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SIGTARP-17-001 January 11, 2017
OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR
THE TROUBLED ASSET RELIEF PROGRAM SIGTARP OFFICE OF THE SPECIAL
INSPECTOR GENERAL FOR THE TROUBLED ASSET
RELIEF PROGRAM
Evaluation Report
Improving TARP’s Investment in American Workers
SIGTARP-17-001 January 11, 2017
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Office of the special inspector general
For the Troubled Asset Relief Program
1801 L Street, NW, 4th Floor
Washington, D.C. 20220
SIGTARP-17-001 January 11, 2017
January 11, 2017
MEMORANDUM FOR: The Honorable Jacob J. Lew – Secretary of the Treasury /Signed/ FROM: Honorable Christy Goldsmith Romero – Special Inspector General
for the Troubled Asset Relief Program SUBJECT: Improving TARP’s Investment in American Workers
(SIGTARP 17-001) We are providing this report for your information and use. It discusses homeowners who were denied TARP unemployment assistance. The Office of the Special Inspector General for the Troubled Asset Relief Program conducted this evaluation (engagement code 009) under the authority of the Emergency Economic Stabilization Act of 2008 and Public Law 110-343, as amended, which also incorporates the duties and responsibilities of inspectors general under the Inspector General Act of 1978, as amended. We considered comments from the Department of the Treasury when preparing the report. Treasury’s comments are addressed in the report, where applicable, and a copy of Treasury’s response is included in its entirety. We appreciate the courtesies extended to our staff. For additional information on this report, please contact Ms. Jenniffer F. Wilson, Deputy Special Inspector General for Audit and Evaluation (Jenniffer.Wilson@treasury.gov /202-622-4633); or Mr. Chris Bosland, Assistant Deputy Special Inspector General for Audit and Evaluation (Christopher.Bosland@treasury.gov /202-927-9321).
SIGTARP-17-001 January 11, 2017
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Summary
TARP’sHardestHitFundisaninvestmentinAmericanworkers,providingatemporarysafetynettohelpsavethehomesofunemployedandunderemployedworkingclassAmericansinRustBeltstates(suchasOhio,Michigan,IndianaandIllinois),Southernstates(suchasNorthCarolina,SouthCarolina,Alabama,Tennessee,andGeorgia),and10otherstates.
HHFhashelpedmorethanaquarterofamillionhomeowners,butevengoodprogramscanbebetter.Theprogramismeetingarealneed,onethatcontinues.Theneedforthisunemploymentbridge—andotherHardestHitFundprograms,likeblightdemolition—remainssocriticalthat,inDecember2015,MembersofCongressfromOhioandMichiganworkedacrosstheaisletoconvinceCongresstoadd$2billiontotheprogram.
HardestHitFunddollarshavebeenslowtoflowinmanystates,andmorethan160,000peopleweredeniedHHFassistance.SIGTARPanalyzeddataprovidedbystateagenciesoneachpersonwhowasturneddownforthisprogram.
What SIGTARP Found
SIGTARPfoundthatmostofthepeoplewhoweredeniedHardestHitfundsearnedlessthan$30,000,callingintoquestionwhethertheprogramiseffectiveinreachingthosehardesthit.StateagenciesthatdistributeHardestHitFundunemploymentassistanceturneddown84,965peoplewhoearnedlessthan$30,000,including64,979peoplewhomadelessthan$20,000.SIGTARPfoundthat,in12ofthe19states—mostlyintherustbeltandsouth—nearlythreeoutoffourpeopleturneddownfortheseFederalfundsearnedlessthan$30,000.
CongressrequiredthattheseTARPfundsbeusedtobailoutAmericanworkers,notjusttobailoutcompanieslikeGeneralMotors.
HardestHitfundscouldhelpautoworkerslaidoffwhenGeneralMotorsshutdowntheirplants,aswellasworkerscaughtintherippleeffectofashutdown,likeworkersatautopartssuppliersoratneighboringretailshops.
MichiganandOhioareamongthestatesthathavethemostTARPdollarssetaside,butalsohavesomeofthehighestpercentagesofpeopleturneddownfortheHardestHitFundwhoearnedlessthan$30,000.IncitieswhereGeneralMotors—whichreceived$50billioninTARPfunds—oritssuppliersclosedplantsorlaidoffworkers,denialratesareevenhigherforthosewhomadelessthan$30,000.
*IncludesDaytonandnearbycitiesofMoraineandVandalia.
Despitereturningtoprofitability,GMandotherautocompaniesclosedplantsandlaidoffworkers,eveninthelastyear.GMannouncedthat2,000additionalworkersinMichiganandOhiofacelayoffsearlyinthecomingyear.
Thefindingsuncoveredbythisevaluationindicatethattheremaybeeligibilitycriteriathataretoostringent.Theremaybevalidreasonswhythesepeoplewereturneddown,butitisimpossibletoknowbecauseSIGTARPfoundthatstateagencies’recordswerenon‐existent,missing,orincompleteregardingwhytheagenciesturneddownpeoplemakinglessthan$30,000.
Stateagenciesshouldunlockthefullpotentialoftheprogrambyeliminatingunnecessary
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SIGTARP-17-001 ii January 11, 2017
criteriathatdonotexistinotherstatesorthatdonotreflecttherealityoftheworkingclassinthatstate.Forexample,somestatesrequirethatthepersonshowenoughincometopaytheirmortgageinthefuture,whichisnotrealisticforsomepeopleseekingtemporaryhelpwiththeirmortgageuntiltheycangetafulltimejob.
