Rep. Doris Matsui Amendment to TARP Passes Amendment Will Give Hope to Homeowners Facing Foreclosure

FOR IMMEDIATERELEASE

Wednesday, January21, 2009

CONTACT: Alexis Marks

(202) 225-7163

WASHINGTON, D.C.- Today, the House passed the Troubled Assets Relief Program (TARP) Reform andAccountability Act, H.R. 384 by a vote of 260-166. The bill included an amendmentfrom Rep. Doris Matsui (CA-05) that will help homeowners across thecountry. The amendment states that financial institutions who receivefuture TARP funds should not foreclose on any principal homeowner, until thenew loan modification program in the bill is implemented and deemed fullyoperational.

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

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

"Taxpayers need and deserve the opportunity to receiveassistance from the new loan modification plan. A time-out inforeclosures is a necessary stop-gap measure." Rep. Matsui continued, "Myamendment will give Congress, regulators, and homeowners some breathing roomwhile everyone works to craft a fair, sensible, and lasting solution to theforeclosure crisis."

H.R.384, the TARP Reform and Accountability Act, is a tough accountability measurethat seeks to overhaul TARP. This bill strengthens accountability andalso requires Treasury to take significant steps on foreclosure mitigation,calling for spending $100 billion (with a minimum of $40 billion) of TARP fundsto help homeowners. The bill also does the following:

andmiddot; strengthens accountability, close loopholes,increase transparency -- forcing banks to report how government funds are beingspent;

andmiddot; affirms that TARP should be used to benefitsmall financial institutions, consumer lending, auto companies, andmunicipalities; and

andmiddot; limits bonuses for executives of firmsparticipating in TARP.

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