Barney Frank wants to shift TARP funds for foreclosure aid

November 18, 2008 by · Leave a Comment
Filed under: Real Estate News 

After Hank Paulson released that he was going to change course and not use the bailout funds for bad assets or partial continued capitalization of the banking system, he was instead going to focus on credit card, auto and college loan debt to try and restart normal lending.  We now see what their purpose was and people are not happy at all.  Frank wants to see homeowners helped with our taxpayer monies.

 Personally, I don’t see why any money is needed to get lenders to modify their mortgage portfolios.  You would think if it was in their best interest to keep people in their homes to avoid foreclosure costs then they would do it regardless. My vote is if the borrower has an income that supports a normal fixed rate payment then they should stay and if not then they should be foreclosed on.

News:

 The chairman of a key U.S. congressional committee said on Tuesday he expects a change in the Bush administration’s resistance to spending money from a $700-billion bank bailout fund on reducing foreclosures.

“I think you’re going to see some movement towards TARP money for foreclosure modification,” Rep. Barney Frank, chairman of the House of Representatives Financial Services Committee, told reporters after a hearing. He was referring to the Treasury Department’s Troubled Asset Relief Fund, or TARP.

 

The Massachusetts Democrat said he and other lawmakers had a two-hour meeting on Monday with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke.

 

Frank said he thinks that the Bush administration, in consultation with the transition team of President-elect Barack Obama, had decided “to hold off the rest of this money for them to come into power and have a chance to deal with it.”

 

“I think that’s reasonable,” Frank said. “I think people on both sides underestimated the negative of not doing foreclosure modification.”

Source: Reuters

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