Department of the Treasury

Office of Financial Stability

Congressional Budget

Justification and Annual 

Performance Plan and Report

FY 2022
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Table of Contents

Section I – Budget Request........................................................................................................... 3

A – Mission Statement................................................................................................................ 3

1.1 - Program Account Summary........................................................................................... 3

1.2 – Financing Account Summary ............................................................................................ 4

1.3 – Program Disbursement, Repayments, and Cost/Savings................................................... 4

B – Vision, Priorities and Context .............................................................................................. 4

C – Credit Reform Account Description .................................................................................... 5

1.4 – Budget Adjustments Table................................................................................................. 7

D – Budget Increases and Decreases Description....................................................................... 7

1.5 – Object Classification (Schedule O) Obligations................................................................ 8

E – Appropriations Language and Explanation of Changes....................................................... 8

Section II – Annual Performance Plan and Report................................................................... 9

A – Strategic Alignment ............................................................................................................. 9

B – Budget and Performance by Budget Activity .................................................................... 10

C – Operational Goals............................................................................................................... 11

D – Evidence-Building Activity ............................................................................................... 12

Section III – Additional Information ........................................................................................ 12

A – Summary of Capital Investments....................................................................................... 12
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Section I – Budget Request

A – Mission Statement

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 continues to operate a housing 

program under TARP to help struggling families avoid foreclosure, but in fiscal year (FY) 2016 

began to wind-down the largest TARP housing program. As of November 30, 2020, OFS has 

recovered more than 96 percent of the $442.7 billion in total program funds disbursed under 

TARP, as well as an additional $17.6 billion from Treasury’s equity in American International 

Group, Inc. (AIG). When all of Treasury’s AIG investments are included, the amount recovered 

is greater than the funds disbursed by nearly $0.2 billion.

1.1 - Program Account Summary

Dollars in Thousands

FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022

Actual Estimated Estimated Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Obligations

Equity Program Account 6,671 5,000 0 (5,000) -100.00%

Housing Account 0 0 0 0 NA

TARP Direct Program Account 0 0 0 0 NA

TARP Administrative Account 43,078 40,789 37,637 (3,152) -7.73%

TARP Negative Downward Reestimate 

Receipt Account (74,433) 0 0 0 NA

Total Obligations ($24,684) $45,789 $37,637 ($8,152) -17.80%

Budget Authority 

Equity Program Account 6,671 5,000 0 (5,000) NA

Housing Account 0 0 0 0 NA

TARP Direct Program Account 0 0 0 0 NA

TARP Administrative Account 51,399 40,789 37,637 (3,152) -7.73%

TARP Negative Downward Reestimate 

Receipt Account (74,433) 0 0 0 NA

Total Budget Authority ($16,363) $45,789 $37,637 ($8,152) -17.80%

Outlays

Equity Program Account 6,671 5,000 0 (5,000) NA

Housing Account 669,436 643,944 426,846 (217,098) -33.71%

TARP Direct Program Account 0 0 0 0 NA

TARP Administrative Account 43,962 43,154 37,637 (5,517) -12.78%

TARP Negative Downward Reestimate 

Receipt Account (74,433) 0 0 0 NA

Total Outlays $645,635 $692,098 $464,483 ($227,615) -32.89%

Total Full-time Equivalents (FTE) 14 11 10 (1) -9.09%
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1.2 – Financing Account Summary

Dollars in Thousands

FY 2020 FY 2021 FY 2022 FY 2021 to FY 2022

Actual Estimated Estimated Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

TARP Direct Loans

Obligations 73,222 0 0 0 NA

Collections 0 0 0 0 NA

Financing Authority (net) 0 0 0 0 NA

Financing Disbursements (net) 73,222 0 0 0 NA

Equity Purchases

Obligations 1,371 4,000 0 (4,000) NA

Collections 12,491 13,000 3,000 (10,000) NA

Financing Authority (net) (10,147) (8,000) (3,000) 5,000 NA

Financing Disbursements (net) (11,299) (12,000) (3,000) 9,000 NA

Housing

Obligations 975 1,000 0 (1,000) NA

Collections 17 0 0 0 NA

Financing Authority (net) 0 0 0 0 NA

Financing Disbursements (net) 958 1,000 0 (1,000) NA

1.3 – Program Disbursement, Repayments, and Cost/Savings

Dollars in Billions

Cumulative 

Obligated 

(as of 

11/30/2020)