Thisprogramhasalotmorepotentialtoprovideasafetynetincertaincommunitiesuntiljobsreturntothesetowns,butthatpotentialneedstobeunlocked.
What SIGTARP Recommends
Treasuryandstateagenciesshould:(1)eliminateunnecessaryprogramcriteria;(2)openupeligibilitytoworkersfacinglayoffssothattheydonothavetofirstfallbehindontheirmortgage;and(3)stateagenciesshouldkeepdetailedrecordsonwhythestatedeniedeachperson.
Inresponsetoadraftofthisreport,Treasuryprovidedaletterandsometechnicalcomments,whichSIGTARPaddressedwhereapplicable.Initsresponse,TreasurydidnotaddressSIGTARP’sfindings,butsaidit“…appreciatesSIGTARP’sanalysisandiscloselyexamining[SIGTARP’s]recommendations.”
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Table of Contents
Summary .............................................................................................................................. i
Table of Contents .............................................................................................................. iii
Introduction ........................................................................................................................ 1
Background ........................................................................................................................ 3
85,000 People Who Earned Less Than $30,000 Were Turned Down for Hardest Hit Funds ....................................................................................................................... 4
In 6 States (Including Ohio, North Carolina, and Indiana), 3 of 4 People Turned Down for Hardest Hit Funds Earned Less Than $30,000, and Nearly 3 of 4 People in 6 Other States (Including Michigan, Georgia, Illinois, Kentucky, and Tennessee) ............................................................................................................... 5
High Percentages of People Turned Down for the Hardest Hit Fund Who Live in Cities Where General Motors Closed a Plant Earned Less Than $30,000 ........... 8
SIGTARP Could Not Determine from State Records Why People Earning Less Than $30,000 Were Turned Away, Which Could Be Easily Fixed ........................... 12
To Level the Playing Field, States Can Remove Unnecessary Restrictions That: (1) Do Not Exist in Other States for These Dollars; and (2) Do Not Reflect the Reality of Working Class Americans .................................................................. 13
Conclusion ........................................................................................................................ 18
Recommendations ........................................................................................................... 21
Management Comments and SIGTARP’s Response ..................................................... 22
Appendix A – Objective, Scope, and Methodology ....................................................... 23
Appendix B – Acronyms and Abbreviations .................................................................. 26
Appendix C – Evaluation Team Members ...................................................................... 27
Appendix D – Management Comments .......................................................................... 28
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Introduction
TARP’sHardestHitFundisaninvestmentinAmericanworkers.TheGovernmentbailedoutcompaniessuchasGeneralMotors(“GM”),butCongressrequiredthatbailoutfundsalsogotoAmericans(likeautoworkers)tosavetheirhomes.TARP’sHardestHitFundprovidesatemporarysafetynettosavethehomesofunemployedorunderemployedworkingclassAmericansinRustBeltstates(suchasOhio,Michigan,IndianaandIllinois),Southernstates(suchasNorthCarolina,SouthCarolina,Alabama,Tennessee,andGeorgia),and10otherstates.TARPfundspaypartofthemortgageofAmericanworkerswholosttheirjobsthroughnofaultoftheirown(orsawtheirpaycheckscut),generallyforayearortwoatmost,whiletheylookforafull‐timejob.
Outof19states,withtheexceptionofthehighlypopulatedCaliforniaandFlorida,TreasurysetasidethemostdollarstoOhio($762million)andMichigan($761million).1InOhioandMichigan,TARPfundscouldhelpautoworkerslaidoffwhenGMshutdowntheirplant,orthosecaughtintherippleeffectofashutdown,likeworkersatautopartssuppliersoratneighboringretailshops.Near‐emptyplantsandabandonedhousesserveaseyesorestoneighborsdesperatetokeeptheirpropertyvaluesup.TheHardestHitFundalsocommitsmorethan$811milliontodemolishblightedabandonedhousesinOhio,Michigan,Indiana,Illinois,Alabama,SouthCarolina,Tennessee,andMississippi.
Dollarshavebeenslowtoflowinmanystates,buttheneedforthisunemploymentbridgeandblightdemolitionissocriticalthatinDecember2015,MembersofCongressfromOhioandMichiganworkedacrosstheaisletoconvinceCongresstoadd$2billiontotheprogram.2InOhioandMichigan,theprogramhasdoneabetterjobthanmanyotherstatesofdistributingthesefundstohomeowners,withOhiohomeownersexhaustingallofthefundsbeforetheadditionalmoneyfromCongress.
1Treasuryalsocommitted$715millionintheseTARPfundstoIllinois.NorthCarolinacanreceive$706million.Treasuryhasobligated$9.6billioninTARPfundsfortheHardestHitFund.
2UnemploymentisstillaboveaverageincitiessuchasDetroit,Michigan,andCleveland,Ohio,andunderemploymentremainsastruggleintheseandotherareas.
