On December 5, Treasury released its initial TARP progress report to Congress. On December 2, Treasury presented its third Tranche Report and the GAO published its first TARP report recommending that more steps be taken to ensure accountability and transparency with respect to TARP.  First Report to Congress.  Tranche Report.  GAO Transparency Report.

On December 4, the GAO presented a separate report on TARP to a Senate subcommittee on financial services and general government which focused on TARP’s efforts to address home mortgage defaults and foreclosures.  The GAO noted that default and foreclosure rates for home mortgages rose sharply from the second quarter of 2005 through the second quarter of 2008 and indicated that more extensive use of loan modification programs would be necessary to restore stability to the mortgage market and preserve home ownership. In related news, on

On December 8, at the Office of Thrift Supervision’s National Housing Forum Comptroller of the Currency John C. Dugan stated that more than half of the loans modified in the first quarter of 2008 fell delinquent within six months after modification.  GAO Home Mortgage Report.  OCC Press Release.

 On December 10, the Congressional Oversight Panel for TARP issued its initial report, as mandated by the Emergency Economic Stabilization Act of 2008, urging Treasury to provide more information on its current progress and future plans, and questioning whether Treasury’s efforts are having a positive effect on stabilizing markets and reducing foreclosures.  Congressional Oversight Panel Report.