Stitt not a TARP recipient

Following the near-collapse of the nation’s financial system, Congress passed the Emergency Economic Stabilization Act of 2008 (EESA). The act created and appropriated some $700 billion for the Troubled Asset Relief Program (TARP). Its purpose was to inject capital into the nation’s largest banks by purchasing debt securities in each qualifying institution.

Five Oklahoma banks applied for and received TARP investments in 2009. Four of the five banks have redeemed those equity positions, including interest. TARP money was not available to smaller non-banks, like Gateway Mortgage Company, nor was it available to Kevin Stitt personally. Any allegation to the contrary is false.

In 2009, the EESA established the Home Affordable Modification Program (HAMP) to help individual homeowners avoid foreclosures. Under the program consumers could apply for an affordable modification of their existing home loan. More than 50 percent of these individual consumer loans were modified under the HAMP program.

Gateway, as a loan-servicing agent, participated in this program because it did business with mortgage purchasers Fannie Mae and Freddy Mac. It was a consumer-oriented program, not another capital infusion one like TARP.

Roger Beverage, Oklahoma City Beverage is president and CEO of the Oklahoma Bankers Association.