We recieved this today from one of our wholesale lenders:

In response to recently passed legislation, SunTrust Mortgage is eliminating the use of Seller-Funded Down Payment Assistance (DPA) programs. As a result of this change, effective for locks on or after Monday, August 25, 2008 the use of seller-funded DPAs is being eliminated. All loans that are locked PRIOR to August 25, 2008 will be honored; however these loans must be closed and funded by September 19, 2008. Lock-in extensions and re-locks will NOT be granted.

I expect many others to follow by mid-September