Is Obama Foreclosure Bailout Legal?

Mark Calabria of Cato asks a good question: Is the Obama foreclosure plan legal?

Apparently unlike the Treasury department, I believe we should go back to the language of the statute in determining what it allows and doesn’t allow. Section 110(b)(1) is quite clear: “to the extent that the Federal property manager holds, owns, or controls mortgages, mortgage backed securities…” Nowhere else in TARP is there any other ability to establish a mortgage modification program. In using TARP funds to pay for modifications of loans not owned by the federal government, the Obama administration is acting far outside of its legal authority under TARP.

...even within such a broad delegation, there are parameters in which Treasury must act. Treating TARP as simply a large pot of money to spend however Treasury chooses is nothing short of illegal.

The program is ridiculous and a typical Obama transfer of wealth to those who are irresponsible. But the more pertinent question is, does Obama care if anything he does is not legal?