WASHINGTON – As Congress considers releasing the second half of the Treasury’s $700 billion Troubled Asset Relief Program (TARP), the National Association of Home Builders (NAHB) today urged lawmakers to use a portion of the funds to stem the rising tide of foreclosures and increase the flow of credit for housing production. NAHB also urged passage of legislation to stimulate housing demand.
“Up to this point, the TARP program has failed to expand the flow of credit to business and consumers on competitive terms,” NAHB Chairman-elect Joe Robson, a home builder from Tulsa, OK, said in testimony before the House Financial Services Committee. “In addition the TARP program has not adequately responded to the nation’s foreclosure crisis, which must be addressed to keep people in their homes, help stabilize home prices and promote recovery of the housing market and economy.”
NAHB supports foreclosure prevention measures advocated by Federal Deposit Insurance Corp. Chairman Sheila Bair, which would use $24 billion of the funds Congress authorized for the TARP to provide loan guarantees to achieve greater success in foreclosure mitigation efforts. FDIC estimates that the program could help about 1.5 million homeowners to avoid foreclosure.
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