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TARP extension targets foreclosures

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The Obama administration said today it will boost spending on foreclosure prevention as it exercises its authority to extend the $700 billion Troubled Asset Relief Program (TARP) to October.The move came as a Congressional Oversight Panel issued a report concluding that the administration's Home Affordable Modification Program (HAMP), which is funded largely by TARP, appears capable of preventing only a fraction of the projected 8 million to 13 million foreclosures anticipated in the next four or more years.The TARP program had been scheduled to end this year. In a letter to Congressional leaders today, Treasury Secretary Timothy Geithner said the administration still needs the ability to draw on TARP funds in the event of an "immediate and substantial threat to the economy" stemming from continued financial instability."Banks are still experiencing significant new credit losses, and the pace of bank failures, which tend to lag economic cycles, remains elevated," Ge...