To amend the Emergency Economic Stabilization Act of 2008 to terminate the authority of the Secretary of the Treasury to provide new assistance under the Home Affordable Modification Program, while preserving assistance to homeowners who were already extended an offer to participate in the Program, either on a trial or permanent basis.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``The HAMP Termination Act of 2011''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds the following:
            (1) According to the Department of the Treasury--
                    (A) the Home Affordable Modification Program (HAMP) 
                is designed to ``help as many as 3 to 4 million 
                financially struggling homeowners avoid foreclosure by 
                modifying loans to a level that is affordable for 
                borrowers now and sustainable over the long term''; and
                    (B) as of February 2011, only 607,600 active 
                permanent mortgage modifications were made under HAMP.
            (2) Many homeowners whose HAMP modifications were canceled 
        suffered because they made futile payments and some of those 
        homeowners were even forced into foreclosure.
            (3) The Special Inspector General for TARP reported that 
        HAMP ``benefits only a small portion of distressed homeowners, 
        offers others little more than false hope, and in certain cases 
        causes more harm than good''.
            (4) Approximately $30 billion was obligated by the 
        Department of the Treasury to HAMP, however, approximately only 
        $840 million has been disbursed.
            (5) Terminating HAMP would save American taxpayers 
        approximately $1.4 billion, according to the Congressional 
        Budget Office.

SEC. 3. TERMINATION OF AUTHORITY.

    Section 120 of the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5230) is amended by adding at the end the following new 
subsection:
    ``(c) Termination of Authority To Provide New Assistance Under the 
Home Affordable Modification Program.--
            ``(1) In general.--Except as provided under paragraph (2), 
        after the date of the enactment of this subsection the 
        Secretary may not provide any assistance under the Home 
        Affordable Modification Program under the Making Home 
        Affordable initiative of the Secretary, authorized under this 
        Act, on behalf of any homeowner.
            ``(2) Protection of existing obligations on behalf of 
        homeowners already extended an offer to participate in the 
        program.--Paragraph (1) shall not apply with respect to 
        assistance provided on behalf of a homeowner who, before the 
        date of the enactment of this subsection, was extended an offer 
        to participate in the Home Affordable Modification Program on a 
        trial or permanent basis.
            ``(3) Deficit reduction.--
                    ``(A) Use of unobligated funds.--Notwithstanding 
                any other provision of this title, the amounts 
                described in subparagraph (B) shall not be available 
                after the date of the enactment of this subsection for 
                obligation or expenditure under the Home Affordable 
                Modification Program of the Secretary, but should be 
                covered into the General Fund of the Treasury and 
                should be used only for reducing the budget deficit of 
                the Federal Government.
                    ``(B) Identification of unobligated funds.--The 
                amounts described in this subparagraph are any amounts 
                made available under title I of the Emergency Economic 
                Stabilization Act of 2008 that--
                            ``(i) have been allocated for use, but not 
                        yet obligated as of the date of the enactment 
                        of this subsection, under the Home Affordable 
                        Modification Program of the Secretary; and
                            ``(ii) are not necessary for providing 
                        assistance under such Program on behalf of 
                        homeowners who, pursuant to paragraph (2), may 
                        be provided assistance after the date of the 
                        enactment of this subsection.
            ``(4) Study of use of program by members of the armed 
        forces, veterans, and gold star recipients.--
                    ``(A) Study.--The Secretary shall conduct a study 
                to determine the extent of usage of the Home Affordable 
                Modification Program by, and the impact of such Program 
                on, covered homeowners.
                    ``(B) Report.--Not later than the expiration of the 
                90-day period beginning on the date of the enactment of 
                this subsection, the Secretary shall submit to the 
                Congress a report setting forth the results of the 
                study under subparagraph (A) and identifying best 
                practices, derived from studying the Home Affordable 
                Modification Program, that could be applied to existing 
                mortgage assistance programs available to covered 
                homeowners.
                    ``(C) Covered homeowner.--For purposes of this 
                subsection, the term `covered homeowner' means a 
                homeowner who is--
                            ``(i) a member of the Armed Forces of the 
                        United States on active duty or the spouse or 
                        parent of such a member;
                            ``(ii) a veteran, as such term is defined 
                        in section 101 of title 38, United States Code; 
                        or
                            ``(iii) eligible to receive a Gold Star 
                        lapel pin under section 1126 of title 10, 
                        United States Code, as a widow, parent, or next 
                        of kin of a member of the Armed Forces person 
                        who died in a manner described in subsection 
                        (a) of such section.
            ``(5) Publication of member availability for assistance.--
        Not later than 5 days after the date of the enactment of this 
        subsection, the Secretary of the Treasury shall publish to its 
        Website on the World Wide Web in a prominent location, large 
        point font, and boldface type the following statement: `The 
        Home Affordable Modification Program (HAMP) has been 
        terminated. If you are having trouble paying your mortgage and 
        need help contacting your lender or servicer for purposes of 
        negotiating or acquiring a loan modification, please contact 
        your Member of Congress to assist you in contacting your lender 
        or servicer for the purpose of negotiating or acquiring a loan 
        modification.'.
            ``(6) Notification to hamp applicants required.--
                    ``(A) In general.--Not later than 30 days after the 
                date of the enactment of this subsection, the Secretary 
                of the Treasury shall inform each individual who 
                applied for the Home Affordable Modification Program 
                and will not be considered for a modification under 
                such Program due to termination of such Program under 
                this subsection--
                            ``(i) that such Program has been 
                        terminated;
                            ``(ii) that loan modifications under such 
                        Program are no longer available;
                            ``(iii) of the name and contact information 
                        of such individual's Member of Congress; and
                            ``(iv) that the individual should contact 
                        his or her Member of Congress to assist the 
                        individual in contacting the individual's 
                        lender or servicer for the purpose of 
                        negotiating or acquiring a loan 
                        modification.''.

