"HAMP, as of September 30, 2010, has only approximately 467,000 ongoing permanent modifications with fewer than 207,000 of those funded and attributable to TARP. The remaining were funded outside of TARP. " A combined total of close to 700,000 of the almost 1.4 million total trial modifications were cancelled or failing." (p. 11)
SIG Barofsky outlined the depletion of needed funds that failed loan modifications cause to already troubled families. With a rate of 100,000 bank repossessions a month, Barofsky notes, the stakes are high and the public harm is significant.
"Treasury's decision to declare such uniform success for so many failures disregards the harm and suffering often accompanying failed trail modifications." (p. 12)
The report is over 300 pages but the overview by Neil Barofsky is a challenge to the TARP program in general and to the Treasury Department and Secretary Tim Geithner in particular.
Once again, the strongest voice for the impact on the people of the dire financial troubles comes from someone with independent judgment with intellectual honesty who shows a true understanding of how the continued stagnation and economic doldrums impact individuals and families, small business and Main Street.
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