Americans whose personal finances are being dragged under by an outsized mortgage will have a new option for debt help once the recent financial reform bill is signed into law, according to Pennsylvania Congressman Chaka Fattah.
The plan calls for $3 billion of funding from the Troubled Asset Relief Program’s coffers to be spent on providing emergency loans to consumers facing foreclosure on their homes, Fattah says, adding that the large numbers of unemployed Americans are particularly at risk of being turned out by the bank.
Fattah says that “Americans need help, 8 percent of all mortgage holders are currently at risk of losing their homes and that is unacceptable. I’m encouraged that my colleagues supported my legislation in both the House and the Senate to ensure that families won’t be faced with the double blow of being unemployed and homeless.”
New restrictions on other sectors of the consumer finance industry – including payday loans and credit cards – are also aimed at helping Americans weather the aftereffects of the recent recession, experts say.