support the delivery long term
performance," said Sue Frost, President of Alliance Mortgage and
Marketing in Sacramento, California, who has already processed a
number of ITMO loan applications. "ITMO pinpoints what is needed at
all levels of the playing field during this time in our US and world
economy," she said.

The market has adjusted such that those who cannot afford rent can
afford a mortgage, but have traditionally had difficulty getting over
the hurdle of that initial down payment. "There are a lot of loan
programs out there to help with that down payment, but the buyer
typically must fit within specific qualifiers," said Jon Nastro, a
Broker Associate with Keller Williams Realty. "Often times it's a
difficult match. ITMO doesn't have these limitations. It reaches
low-to-moderate income buyers and, unlike many loan-assistance
programs, applicants do not need to be first-time buyers. That's
really where ITMO comes into play."

To learn more about ITMO please visit www.itmo.com.

Landis Communications, Inc.
Lee Kravetz, 415-359-2303
lee@landispr.com
www.landispr.com

Copyright Business Wire 2008