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Government providing $3 billion to unemployed homeowners

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Thursday, August 12, 2010

HOUSING

Aid pledged for some jobless homeowners

The Obama administration will provide $3 billion to unemployed homeowners facing foreclosure in the toughest job markets. The Treasury Department said it will send $2 billion to 17 states that have had unemployment rates higher than the national average for a year. They will use the money for programs to aid unemployed homeowners.

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An additional $1 billion will go to a new program run by the Department of Housing and Urban Development. It will provide homeowners with emergency zero-interest-rate loans of up to $50,000 for up to two years. The program was required under the financial regulatory bill.

Officials said they won't know until next month how many people are likely to be helped.

-- Associated Press

INSURANCE

AIG selling most of consumer finance unit

American International Group said it will sell most of its consumer finance unit to Fortress Investment Group and take a $1.9 billion pretax loss.

AIG, majority owned by the U.S. government, is selling 80 percent of American General Finance to Fortress managed funds and affiliates as it restructures after a bailout. It did not disclose terms of the deal.

It has been selling assets to repay taxpayers, to whom it still owes more than $100 billion.

AIG will own the remaining 20 percent of the unit but said it will not be included in its financial statements. The companies expect the deal to close by the end of the first quarter of 2011.


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