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DespiteGMreturningtoprofitability,GMandothersclosedplantsandlaidoffworkers,eveninthelastyear.3TheadditionalTARPfunds,whichwereallocatedin2016,allowedOhiotoincreasefundingofblightdemolitionin18countiesandtoreopenitsunemploymentprogramforlaidoffworkersinSeptember2016.AutoworkersinOhioandMichiganwillsuffermorelayoffs.4GMannouncedthat,inJanuary2017,itwilllayoffmorethan2,000workersat2plantsinOhioandMichigan.5
Thisprogramhasalotmorepotentialtoprovideasafetynetincertaincommunitiesuntiljobsreturntothesetowns,butthatpotentialneedstobeunlocked.Ithashelped263,000peoplepaytheirmortgage—halfofthoseestimated.Morethan160,000peoplewereturneddown.Another170,000+peopleapplied,butwithdrewtheirapplication,perhapsbecausetheydidnotmeetthecriteria.Likelyevenmorepeopledidnotapplyatallknowingtheydidnotmeetthecriteria.AsanInspectorGeneral’sjobistorootoutfraud,waste,andabuse,andrecommendimprovementstoeffectivenessandefficiency,SIGTARPevaluated:
Whoappliedforthesefundsandweredenied,and
Whetherthereareunnecessaryrestrictionsthatcanbeliftedtounlocktheprogram’spotential.
SIGTARPconductedthisevaluationinaccordancewiththe“QualityStandardsforInspectionandEvaluation”establishedbytheCounciloftheInspectorsGeneralonIntegrityandEfficiency.Foradiscussionoftheevaluation’sscopeandmethodology,seeAppendixA.
3InOctober2015,GMannouncedthatitwouldlayoffabout500hourlyworkersatitsOrionAssemblyplantinMichiganthatmakesthecompactcarChevroletSonic.Fordlaidoff700workersinWayne,MichiganwheretheFordFocuswasmadeand,accordingtopressreports,announcedinSeptember2016thatitwouldmoveallofitsremainingsmallcarproductionintheUnitedStatestoMexico.InApril2016,FiatChryslerannounceditwouldlayoffabout1,400workersatitsSterlingHeightsAssemblyPlantinMichigan.
4InOctober2016,GMannouncedthatitwilldiscontinueitsironcastingdivisionatitsDefiancefoundry,whichwillresultinthelayoffof157employeesby2018.
5OnJanuary16,2017,about840workerswillbelaidoffatGM’splantinLansing,MichiganthatmakestheChevroletCamaroandCadillacATSandCTSluxurycars.Oneweeklater,GMwillcutproductionatitsLordstown,OhioplantthatmakestheChevroletCruze,whichwilllayoffapproximately1,250workers.Lordstownalreadysuffersfromaboveaverageunemployment.
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Background
The19stateagenciesincontractwithTreasurytodistributethesefundshavelargelypaidthem(morethan72%)tounemployedandunderemployedhomeowners.TreasurydescribedthepurposeofHardestHitFundunemploymentassistanceasfollows:
Responsible families across the country have found themselves unable to pay their mortgages due to unemployment or underemployment. The economic downturn has led to a record number of workers suffering from long term unemployment, and millions more are working part-time because they cannot find full time or otherwise adequate work. This assistance is designed to help thousands of families keep making their payments and stay in their homes until they can find work.6
The19statesTreasurypickedin2010toreceivetheTARPfundshadhighsustainedunemploymentandhighnumbersofunderwaterhomeowners.ThesestatesareCalifornia,Florida,Michigan,Nevada,NorthCarolina,Ohio,Arizona,Oregon,RhodeIsland,SouthCarolina,Alabama,theDistrictofColumbia,Georgia,Illinois,Indiana,Kentucky,Mississippi,NewJersey,andTennessee.
TreasuryprovidestheseTARPfundstohomeownersthroughthestateagencies.Whenastatehousingfinanceagency(“stateagency”)approvesahomeowner,itrequeststhemortgageservicer’sagreement.AservicerparticipatinginHHFshouldagreebecauseitwillreceiveeithermonthlypaymentsoralumpsum.ThestatesdrawdownonTARPfundsfromTreasury.Already$6.8billion(70%)ofthetotal$9.6billionhasbeendrawndown.Someoftheremaining30%mayalreadybecommitted,aslongasthehomeownerstaysinthehome.
6Treasury,“GuidelinesforHFAProposalSubmissionforUnemploymentPrograms,”August11,2010.
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85,000 People Who Earned Less Than $30,000 Were Turned Down for Hardest Hit Funds
StateagenciespaidbyTreasurytodistributethisunemploymentassistanceturneddown84,965peoplewhoearnedlessthan$30,000(asshowninFigure1),including64,979peoplewhomadelessthan$20,000.SIGTARPhasfoundthatmostofthepeoplewhoweredeniedHardestHitfunds(53%)earnedlessthan$30,000(seeFigure2).7
Figure 1: Hardest Hit Fund Homeowner Denials by State, as of June 30, 2016
State Agency Denied Homeowners Earning Less Than
$30,000
Florida 16,706
Michigan 12,653
California 10,032
Georgia 7,861
Arizona 6,801
North Carolina 6,559
South Carolina 5,350
Ohio 4,133
New Jersey 3,417
Illinois 2,787
Alabama 1,517
Oregon 1,478
Nevada* 1,293
Kentucky 1,241
Mississippi 1,158
Tennessee 952
Indiana 465
Rhode Island 456
DC 106 Total 84,965
* Data as of September 30, 2015 (the most recent data available).
Source: SIGTARP analysis of state agency Hardest Hit Fund data for homeowner programs. Table excludes 927 people for whom state agency records did not provide income information.
StateagenciesinFlorida,Michigan,California,andGeorgiaturneddownthelargestnumbersofpeoplewhomadelessthan$30,000.
7Stateagencies’recordsprovidedtoSIGTARPshowthat53%ofallhomeownersdeniedforHardestHitFunddollars(84,965outof160,015)earnedlessthan$30,000ayear.Thisassistanceislargelyunemploymentassistance.
