Obama Set to Increase Funds for Foreclosure Relief

On today's "Meet the Press" in NBC, House Financial Services Committee Chairman Barney Frank said that newly elected US President Barack Obama will reallocate some funds to Foreclosure Relief. This is part of the Obama administration's plan to give aid to the current economic crisis in the country. A Massachusetts Democrat, Frank said that this is something that Americans can expect from the Bush administration in the coming weeks or months. The increased number of foreclosed homes has been seen as a grave problem brought about by the ailing economy. Therefore, stabilizing the economy means giving enough attention and substantial amount of money to solve this problem. Timothy Geithner, the new administration's Treasury Secretary, is set to unveil Obama's plan on February 10. The Obama administration has pledged $50 billion to $100 billion exclusively for foreclosure relief. This move is the second half of the Troubled Asset Relief Program worth $700 billion. Larry Summers, Director of the White House National Economic Council, said today on ABC's "This Week" that President Obama is fully committed to providing aid to prevent foreclosures. According to Summers, the housing sector of the US economy will experience more support from the new administration, with funds not lower than $50 billion. A lot of talks in the past from officials, experts and analysts blame the Bush administration for failing to take action on the economy, resulting to massive foreclosures around the country. According to them, banks should have been made to lend to those facing threats of foreclosures. Moreover, troubled mortgages should have been modified so that homeowners could still continue paying for their properties, even at fewer amounts. Now, banks that receive government aid are being called to have new limits. Frank is set to meet with the chief executive officers of eight major banks, including Bank of America Inc. and Citigroup Inc. The meeting is geared towards modifying mortgages, increased lending and restricting excessive compensation. These are all directed towards preventing more foreclosed homes. Frank said that he will inquire of pay incentives and bonuses. To help the companies be able to execute these plans, the Obama administration will possibly ask the Congress to release more funds to help the banking industry. Search foreclosure homes by city:

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