$4 Billion In TARP Funds To Help With Foreclosures
WASHINGTON, DC – December 14, 2009 – (RealEstateRama) — Congress took significant action to reform the nation’s financial system today with the passage of The Wall Street Reform and Consumer Protection Act. Passed with Congressman Cardoza’s support, the bill also includes provisions he requested that take aim at the nation’s continuing foreclosure crisis.
The bill calls for the establishment of a federal Consumer Financial Protection Agency to ensure that Americans’ bank loans, mortgages, and credit cards are affordable, understandable and fair. The legislation also aims to stop predatory and irresponsible mortgage loan practices, like those that helped create the financial meltdown. The legislation also helps strengthen enforcement by the federal regulators to better protect consumers.
Since the economic meltdown began, Congressman Cardoza and numerous economists have argued that at until the federal government takes bold steps to shore up the nation’s foreclosure problem, the mortgage defaults will continue to hurt banks, consumers and families.
At Congressman Cardoza’s urging, under a provision in today’s bill up to $4 billion from the TARP program could be used for mortgage relief. Specifically, $3 billion could be used for emergency mortgage relief and $1 billion could be used for the Neighborhood Stabilization Program (NSP) for the redevelopment of foreclosed and abandoned properties as affordable housing.
The mortgage assistance program provides emergency loans to homeowners behind on their mortgage payments because they lost their jobs but who have a reasonable prospect that they will be able to resume full mortgage payments. Those that have lost their jobs are at the highest risk of foreclosing, which is especially concerning in areas that are already experiencing high unemployment and foreclosure rates such as the San Joaquin Valley. The NSP program allocates funds to states and local governments to provide emergency assistance for the purchase of foreclosed homes to rent or redevelop and the creation of financing mechanisms for the purchase and redevelopment of foreclosed residential properties.
I am pleased we have taken one more step forward in addressing the foreclosure crisis,” said Congressman Cardoza. “But far more needs to be done in the hardest hit areas such as the Valley. I will not rest until we have exhausted every available option to stem the tide on this foreclosure crisis once and for all, and my constituents have the relief they so desperately need.”
Contact:
Mike Jensen
(202) 225-6131