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In 6 States (Including Ohio, North Carolina, and Indiana), 3 of 4 People Turned Down for Hardest Hit Funds Earned Less Than $30,000, and Nearly 3 of 4 People in 6 Other States (Including Michigan, Georgia, Illinois, Kentucky, and Tennessee)
Althoughnationwide53%ofallofthehomeownersdeniedtheseFederaldollarsearnedlessthan$30,000,SIGTARPfoundthatin12ofthe19states,morethan70%ofpeopleturneddownfortheseFederalfundsearnedlessthan$30,000.
Figure 2: People Denied Hardest Hit Fund Dollars, as of June 30, 2016
Source: SIGTARP analysis of applicant data provided by the states.
In12states,70%ormoreofthepeopleturneddownearnedlessthan$30,000,asshowninFigure3.Peoplewhoearnlessthan$30,000arelikelytofallwithinthosestillstrugglingwithunemploymentandunderemployment,andhavedifficultieskeepingtheirhome.
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Figure 3: Percentage of Denied Homeowners Who Earned Less Than $30,000, by State
Source: SIGTARP analysis of applicant data provided by the states.
OfthepeoplewhowereturneddowninOhio,NorthCarolina,Mississippi,Alabama,theDistrictofColumbia,andIndiana,76‐80%earnedlessthan$30,000.Atthesametime,thestateagenciesgaveHardestHitFunddollarstonearly20,000peoplewhomademorethan$70,000—includingalmost6,000peoplemakingmorethan$90,000.
WhiletheprogramhashelpedmanyinOhioandMichigan,thosearetwostateswherehighpercentagesofpeopleturneddownmadeunder$30,000—86%inOhioand71%inMichigan.
TheMichiganstateagencyturneddown12,653peoplewhoearnedlessthan$30,000,butgaveHardestHitFunddollarsto1,176peoplewhoearnedmorethan$90,000,and1,884peoplewhomadebetween$70,000and$89,999.
TheOhiostateagencyturneddown4,133peopleforHardestHitFunddollarswhoearnedlessthan$30,000,butgavethosedollarsto1,244peoplewhomademorethan$70,000(321ofthemmademorethan$90,000).
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Whilestateagenciesmaywanttohelppeoplewiththesehigherincomes,highnumbersofpeopleturnedawaywhoearnedlessthan$30,000raisesquestionsaboutwhethertheseprogramsareaseffectiveandefficientastheycanbetoreachthosepeoplewhoarethehardesthit.
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SIGTARP-17-001 8 January 11, 2017
High Percentages of People Turned Down for the Hardest Hit Fund Who Live in Cities Where General Motors Closed a Plant Earned Less Than $30,000
StateagencyrecordsfromMichiganandOhioprovidedtoSIGTARPshowthathighpercentagesofthepeoplebeingturneddownforthisprogramincitieswhereGeneralMotors(“GM”)closedaplantorlaidoffworkersearnedlessthan$30,000.Theclosingofanautoplantcanhavearippleeffect,includinglayoffsatautopartssuppliers.AllofthestateagenciesreporttoTreasuryquarterlyonthenumberofpeoplelivingineverycityorcountywhoreceivethesefunds.Thisinformationispubliclyreleased,butnoonereleasesdetailsonthepeopleturneddown.
SIGTARPperformedazipcodesearchofthestaterecordsprovidedtoidentifywherepeopleearninglessthan$30,000livedandwereturneddownforthisHHFassistance.Thatsearchrevealedthat,inMichigan,manyofthosepeopleliveincitieswhereGMclosedplantsorlaidoffworkers,asseeninFigure4:
Figure 4: People Denied HHF in Michigan Cities Where GM Closed Plants or Laid off Workers: Homeowners Denied HHF Who Earned Less Than $30,000
Source: SIGTARP analysis of Michigan applicant data.
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InMichigan,staterecordsprovidedtoSIGTARPshowthatincitieswhereGMclosedplantsorlaidoffworkers,theMichiganstateagencyreported:
Nearly5,000peoplelivingintheDetroitmetropolitanareawhoearnedlessthan$30,000wereturneddownforHHFdollars.Thatwas82%ofallpeopleintheDetroitareaturneddownforHHF.
Ofthealmost500peoplelivinginFlintandsurroundingareaswhowereturneddownforHHFdollars,407ofthem(84%)earnedlessthan$30,000.
About83%ofthepeoplelivingintheSaginawareawhowereturneddownforHHFdollarsearnedlessthan$30,000.Thiswasmorethan260people.
Twooutofeverythreepeople(66%)livinginGrandRapidsandsurroundingareaswhowereturneddownforHHFdollarsearnedlessthan$30,000.Thiswasnearly250people.
Morethan200peopleintheLansingarea(50mileswestofFlint)whoearnedlessthan$30,000wereturneddownforHHFdollars.Thatis63%ofthepeopleintheLansingareawhowereturneddown.
Morethan100peopleinYpsilantiandsurroundingareaswhoearnedlessthan$30,000wereturneddownforHHFdollars.Thatis62%ofallpeopleintheYpsilantiareathatwereturneddownforHHFdollars.
GMalsoclosedplantsinOhio,asdidautopartssuppliers,asshowninFigure5,below.However,onemajorplantinMoraine,Ohiowasclosedthreeyearsbeforethisprogramlaunched.
