Luke Judge

results. They now say that up to 4 million borrowers could qualify for a HAMP trial, after which servicers will determine if they are eligible for permanent assistance.

According to the CBO, through January 2010, the Treasury had disbursed a total of $31 million to HAMP servicers in the form of incentive payments.

The office notes that another $1.5 billion in TARP funds is currently slated to provide direct grants to state housing agencies in California, Arizona, Nevada, Michigan, and Florida to develop their own mortgage assistance programs based on local needs as a supplement to HAMP.

CBO’s latest report puts the final price tag for all TARP programs – including bank and corporate bailouts and private investment partnerships, as well as foreclosure mitigation programs – at $109 billion. That’s about $10 billion more of taxpayers’ money than the agency’s earlier estimate in January.

Much of that estimated cost is associated with the assistance provided to American International Group (AIG) – at a cost of about $36 billion – and the automotive industry-at a cost of about $34 billion. The government’s bailouts of banks, on the other hand, are expected to yield a profit of about $7 billion, CBO said.

CBO’s cost projection for TARP is lower than estimates published by the Office of Management and Budget (OMB), which puts the total cost of TARP transactions at $127 billion.

According to a statement from the CBO director, OMB’s estimate is $18 billion higher because of differences in their calculations of the cost of assistance to AIG and in the amount expected to be disbursed under HAMP.

Of the $700 billion authorized under the TARP umbrella, CBO estimates that $344 billion is outstanding or will be disbursed before the program expires on October 3, 2010.

A separate study conducted by the University of Louisiana at Lafayette and cited by the Washington Post shows that more than 10 percent to TARP recipients with debt outstanding failed to pay the government a quarterly dividend last month. The Post quoted the report as concluding the missed payments mean the government “probably extended TARP too far.”

News automotive industry, foreclosure, taxpayers, university of louisiana at lafayette, washington post