The

United States Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...

established the Hardest Hit Fund in February 2010, to provide targeted aid to states hit hardest by the

subprime mortgage crisis The United States subprime mortgage crisis was a multinational financial crisis that occurred between 2007 and 2010 that contributed to the Financial crisis of 2007–2008, 2007–2008 global financial crisis. It was triggered by a large decline ...

which began in 2007. Each state housing agency gathered public input to implement programs designed to meet the distinct challenges struggling homeowners in their state were facing. HHF is part of the

Troubled Asset Relief Program The Troubled Asset Relief Program (TARP) is a program of the United States government to purchase toxic assets and equity from financial institutions to strengthen its financial sector that was passed by Congress and signed into law by President G ...

Program description

States were chosen based on two categories, their unemployment rates need to be at or above the national average or steep home price declines greater than 20 percent, since the housing market downturn. The means of funds distribution varies by state, and homeowners must contact their state housing finance agencies to apply for aid. A total of $7.6 billion (~$ in ) were allocated to the 18 states and the District of Columbia in 2010. As of December 31, 2011, only 3% of the funds had been spent according to a government report. In 2016, another $2 billion was allocated to HHF by the Consolidated Appropriations Act, which is available to states until 2020.

Criticism

According to a May 2012 report,

Fox Business Fox Business (officially known as Fox Business Network, or FBN) is an American business news channel and website publication owned by the Fox News Media division of Fox Corporation. The channel broadcasts primarily from studios at 1211 Avenue ...

stated that programs like the Hardest Hit Fund and

HAMP Hepcidin is a protein that in humans is encoded by the ''HAMP'' gene. Hepcidin is a key regulator of the entry of iron into the circulation in mammals. During conditions in which the hepcidin level is abnormally high, such as inflammation, se ...

modifications are helping only a few homeowners and have not been effective at dealing with the mortgage crisis.

References

External links

US Treasury DepartmentUS Treasury - Hardest Hit Fund
Housing finance agencies of the United States United States housing bubble Mortgage industry of the United States {{US-gov-stub