An 18-page formal request from the Bush administration on Obama’s behalf said the remaining funds could be used partly to help homeowners and to expand existing programs for financial firms. It offered few details but started a 15-day clock on Monday for lawmakers to decide whether to block the request.
Below are some of the new initiatives and reforms to the Troubled Asset Relief Program favored by the Obama team that have backing from Rep. Barney Frank, the chairman of the House of Representatives Financial Services Committee.
Help struggling homeowners avoid foreclosure — Frank has asked for $40 billion to guarantee troubled home loans, lower monthly payments and restore investor confidence in the mortgage market. White House economic adviser Lawrence Summers did not put a dollar figure on foreclosure aid, but said in a letter to congressional leaders that reducing mortgage payments for economically stressed borrowers and reforming bankruptcy laws to modify loans were priorities.
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