Troubled Asset Relief Program: Treasury sees some returns as it exits programs and continues to fund mortgage programs: report to Congressional addre

By: Office, U. S. Government Accountability

"United States Government Accountability OfficeHighlights of GAO-13-192, a report tocongressional addresseesJanuary 2013TROUBLED ASSET RELIEF PROGRAMTreasury Sees Some Returns As it Exits Programsand Continues to Fund Mortgage ProgramsWhat GAO FoundAs of September 30, 2012, the Department of the Treasury (Treasury) wasmanaging assets totaling $63.2 billion in nonmortgage-related Troubled AssetRelief Programs (TARP) (see figure). As of this date, Treasury had exited 4 ofthe 10 nonmortgage-related programs, and in December 2012 Treasuryannounced the exit from a fifth program-the American International Group (AIG)Investment Program. Exactly when Treasury will exit the remaining five programsremains uncertain. Treasury has identified several factors that will affect itsdecisions. For example, - for the Capital Purchase Program (CPP, created to provide capital tofinancial institutions), the financial condition of the participatinginstitutions and the success of auctions;- for the Community Development Capital Initiative (CDCI, created toprovide capital to credit unions and financial institutions in underservedcommunities), which Treasury has not yet decided to exit, the financialcondition of the participating institutions and the rate at which theinstitutions repay Treasury; and- for the Automotive Industry Financing Program (AIFP, created to preventa significant disruption of the American automotive industry).Some programs, such as CPP, have yielded returns that exceed the originalinvestments. Others, such as CDCI and AIFP, have not.Unlike the nonmortgage-related TARP programs, TARP-funded mortgageprograms, which focus on mitigating foreclosures, are ongoing, and Treasury'soversight of new requirements designed to improve servicers' interactions withborrowers showed both challenges and improvements. Treasury allocated $45.6billion in TARP funds to three programs, including Making Home Affordable(MHA), but more than $40 billion of the funding has not yet been disbursed, andthe programs have not reached the expected number of borrowers. Thecenterpiece of MHA is the Home Affordable Modification Program, which hasprovided about 1.1 million permanent modifications to borrowers. To help ensurethat homeowners receive appropriate assistance from servicers under this andother MHA programs, since September 2011 Treasury has required servicers toidentify a "relationship manager" to serve as the homeowner's single point ofcontact throughout a delinquency or imminent default resolution process. GAOfound that Treasury's initial reviews of servicers' implementation of thisrequirement had identified some inconsistencies. However, oversight of a secondrequirement designed to improve the resolution of borrower inquiries anddisputes (escalated cases) showed that the nine largest servicers had met theperformance target. Treasury officials said that the MHA program administrator, Fannie Mae, handled oversight of the escalation process and the vendors whosupported in keeping with Treasury's guidelines.View GAO-13-192 or key components.For more information, contact Thomas J.McCool at (202) 512-2642 ormccoolt@gao.gov."

• Format: Paperback
• Language: English
• ISBN: 1974203654
• ISBN13: 9781974203659
• Release Date: January 1
• Publisher: Createspace Independent Publishing Platform
• Length: 70 Pages
• Weight: 0.41 lbs.
• Dimensions: 0.1" x 8.5" x 11.0"