Geithner Refusing To Provide Funding For Legal Aid For Homeowners
The 2008 bank bailout bill gave the Treasury secretary broad discretion to spend money to fend off foreclosures. But while Treasury has approved $7.6 billion in expenditures to help states prevent and clean up foreclosures[. . . ] States initially applied for funds from the program in the spring of this year, but the Treasury refused to extend money for tackling legal bills. [. . . Sen. Sherrod] Brown and 30 Democratic members of the House sent a letter to Geithner asking him to reconsider his decision. Geithner refused[. . . MORE]
Geithner cit[ed] a memo from Treasury General Counsel George Madison, which contends:Legal aid services are not necessary and incidental, as a matter of law, to the implementation or effectiveness of the HFA Hardest-Hit Fund, because: (1) Congress has provided other specific appropriations that fund the same type of legal aid services proposed by the state Housing Finance Agencies ("HFAs"); and (2) legal aid services are not necessary or essential to the implementation of a loan modification program.
This is wrong as a matter of law. Nothing in the law impedes the use of these funds for legal assistance. Most likely, Geithner asked for a legal opinion telling him not to provide these funds. Geithner is a corrupt incompetent. He should be fired immediately.
DISCLOSURE: I advise homeowners regarding loan modifications and foreclosures.
Speaking for me only
|< Blinders On The Norquist Strategy | Wednesday Afternoon Open Thread >|