SEC. 4. SENSE OF CONGRESS.

    The Congress encourages banks to work with homeowners to provide 
loan modifications to those that are eligible. The Congress also 
encourages banks to work and assist homeowners and prospective 
homeowners with foreclosure prevention programs and information on loan 
modifications.

            Passed the House of Representatives March 29, 2011.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: HAMP Termination Act of 2011 - Amends the Emergency Economic Stabilization Act of 2008 (EESA) to terminate the authority of the Secretary of the Treasury to provide new mortgage modification assistance under the Home Affordable Modification Program (HAMP), except with respect to existing obligations on behalf of homeowners already extended an offer to participate in the program.

Declares unavailable after the enactment of this Act for obligation or expenditure under HAMP any amounts made available for HAMP under EESA title I that: (1) have been allocated for use but not yet obligated, and (2) are not necessary for providing HAMP assistance on behalf of those homeowners already extended an offer to participate in HAMP. Urges that such amounts be covered into the General Fund of the Treasury for use only in reducing the budget deficit of the federal government.

Directs the Secretary to study: (1) the extent to which HAMP is used by homeowners who are active duty members of the Armed Forces (or their spouses or parents), veterans, or Gold Star-eligible widows, parents, or next of kin of Armed Forces members who died in military operations; and (2) the impact of the program on them.

Requires the Secretary to publish on the departmental website a statement as to: (1) termination of HAMP; and (2) the availability of a Member of Congress to assist any borrower having trouble paying a mortgage and needing help contacting the borrower's lender or servicer to negotiate or acquire a loan modification. Requires the Secretary to give notice of this information to each individual who applied for HAMP and will not be considered for a mortgage modification because of the program's termination.

Declares that Congress encourages banks to work with homeowners to: (1) provide loan modifications to those that are eligible, and (2) assist them as well as prospective homeowners with foreclosure prevention programs and information on loan modifications.