Record low mortgage rates boost refinance activity in latest MBA Weekly Survey
Rep. Frank introduces TARP Reform BillMortgagePress.comRep. Barney Frank, TARP, mortgage reform, TARP Reform and Accountability Act of 2009, HR 384, Troubled Assets Relief Program, foreclosure prevention Rep. Barney Frank has introduced the "TARP Reform and Accountability Act of 2009" (HR 384). The bill amends the Troubled Assets Relief Program (TARP) provisions of the Emergency Economic Stabilization Act of 2008. The bill would require the U.S. Department of the Treasury (Treasury) Secretary to develop a foreclosure prevention and mitigation plan that commits up to $100 billion, but no less than $40 billion, toward the plan. The plan would need to be developed and approved by the Financial Stability Oversight Board by March 15, 2009, and the Treasury Secretary would be required to begin committing TARP funds to implement the plan no later than April 1, 2009. The programs under the plan would be required to apply only to owner-occupied residences, and would be required to leverage private capital to the maximum extent possible consistent with maximizing prevention of foreclosures. The plan would also be required to use one, or a combination of more than one, of the following program alternatives: • A guarantee program for qualifying loan modifications under a systematic plan, which may be delegated to the Federal Deposit Insurance Corporation (FDIC) or other contractor, • Bringing costs of Hope for Homeowner (H4H) loans down, either through coverage of fees, purchasing H4H mortgages to ensure affordable rates, or both, • A program for loans to pay down second lien mortgages that are impeding a loan modification subject to any write-down by existing lender the Treasury may require, • Servicer incentives/assistance...payments to servicers in connection with implementation of qualifying loan modifications, and/or • Purchase of whole loans for the purpose of modifying or refinancing the loans (with authorization to delegate to FDIC). The bill would also authorize the use of TARP funds for automobile manufacturers and other uses, such as consumer loans and commercial real estate loans. In addition, the bill would require greater oversight and reporting requirements along with greater restrictions on executive compensation. The bill also expands the H4H program, requires the Treasury to develop a home buyer stimulus program, and permanently increases the FDIC deposit insurance limits. For a copy of the bill, click here.