Treasury: Not Helping Lessen Foreclosures

by Donald Hanz on Foreclosure Help

The U.S. Treasury Department has annoyed Sen. Dodd and Rep. Frank by not cooperating in terms of preventing foreclosures.

Chris Dodd, a U.S. Senator and Barney Frank, a U.S. Representative, were very disappointed with the Treasury Department as well as the completion of Troubled Asset Relief Program or TARP.

According to Frank, D-Massachusetts and Chairman of the House Financial Services Committee and Dodd, D-Connecticut and Chairman of the Senate Banking Committee, the Treasury may possibly not have the 2nd half of $700 billion provided for TARP.

Dodd stated that the Treasury department may be having a hard time convincing him that they deserve the other $350 billion.

In addition, Rep. Frank stated that the Treasury ignored the obvious intentions of the Congress which is reducing the large number of foreclosures.

Peter Dawson, an economist, said that the legislators indeed have complaints with the U.S. Treasury Department.

He also stated that only a partial amount went to house mortgage foreclosures in order to prevent possible foreclosure filings.

In addition, Dawson said that banks are not offering to refinance and to lend because there is no authorization from the Treasury.

The said department is only saving a lot of money which is not doing any good as the intolerable number of foreclosures still takes place.

Dawson thinks that the Congress will not provide the 2nd half of $700 billion to the Treasury Department. They will have to wait until Obama Administration handles the top office of the government.

It is also possible that the Congress will make bargains for the last half of the TARP funds in order to refinance house mortgages and to put a stop to foreclosure filings.

The U.S. Treasury Department’s financial method may have been stabilized, but they are incapable of lessening foreclosures as they are unwilling to quickly address the problem. Paulson is not in favor of refinancing mortgages due to the fact that it would be more beneficial to Democrats than to Republicans.