The latest congressional report stated that the estimated $700 billion federal bailout is likely to cost less than what is expected.

When the country was in financial crisis last 2008, the then Bush administration launched a program or federal bailout called Troubled Asset Relief Program (TARP) in reply to the crisis which includes aid to stressed out homeowners. However, it is currently estimated that TARP will cost taxpayers around $25 billion because it was not able to achieve all it previously visualized to aid homeowners pass up foreclosure as what was revealed by a member of congressional panel. Congressional panel further stated that the program “provided critical support to markets at a moment of profound uncertainty”, praising it for helping the insurer American International Group Inc. (AIG) reform as well as in helping troubled automakers.

However, the panel blamed TARP that fall short in spending sufficient funds to restrain more foreclosures.

Chairman of the Congressional Oversight Panel, Sen. Ted Kaufman said that among his major concerns was the huge attention given to “Wall Street than there was to Main Street”.

The panel also noted a $45.6 billion allocated fund for major housing programs with the goal to aid homeowners which includes the Home Affordable Modification Program (HAMP), a home refinancing program managed by Federal Housing Administration to help sunken homeowners and a housing program intended to aid hard-hit areas. However, the Treasury Department has only spent around $ 1 billion of the allocated TARP fund for the prevention of foreclosure.

The latest congressional report coincides as the House is set to vote ending HAMP and other foreclosure prevention programs. In spite of the threats from the White House to reject any efforts of ending the
program, GOP-led efforts are pressing on.

For the meantime, a senator told Reuters News last Thursday that Senate’s Banking Committee will intensify its supervision of TARP bailout program. Tim Johnson, a committee chairman said they will
thrust “tough oversight” in order to protect consumer, taxpayers and investors. The Congressional Oversight Panel will be ending its oversight in April.