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Treasury Blocks Legal Aid for Homeowners Facing Foreclosure

Wednesday, December 22, 2010

“Consider this: the recent Fed audit revealed over $3.3 trillion in emergency assistance to the banks and other corporate behemoths during the financial crisis—no strings attached . . .Then consider the 19 states which are recipients of the Hardest Hit Fund (HHF)—a portion of TARP money set aside to help homeowners in states struggling with the highest unemployment rates and steepest declines in the housing market. Some of those states, including Ohio, let Treasury Secretary Tim Geithner know as far back as this past spring that they wanted to use some of those funds to assist legal aid groups that help individual homeowners. . . . Treasury solicited the opinion of an outside law firm, . . . The firm said, in essence—sorry, no can do on the legal aid. Not permitted under the TARP. . . . "

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