Rep. Doris Matsui Amendment To TARP Passes

Press Release

Today, the House passed the Troubled Assets Relief Program (TARP) Reform and Accountability Act, H.R. 384 by a vote of 260-166. The bill included an amendment from Rep. Doris Matsui (CA-05) that will help homeowners across the country. The amendment states that financial institutions who receive future TARP funds should not foreclose on any principal homeowner, until the new loan modification program in the bill is implemented and deemed fully operational.

"The foreclosure crisis is at the root of the current economic crisis. Sadly, there is no end in sight. More than 8 million homeowners are expected to face foreclosure over the next four years, which equates to one in six mortgages in the United States. It is clear that Congress needs to use all of its resources to help Americans stay in their homes," stated Rep. Matsui

H.R. 384 requires the U.S. Treasury, in conjunction with the FDIC, to develop a systematic loan modification program by April 1, 2009. There are estimates that the program will take another one to two months for the program to become operational. While this program is expected to assist a great number of homeowners, thousands could be foreclosed on during that time without having an opportunity to qualify for the new loan modification program, as required under this bill.

"Taxpayers need and deserve the opportunity to receive assistance from the new loan modification plan. A time-out in foreclosures is a necessary stop-gap measure." Rep. Matsui continued, "My amendment will give Congress, regulators, and homeowners some breathing room while everyone works to craft a fair, sensible, and lasting solution to the foreclosure crisis."

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