Office of Financial Stability

FY 2017

President’s Budget Submission

February 9, 2016
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Table of Contents

Section 1 – Purpose ....................................................................................................................... 3

1A – Mission Statement.............................................................................................................. 3

1.1 – Program Account Summary............................................................................................... 3

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

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

1B – Vision, Priorities and Context............................................................................................ 4

1C - Credit Reform and Administrative Accounts ..................................................................... 6

Section 2 – Budget Adjustments and Appropriation Language............................................... 8

2.1 – Budget Adjustments Table................................................................................................. 8

2A – Budget Increases and Decreases Description..................................................................... 8

2.2 – Operating Levels Table...................................................................................................... 9

2B – Appropriations Language and Explanation of Changes..................................................... 9

2C – Legislative Proposals.......................................................................................................... 9

Section 3 – Budget and Performance Plan ............................................................................... 10

3A – EESA Program Descriptions............................................................................................ 10

3B – EESA Administration....................................................................................................... 13

3C – Operational Goals............................................................................................................. 13

Section 4 – Supplemental Information...................................................................................... 17

4A – Summary of Capital Investments..................................................................................... 17
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Section 1 – Purpose

1A – 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 (EESA) within the Office of Domestic Finance at the U.S. 

Department of the Treasury (Treasury). With the nation in the midst of the worst financial crisis 

since the Great Depression, TARP was created to “restore the liquidity and stability of the 

financial system.”

Each year, the Office of Financial Stability (OFS) reports on its Operational Goals, which were 

developed by management to achieve Treasury’s strategic objective to wind-down emergency 

financial crisis response programs under our strategic goal of promoting domestic economic 

growth and stability while continuing reforms of the financial system. OFS has made significant 

progress towards winding down TARP investment programs and continues to implement 

housing programs to help struggling families avoid foreclosure, primarily through mortgage 

modifications. As of November 30, 2015, OFS has recovered nearly 99 percent of the $430.4

billion in total program funds disbursed under TARP, as well as an additional $17.55 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 $11.6 billion.

1.1 – Program Account Summary

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 FY 2016 to FY 2017

 Actual Estimated Estimated $ Change % Change

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

Obligations

Equity Program Account 3,339 100,141 0 (100,141) -100.00%

Housing Account 0 225 0 (225) -100.00%

TARP Account 0 547,588 0 (547,588) -100.00%

TARP Administrative Account 168,861 147,797 127,430 (20,367) -13.78%

TARP Negative Downward Reestimate Receipt Account (1,525,007) (855,038) 0 855,038 -100.00%

TARP Negative Subsidy Receipt Account 0 0 0 0 0.00%

Total Obligations ($1,352,807) ($59,287) $127,430 $186,717 -314.94%

Budget Authority 

Equity Program Account 3,339 100,141 0 (100,141) -100.00%

Housing Account 0 225 0 (225) -100.00%

TARP Account 0 547,588 0 (547,588) -100.00%

TARP Administrative Account 181,640 147,797 127,430 (25,142) -16.48%

TARP Negative Downward Reestimate Receipt Account (1,525,007) (855,038) 0 855,038 -100.00%

TARP Negative Subsidy Receipt Account 0 0 0 0 0.00%

Total Budget Authority ($1,340,028) ($54,512) $127,430 $181,942 -333.76%

Outlays

Equity Program Account 3,339 100,141 0 (100,141) -100.00%

Housing Account 4,251,376 5,345,073 4,078,976 (1,266,097) -23.69%

TARP Account 0 547,588 0 (547,588) -100.00%

TARP Administrative Account 152,021 235,237 131,503 (20,507) -13.49%

TARP Negative Downward Reestimate Receipt Account (1,525,007) (855,038) 0 855,038 -100.00%

TARP Negative Subsidy Receipt Account 0 0 0 0 0.00%

Total Outlays $2,820,629 $5,289,774 $4,210,479 ($1,079,294) -20.40%
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1.2 – Financing Account Summary