Cumulative 

Disbursed

(as of 

11/30/2020)

Cumulative 

Outstanding 

(as of 

11/30/2020)

Total 

Cumulative 

Income 

(as of 

11/30/2020)

Total Cash 

Back (as of 

11/30/2020)

Total 

Estimated 

Life Costs 

(as of 

11/30/2020)

Bank Support Programs 250.5 245.5 0.0 35.7 275.6 (24.3)

Credit Market Programs 19.1 19.1 0.0 4.5 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 70.6 12.1 

Treasury Housing Programs 32.6 30.9 0.0 0.0 0.0 32.4 

Total 449.6 443.0 0.0 48.6 425.1 32.1 

Additional AIG Common Shares Held by 

Treasury 0.0 0.0 0.0 17.6 17.6 (17.6)

Total for Programs and Shares 449.6 443.0 0.0 66.2 442.7 14.5 

*If all Treasury AIG Investments are combined, we currently estimate a net gain of nearly $2.4 

billion on those shares.

B – Vision, Priorities and Context

TARP was created by EESA in October 2008 as part of a broad-based federal response to the 

financial crisis. The purposes of EESA were —
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(1) to immediately provide authority and facilities that the Secretary of the Treasury could use to 

restore liquidity and stability to the financial system of the United States; and

(2) to ensure that such authority and facilities were provided in a manner that would —

(A) protect home values, college funds, retirement accounts, and life savings;

(B) preserve homeownership and promote jobs and economic growth;

(C) maximize overall returns to the taxpayers of the United States; and

(D) provide public accountability for the exercise of such authority.

EESA vested authority in the Secretary of the Treasury to “purchase, and to make and fund 

commitments to purchase, troubled assets from any financial institution, on such terms and 

conditions as are determined by the Secretary.” 

As a result of improved financial conditions and careful stewardship of the program, the ultimate 

cost to taxpayers of TARP investments is estimated to be significantly lower than initially 

expected. In FY 2009, the program was projected to cost $341 billion, but as of November 30, 

2020, it is estimated to cost only $32.1 billion (of which $-0.3 billion relates to investments and 

$32.4 billion relates to housing programs that do not require repayments by recipients). Lifetime 

costs are projected to be $14.5 billion with the inclusion of receipts from Treasury’s sale of 

additional AIG common stock.

During FY 2021 and FY 2022, OFS’s priority is to continue the responsible wind-down of all 

TARP programs. OFS is expected to complete its wind-down in FY 2024.

OFS Administrative Expenses

The authority for OFS’s administrative funding is provided in section 118 of EESA. In 

FY 2021, OFS plans to obligate just over $40 million and use 10 Full-Time Equivalent (FTE) 

employees. In FY 2022, OFS plans to obligate just over $38 million and use 10 FTE employees, 

a reduction of over 6% and 9%, respectively, from the current FY 2021 estimates, to fund the 

management, maintenance and continued wind-down of the TARP housing programs and the 

disposition of OFS’s remaining investments.

C – Credit Reform Account Description

Section 123 of EESA requires the cost of TARP programs to be calculated using the methods 

required by the Federal Credit Reform Act of 1990 (“credit reform”). In addition to the OFS 

Administrative Account, the organization manages six accounts to comply with the credit reform 

accounting requirements: (1) the TARP Equity Purchase Program Account; (2) the TARP 

Equity Purchase Financing Account; (3) the TARP Housing Programs Account; (4) the TARP 

Housing Programs, Letter of Credit (LOC) Financing Account; (5) the TARP Program Account; 

and (6) the TARP Direct Loan Financing Account.

Account Descriptions

TARP Equity Purchase Program Account: The TARP Equity Purchase Program Account 

records the subsidy costs (cost to the government) associated with federal equity injections into 

qualifying financial institutions. Subsidy costs are calculated on a net present value basis.
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TARP Equity Purchase Financing Account: The account is a non-budgetary account that records 

all financial transactions to and from the government resulting from equity purchases. The 

account primarily tracks each cohort year’s purchase activity (dividend payments, the exercise of 

warrants, Treasury borrowings, interest paid to or received from Treasury, etc.) and, as a means 

of financing, is not included in the budget totals when calculating total government spending.

