FALL RIVER, Mass. – A leading lawmaker said Monday he is pushing legislation that would use some of the interest the government collects from the Troubled Asset Relief Program to give loans to unemployed homeowners struggling to pay their mortgages.
Rep. Barney Frank, chairman of the House Financial Services Committee, said at local appearances yesterday with Housing and Urban Development Secretary Shaun Donovan that he favors providing government help in the form of federal loans to homeowners who have lost their jobs until they get another job.
"These are people who are very responsible, very thoughtful. They got a home, it's above water, they've got equity, but they're unemployed, and you can't afford mortgage payments on unemployment," said Frank, D-Mass.
Frank said the program would be funded using interest banks pay on the $700 billion Wall Street bailout, known as TARP.
The proposal, now part of a bill introduced in September, called the Main Street TARP bill, would provide $2 billion in TARP money for low-interest loans to homeowners who have lost their jobs. The emergency loans would be provided for up to 12 months with the possibility of extending them for another year.
