Eisrael Gomez Realtor - Monterey County Blog

This is an excerpt from the Daily Breifing from the California Association of Realtors's president:

Key components of the Treasury’s proposal include:

• The authority to issue up to $700 billion of Treasury securities to finance the purchase of troubled residential and commercial mortgage-related assets, including mortgage-backed securities and loans.
• This authority would expire in two years, and assets must have been originated or issued on or before Sept. 17, 2008, to qualify.
• Assets will be managed by private asset managers at the direction of the Treasury.
• Cash received from liquidating the assets will be returned to the Treasury’s general fund for the benefit of taxpayers.
• Funding for the program will be provided directly by the Treasury from its general fund by increasing its debt limit by $700 billion.
• Once the program is up and running, Treasury will provide updates to Congress semi-annually.

The proposal also grants Treasury Secretary Paulson sweeping authority regarding the purchase of assets, the timing and sale of assets, determining financial institutions’ eligibility to participate and more. To access a fact sheet on the Treasury proposal, go to http://www.treasury.gov/press/releases/hp1150.htm.

Stay tuned....