TARP Housing Programs Account: The TARP Housing Programs Account records the subsidy 

costs and cash outlays associated with Treasury’s housing programs under TARP. The Making 

Home Affordable (MHA) and Hardest Hit Fund (HHF) housing programs are recorded on a cash 

basis, and the Federal Housing Administration (FHA) Short-Refinance Program is subject to 

credit reform accounting requirements, whereby its subsidy cost is calculated on a net present 

value basis.

TARP Housing Programs, LOC Financing Account: The TARP Housing Programs, LOC 

Financing Account is a non-budgetary account that records all financial transactions to and from 

the government resulting from OFS’s FHA Short-Refinance Program. Like other financing 

accounts, its primary purpose is the financial tracking of each cohort year’s loan activity. It is 

not included in the budget totals.

TARP Program Account: The TARP Program Account records the subsidy costs associated with 

direct loans obligated to qualifying institutions. Subsidy costs are calculated on a net present 

value basis.

TARP Direct Loan Financing Account: The account is a non-budgetary account that records all 

financial transactions to and from the government resulting from direct loans. Like the TARP 

Equity Purchase Financing Account, its primary purpose is the financial tracking of each cohort 

year’s loan activity. It is not included in the budget totals.

OFS Administrative Account: This account provides for the administrative costs of OFS.
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1.4 – Budget Adjustments Table

Dollars in Thousands

FTE Amount

FY 2021 Estimate 11 $40,751 

Changes to Base: 

Maintaining Current Levels (MCLs):

 

- 815 

Pay Annualization (1.1% average pay raise)

 

- 6 

Pay Raise (2.7% average pay raise)

 

- 17 

FERS Contribution Increase

 

- 22 

Non-Pay

 

- 771 

Subtotal Changes to Base 0 815 

FY 2022 Current Services 11 $41,566 

Program Changes: 

Program Decreases (1) (3,929)

Housing Program Support 0 (1,000)

Maintenance and Disposition of Assets 0 (381)

OFS Salaries and Benefits (1) (300)

Organizational Support 0 (2,248)

Subtotal Program Changes (1) ($3,929)

Total FY 2022 Estimate 10 $37,637 

D – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs).............................................+$815,000 / +0 FTE

Pay Annualization (1.0%) +$6,000 / +0 FTE

Funds are required for annualization of the January 2021 pay raise.

Pay-Raise (2.7% in 2022) +$17,000 / +0 FTE 

Funds are required for a 2.7% average pay raise in January 2022.

FERS Contribution Increase +$22,000 / +0 FTE 

Funds are required for the Federal Employee Retirement System (FERS) contribution rates 

effective FY 2022.

Non-Pay +$771,000 / +0 FTE 

Funds are required for non-labor costs such as travel, contracts, rent, supplies, and equipment.

Program Decreases..................................................................-$3,929,000 / -1 FTE

Housing Program Support -$1,000,000 / +0 FTE 

Administrative and compliance functions will continue to wind-down during FY 2021 and over 

time as programs close and no new assistance actions are provided and commitments are paid. 

Maintenance and Disposition of Assets -$381,000 / +0 FTE 

During FY 2020, OFS will continue the disposition of its position in the remaining Capital 

Purchase Program (CPP) and Community Development Capital Initiative institutions (CDCI). 

In FY 2021, OFS expects its portfolio to be composed of a few institutions, primarily CDCI 

institutions.
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OFS Salaries and Benefits -$300,000 / -1 FTE 

Savings resulted from natural attrition and expiration of term appointments due to the winddown of various TARP programs.

Organizational Support -$2,248,000/ +0 FTE 

Administrative costs associated with managing OFS’s portfolio will decline over time as TARP 

winds down. However, many duties and responsibilities will remain and are not directly 

correlated to the volume of assets held by OFS. Many of these organizational support functions 

will be run in-house and relate to legislative and oversight-mandated reporting functions, as well 

as the management and maintenance of TARP’s housing programs.

