U.S. Rep. Mike Coffman (R-CO) released the following statement Thursday after voting in favor of ending the government foreclosure assistance program. The U.S. House of Representatives passed H.R. 830, legislation which eliminates the Federal Housing Administration Refinance Program, an $8 billion taxpayer-funded bailout of mortgage lenders.
The program draws its funding from the Troubled Asset Relief Program and according to a recent report by the U.S. Department of the Treasury, $50 million of the $8 billion has been spent refinancing only 44 loans.
“The American taxpayer expects and deserves to be repaid for TARP,” Coffman said. “We should honor that commitment and use this money to pay down the national debt as promised.”
The Obama Administration claimed the FHA Refinance Program would help between 500,000 and 1.5 million by refinancing their underwater loans, but so far less than 300 applications have been submitted. The program is supposed to continue through December 31, 2012.