Congress To Force Remaining Bailout Money Be Used To Aid Homeowners Facing Foreclosure

[babylonsister]

Congress Will Set Conditions for $350 Billion in Rescue Funds

By Alison Vekshin


Dec. 20 (Bloomberg) -- Congress will use the remaining $350 billion in a U.S. bank-rescue package to force the Bush administration and President-elect Barack Obama into providing foreclosure aid as the pace of people losing their homes soars.

Lawmakers will agree to release the funds in exchange for Treasury Secretary Henry Paulson and Obama agreeing to programs that cut interest rates and forgive a portion of a mortgage’s principal, House Financial Services Committee Chairman Barney Frank said in a telephone interview yesterday.

Frank said legislation is being drafted that will set the conditions on spending the cash after Paulson used almost half the $700 billion Troubled Asset Relief Program to boost bank capital. Paulson resisted calls to support foreclosure relief.

“The Democrats are finally getting it, that this administration is not going to do anything to help homeowners, and they are getting more proactive,” John Taylor, president of the National Community Reinvestment Coalition, said in a telephone interview. “Paulson has had the chance to do something like this all along, but has chosen not to. I think he’ll do it if a quid pro quo is held over him.”

more...

http://www.bloomberg.com/apps/news?pid=20601087&sid=au524BHUWXUs&refer=home

[ananda]

1. Rhetoric

They s a i d that last time.

[babylonsister]

2. You don't know that. Maybe they're as disgusted as we are where

the first part of the TARP funds went. Or the fact that no one's divulging any info about what happened to those funds, other than into execs' pockets.

[w4rma]

3. Do NOT release that money to Paulson! Under NO circumstances! Congress can WAIT 29 days. (nt)

[taught_me_patience]

4. Why only those in foreclosure?

How about renters or those faithfully paying their mortgage? This whole thing stinks.

[ima_sinnic]

5. my sentiments exactly. I'm not in foreclosure but I sure could use some help (nt)

[Vincardog]

6. By helping those in foreclosure they are attacking the symptom the problem

is that the people have been getting the shaft to benefit the rich.
We have to put more money into all the peoples hands now.

[Joe Chi Minh]

7. Hooray! I hope it's retroactive. That would be even better news.