The government launched the Troubled Asset Relief Program, or TARP, to stabilize the banking system, free up the credit market and help homeowners stay in their homes. The government's biggest mistake with this program was not including a stipulation in the loan agreement with these banks that would require these institutions to modify a certain number of loans. In the case of Bank of America, which received $45 billion in bailout funds, it should have been required to modify a minimum of 1,000,000 permanent loans. Additionally, Citi Group received over $40 billion in bailout funds and should have been forced to do the same. Wells Fargo received $25 billion in bailout funds and should have been required to modify 750,000 permanent loans, and JP Morgan Chase, which received more than $10 billion from the TARP fund, should have been required to modify minus 300,000 loan modifications. If these banks did not meet the minimum modification requirements, their interest rates would increase by 3 percent to 12 percent. This would have been a very costly sanction for these banks. If these requirements had been included in the loan agreement between the banks and the government, more than 3 million homes would have been saved from foreclosure. Most of the banks that were bailed out have repaid their TARP loans; the government therefore no longer has any influence over these banks. It is clear that these banks had no interest in making significant modifications to their loans, even though the government continually encouraged and begged them to do so. This approach clearly did not work. I saw how hard my parents were trying to modify their loan and the mortgage company was not willing to lower their monthly payment and continued to give them... middle of paper ... program. Most banks did not want to participate in this program because they did not like the idea of ​​principal depreciation. This $300 billion is still available and can be used by the Obama administration to fund my program. I believe that the program I have described, along with the passage of bankruptcy legislation, would certainly help reduce the foreclosure rate in this country by more than 70 percent. Banks would certainly be pressed to begin voluntarily modifying their loans, lest homeowners go to bankruptcy court and bankruptcy judges rewrite the loans by reducing the principal to current market value and lowering the rate interest up to 1%. . Banks would suffer a greater financial loss for any homeowner who obtains relief from a bankruptcy court, as opposed to banks modifying mortgages themselves..