Incoming President Barack Obama will allocate up to $100 billion of the $350 billion Troubled Asset Relief Program financial bailout fund for foreclosure prevention.
Chairman Sheila Bair, the frontrunner of FDIC’s proposal for a mortgage-restructuring program to stop foreclosures is targeted out of office by administration people.
Bankers and economists are unanimous in saying that the growing unemployment rate will overtake subprime loans as the major factor that will boost the number of foreclosed homes across the country. They are expecting foreclosures brought by unemployment to be more complicated and difficult to handle.
President-elect Barack Obama recently requested the release of the other half of the $350 billion TARP funds. He said that the funds will be utilized in resolving foreclosure issues.
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