I 112th CONGRESS 1st Session H. R. 430 IN THE HOUSE OF REPRESENTATIVES January 25, 2011 Mr. Jordan (for himself, Mr. Issa, and Mr. McHenry) introduced the following bill; which was referred to the Committee on Financial Services A BILL To terminate the Home Affordable Modification Program of the Department of the Treasury.

1.

Short title

This Act may be cited as the HAMP Repeal and Deficit Reduction Act of 2011.

2.

Congressional findings

The Congress finds that— (1)the Department of the Treasury designed the Home Affordable Modification Program (HAMP) 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; (2)only 504,648 active permanent mortgage modifications were made under HAMP as of December 2010, according to Treasury statistics; (3)at that time, the number of mortgage modifications canceled under HAMP (774,081) exceeded the number of modifications made permanent by a 3:2 ratio; (4)many homeowners whose modifications were canceled suffered because they made futile payments—some were even forced into foreclosure as a result; (5)approximately $30 billion was allocated by Treasury to HAMP as of September 2010; and (6)the HAMP is a failure.

3.

Termination

(a)

Termination of authority To provide new assistance

Notwithstanding any other provision of law, after the date of the enactment of this Act the Secretary of the Treasury (in this Act referred to as the Secretary) may not provide any assistance under the Home Affordable Modification Program under the Making Home Affordable initiative of the Secretary, authorized under the Emergency Economic Stabilization Act of 2008 (Public Law 110–343), on behalf of any homeowner, unless before such date of enactment such homeowner was extended an offer to participate in such Program on a trial or permanent basis. (b)

Termination of servicer contracts

Notwithstanding any other provision of law, effective upon the date of the enactment of this Act, all contracts entered into between the Secretary of the Treasury and mortgage servicers for carrying out the Home Affordable Modification Program under the Making Home Affordable Initiative of the Secretary shall be null and void, except to the extent necessary to carry out the provision of assistance under such Program on behalf of homeowners who, pursuant to subsection (a), may be provided assistance after the date of the enactment of this Act.

4.

Debt reduction

(a)

Use of unobligated funds

Notwithstanding any other provision of law, the amounts described in subsection (b) shall not be available after the date of the enactment of this Act for obligation or expenditure under the Home Affordable Modification Program under the Making Home Affordable Initiative of the Secretary, but shall be covered into the General Fund of the Treasury and shall be used only for reducing the debt of the Federal Government. (b)

Identification of unobligated funds

The amounts described in this subsection are any amounts made available under title I of the Emergency Economic Stabilization Act or pursuant to the amendments made by section 1117 of the Housing and Economic Recovery Act of 2008 (Public Law 110–289; 122 Stat. 2683), that— (1)have been allocated for use, but not yet obligated as of the date of the enactment of this Act, under the Home Affordable Modification Program under the Making Home Affordable initiative of the Secretary; and (2)are not necessary for providing assistance under such Program on behalf of homeowners who, pursuant to section 3(a), may be provided assistance after the date of the enactment of this Act.