Department of the Treasury – Budget in Brief

Office of Financial Stability 

Program Summary 

Dollars in Billions 

Cumulative 

Obligated 

Cumulative 

Disbursed 

(as of 

4/30/17) 

Cumulative 

Outstanding 

(as of 

4/30/17) 

Total 

Cumulative 

Income (as 

of 4/30/17) 

Total 

Cash 

Back 

(as of 

4/30/17) 

Total 

Estimated 

Lifetime 

Costs (as 

of 11/30/16) 

 

Bank Support Programs 250 245 0 36 275 -24 

Credit Market Programs 19 19 0 5 24 -3 

AIG Investment Program 

(AIG) 68 68 0 1 55 15 *

Automotive Industry 

Financing Program 80 80 0 7 71 12 

Treasury Housing Programs 38 25 0 33 ***

Total** $455 $437 $0 $49 $425 $32 

Additional AIG Common 

Shares Held by Treasury 0 0 0 18 18 -18 *

Total for Programs and 

Shares** $455 $437 $0 $66 $442 $15 

* If all Treasury AIG Investments are combined, it results in a net gain of nearly $2.4 billion on those shares. 

**Totals may not foot due to rounding. 

***Making Home Affordable (MHA) and Hardest Hit Fund (HHF) Estimated Lifetime Costs are as of 3/31/17. 

Administrative Account Summary 

Dollars in Thousands 

FY 2016 

Actual 

FY 2017 

Estimated 

FY 2018 

Estimated 

FY 17 – FY 18 

Change 

FY 17 – FY 18 

%Change 

TARP Administrative Account 133,759 106,976 83,080 -23,896 -22.34% 

Total Obligations $133,759 $106,976 $83,080 -$23,896 -22.34% 

 

FTE 66.5 52.5 42.5 -10 -19.05% 

Summary and Explanation of Programs 

A central part of the response to the 2008 

financial crisis was the implementation of the 

Troubled Asset Relief Program (TARP), 

which was established in the fall of 2008 under 

the Emergency Economic Stabilization Act of 

2008 (EESA) (P.L. 110-343) within the Office 

of Domestic Finance at the U.S. Department of 

the Treasury (Treasury). TARP was created to 

restore the liquidity and stability of the 

financial system and is administered by the 

Office of Financial Stability (OFS) established 

within Treasury. Since late 2010, OFS has 

focused on carefully winding down TARP’s 

investment programs, recovering the OFS’s 

outstanding investments, and continuing to 

implement the various housing programs 

under TARP. OFS has made significant 

progress in winding down TARP investment 

programs and continues to administer housing 

programs to help struggling families avoid 

foreclosure. As of April 30, 2017, OFS has 

recovered more than 97 percent of the $436.9 

billion in total program funds disbursed under 

TARP, as well as an additional $17.6 billion 

from Treasury’s equity in AIG. When all of 

Treasury’s AIG investments are included, the 
Department of the Treasury – Budget in Brief

amount recovered is greater than the funds 

disbursed by $5.5 billion. 

In FY 2018, OFS plans to obligate $83 million 

and use 42.5 FTEs, a decrease of almost $24 

million and 10 FTEs from the updated FY 

2017 estimates, to fund the management of the 

TARP housing programs and the continuing 

disposition of OFS’s remaining investments. 

The decrease in FTEs and outside contracts 

reflects the continued wind-down of TARP. 

Legislative Proposals 

OFS has no legislative proposals for FY 2018. 

Description of Performance 

Bank Support Programs 

Capital Purchase Program (CPP) 

OFS created CPP, its largest program, in 

October 2008. OFS provided a total of $204.9 

billion in capital to 707 institutions in 48 

states. During FY 2016, OFS continued to 

wind down remaining CPP investments 

through repayments by those institutions that 

were able to do so and restructuring 

investments in limited cases. As of April 30, 

2017, CPP has generated $226.7 billion in 

recoveries for taxpayers with nine institutions 

remaining in the program for a total of $191 

million in investments outstanding.

