Wednesday, October 6, 2010

Treasury Says Housing Programs Represent 90% of Projected TARP Cost.

In advance of a regular monthly statutorily required report on TARP progress the US Treasury published a PR piece detailing their positive spin on TARP. That report is HERE.

Without drinking all of the Kool-Aid, I think it IS fair to say that total TARP costs WILL be far, far below the $700 Billion initial TARP authorization.

On PDF page 8 of their report the Administration says the total projected TARP cost is $51 billion. Treasury says that $46 billion of that cost will be for housing programs including MHA programs like HAMP; the HFA Hardest Hit fund; and the FHA Short Sales program.

That means that Treasury is currently projecting that housing programs will represent 90% of the TOTAL TARP COST, a projection that will come as a surprise to most. 

Note also that housing costs for HUD NSP, Emergency Assistance, Recovery Act housing programs, homeowners tax credits AND the GSE bailout are NOT included in the $46 billion projected TARP housing costs.

Originally created and posted on the Oregon Housing Blog.

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