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Figure 5: People Denied HHF in Ohio Cities Where GM or Suppliers Closed Plants or Laid Off Workers: Homeowners Denied HHF Who Earned Less Than $30,000
Source: SIGTARP analysis of Ohio applicant data.
OhiostateagencyrecordsprovidedtoSIGTARPshow:
GMdidnotcloseaplantinCleveland,but,accordingtomediareports,jobswerelostwhenautopartssuppliersinClevelandclosed,includingforexample,AccelPerformanceGroup,MetalworksWorldwide,andShilohIndustries.Morethan600peopleinClevelandandsurroundingareaswhoearnedlessthan$30,000wereturneddownforHHFdollars.Thatmeansthatnearly90%ofClevelandresidentsturneddownforHHFearnedlessthan$30,000.
Morethan200peopleinDaytonandsurroundingareas(includingMoraineandVandalia)whoearnedlessthan$30,000wereturneddownforHHFdollars.Thatmeansthatmorethan90%ofDayton‐arearesidentsturneddownforHHFearnedlessthan$30,000.DaytonalsosufferedfromalossofjobsatautopartssupplierslikeDelphi.
MostofthepeoplelivinginFindlay,Lordstown,Mansfield,andOntariowhowereturneddownforHHFdollarsearnedlessthan$30,000.
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Figure6,below,showsthepercentagesofdeniedworkerswhoearnedlessthan$30,000inMichiganandOhiocitiesaffectedbyGMandsupplierplantclosures.
Figure 6: Percentage of Denied Workers Who Earned Less Than $30,000, by City
* Includes Dayton and nearby cities of Moraine and Vandalia, Ohio. Combined, these cities denied 238 homeowners who earned less than $30,000.
Source: SIGTARP analysis of applicant data provided by Michigan and Ohio.
Withsuchhighpercentagesofpeoplewhoearnedlessthan$30,000beingturneddownforthisprogramincitieswhereGMclosedaplant,itbecomesimperativetoknowwhythesepeoplewereturneddown,asthislevelofincomecanshowwhohasbeenhithardinthesecities.
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SIGTARP Could Not Determine from State Records Why People Earning Less Than $30,000 Were Turned Away, Which Could Be Easily Fixed
Stateagencies’recordsprovidedtoSIGTARPwerenon‐existent,missingorincomplete,aboutwhythestateagenciesturneddownpeoplemakinglessthan$30,000.Insufficientrecordsmakeassessmentofthebasisforturningdownthesepeopledifficult.Insufficientrecordshinderimprovementstotheuseofthesefundsbythosemostinneed.Insufficientrecordshamperdeterminationsthatthemoneyisnotbeingwasted.
SomestateagencieswereunabletoprovideSIGTARPevenbasicaggregateinformationaboutthereasonswhytheydeniedpeopleseekingtheseFederalfunds.
AFloridaofficialtoldSIGTARPthatthestateagencycouldnotprovideSIGTARPalistingofthenumberofAmericansdeniedandthereasonswhytheyweredenied,despitethefactthatSIGTARPrecommendedthattheydosoinanOctober2015report.
SIGTARPfoundthatstateagencies’individual‐levelrecordsinNevada,SouthCarolina,andArizona,aremostlyblankinthefieldthatstoresthereasonwhyeachpersonwasdenied.
TheOhiostateagency’srecordslistnoreasonfordenying3,602(87%)ofthe4,133Americanworkerswhoearnedlessthan$30,000.
StateofficialsinOhio,IndianaandIllinoistoldSIGTARPthattodeterminethereasonswhyindividualsweredeniedwouldrequireamanualreviewofeachperson’sfile.
Whenstateagencyrecordslistedareasonwhyeachpersonearninglessthan$30,000wasdenied,oftenitwasavaguestatementthatthepersonwasineligible,raisingconcernsaboutwhethertheeligibilitycriteriaareallnecessary.Criteriaadoptedatthebeginningoftheprogram,whenitwasnotknownhowslowlythismoneywouldflowtohomeowners,maynotmakesensenownearlysevenyearslater—andwithanadditional$2billioninfunding.UnnecessaryrestrictionsthatserveasstumblingblocksorcloseddoorstoAmericanworkersshouldberemovedtoimproveeffectivenessandefficiency.
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To Level the Playing Field, States Can Remove Unnecessary Restrictions That: (1) Do Not Exist in Other States for These Dollars; and (2) Do Not Reflect the Reality of Working Class Americans
Withtheadditional$2billioninfundingCongressapprovedin2015,alongwithunspentfundsinsomestates,thisprogramwillbemoreeffectiveandefficientifthereisafreshlookatthecriteriathatshouldapplytoday.Statesthathaveunderperformedindistributingthemoneyshouldopenupthefunnelandremoveanybottlenecksintheirprocess.
Evenstatesthathavebeendistributingthemoneycouldopenupthecriteriatoreachmoreworkerswhohavebeenlaidofforsawtheirpaycheckcut.UsingMichiganasanexample,12,653peopleearninglessthan$30,000inMichiganwereturneddown,mostlybecausetheywereineligible,asshowninFigure7.
Figure 7: Reasons Why 12,653* Michigan Workers Earning Less Than $30,000 Were Denied Hardest Hit Funds*
Michigan Workers Denied
8,757 Borrower Ineligible
1,371 Hardship Requirement
1,259 Mortgage Ineligible
840 Property Ineligible
436 Not Participating
(Investor/Servicer)
47 No Reason Given * Detailed figures do not add to 12,653 because some homeowners were denied for more than one reason.
Source: SIGTARP analysis of Michigan applicant data.
