Troubled Asset Relief Program and Foreclosures (CRS Report for Congress)
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| Release Date |
Feb. 17, 2009 |
| Report Number |
R40224 |
| Report Type |
Report |
| Authors |
N. Eric Weiss, Darryl E. Getter, Edward V. Murphy, Sp0ecialists in Financial Economics; David H. Carpenter, Legislative Attorney |
| Source Agency |
Congressional Research Service |
Summary:
Increasing foreclosure rates and problems in financial markets are some of the issues addressed in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343), which created the Troubled Asset Relief Plan (TARP). The law authorized $700 billion in spending. The initial $350 billion was appropriated. The second $350 billion would be appropriated unless Congress disapproved the request from the President for the funds. H.R. 384 was introduced in the House on January 9, 2009; it was passed and sent to the Senate on January 21, 2009. The legislation would provide for additional home foreclosure relief and broaden safe-harbor provisions affecting the modification of loans in mortgage-backed securities (MBS). Other provisions would require additional public reporting on Treasury actions under TARP, increase TARP oversight, authorize direct loans to the automobile industry, and provide additional housing and financial assistance. This report is concerned with Title II of the bill, which would require the Treasury to spend a minimum of $40 billion of the second $350 billion on foreclosure mitigation. The bill, as passed by the House, would require the Secretary of the Treasury to develop a plan by March 15, 2009.
