According to Treasury, its decision to exit a  program depends on various circumstances, including market conditions  and other factors outside the government’s control. Treasury Continues to Exit Nonhousing Programs as Opportunities Exist

As of September 30, 2014, Treasury had completed the wind down of  four of nine TARP nonhousing programs that were once active. CPP Continues to Wind Down, with Repayments and Income Exceeding Original Investments

Treasury continues to wind down CPP, the largest TARP investment  program, which was designed to provide capital investments to viable  financial institutions, and thus far, repayments and income have  exceeded the total amount of original outlays. As of September 30, 2014, the government had  recovered $68.9 billion (86.3 percent) of the funds disbursed through the  program, and expects AIFP to have a lifetime cost of $12.2 billion. Treasury Has Disbursed Just over One-Third of Its TARP Housing Program Funds

As of September 30, 2014, Treasury had disbursed $13.7 billion (36  percent) of the $38.5 billion in TARP funds that had been allocated to  support housing programs. The number of new HAMP permanent  modifications added on a quarterly basis rose slightly in early 2013 but  has declined in 2014, falling to 29,000 in the third quarter, the lowest level  since the program’s inception. Treasury has taken steps to help more  borrowers, including by extending the deadline for HAMP applications for  a third time. As we have reported, according to  Treasury, the decline in HAMP modifications is a reflection of the  shrinking pool of HAMP-eligible mortgages, as evidenced in the declining  number of 60-day-plus delinquencies reported by the industry. Second, in September 2014  Treasury, in conjunction with HUD and the Ad Council, launched a new  series of public service advertisements (PSA) to raise awareness of the  free government resources available through MHA to assist struggling  homeowners in avoiding foreclosure. Agency Comments

We provided a draft of this report to Treasury for review and comment. Treasury also provided  technical comments that we have incorporated as appropriate. To assess the condition and status of all  the nonhousing-related programs initiated under TARP, we collected and  analyzed data about program utilization and assets held, as applicable,  focusing primarily on financial information that we had audited in the  Office of Financial Stability’s (OFS) financial statements, as of September  30, 2014. Further, we reviewed the Department of the Treasury’s (Treasury)  documentation such as press releases and reports on TARP programs  and costs. We  also interviewed officials from Treasury. Capital Purchase Program: Status of the Program and Financial Health of  Remaining Participants. Troubled Asset Relief Program: Treasury Actions Needed to Make the  Home Affordable Modification Program More Transparent and  Accountable.
Why GAO Did This Study

The Emergency Economic Stabilization Act of 2008 (EESA) authorized Treasury to create TARP, designed to restore liquidity and stability to the financial system and to preserve homeownership by assisting borrowers struggling to make their mortgage payments. Congress reduced the initial authorized amount of $700 billion to $475 billion as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. EESA also required that GAO report every 60 days on TARP activities in the financial and mortgage sectors. This report provides an update on the condition of all TARP programs—nonhousing and housing—as of September 30, 2014.
To conduct this work, GAO analyzed audited financial data for various TARP programs; reviewed documentation such as press releases, and agency reports on TARP programs; and interviewed Treasury officials.
GAO provided a draft of this report to Treasury. Treasury generally concurred with GAO's findings and provided technical comments, which GAO has incorporated, as appropriate.
GAO makes no recommendations in this report.

What GAO Found

The Department of the Treasury (Treasury) continues to wind down Troubled Asset Relief Program (TARP) nonhousing programs that were designed to support financial and automotive markets (see figure). As of September 30, 2014, Treasury had exited four of the nine nonhousing programs that were once active, and was managing assets totaling $2.9 billion under those remaining. Some programs have yielded returns that exceed the original investment. For example, as of September 30, 2014, repayments and income from participants in the Capital Purchase Program, which provided capital to over 700 financial institutions, had exceeded original investments. In contrast, as of the same date Treasury had recouped 86 percent of its expenditures and incurred an estimated lifetime cost of $12.2 billion for the Automotive Industry Finance Program, which invested in major domestic automakers to prevent a significant industry disruption. Treasury's decision to fully exit a program depends on various factors, including the participating institutions' health and market conditions.
TARP-funded housing programs, which focus on preventing avoidable foreclosures, are ongoing. As of September 30, 2014, Treasury had disbursed $13.7 billion (36 percent) of the $38.5 billion in TARP housing funds (see figure). The number of new Home Affordable Modification Program (HAMP) permanent modifications added on a monthly basis rose in early 2013 but fell in 2014 to the lowest level since the program's inception. According to Treasury, this decline is attributable in part to the shrinking pool of eligible mortgages, as evidenced in the declining number of 60-day-plus delinquencies reported by the industry. Treasury has taken steps to help more borrowers, including by extending the deadline for program applications for a third time until at least 2016. Also, Treasury launched a new series of public service advertisements that were distributed through a donated media campaign.