Obama Administration Will Spend Just $12 Billion Of The $50 Billion Promised To Help Homeowners

[unhappycamper]

Obama Administration Will Spend Just $12 Billion Of The $50 Billion Promised To Help Homeowners Avoid Foreclosure, CBO Says
Shahien Nasiripour
[e-mail] | HuffPost Reporting
First Posted: 11-29-10 11:51 PM | Updated: 11-29-10 11:58 PM

The Obama administration will spend less than a quarter of the $50 billion it promised to help homeowners facing foreclosure, the nonpartisan Congressional Budget Office said in a report Monday.

The CBO projection raises fresh questions about the success of the administration's foreclosure-prevention efforts and its commitment to helping homeowners, even as unemployment hovers near 10 percent. Corporations and large banks appear to be in full-fledged recovery -- last quarter, corporate profits reached an all-time high of $1.66 trillion on an annual basis -- but households and small businesses seem to have been left out.

Washington policymakers talk constantly about helping "Main Street" recover from the steepest downturn since the Great Depression. Spending less than a quarter of the money promised to help residents of "Main Street" keep their homes may not seem in line with that goal.

President Barack Obama and his top aides, including Treasury Secretary Timothy Geithner, have made numerous pledges to the ever-increasing number of homeowners faced with foreclosure, declines in home value and reductions in equity. The administration's programs, announced by Obama in a Mesa, Ariz. high school just four weeks after he took office, originally aimed to "enable as many as 3 to 4 million homeowners to modify the terms of their mortgages to avoid foreclosure."

Using $50 billion from the Troubled Asset Relief Program, the bailout fund also known as TARP, the Obama Treasury Department would pay banks, investors and homeowners for every home loan modification that saved a borrower from foreclosure.

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[FreakinDJ]

1. Its the Banks who are refusing to use the program

I could hear the "Freetards yelling Socialism" now if Obama ordered the banks to make use of the program