Thereareanother12,522peopleinMichiganwhoappliedbutlaterhadtheirapplicationwithdrawn(bytheagencyorthemselves),maybebecausetheycouldnotmeetoneormorecriteria.Othersmaynothaveeventriedtoapplybecausetheydidnotmeetthecriteria.
Unfortunately,thesevaguerecordsdonotlistwhichcriteriathepersondidnotmeet,makingitdifficultfromjusttheprogramdatatoseeifcertaincriteriahavebecomeastumblingblockorcloseddoorformanyhomeowners.TheMichiganstateagency,andanyagencythatlists“borrowerineligible”asareasonfordenyingsomeone,shouldprovidemoredetailintheirrecords.Oncethestateagencyrecordsthecriteriathepersondidnotmeet,theagencyandTreasuryshouldimplement
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SIGTARP’sOctober2015recommendationtoanalyzetrendstoseeifcriteriaaretoorestrictive.
Evenwithpoorrecordsonwhypeopleearninglessthan$30,000havebeenturnedaway,trendanalysiscanshowsimplefixesthatstatescanmaketoincreasetheflowofthismoney.Thefirstfixistoleveltheplayingfieldbyeliminatingcriteriainthatstatethatdonotexistforhomeownersinotherstates.Thesecondfixistoeliminatecriteriainthatstatethatdonotreflecttherealityoftheworkingclassinthatstate.
Asanexample,HardestHitFundMichigancanremovesomecriteriathatdonotexistinotherstatesforthesesamefundsandthatdonotreflecttherealityofworkers.
HardestHitFundCaliforniahasprovidedtwotimesmoreHardestHitFundsdollarsthananyotherHHFstate.WhileMichiganhasbeenprovidingthesedollarstosome,96%oftheworkersturnedawaydidnotmeetoneormorecriteria.Thisraisesthequestionofwhetherallofthecriteriaarenecessarygoingforward.UnlikeOhio,MichiganhadnotgivenoutallofthefundsbeforeCongressapprovedtheadditionalmoney.
WhyshoulditmatterthataMichiganworkerreceivedunemploymentorsawtheirpaycheckcut“inthelast12months,”whenworkersinArizonadonothavetomeetthatsametimeframetoreceivethesesamedollars?
TheMichiganstateagencyprohibitsworkersfromreceivingHardestHitfundstohelppaytheirmortgageiftheyreceivedunemploymentbenefitsorsawtheirpaycheckcutmorethan12monthsago.MoststatesdonotputthistimingrestrictiononahomeownertogetHardestHitFunds.ItleadstoanunleveledplayingfieldifaworkerinArizonawhosawtheirpaycheckgetcut,orwhoreceivedunemploymentbenefitsmorethanayearago,canreceivethesefunds,whileaworkerinMichiganwouldbeprohibited.
TherealityforAmericanworkersisthatunemploymentlastsalongtime.AccordingtotheBureauofLaborStatistics,thenationalaveragelengthofunemploymentis27weeks.ButstateunemploymentbenefitsinMichiganonlylast14to20weeks.TheMichiganrequirementdoesnotrewardaresponsibleworkerwhosepaycheckwascutmorethanoneyearagoandhasexhaustedunemploymentbenefits,savings,familyhelp,orlow‐payingpart‐timeworktopaytheirmortgage.Witha27‐weekaverageunemployment,atsomepointeventhemostself‐sufficientrunoutofoptions.
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WhyshouldworkersinMichiganhavetosuffera20%paycuttoreceivethesefunds,whileaworkerinFloridaandOregononlyhastosuffera10%paycutandaworkerinCalifornia,ArizonaandIndianadoesnothavetoshowanyspecificpercentage?
MichiganhascriteriatoreceiveHardestHitFundsthatanunderemployedworkermusthavesuffereda20%cutinincome,whichismorerestrictivethaninotherstates.Forexample,anunderemployedworkerinCalifornia,Arizona,andIndianadoesnothavetoshowanyspecificpercentagepaycut.UnderemployedworkersinsevenotherstatescanreceiveHardestHitFunddollarsshowinglessthana20%cutinincome.8Inotherwords,10otherstatesdeterminedthatitwasnotnecessaryforanunderemployedworkertoshowa20%ormorepaycuttoreceiveHardestHitfunds,raisingconcernsthatthiscriteriacreatesanunleveledplayingfieldforMichiganworkers.
TherealityisthattherearesomanyunderemployedAmericanworkers.Ofthe19statesintheHardestHitFund,13ofthem(includingMichigan)haveabove‐averageratesofunderemployment.TheBureauofLaborStatisticsdoesnotmeasureunderemploymentbythepercentageoflostwagesorsalary,butinsteadas“thoseworkinglessthan35hoursperweekwhowanttoworkfulltime,areavailabletodoso,andgaveaneconomicreason(theirhourshadbeencutbackortheywereunabletofindafull‐timejob)forworkingparttime,”callingthem“involuntarypart‐timeworkers.”9Thisfiguremaynotaccountforfulltimeworkerswhosawapaycut.
WhyshouldMichiganworkersbedisqualifiediftheirmortgagepaymentismorethan45%oftheirincome?
