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The law states that the Treasury Department is required to "maximize assistance to homeowners" and encourage mortgage servicers to modify loans through programs including Hope for Homeowners, which went into effect this week.
But a Congressional oversight panel reported on Jan . 9that it found no evidence the bailout program had been used to prevent foreclosures, raising questions about whether the Treasury has complied with the law's requirement that it develop a "plan that seeks to maximize assistance for homeowners".
Watt said the small-scale plan balances the agency's statutory mandate to "maximize assistance for homeowners" while not adversely affecting the finances of Fannie and Freddie.
But even if that were true, there is no question that he has thumbed his nose at the law that requires him to maximize assistance for homeowners to minimize foreclosures.
Given our multiple responsibilities to conserve the assets of Fannie Mae and Freddie Mac, maximize assistance to homeowners to avoid foreclosures, and minimize the expense of such assistance to taxpayers, FHFA concluded that HAMP PRA did not clearly improve foreclosure avoidance while reducing costs to taxpayers relative to the approaches in place today.
As the panel noted: "For Treasury to take no steps to use any of this money to alleviate the foreclosure crisis raises questions about whether Treasury has complied with Congress's intent that Treasury develop a 'plan that seeks to maximize assistance for homeowners.' " Yet Obama successfully lobbied for a quick payout of the second installment.
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"It is a debate about which tools, at the margin, better balance two goals: maximizing assistance to several hundred thousand homeowners while minimizing further cost to all other homeowners and taxpayers".
One might, for instance, engage in philanthropy solely to make oneself happier, and indeed work hard at fine-tuning one's assistance to maximize the hedonic payoff.
The experience of these cases also suggests that technical assistance sensitive to both technical and occupational and environmental health concerns could help maximize the benefits of source reduction process change projects.
Still, Mr. Coleman said the tight-knit nature of Prattsville — where much of a pre-storm population of about 700 had been absorbed into the homes of friends and neighbors — had, in a way, prevented the town from maximizing its federal assistance.
Michigan was one of 16 states that had been signing up food stamp applicants for as little as $1 in heating assistance just to maximize this utility deduction and boost monthly food stamp benefits for thousands of people.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com