[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 839 Engrossed in House (EH)]
112th CONGRESS
1st Session
H. R. 839
_______________________________________________________________________
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.
``(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:
Clerk.
112th CONGRESS
1st Session
H. R. 839
_______________________________________________________________________
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.