1.5 – Object Classification (Schedule O) Obligations

Dollars in Thousands

Object Classification

FY 2020 

Actual 

Obligations

FY 2021 

Estimated 

Obligations

FY 2022 

Estimated 

Obligations

11.1 - Full-time permanent 2,407 1,763 1,489 

11.5 - Other personnel compensation 72 45 42 

11.9 - Personnel Compensation (Total) 2,479 1,808 1,531 

12.0 - Personnel benefits 757 407 384 

Total Personnel and Compensation Benefits $3,236 $2,215 $1,915 

21.0 - Travel and transportation of persons 9 5 15 

23.3 - Communication, utilities, and misc charges 1 1 1 

25.1 - Advisory and assistance services 4,024 3,418 2,510 

25.2 - Other services from non-Federal sources (TOTAL) 30,191 29,031 27,650 

25.3 - Other goods and services from Federal sources 5,616 6,070 5,536 

26.0 - Supplies and materials 0 3 3 

31.0 - Equipment 0 8 8 

Total Non-Personnel $39,842 $38,536 $35,722 

New Budgetary Resources $43,077 $40,751 $37,637 

FTE 14 11 10 

*Amounts include all budgetary resources. 

E – Appropriations Language and Explanation of Changes

OFS does not receive discretionary appropriations from Congress. Therefore, no appropriations 

language is proposed.
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Section II – Annual Performance Plan and Report

A – Strategic Alignment

In accordance with the Government Performance and Results Act Modernization Act 

(GPRAMA) of 2010, the Department of the Treasury is currently developing the FY 2022 –

2026 Departmental Strategic Plan. The Strategic Plan is scheduled for publication in 2022. The 

Annual Performance Plan will be updated in the FY 2023 President’s Budget to reflect new 

departmental strategic goals and objectives. 

Bank Support Programs

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 2020, OFS continued to wind-down 

remaining CPP investments. As of November 30, 2020, CPP has generated $226.4 billion in 

recoveries for taxpayers with two institutions remaining in the program, for a total of $17 million 

in investments outstanding.

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. As of November 30, 2020, CDCI has generated $592 million in 

recoveries for taxpayers with two institutions remaining in the program, for a total of $1 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.

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 (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, 2020, OFS had disbursed $21.4 billion out of a possible $22.9 billion 

under MHA.

HHF: Established in 2010 to provide aid to homeowners in states hit hardest by the economic 

and housing market downturn. The $7.6 billion initiative encompassed 18 states and the District 

of Columbia (DC). In December 2015, P.L. 114-113 granted Treasury authority to make an 

additional $2.0 billion in commitments through the HHF. As of November 30, 2020, OFS had 

disbursed $9.5 billion out of a possible $9.6 billion under HHF.

FHA Short-Refinance Program: OFS continues to support the FHA Short-Refinance Program, 

which was intended to assist borrowers with negative equity. The program has seen limited 

participation. As such, OFS has incrementally reduced the LOC Facility supporting this program 
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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 for new 

refinances. As of November 30, 2020, the revised lifetime cost estimate for the program was 

$13 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, 2020, OFS had 

collected $70.6 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, Public-Private Investment Program, Term Asset-Backed Securities 

Loan Facility, Small Business Administration 7(a) Securities Purchase Program, and AIG

Investment Program.

B – Budget and Performance by Budget Activity

Performance Measure FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2020 FY 2021 FY 2022

Actual Actual Actual Actual Actual Target Target Target

Clean Audit Opinion on TARP 

Financial Statements (ensure 

transparency of operations to 

the public)

1 1 1 1 1 1 1 1

Percentage of Congressional 

Constituent Correspondence 

Responses Completed within 

10 Business Days of Receipt

66.75 87.5 100 94 100 100 100 100

Percentage of FOIA 

Assignments On-Time or Less 

Than 30-Days Overdue 

(ensure transparency within 

the government)

56.56 85 85 98 100 95 95 95

Percentage of SIGTARP and 

GAO Oversight 

Recommendations Responded 

to On-Time (ensure 

transparency of operations to 

the public)

100 100 100 100 100 100 100 100

Percentage of Statutorily 

Mandated Reports Submitted 

On-Time (ensure transparency 

of operations to the public)

