Oversight Committee: Is Treasury Using Bailout Funds to Increase Foreclosure Prevention, as Congress Intended?

Congress established the $700 billion Troubled Asset Relief Program on October 3, 2008 to deal with the financial crisis. One of TARP's core functions was to prevent future foreclosures through the acquisition of mortgage-related assets, such as whole loans, mortgage-backed securities and other financial products, and the implementation of a plan to stem foreclosures on those loans. In creating TARP, Congress was aware of the efforts of the private mortgage servicing industry to prevent foreclosures, and committed an extraordinary sum of taxpayer funds to expand upon those efforts. On November 12, 2008, Treasury Secretary Henry Paulson announced that TARP would not acquire mortgage-related assets. In light of this significant change in TARP's mission, important oversight questions arise.

Witnesses for the hearing include:

Mr. Neel Kashkari, Interim Assistant Secretary for Financial Stability and Assistant Secretary for International Economics and Development

Department of Treasury

Mr. Michael Barr, former Deputy Assistant Secretary for Community Development, Department of Treasury

University of Michigan Law School & Center for American Progress

Mr. Anthony B. Sanders, W.P. Carey School of Business, Arizona State University

Ms. Alys Cohen, National Consumer Law Center

Mr. Larry Litton, Litton Loan Servicing LP

Mr. Stephen Kudenholdt, Thacher Proffitt & Wood

Mr. Thomas Deutsch, American Securitization Forum

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