Dollars in Thousands

 FY 2015 FY 2016 FY 2017 Change % Change

 Actual Estimated Estimated FY 2015 to FY 

2016

FY 2015 to FY 

2016

AMOUNT AMOUNT AMOUNT AMOUNT AMOUNT

TARP Direct Loans

Obligations 288,850 656,332 0 (656,332) -100.00%

Collections 148,377 547,588 0 (547,588) -100.00%

Financing Authority (net) (37,174) 0 0 0 0.00%

Financing Disbursements (net) 140,474 108,745 0 (108,745) -100.00%

Equity Purchases

Obligations 1,264,750 229,715 31,170 (198,545) -86.43%

Collections 1,822,235 197,399 67,424 (129,975) -65.84%

Financing Authority (net) (539,526) 3,486 (36,254) (39,740) -1,139.99%

Financing Disbursements (net) (558,074) 32,316 (36,254) (68,570) -212.19%

Housing

Obligations 4,466 4,282 1,965 (2,317) -54.11%

Collections 2,210 313 59 (254) -81.15%

Financing Authority (net) 0 0 0 0 0.00%

Financing Disbursements (net) 2,257 3,969 1,906 (2,063) -51.98%

1.3 – Program Disbursement, Repayments, and Cost/Savings

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

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 19 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 would result in a net gain of nearly $2.4 billion on those shares.

**Totals may not foot due to rounding.

1B – Vision, Priorities and Context

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

financial crisis. At that time, the U.S. financial system faced challenges on a scale not seen since 

the Great Depression. By October of 2008, major financial institutions were threatened, and 

many of them tried to shore up their balance sheets by shedding risky assets and hoarding cash. 

People were rapidly losing trust and confidence in the stability of America’s financial system and 

the capacity of the government to contain the damage. Without immediate and forceful action by 

the federal government, the U.S. economy faced the risk of falling into a second 

Great Depression.
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It was out of these extraordinary circumstances in the fall of 2008 that TARP was created as a 

central part of a series of emergency measures by the federal government. Seven years later, it is 

generally agreed that as a result of the forceful and coordinated response by the federal 

government through TARP and many other emergency programs, we helped avert what could 

have been a devastating collapse of our financial system. 

The purposes of EESA were to —

(1) 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) ensure that such authority and such facilities were used in a manner that —

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

(B) Preserves homeownership and promotes jobs and economic growth;

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

(D) Provides 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 Fiscal Year (FY) 2009, the program was projected to cost $341 billion, but it is 

now estimated to cost only $34.5 billion (of which -$0.2 billion relates to investments and $34.7

billion relates to housing programs that do not require repayments by recipients) as of November 

30, 2015. Lifetime costs are projected at $17.0 billion with the inclusion of receipts from 

Treasury’s sale of additional AIG common stock.

 *Includes $17.55 billion in proceeds from additional Treasury AIG shares

$341.0

$124.1

$77.7 $70.2 $59.7

$22.7* $20.0* $17.0*

0

50

100

150

200

250

300

350

400

May-2009 Sep-2009 Sep-2010 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Nov-2015

Cost (in billions)

Date

OFS TARP Cost Estimates
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During FY 2016 and FY 2017, OFS’s priorities will be to continue winding down TARP’s bank 

investment programs subject to market conditions and continue helping struggling homeowners 

find solutions to avoid foreclosure by implementing TARP’s housing program to reach as many 

homeowners as possible.

OFS Administrative Expenses

The authority for OFS’s administrative budget funds is provided in Section 118 of EESA. In FY 

2016, OFS plans to obligate $148 million and use no more than 72 FTEs, a decrease of 

approximately $7 million and 3 FTEs from the FY 2016 President’s Budget. The decrease in 

obligations is primarily due to the faster than anticipated wind-down of TARP’s investment 

programs. In FY 2017, OFS plans to obligate $127 million and use no more than 64 FTEs, a 

decrease of over $20 million and 8 FTEs from the current FY 2016 estimates, to fund the

management and maintenance of the TARP housing programs and disposition of OFS’s

remaining investments. The decrease in FTEs and outside contracts reflects the continued winddown of TARP.

1C - Credit Reform and Administrative Accounts

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 Office of 

Financial Stability Administrative Account, the organization manages six accounts to comply 

with the credit reform accounting requirements: TARP Equity Purchase Program Account, 

TARP Equity Purchase Financing Account, TARP Housing Programs Account, TARP Home 

Affordable Modification Program Financing Account, TARP Program Account, and 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. 

