112th CONGRESS
1st Session
H. R. 839
IN THE SENATE OF THE UNITED STATES
March 30, 2011
Received; read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
AN ACT
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.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
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.
`(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.
END
