CONGRESSWOMAN ELISE STEFANIK
H.R. 5510 is expected to be considered on the floor of the House on Friday, December 17, 2010, under a motion to suspend the rules, requiring a two-thirds majority vote for passage. H.R. 5510 was introduced on June 10, 2010 by Rep. Marcy Kaptur (R-OH) and referred to the Committee on Financial Services.
H.R. 5510 would amend the Emergency Economic Stabilization Act of 2008 (EESA) to authorize the Secretary of the Treasury to expand the Troubled Asset Relief Program’s “Hardest Hit Fund” to enable nonprofit counseling intermediaries and nonprofit legal organizations to provide legal assistance to homeowners of owner-occupied homes (consisting of one to four dwelling units) whose mortgages are in default or delinquency, in danger of default or delinquency, or subject to or at risk of foreclosure (including any deed in lieu of foreclosure or short sale). These services would be limited to the areas targeted by the “Hardest Hit Fund.”
Some members may be concerned that this bill revives TARP by changing the nature of the Treasury Department program after the Secretary’s statutory authority expired on October 3, 2010 as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. As of November 30, 2010, $86 billion has yet to be disbursed out of TARP’s $475 billion committed.
The Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (or “Hardest Hit Fund”) allows state housing finance agencies (HFAs) to design innovative, locally targeted foreclosure prevention programs. According to Treasury Department data, $7.6 billion was committed to 19 states heavily impacted by the housing market collapse. As of November 30, 2010, only $100 million has been disbursed.
There is no CBO cost estimate available for this bill. However, the cost of this bill would be limited to the original $7.6 billion previously obligated by the Treasury Department under the “Hardest Hit Fund.”