TARP Equity Purchase Financing Account (EPFA): The TARP EPFA is a non-budgetary 

account that records all financial transactions to and from the government resulting from equity 

purchases. The EPFA 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 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 housing programs are recorded on a cash basis, 

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

Credit Reform Act of 1990 whereby its subsidy cost is calculated on a net present value basis. 

TARP Home Affordable Modification Program Financing Account: The TARP Home 

Affordable Modification Financing Account is a non-budgetary account that records all financial 

transactions to and from the government resulting from OFS’s FHA-Refinance Program. 
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Like other financing accounts, its primary purpose is the financial tracking of each cohort year’s 

loan activity and 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 (DLFA): The TARP DLFA is a non-budgetary account 

that records all financial transactions to and from the government resulting from direct loans. 

Like EPFA and GLFA, its primary purpose is the financial tracking of each cohort year’s loan 

activity and is not included in the budget totals.

Office of Financial Stability Administrative (OFS) Account: This account provides for the 

administrative costs of OFS.
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Section 2 – Budget Adjustments and Appropriation Language

2.1 – Budget Adjustments Table

Dollars in Thousands

Office of Financial Stability FTE Amount

FY 2016 Estimated 75 $155,066

Changes to Base:

Adjustments to Estimate: (3) (7,269)

FY 2016 Revised Estimate 72 147,797

Maintaining Current Levels (MCLs): - 2,738

Pay-Raise - 115

Pay Annualization - 38

Non-Pay - 2,584

Subtotal Changes to Base (3) (4,531)

Total FY 2017 Base 72 150,535

Program Changes:

Program Decreases: (8) (23,105)

Housing Program Support - (14,683)

Maintenance and Disposition of Assets - (1,867)

OFS Salaries and Benefits (8) (1,267)

Organizational Support - (5,288)

Total FY 2017 Estimated 64 127,430

2A – Budget Increases and Decreases Description

Maintaining Current Levels (MCLs) ......................................................+$2,738,000 / +0 FTE

Pay-Raise +$115,000 / +0 FTE 

Funds are required for the proposed January 2017 pay-raise.

Pay Annualization +$38,000 / +0 FTE

Funds are required for annualization of the January 2016 pay-raise.

Non-Pay +$2,584,000 / +0 FTE 

Funds are required for inflation adjustments in non-labor costs such as travel, contracts, rent, 

supplies, and equipment.

Program Decreases ...................................................................................-$23,105,000 / -8 FTE

Housing Program Support -$14,683,000 / +0 FTE 

The MHA administrative functions and compliance will continue due to the extension of the 

program through December 2016, but will decline over time as the application deadline expires 

and the program winds down.

Maintenance and Disposition of Assets -$1,867,000 / +0 FTE 

During FY 2016, OFS will continue the disposition of its position of the remaining Capital 

Purchase Program (CPP) banks. In FY 2017, OFS expects its portfolio to be composed of a 

handful of CPP institutions and the Community Development Capital Initiative (CDCI) 

institutions.
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OFS Salaries and Benefits -$1,267,000 / -8 FTE 

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

Organizational Support -$5,288,000/ +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.

2.2 – Operating Levels Table

Dollars in Thousands

Office of Financial Stability FY 2015 FY 2016 FY 2017

Object Classification Actual Estimated Estimated

11.1 - Full-time permanent 9,132 9,000 8,104

11.7 - Other Personnel Compensation 112 90 81

11.9 - Personnel Compensation (Total) 9,243 9,090 8,185

12.0 - Personnel benefits 2,673 2,700 2,491

Total Personnel Compensation and Benefits $11,916 $11,790 $10,676 

21.0 - Travel and transportation of persons 171 225 145

23.0 - Rent, communications and utilities 9 0 0

25.1 - Advisory and assistance services 

156,278 

 

135,319 

 

116,164 

26.0 - Supplies and materials 479 456 437

31.0 - Equipment 8 8 8

43.0 - Interest and dividends 0 0 0

Total Non-Personnel 156,945 136,007 116,754

Total Budgetary Resources $168,861 $147,797 $127,430 

Budget Activities:

EESAP - TARP Administrative Account 168,861 147,797 127,430

Total Budgetary Resources $168,861 $147,797 $127,430 

FTE 74 72 64

Table includes direct FTEs.

