Department of the Treasury – Budget in Brief

Office of Financial Stability 

Program Summary 

Dollars in Billions 

 

Cumulative 

Obligated 

(as of 

11/30/2017) 

Cumulative 

Disbursed 

(as of 

11/30/2017) 

Cumulative 

Outstanding 

(as of 

11/30/2017)

Total 

Cumulative 

Income (as 

of 

11/30/2017) 

Total Cash 

Back (as of 

11/30/2017) 

Total 

Estimated 

Life Costs 

(as of 

11/30/2017) 

Bank Support Programs 250.5 245.1 0.1 35.7 275.5 (24.3) 

Credit Market Programs 19.1 19.1 0.0 4.6 23.6 (3.3) 

AIG Investment Program 

(AIG) 67.8 67.8 0.0 1.0 55.3 15.2 * 

Automotive Industry 

Financing Program 79.7 79.7 0.0 7.4 70.5 12.2 

Treasury Housing Programs 37.4 26.8 NA NA 0.0 32.5 

Total $454.5 $438.5 $0.1 $48.6 $425.0 $32.3 

Additional AIG Common 

Shares Held by Treasury 0 0 0 17.6 17.6 (17.6) * 

Total for Programs and 

Shares $454.5 $438.5 $0.1 $66.2 $442.5 $14.7 

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

Administrative Account Summary 

Dollars in Thousands 

 FY 2017 FY 2018 FY 2019 FY 2018 to 

FY 2019 

 Actual Estimated Estimated Change % Change 

Tarp Administrative Account 103,578 78,608 63,065 (15,543) -19.77% 

Total Obligations $103,578 $78,608 $63,065 ($15,543) -19.77% 

Total FTE 52 34 24 -10 -29.41% 

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 it is administered by the 

Office of Financial Stability (OFS). Since late 

2010, OFS has made significant progress in 

winding down TARP investment programs 

and in recovering OFS’s outstanding 

investments. OFS’s continued wind-down 

efforts align with Treasury’s Strategic Goal of 

financial stewardship, specifically objective 

4.1 (financial data access and use), by winding 

down sun-setting programs responsibly while 

maximizing the financial benefit to taxpayers. 

OFS continues to operate a housing program 

to help homeowners prevent avoidable 

foreclosures, but in 2016 began the wind-down 

of the largest TARP housing program, the 

Marking Home Affordable Program, pursuant 

to the Consolidated Appropriations Act, 2016. 

As of November 30, 2017, OFS has recovered 

97 percent of the $438.5 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 amount 

recovered is greater than the funds disbursed 

by more than $4.0 billion. 

In FY 2019, OFS plans to obligate $63 million 

and use no more than 24 Full-Time Equivalent 
Department of the Treasury – Budget in Brief

(FTE) employees, a decrease of approximately 

$16 million and 10 FTE employees from the 

current FY 2018 estimates, to fund the 

management of the TARP housing programs 

and the continuing disposition of OFS’s 

remaining investments. 

 

Legislative Proposals

Treasury seeks certain legislative changes 

related to OFS and TARP to reduce the 

frequency and necessity of several statutory 

reporting requirements that were established 

when TARP was created. Although these 

reporting requirements corresponded to the 

level of risk associated with a start-up entity in 

2009, risk has dramatically decreased as 

programs have closed. OFS estimates that 

enacting the following legislative proposals 

would result in more than $2 million in annual 

savings in contracting cost and Government 

Accountability Office (GAO) reimbursements 

and would reduce OFS’s workload by 4 FTE 

employees per year. The remaining statutory 

requirements will continue to provide 

sufficient transparency during the wind-down 

of TARP. 

Replace OFS’s stand-alone financial audit 

performed by GAO: Since inception, OFS 

has been required to undertake a stand-alone 

financial audit requiring significant resources. 

As the majority of programs have closed, the 

need for a stand-alone audit has diminished. 

As such, Treasury’s Office of the Inspector 

General could audit OFS’s financial operations 

under the Treasury-wide audit, similar to most 

other Treasury programs. 

Sunset the Financial Stability Oversight 

Board (FinSOB): This interagency group 

meets monthly and reports quarterly. The 

group has reviewed OFS’s program 

formulation and monitored program 

performance since the 2008 financial crisis. 

Because no new OFS programs can be 

implemented, all major investments have been 

disposed, and the housing programs are in 

wind-down, the need for the board’s oversight 

and reporting has diminished. 

Change frequency of the Section 105(a) 

report (“Congressional Monthly”): This 

performance report remains generally static 

from month-to-month. With most programs 

having closed, less frequent (quarterly) 

reporting is warranted. 

Eliminate the Administrative Activity 

Report (“Obligation Report”): This quarterly 

report provides data on administrative 

obligations by OFS office and is required 

under the annual Treasury appropriations bill. 

OFS has been prudent in the use of 

administrative funds and has been reducing 

obligations by approximately 20 percent per 

year over the last 5 years. 

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 2017, 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 November 

30, 2017, CPP has generated $226.8 billion in 

recoveries for taxpayers with six institutions 

remaining in the program, for a total of 

$48 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 (CDFI) banks, thrifts, and credit 

unions. OFS invested $570 million in 84 

CDFIs, of which 28 institutions converted 

$363 million (including warrants) from CPP to 

CDCI. The initial dividend or interest rate was 

two percent. To encourage repayment, the 
Department of the Treasury – Budget in Brief

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. By the end of January 2017, 

OFS completed 27 full and partial repurchases 

at fair value under the early repurchase option, 

for a total of $268 million in repayments. As 

of November 30, 2017, CDCI has generated 

$540 million in recoveries for taxpayers with 

21 institutions remaining in the program, for a 

total of $68 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. 

MHA servicers were required to design 

policies and procedures to reasonably ensure 

that all MHA transactions were completed by 

December 1, 2017. As of November 30, 2017, 

OFS had disbursed $18.2 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 

November 30, 2017, OFS had disbursed 

$8.5 billion out 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 incrementally reduced the LOC Facility 

supporting this program from an initial $8.0 

billion to $27 million in FY 2017, which 

matches OFS’s maximum liability for loans 

covered by the program as of December 31, 

2016, when the program ended. As of 

November 30, 2017, the revised lifetime cost 

estimate for the program was $17 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 automotive industry 

through the AIFP. As of November 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 Asset-
Department of the Treasury – Budget in Brief

Backed 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 TARP chapter in the Analytical 

Perspectives volume.