Thisrequirementmaybewellintentioned,butmaynotalwaysmatchtherealityoftheworkingclasswhoaresufferingfromunemploymentandmaybeusingmuchofwhateverincometheyhavetopaytheirmortgage.TheMichiganstateagency’sintentforthiscriteriaisthattheperson“haveincomenecessarytosustainfuturepayments,”definedasamortgagepaymentlessthanorequalto45%oftheperson’sgrossincome.Therealityformanyisthattheydonothaveenoughincometomakefuturepayments,andanyincometheyhavemay,inlargepart,goto
8FloridaandOregonrequirea10%paycut;Alabama,Nevada,NewJersey,MississippiandKentuckyrequirea15%paycut.
9TheBureauofLaborStatisticscalculatestheunderemploymentrate(the“U‐6”laborunderutilizationrate)asincludingunemployedworkers,part‐timeworkerswhowanttoworkfulltimebuttheirhourswerecutbackortheywereunabletofindafull‐timejob,marginallyattachedworkerswhowanttoworkbutarenotlookingforwork,anddiscouragedworkers,whobelievetherearenojobsavailabletothemandhavegivenuplookingasaresult.
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paytheirmortgagepaymenttosavetheirhome.ButthatispreciselywhereastopgapmeasureprogramlikeHHFstepsin.Thewholepointistohelppayanunemployedworker’smortgagepaymentforashorttimeuntiltheycanhopefullyfindajobandgetbacktheirincome.
SustainabilityisnotTreasury’sstatedgoalfortheHardestHitFund,eventhoughitisastatedgoalfortheHomeAffordableModificationProgram(”HAMP”).ButHAMPisdesignedforsustainabilitybycontractingwithmortgageservicerstopermanentlyloweraperson’sinterestrateontheirmortgage,andmakeTARPpaymentsoversixyears.HHFisshortterm,sometimesaone‐timepayment,andtypicallynomorethantwoyearsofmonthlypayments.Itmostoftenleadstonopermanentchangetothemortgage.Treasury’sguidelinestostateagenciesforHHFhavenorequirementofsustainability.
HHFcomplementsstateunemploymentbenefitsthatdonothavesustainabilityrequirementssuchasthepersonhastoshowtheyhaveincometomakefuturepayments.Typically,astateagencyrequiresthat,inordertogetHHFusingunemploymentasthehardship,thepersonhastobeeligibleforstateunemploymentbenefits.TheHardestHitFundisaninvestmentintheseworkersandtheirneighborhoodsbyprovidingatemporarysafetynetthatpreventsforeclosuresuntiltheycanfindajob.
WhydoesaMichiganworkerfacinganupcominglayofforpaycuthavetowaituntiltheyarelaidoffandbecomedelinquenttoqualify?
TheCaliforniastateagencyallowsaworkertoqualifyforthesefundsiftheyaregoingtofaceanupcominghardshipthatcouldcausethemtodefaultontheirmortgage.OpeningupMichiganandOhiotoconsideranupcoming,involuntaryhardshipwouldallowtheworkersattheGMplantsinLansing,MichiganorLordstown,Ohio(whereGMannouncedlayoffsforJanuary2017),orworkersatpartssupplierswhomayalsobelaidoff,toworkthroughthemonths‐longapplicationprocessnowandreceivehelpbyFebruary,thefirstmonthafterthelayoffs.
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WhyshouldaMichiganworkerhavetowaituntiltheyaredelinquentontheirmortgagetoqualifywhenworkerswhoarecurrentontheirmortgageinotherstateslikeIndiana,Oregon,andTennesseequalifyforthesefunds?
ToqualifyforHardestHitfunds,workersinMichiganmustbedelinquentontheirmortgages,propertytaxes,orcondominiumfees.10BeingcurrentonthemortgagewillnotdisqualifyaworkerinIndiana,OregonandTennesseeforthesedollars.Indiana,Oregon,andTennesseehavelownumbersofpeopleturnedawaywhoearnlessthan$30,000.Therealityisthatsomeresponsiblehomeownershavestretchedtheirdollartokeeptheirmortgagecurrentbutmayberunningoutofsavingsorothermeans.
Removingcriterianotpresentforhomeownersinotherstatesensuresthatthereisalevelplayingfieldforthesedollars.Italsocanopentheprogramuptopeopleearninglessthan$30,000.
10TheMichiganstateagencyemphasizesonitshomepageanditsHHF“FrequentlyAskedQuestions”pagethathomeownersmustbe“delinquent”toapplyforHHFassistance.Althoughanaddendum(onpageseven)totheagency’sFAQentitled“InformationforBankruptcyClients”subsequentlystatesthathomeownersneednotbedelinquentontheirmortgage,thatclarificationmayeasilybemissedbymanyhomeowners(andhousingcounselors),anddiscouragehomeownerswhoarenotdelinquentontheirmortgagesfromapplying.Becausetheagencywasunabletoprovidespecificreasonseachhomeownerwasdenied,SIGTARPcouldnotdeterminewhethertheMichiganstateagencydeniedHHFassistancetohomeownerswhowerecurrentontheirmortgages.
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Conclusion
AsaninvestmentinAmericanworkers,TARP’sHardestHitFundprovidesatemporarysafetynettosavethehomesofnow‐unemployedorunderemployedworkersintherustbelt,south,andotherhard‐hitareasofthecountry.Theprogramhashelpedmorethanaquarterofamillionpeople,buttherehasbeennoreportingonthepeopledeniedentryintotheprogram.SIGTARPhasfoundthatmostofthehomeownerswhoweredeniedHardestHitfundsearnedlessthan$30,000,callingintoquestionwhethertheprogramiseffectiveinreachingthosehardesthit.Insixstates(includingOhio,NorthCarolina,andIndiana)threeoutoffourpeopledeniedentryintotheHardestHitFundmadelessthan$30,000.Nearlythreeoutofeveryfourpeopleinsixotherstates(includingMichigan,Georgia,Illinois,Kentucky,andTennessee)whoweredeniedentryintotheHardestHitFundmadelessthan$30,000.