Totals may not foot due to rounding.

2B – Appropriations Language and Explanation of Changes

OFS does not receive any discretionary appropriation authority from Congress. Therefore, no 

appropriations language is proposed.

2C – Legislative Proposals

OFS has no legislative proposals.
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Section 3 – Budget and Performance Plan

3A – EESA Program Descriptions

Bank Support Programs

Capital Purchase Program (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 

created the CPP in October 2008 to help ensure that the nation’s banking institutions had a 

sufficient capital cushion against potential future losses and to support lending to creditworthy 

borrowers. OFS provided a total of $204.9 billion in capital to 707 institutions in 48 states.

During FY 2015, OFS focused on winding down the CPP according to the exit strategy 

announced on May 3, 2012. That strategy continues to include repayments by those institutions 

that are able to do so, selling OFS’s positions in banks that are unlikely to repay in the near-term, 

and restructuring some investments. As of November 30, 2015, the CPP has generated $226.6

billion in total receipts 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): OFS created the Community Development 

Capital Initiative (CDCI) on February 3, 2010, to help viable certified Community Development 

Financial Institutions (CDFIs) and the communities they serve cope with effects of the financial 

crisis. It was put in place to help keep day-to-day financing available to families and businesses 

in hard-hit communities that are underserved by traditional banks. 

Under this program, CDFI banks, thrifts, and credit unions received investments in capital with 

an initial dividend or interest rate of two percent. To encourage repayment while recognizing the 

unique circumstances facing CDFIs, the dividend rate increases to nine percent after eight years. 

OFS invested a total of $570 million in 84 CDFIs, of which 28 institutions converted $363 

million (including warrants) from CPP to CDCI. 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 non-agency 

residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities 
OFS - 11

(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 Public-Private 

Investment Funds 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.

Other Programs

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 
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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. 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. These changes 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.
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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.

3B – EESA Administration

The authority for the OFS administrative budget 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 these ongoing OFS initiatives. The 

owner of OFS’s performance is the Deputy Assistant Secretary for Financial Stability.

3C – Operational Goals

Complete the wind-down of the investment programs

The first operational goal for OFS is to complete the wind-down of the TARP investment 

programs. OFS is continuing to implement the three-pronged exit strategy for the Capital 

Purchase Program (CPP), which was announced in May 2012. That strategy includes a 

combination of waiting for those banks that are capable of repaying in the near future to repay at 

par, selling banking investments to private investors through auctions in cases where the bank is 

not expected to be able to repay in the near future, and, in a limited number of cases, 

restructuring investments. Unlike the CPP, OFS did not take substantial actions during fiscal 

year 2015 to wind-down the CDCI because of the unique circumstances facing participating 

institutions. In particular, many CDCI participants lack the same access to capital markets that 

CPP institutions have, making it more challenging for them to repay the TARP investments in 

their institutions. As of November 30, 2015, $445 million in CDCI investments remained 

outstanding. OFS will continue to closely monitor the performance of the CDCI and make 

decisions regarding the program’s wind-down at a later date. All other TARP investment 

programs have been effectively wound down. 
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Continue to help struggling homeowners avoid foreclosure

OFS’s second operational goal is to continue helping struggling homeowners avoid foreclosure. 

The Making Home Affordable Program (MHA) is helping homeowners and assisting in 

stabilizing the housing market. On June 26, 2014, the Administration extended the application 

deadline for MHA programs to December 31, 2016, to provide struggling homeowners 

additional time to access sustainable mortgage relief. The largest program within MHA is the 

Home Affordable Modification Program (HAMP). Under this program more than 1.5 million 

homeowners have had their mortgages modified permanently as of September 30, 2015. HAMP 

has also set new standards and changed practices throughout the mortgage servicing industry in 

fundamental ways. Together, public and private efforts have helped millions of Americans get 

mortgage assistance to prevent avoidable foreclosures. In addition, the Hardest Hit Fund 

provides funding to 18 states and the District of Columbia to provide assistance to struggling 

homeowners through locally tailored programs.