Community Development Capital Initiative 

(CDCI) 

OFS created CDCI on February 3, 2010, to 

provide investments of capital to certified 

Community Development Financial 

Institutions banks, thrifts, and credit unions. 

The initial dividend or interest rate was two 

percent. To encourage repayment, the 

dividend rate increases to nine percent after 

eight years. On August 1, 2016, Treasury, as 

part of its ongoing effort to wind down TARP, 

offered participating CDCI institutions an 

opportunity to repurchase their outstanding 

securities owned by Treasury at fair value 

ahead of the dividend rate step-ups set to take 

place in 2018. OFS invested $570 million in 

84 CDFIs, of which 28 institutions converted 

$363 million (including warrants) from CPP to 

CDCI. As of April 30, 2017, CDCI has 

generated $508 million in recoveries for 

taxpayers with 27 institutions remaining in the 

program for a total of $98 million in 

investments outstanding. 

Housing Programs 

OFS established several TARP housing 

programs, assisting millions of homeowners 

and introducing reforms for the mortgage 

servicing industry to facilitate mortgage 

modifications. 

Making Home Affordable Program (MHA) 

In 2009, OFS launched MHA to help 

homeowners prevent avoidable foreclosures 

and strengthen the housing market. The 

cornerstone of MHA is the Home Affordable 

Modification Program (HAMP), which 

provides eligible homeowners the opportunity 

to reduce their monthly mortgage payments. 

In accordance with provisions of the 

Consolidated Appropriations Act, 2016 (the 

Act) (P.L. 114-113), MHA terminated on 

December 31, 2016, except with respect to 

certain applications made before such date. As 

of April 30, 2017, OFS had disbursed $17.0 

billion out of a possible $27.8 billion under 

MHA.

Housing Finance Agency (HFA) Hardest Hit 

(HHF) Fund 

HHF was established in 2010 to provide 

targeted aid to homeowners in states hit 

hardest by the economic and housing market 

downturn by providing funding to state HFAs. 

The $7.6 billion initiative encompassed 18 

states and the District of Columbia. In 

December 2015, the Act granted Treasury 

authority to make an additional $2.0 billion in 

commitments through the HHF. As of April 

30, 2017, OFS had disbursed $8.1 billion out 
Department of the Treasury – Budget in Brief

of a possible $9.6 billion under the HFA 

Hardest Hit Fund. 

Federal Housing Administration (FHA) - 

Short Refinance Program 

OFS continues to support the FHA Short 

Refinance Program, designed to assist 

borrowers with negative equity. The program 

has seen limited participation. As such, OFS 

has reduced the LOC facility supporting this 

program from $8.0 billion to $100 million. On 

December 31, 2016, the FHA Short Refinance 

Program ended; therefore, OFS plans to lower 

the LOC in FY 2017 to the total amount of 

OFS coverage for the loans in the program. As 

of November 30, 2016, the revised lifetime 

cost estimate for the program was $18 million 

for outstanding refinanced loans. 

Other Programs 

Automotive Industry Financing Program 

(AIFP) 

OFS fully wound down AIFP during FY 2015, 

selling its remaining stake in Ally Financial. 

OFS disbursed $79.7 billion in loans and 

equity investments to the auto industry through 

the AIFP. As of April 30, 2017 OFS has 

collected $70.5 billion through sales, 

repayments, dividends, interest, recoveries, 

and other income. Recoveries from the 

bankruptcy liquidation of Old Chrysler and 

Old GM remain possible. 

All other TARP programs closed prior to 

FY 2016, including the Targeted Investment 

Program, Asset Guarantee Program, PublicPrivate Investment Program, Term AssetBacked Securities Loan Facility, Small 

Business Administration 7(a) Securities 

Purchase Program, and American International 

Group, Inc. Investment Program. 

For more details, please see the Budgetary 

Effects of the Troubled Asset Relief Program 

chapter in the Analytical Perspectives volume 

of the 2018 Budget.