FDIC lays out broad home loan modification plan

[Darkoak]

WASHINGTON (Reuters) - The federal agency that insures most U.S. bank deposits unveiled a plan to prevent about 1.5 million home mortgage foreclosures by promising to share any losses with mortgage companies that agree to refinance certain home loans.

The agency, the Federal Deposit Insurance Corp, said on Friday the plan would cost the government about $24.4 billion, which could be paid from the U.S. Treasury's $700 billion bailout program for the financial industry.

So far, most of the money in the bailout program, the Troubled Asset Relief Program, or TARP, has been injected as capital into banks.

FDIC lays out broad home loan modification plan | Reuters (http://www.reuters.com/article/ousiv/idUSTRE4AD4RF20081114)

[BigDogsHunt]

So far, most of the money in the bailout program, the Troubled Asset Relief Program, or TARP, has been injected as capital into banks.


How much of the $700B has been doled out? Who's is sitting on the balance and decides where the rest is distributed? Is that Paulson?

Plus, I am confused as to this magical $700B and how new entities are coming out of the woodwork (Mayor's, Auto Industry, etc) and asking for a share. If they werent part of the planning, who is about to get short changed if these new folks get a piece of the pie?

This is sickening!