94.7 96.25 100 100 100 100 100 100

The authority for OFS’s administrative funding is provided in section 118 of EESA. The 

administrative budget consists primarily of contracting and financial agent support costs 

associated with OFS’s ongoing implementation and management of the TARP housing programs 

and the management and disposition of OFS’s remaining investments. In addition, continuing 

organizational support, including information technology, facilities, legal, compliance, 

accounting, and human resources, will be needed to manage and wind-down these ongoing 

initiatives. OFS’s senior management is responsible for performance on its operational goals.
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C – Operational Goals

OFS’s strategic goal is to transform government-wide financial stewardship and the request will 

support the underlying operational goals to help OFS achieve this strategic goal. These 

operational goals include: 

1. Completing the wind-down of remaining TARP investment programs;

2. Continuing to help struggling homeowners avoid foreclosure;

3. Minimizing the cost of the TARP programs to the taxpayer; and

4. Operating with the highest standards of transparency, accountability, and integrity.

Completing the wind-down of remaining TARP investment programs

The first Operational Goal is to complete the wind-down of the remaining TARP investment 

programs, the CPP and CDCI. OFS continues to exit CPP and CDCI by either: (i) allowing 

banks that are able to repurchase in full in the near future to do so; or (ii) restructuring and 

selling OFS’s investments in limited cases. OFS continues to work with CPP institutions to 

restructure certain investments that will allow them to exit TARP. As of November 30, 2020, 

OFS had $17 million in outstanding CPP investments and $1 million in outstanding CDCI 

investments.

Continuing to help struggling homeowners avoid foreclosure

OFS’s second Operational Goal is to continue helping struggling homeowners avoid foreclosure. 

P.L. 114-113, signed into law on December 18, 2015, provided that the MHA program would 

terminate on December 31, 2016, except with respect to certain loan modification applications 

made before such date. As set forth in program guidelines, MHA servicers were required to 

evaluate applications submitted before the deadline and offer trial modifications to eligible 

applicants. All MHA transactions, including first and second lien permanent modifications, 

short sales or deeds-in-lieu of foreclosure, and unemployment forbearance plans, were required 

to be completed per program guidelines by December 1, 2017. Under this program, as of 

November 30, 2020, more than 1.7 million homeowners have secured permanent mortgage 

modifications. In addition, the HHF Program provides funding to 18 states and DC to assist 

struggling homeowners. As of November 30, 2020, HHF has disbursed approximately $9.5

billion in total program and administrative funds, and HFAs have drawn approximately $9.5 

billion to prevent avoidable foreclosures and help stabilize neighborhoods. Based on 

information provided by the HFAs, 6 states are projected to be fully closed by the end of FY 

2021, including having completed final compliance reviews and returning any unused funds to 

Treasury. 

Minimizing the cost of the TARP programs to the taxpayer

The third Operational Goal of OFS is to minimize the cost of the TARP programs to the 

taxpayer. OFS pursues this goal by carefully managing the timely exit of these investments to 

reduce taxpayers’ exposure, returning TARP funds to reduce the federal debt, and continuing to 

replace government assistance with private capital in the financial system. OFS also takes steps 

to confirm that TARP recipients comply with any TARP-related statutory or contractual 

obligations such as executive compensation requirements and restrictions on dividend payments.
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Operating with the highest standards of transparency, accountability, and integrity

OFS’s final Operational Goal is to continue to operate with the highest standards of 

transparency, accountability, and integrity. OFS posts a variety of reports online that provide 

taxpayers with regular and comprehensive information about how TARP funds are spent, who 

received them and on what terms, and how much has been recovered to date. OFS also publishes 

the annual audited Agency Financial Report and continues to maintain productive working 

relationships with the three oversight bodies charged with auditing and reviewing TARP 

activities.

D – Evidence-Building Activity

Refer to the Executive Summary for a discussion of Treasury-wide evidence-building functions.

Section III – Additional Information

A – Summary of Capital Investments

OFS uses Departmental Offices (DO) systems and is part of DO’s capital investment strategy.

A summary of capital investments, including major information technology and non-technology 

investments, can be accessed at: https://home.treasury.gov/about/budget-financial-reportingplanning-and-performance/budget-requestannual-performance-plan-and-reports