Office of Financial Stability

Program Summary

Dollars in Billions

Cumulative 

Obligated

Cumulative 

Disbursed

Cumulative 

Outstanding

Total 

Cumulative 

Income

Total 

Cash 

Back

Total 

Estimated 

Lifetime 

Costs (as of 

11/30/15)

Bank Support Programs 250 245 1 36 275 -24

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 19 0 35

Total** $455 $430 $1 $49 $425 $35

Additional AIG Common Shares 

Held by Treasury 0 0 0 18 18 -18 *

Total for Programs and Shares** $455 $430 $1 $66 $442 $17

* 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.

Summary and Explanation of Programs

The Emergency Economic Stabilization Act 

(ESSA) was enacted in October 2008 in 

response to one of the worst financial crises in 

United States history. To address the crisis, 

EESA established the Office of Financial 

Stability (OFS) within the Treasury 

Department to implement the Troubled Asset 

Relief Program (TARP). 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.” 

The Dodd-Frank Wall Street Reform and 

Consumer Protection Act (Dodd-Frank Act) 

enacted on July 21, 2010, reduced the TARP 

authority to purchase troubled assets to $475 

billion from an original $700 billion.

As a result of careful stewardship of the 

program and improved financial conditions, 

the ultimate cost to the taxpayers of TARP 

investments has dropped from the FY 2009 

estimate of $341.0 billion to $34.5 billion as of 

November 30, 2015 ($17.0 billion when

Treasury’s additional AIG receipts are 

included). 

In FY 2017, OFS plans to obligate $127

million and use 64 FTEs, a decrease of more 

than $20 million and 8 FTEs from the updated

FY 2016 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 winddown of TARP.

Legislative Proposals

OFS has no legislative proposals for FY 2017.

Description of Performance

Bank Support Programs

Capital Purchase Program (CPP)

The CPP - OFS’s largest program - was 

launched to stabilize and build confidence in 

the financial system by bolstering the capital 

position of viable institutions. OFS ultimately 

provided a total of $204.9 billion in capital to 
707 institutions in 48 states, including more 

than 450 small and community banks and 22 

Community Development Financial 

Institutions (CDFIs). 

As of November 30, 2015, the CPP has 

generated $226.6 billion, $21.7 billion in 

excess of disbursements, in proceeds for 

taxpayers with 18 institutions remaining in the 

program for a total of $263 million in 

investments outstanding.

Targeted Investment Program (TIP)

OFS completed the wind-down of the $40.0 

billion TIP in December 2009 and received net 

proceeds of $4.4 billion in excess of 

disbursements. For additional information on 

TIP, please reference previous budget 

submissions.

Asset Guarantee Program (AGP)

OFS completed the wind-down of the $5 

billion AGP in February 2013, and received 

more than $4.1 billion in proceeds from the 

AGP without disbursing any claim payments. 

For additional information on AGP, please 

reference previous budget submissions.

Community Development Capital Initiative 

(CDCI)

To help mitigate the adverse impact that the 

financial crisis had on communities 

underserved by traditional banks, OFS

launched CDCI to provide capital to banks, 

thrifts, and credit unions that qualified as 

Community Development Financial 

Institutions (CDFIs) in February 2010. Under 

this program, CDFI banks and thrifts received 

investments of capital with an initial dividend 

or interest rate of two percent, compared to the 

five percent rate offered under the CPP. 

OFS invested a total of $570 million in 84 

CDFIs. As of November 30, 2015, 23

institutions have fully repaid their investment, 

5 institutions have partially repaid their 

investment, and one has been taken into 

receivership, and the program has 

approximately $445 million in investments

outstanding.

Credit Market Programs

Public-Private Investment Program (PPIP)

On March 23, 2009, OFS launched the Legacy 

Securities Public-Private Investment Program 

(PPIP) to help restart the market for nonagency residential mortgage-backed securities 

(RMBS) and commercial mortgage-backed 

securities (CMBS). The purpose of PPIP was 

to draw new private capital into the market for 

legacy RMBS and CMBS by providing 

financing on attractive terms as well as a 

matching equity investment from OFS. 

Treasury invested a total of $18.6 billion in the 

program. All of the PPIFs have been 

effectively wound down and OFS has 

recovered all of its debt and equity 

investments plus an additional $3.9 billion in 

revenue.

Term Asset-Backed Securities Loan Facility 

(TALF)

OFS completed the wind-down of TALF in 

February 2013 when OFS’s $100 million 

disbursed investment was fully repaid. OFS

received net proceeds of $685 million in 

excess of disbursements. For additional 

information on TALF, please reference 

previous budget submissions.

Small Business Administration (SBA) 7(a) 

Securities Purchase Program 

OFS sold all its SBA 7(a) securities in the 

portfolio by FY 2012, marking the successful 

wind-down of the $368 million program. OFS

received net proceeds of $9 million in excess 

of disbursements. For additional information 

on SBA, please reference previous budget 

submissions.
American International Group, Inc. (AIG) 

Investment Program

The Federal Reserve, and later OFS, after 

EESA became law, provided assistance to AIG 

totaling approximately $182 billion, which 

included $70 billion from OFS and $112 

billion committed by the FRBNY. In FY

2013, OFS and the FRBNY completed the 

recovery of their investments in AIG. OFS 

and FRBNY have recovered that entire amount 

and an additional $22.7 billion and Treasury 

fully exited its investment in AIG in FY 2013.

