The House Financial Services Committee released draft legislation on Friday that will revamp the Troubled Asset Relief Program (TARP), requiring that a minimum of $50 billion of the remaining $350 billion be used for foreclosure mitigation to help consumers.

Among other things, the committee wants the government to pay down second liens that are impeding loan modifications. It also wants to continue the practice of offering cash incentives to residential servicers that engage in loan modifications. The effort is focused solely on owner-occupied homes.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.