$430.4

$291.0

$178.9

$122.1

$62.1

$23.0

$2.9 $0.7

0

50

100

150

200

250

300

350

400

450

500

Total

Disbursed

Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Nov-15

Investments Outsanding (in billions)

Date

OFS TARP Investments Outstanding
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FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Performance Metrics and Indicators1

(includes GSE and non-GSE)

Actual Actual Actual Actual Actual

Reduction in median payment for homeowners in 

permanent modifications (assist homeowners) 

program-to-date.

$526 $541 $547 $540 $481

Number of modifications entered into 

(assist homeowners)

Trial

Permanent

344,598

361,076

213,613

233,622

181,505

178,039

137,550

148,070

122,496

125,338

12-month re-default rate for Permanent 

Modifications (90+ days delinquency rate for loans 

seasoned 12 months)

15.4% 14.5% 13.6% 13.5% 13.1%

1

Items in italics are indicators. 

Minimize cost to taxpayer

The third operational goal of OFS is to minimize the cost of the TARP programs to the taxpayer. 

OFS manages TARP investments to minimize costs to taxpayers 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 has taken a number of steps to dispose of our outstanding investments in 

a manner that balances the need to exit these investments as quickly as practicable with 

maximizing returns for taxpayers. OFS also takes steps to ensure that TARP recipients comply 

with any TARP-related statutory or contractual obligations such as executive compensation 

requirements and restrictions on dividend payments.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Performance Metrics and Indicators1 Actual Actual Actual Actual Actual

Proceeds from warrant repurchases as percent of 

aggregate CPP preferred investment amount

(plus median for the selected banks)

2.4% 1.9% 3.3% 4.2% 9.0%

1

Items in italics are indicators.

Continue to operate with highest standards of transparency, accountability, and integrity

OFS’s final goal is to continue to operate with highest standards of transparency, accountability, 

and integrity. OFS posts a variety of reports online that provide the taxpayer with regular and 

comprehensive information about how TARP funds are being spent, who has received them and 

on what terms, and how much has been collected to date. As part of this effort, in June 2013, we 

enhanced and expanded the existing TARP Tracker on Treasury’s website to enable users to 

view the flow of funds for a specific time period or over the lifetime of a TARP program. OFS 

also publishes the annual audited Agency Financial Report and continues to maintain productive 

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

activities. 
OFS - 16

1

Items underlined are measures. Targets are provided only for measures. 2

The ‘Average days to close a FOIA case’ measure was discontinued in third quarter FY 2014 to best reflect available reporting data. 

OFS now reports ‘Percentage of FOIA requests on-time or less than 30-days overdue’.

Performance Metrics and FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2015 FY 2016 FY 2017

Indicators1 Actual Actual Actual Actual Actual Target Target Target

Percentage of statutorilymandated reports submitted 

on time 100% 100% 80% 99% 100% 100% 100% 100%

(ensure transparency within 

the government)

Percentage of customers 

satisfied with 

FinancialStability.gov (selfselected respondents) 66% 67% 70% 69% 67% 75% 70% 70%

(ensure transparency of 

operations to the public)

Timeliness of responses 

(ensure transparency within 

the government)

Average days to close a 

FOIA case2 98 90 21 NA NA NA NA NA

Percentage of FOIA 

requests on-time or less than 

30-days overdue2

NA NA NA 15% 13% 33% 33% 33%

Percentage of Congressional 

correspondence responses 

drafted within 10 days

98% 99% 100% 92% 50% 100% 100% 100%

Clean audit opinion on TARP 

financial statements Yes Yes Yes Yes Yes NA Yes Yes (ensure transparency within 

the government)

Percentage of SIGTARP and 

GAO oversight 

recommendations 

responded to on time 88% 82% 80% 100% 100% 100% 100% 100%

(ensure transparency within 

the government)
OFS - 17

Section 4 – Supplemental Information

4A – Summary of Capital Investments

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

A summary of capital investment resources, including major information technology and nontechnology investments, can be viewed and downloaded 

at http://www.treasury.gov/about/budget-performance/Pages/summary-of-capitalinvestments.aspx

This website also contains a digital copy of this document.