Is Treasury Using Bailout Funds to Increase Foreclosure Prevention, as Congress Intended?
Nov 14, 2008
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Committee on Oversight and Government Reform - Is Treasury Using Bailout Funds to Increase Foreclosure .. Read More
Committee on Oversight and Government Reform - Is Treasury Using Bailout Funds to Increase Foreclosure Prevention, as Congress Intended? - Subcommittee on Domestic Policy. Congress established the 00 billion Troubled Asset Relief Program on October 3, 2008 to deal with the financial crisis. One of TARP’s core functions was to prevent future foreclosures through the acquisition of mortgage-related assets, such as whole loans, mortgage-backed securities and other financial products, and the implementation of a plan to stem foreclosures on those loans. In creating TARP, Congress was aware of the efforts of the private mortgage servicing industry to prevent foreclosures, and committed an extraordinary sum of taxpayer funds to expand upon those efforts. On November 12, 2008, Treasury Secretary Henry Paulson announced that TARP would not acquire mortgage-related assets. In light of this significant change in TARP’s mission, important oversight questions arise. Video provided by the U.S. House of Representatives. Uploaded by Public.Resource.Org from House.Resource.Org.