Frank proposes to use TARP funds to help stretched home owners

Rep. Barney Frank (D-Mass.) has unveiled legislation that would shift $3 billion of the $700 billion financial bailout in favor of emergency mortgage aid.

In an amendment to wide-ranging financial overhaul legislation that the House is expected to vote on by Friday, Frank wants to direct the $3 billion away from the Treasury Department to the Housing and Urban Development agency.


Frank has been pushing the federal government to take stronger action to help the housing market as it continues to suffer in the weak economy. Earlier this year he said money from the bailout, known officially as the Troubled Asset Relief Program (TARP), should help the housing market.

Frank's amendment comes as President Barack ObamaBarack Hussein ObamaEven with likely Trump impeachment, Democrats face uphill climb to win presidency Clinton suggests Russia grooming Gabbard to run as third-party 2020 candidate The Hill's 12:30 Report: Washington mourns loss of Elijah Cummings MORE and members of Congress look at new ways to stimulate the economy. The unemployment rate, although it fell modestly last month, rests at 10 percent.

Obama will speak at the Brookings Institution Tuesday and may outline additional economic measures. Congressional lawmakers are discussing a range of options, including an extension of unemployment benefits, aid to extend credit to small businesses, a work-share labor incentive program and possibly additional aid to states and cities.

Republicans have been adamantly opposed to redirecting bailout money to efforts to bolster the economy. They want the money to go toward paying down the national deficit.