For additional information on AIG, please 

reference previous budget submissions.

Automotive Industry Financing Program 

(AIFP)

Under AIFP, OFS invested a total of $79.7 

billion in GM, Ally Financial (Ally), and 

Chrysler. 

OFS made loans totaling $50.2 billion 

(including funds for warranty suppliers) to 

GM. Some of those loans were subsequently 

converted to common stock in GM. Through 

share repurchases by the company, as well as 

sales of shares to investors, OFS completed its 

disposition of GM in December 2013, with 

proceeds of $10.5 billion less than invested.

OFS committed a total of $12.4 billion to 

Chrysler under TARP. In July 2011, OFS

fully exited its investment in Chrysler, six 

years ahead of schedule. Of the $12.4 billion 

disbursed to Chrysler under TARP, OFS

recovered more than $11.2 billion for 

taxpayers through principal repayments, 

interest, and cancelled commitments. OFS is 

unlikely to fully recover the difference of $1.2

billion owed by Old Chrysler.

OFS invested $17.2 billion in Ally under 

TARP (including $884 million invested 

through GM). OFS has fully liquidated its 

investment in Ally Financial through 

repurchases, private placements, an initial 

public offering (IPO), and underwritten 

common stock sales and has realized 

cumulative receipts of $19.6 billion, $2.4 

billion more than invested. 

Treasury Housing Programs Under TARP

OFS established several programs under 

TARP to address the historic housing crisis 

and help struggling homeowners avoid

foreclosure wherever possible. These 

programs have helped millions of homeowners 

avoid foreclosure and introduced important 

new reforms for the mortgage servicing 

industry to help make mortgage modifications 

become more sustainable and affordable.

Making Home Affordable Program (MHA)

In early 2009, OFS launched the Making 

Home Affordable® Program (MHA) to help 

struggling homeowners avoid foreclosure and 

stabilize 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 to more 

affordable levels. OFS also introduced 

additional programs under MHA to help 

homeowners who are unemployed, 

“underwater” on their loan (those who owe 

more on their home than it is currently worth), 

or are struggling with a second lien. It also 

includes options for homeowners who would 

like to transition to a more affordable living 

situation through a short sale or deed-in-lieu of 

foreclosure. On June 26, 2014, the 

Administration extended the application 

deadline for MHA programs to at least 

December 31, 2016. In addition, OFS has

recently made changes to MHA programs to 

better assist homeowners avoid foreclosure 

and create a safety net for borrowers facing

rate step-ups in a HAMP modification which 

include increasing borrower incentives, 

lowering interest rates, and providing payment 

relief on HAMP modifications. In July 2015, 

OFS announced a streamlined modification 
process under HAMP to assist homeowners 

who are seriously delinquent and have not 

completed a HAMP application.

In addition to HAMP, MHA includes 

additional programs to help homeowners with 

specific types of mortgages, in conjunction 

with the Federal Housing Administration 

(FHA) and the United States Department of 

Agriculture (USDA). As of November 30, 

2015, OFS had disbursed $12.9 billion out of a 

possible $29.8 billion under MHA.

Housing Finance Agency (HFA) Hardest-Hit 

Fund

The Administration established the Hardest 

Hit Fund (HHF) in February 2010 to provide 

targeted aid to homeowners in states hit 

hardest by the economic and housing market 

downturn. As part of the Administration’s 

overall strategy for restoring stability to

housing markets, HHF provides funding for 

state Housing Finance Agencies (HFAs) to 

develop locally-tailored foreclosure prevention 

solutions in areas that have been hardest hit by 

home price declines and high unemployment. 

From its initial announcement, this program 

evolved from a $1.5 billion initiative focused 

on HFAs in the five states with the steepest 

home price declines and the vast majority of 

underwater homeowners to a broader-based 

$7.6 billion initiative encompassing 18 states 

and the District of Columbia (DC). In 

December 2015, the Consolidated 

Appropriations Act, 2016 (P.L. 114-113) 

granted Treasury authority to make an 

additional $2.0 billion in commitments 

through the HHF.

HHF programs vary state to state, but may 

include such programs as mortgage payment 

assistance for unemployed or underemployed 

homeowners, principal reduction to help 

homeowners get into more affordable 

mortgages, funding to eliminate homeowners’ 

second lien loans, help for homeowners who 

are transitioning out of their homes and into 

more affordable living situations, blight 

elimination in an effort to stabilize 

neighborhoods and prevent foreclosures, and 

down payment assistance to moderate-income 

qualified homebuyers in distressed markets. 

As of November 30, 2015, OFS had disbursed 

$5.8 billion under the HFA Hardest-Hit Fund.

Federal Housing Administration (FHA)-

Refinance Program

OFS also continues to support the Federal 

Housing Administration Short Refinance 

Program. Under this program, eligible 

borrowers who are current on their mortgage 

or complete a trial payment plan but owe more 

than their home is worth, can refinance into an 

FHA-insured loan if the lender writes off at 

least 10 percent of the existing loan. 

Utilization of the program has been limited 

with OFS providing coverage for only 

approximately 4,200 loans refinanced as of 

September 30, 2015. As such, OFS has 

reduced the letter of credit (LOC) facility 

supporting this program from $8.1 billion to 

$100 million. As of September 30, 2015, the 

revised lifetime cost estimate for the program 

is $29 million for outstanding refinanced 

loans.