Tags: US | Housing | Aid | Watchdog

Bailout Watchdog to Audit Housing Program

Tuesday, 13 Jul 2010 02:30 PM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

The special inspector general for the financial bailout will examine how 10 states were selected for an Obama administration plan to provide $2.1 billion in assistance to areas hit by the housing bust.

Bailout watchdog Neil Barofsky is undertaking the audit in response to a request from Rep. Darrell Issa, R-Calif., according to a letter Issa's office released Tuesday.

The Treasury Department has been running the government's "Hardest-Hit" fund, which is stocked with financial rescue money.

Barofsky also plans to examine whether state-designed programs that are receiving assistance differ from existing government efforts, the letter indicates. He also plans to examine whether Treasury has established ways to prevent waste and fraud and whether the government has established goals and measurements for the programs.

A Treasury spokesman did not comment.

President Barack Obama unveiled the state assistance effort in February. Since then, state agencies have designed their own approaches. They vary by state, but many provide aid to unemployed homeowners, or "under water" borrowers who owe more on their properties than their homes are worth or those.

Last month, the Treasury Department approved plans for half of the states getting funding through the program — Arizona, California, Florida, Michigan, and Nevada. The states, which were picked because they experienced at least a 20 percent decline in home prices, estimate that their plans will help up to 93,000 homeowners.

Besides these states, the Obama administration is providing an additional $600 million in financial support to help homeowners in states with high rates of unemployment. Those states — Ohio, North Carolina, South Carolina, Oregon, and Rhode Island — have submitted plans to the Treasury Department. They are still being reviewed.


© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Police: 2 NYC Cops Shot Dead, Execution Style

Saturday, 20 Dec 2014 17:03 PM

An armed man walked up to two New York Police Department officers sitting inside a patrol car and opened fire Saturday a . . .

Cuban Groups Protesting in Miami

Saturday, 20 Dec 2014 08:36 AM

Protesters waving Cuban flags have started to gather for a demonstration against President Barack Obama's plan to normal . . .

Prosecutors: Fraudster Used Funds to Freeze Wife

Saturday, 20 Dec 2014 13:31 PM

Prosecutors say a financial fraudster used backers' money to have his wife's body cryogenically frozen before fleeing Ne . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved