FHA being Sued by Ameridream and Nehemiah

Ameridream and Nehemiah are non-profit real estate companies that help facilitate the 3% downpayment required by FHA borrowers as a gift coming from the seller. FHA Rules require the 3% down payment to come from the Borrower and one of the allowed sources of that down payment is through a gift. Ameridream and Nehemiah would "gift" the money to the buyer after the seller "donates" the same amount of money to the non-profit org. I was pretty surprised when I first heard about this practice and that FHA allowed it. I guess FHA finally got wise and said that it wasn't allowed anymore. That must have made Ameridream and Nehemiah pretty upset because now they are suing FHA.