FHA may shut down "gift" programs

For your Sunday reading pleasure, here's an article from today's L.A. Times regarding the charitable gift "programs" that allow sellers to give a lot of money back to buyers. The way it works is this: a seller contributes up to 6% of the sales price to the organization like Nehemiah, which is set up as a charity. Then, for a fee, the charity gives it back to the buyer as a grant for their home. There are restrictions on both sides, of course -- but I've often wondered why this isn't looked upon as money laundering. So this comes as no surprise to me.