Industry NewsMortgage

Treasury seeks to prevent foreclosures

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The Treasury Department "will look for every opportunity possible" to help troubled borrowers avoid foreclosure when it begins buying mortgages and mortgage-backed securities from banks and financial institutions under the Troubled Asset Relief Program.Assistant Secretary for Financial Stability Neel Kashkari today revealed some of the particulars of how the $700 billion TARP program, passed by Congress and signed into law by President Bush Oct. 3, will be implemented.Kashkari said a Treasury policy team -- one of seven created after the TARP legislation was passed -- is in the process of drawing up rules for the reverse auctions the government will use to buy mortgage-backed securities at competitive prices. Another Treasury team is working with bank regulators to identify which types of whole mortgage loans to purchase first and how to value them."When we purchase mortgages and mortgage-backed securities, we will look for every opportunity possible to help homeowners&q...