Two More Bailouts, Two More Mortgage Modifiers and Chrysler Repays
Lincoln National Corporation is now one of two insurers to take bailout funds originally intended for "healthy banks," according to data released on the Treasury Department’s Web site Tuesday. The Pennsylvania-based life insurer accepted almost $1 billion, less than half of the maximum amount it was approved to take. In May, the Treasury Department approved six insurers to receive TARP funds through the Capital Purchase Program. The other insurer, Hartford Financial Services, accepted $3.4 billion in late June.
The Treasury Web site also noted that Chrysler repaid a $280 million loan from April that provided funds to back car warranties as the company restructured. Meanwhile, Chrysler Financial, the former lending arm of the auto company, announced Tuesday that it repaid its $1.5 billion TARP loan from January by bundling and selling pools of car loans to investors through another TARP program, the Term Asset-Backed Securities Loan Facility.
Finally, an Ohio-based community bank and Florida-based credit union have signed up for the Making Home Affordable program to prevent foreclosures. Lake National Bank and IBM Southeast Employees’ Federal Credit Union agreed to modify mortgages for eligible borrowers in exchange for incentive payments from the government, which are capped at $100,000 and $870,000 respectively.
As big banks return their TARP money, Fannie Mae and Freddie Mac continue to be a drain.