Tag Archives: TARP

Although economists say the country would be in far worse shape without it, the federal government's $700 billion bailout package approved by Congress in October 2008 was widely criticized at the time for the cost taxpayers would be forced to bear. That projected price tag, though, has been steadily declining as the financial sector has found firmer footing. The Congressional Budget Office now puts the cost of the Troubled Asset Relief Program (TARP) at just over 3 percent of the $700 billion initially allocated - $25 billion.

Treasury's latest report on the administration's Home Affordable Modification Program (HAMP) shows that over half of the trial plans started have been canceled and 11 percent of borrowers have re-defaulted on their new loan. The TARP special inspector general told Congress that HAMP is ""failing to meet its goal of preserving homeownership"" and risks igniting public anger and mistrust. A Fed economist says HAMP is a reflection of the Obama administration's ""failed policies,"" and the government must be prepared to ""pay lenders a lot of money"" to modify loans.

The Congressional Oversight Panel has ""significant concerns"" related to accountability and conflicts of interest because of Treasury's extensive use of private contractors to carry out functions for the Troubled Asset Relief Program (TARP), particularly foreclosure prevention efforts. The largest TARP contracts were awarded to Fannie Mae and Freddie Mac. Fannie alone employs 600 workers on TARP's foreclosure programs, while Treasury has only 220 staffers working on all TARP programs combined.

The federal government's Troubled Asset Relief Program (TARP) officially hit its expiration date last week. For the past two years, the controversial $700 billion bailout package has drawn the ire of critics from nearly every corner. In an op-ed piece, Treasury Secretary Timothy Geithner sets out to dispel what he says are the five most popular myths surrounding TARP, including the cost to taxpayers and the idea that it was a carefully wrapped gift for Wall Street.

The federal government's often vilified $700 billion bailout program officially came to an end when the clock struck midnight on Monday. The Troubled Asset Relief Program's (TARP) formal sunset date means that no new programs will be funded under the initiative and no more money will be doled out to prop up ailing banks. Initially, this monumental rescue effort was expected to cost taxpayers hundreds of billions, but Treasury says its latest estimates put the price tag at less than $50 billion.

Assistant Treasury Secretary Herbert M. Allison said Wednesday that he will be stepping down from his post at the end of September. Allison was responsible for overseeing the administration's $700 billion Troubled Asset Relief Program (TARP). The Treasury's Office of Homeownership Preservation also fell under his jurisdiction. The former Fannie Mae CEO has played an integral role in the development and management of the Obama administration's housing and foreclosure prevention programs.

Tuesday marked the start of a new government housing program designed to help the millions of Americans who owe more on the mortgage than their home is worth. The Federal Housing Administration (FHA) is now offering certain non-FHA borrowers with negative equity the chance to refinance into a new FHA-insured loan, as long as existing lien holders will write off at least 10 percent of the unpaid principal balance. Officials suggest the program will provide 500,000 to 1.5 million underwater borrowers with new mortgages, but analysts say the number is closer to 250,000.

Taxpayers' tab for the government's $700 billion dollar bailout program continues to drop. New estimates from the Congressional Budget Office (CBO) put the cost of the controversial Troubled Asset Relief Program (TARP) at $66 billion. That's nearly $45 billion less than the agency's projection just five months ago. The agency's estimates for the bailout of Fannie Mae and Freddie Mac improved as well. Outlays for the two GSEs are expected to fall from $96 billion in 2009 to $41 billion this year.