TARPwasabailoutforcompanieslikeGeneralMotorsinareaslikeDetroit,Cleveland,andFlint,butCongressalsorequiredthatTARPfundsgotohomeowners,includingAmericanworkerswhocontinuetofeeltheeffectsofthefinancialcrisisandtherecessionthatfollowed.Inmanystates,themoneyhasbeenslowtoflow.TheneedfortheprogramissogreatthatabipartisaneffortbyCongressaddedanadditional$2billioninDecember2015.TreasuryextendedtheprogramthreeyearsuntilDecember2020.MorecanbedonetomakesurethoseAmericanworkerswhoarehardesthitgetthishelp.
SIGTARPfoundthat84,965outof160,015peopledeniedforHardestHitFunddollarsearnedlessthan$30,000ayear,including64,979peoplewhomadelessthan$20,000ayear.In12states,mostlyintherustbeltandsouth,70percentormoreofthepeopleturneddownfortheHardestHitFundmadelessthan$30,000.Atthesametime,nearly20,000peoplewhomademorethan$70,000,including6,000peoplemakingmorethan$90,000,receivedHardestHitFunddollars.
Outof19states,withtheexceptionofhighly‐populatedCaliforniaandFlorida,TreasurysetasidethemostdollarsforOhioandMichigan.WhiletheprogramhashelpedmanyinOhioandMichigan,thosearetwostateswherehighpercentagesofpeopleturneddownmadeunder$30,000—86percentinOhioand71percentinMichigan.
SIGTARPfoundhighpercentagesofpeopleturneddownfortheHardestHitFundwhoearnedlessthan$30,000incitieswhereGeneralMotors—whichreceived$50billioninTARPfunds—oritssuppliersclosedplantsorlaidoffworkers:
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82%ofthepeopleintheDetroitareaturneddownmadelessthan$30,000—thatamountsto4,829people
89%ofthepeopleintheClevelandareaturneddownmadelessthan$30,000(619people)
84%ofthepeopleintheFlintareaturneddownmadelessthan$30,000(407people)
83%ofthepeopleintheSaginawareaturneddownmadelessthan$30,000(266people)
91%ofthepeopleintheDaytonareaturneddownmadelessthan$30,000(238people)
Theexpectationforaprogramthattargetsunemployedandunderemployedworkersshouldbethatmanystrugglingtosavetheirhomeswillhavelowerincomes.Thefactthatsomanyturneddownhadlowerincomesrequiresadeeperlookintowhytheywereturneddown.
Stateagencies’recordsprovidedtoSIGTARPwerenon‐existent,missingorincompleteaboutwhythestateagenciesturneddownthesepeoplemakinglessthan$30,000.Theremaybevalidreasonswhysomeofthesepeopleweredenied,butitisimpossibletoknowwhenstateagenciesmanagingthisprogramdonotkeeprecordsthatdetailspecificallywhyeachpersonwasdenied.Thatoversightisunjustifiableandshouldberemediedsoappropriateactioncanbetakentogetthismoneytotheworkingclassstillfeelingtheimpactofthecrisisandrecession.
Thisprogramhasalotmorepotentialtoprovideasafetynetincertaincommunitiesuntilfull‐timejobsreturn,butthatpotentialneedstobeunlockednow.DespiteGMreturningtoprofitability,GMandothershaveclosedplantsinthepastyear,andmorethan2,000GMworkerswillbelaidoffatplantsinMichiganandOhio.
Thebestwaytounlockthefullpotentialoftheprogramistoremovetoo‐stringentcriteriathat:(1)donotreflecttherealityoftheworkingclassinthatstate;or(2)donotapplytohomeownersinotherstatestogetthesefunds.Forexample,aMichiganworkershouldnotbeturneddownfortheHardestHitFundjustbecausetheyreceivedunemploymentbenefits(orsawtheirpaycheckcut)morethan12monthsago,whenaCaliforniahomeownerdoesnothavethatsamerestrictionforentryintotheHardestHitFund.Thereshouldbealevelplayingfieldforhomeownersseekinghelpthroughthisprogram.This12‐monthtimingrestrictionisalsoinconsistentwiththenewnormalofunemployment—thatitlastsalongtime—anditdoesnotrewardaresponsibleMichiganhomeowner
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whomadeendsmeetformorethanayearafterreceivingunemploymentbenefits,buthasnowrunoutofoptions.
SIGTARPfoundothercriteriaincertainstatesforthisprogramthataremorerestrictivethanothers.Forexample,arequirementinMichiganandsomeotherstatestoshowa20%paycutinordertoqualifyas“underemployed”iseitherlowerornon‐existentinotherstatesforthissameprogram.SIGTARPalsofoundcriteriaincertainstatesforthisprogramthatdonotmatchtherealityofunemployedworkers.Forexample,arequirementthatthepersonmakesufficientincometoaffordtheirmortgageinthefuturemaynotberealisticnow.Therealityisthatthisistemporaryhelpwhilethepersonlooksforafull‐timejob,atwhichpointthehopeisthattheywillmakeenoughincometoaffordtheirmortgage.Programcriterialiketheseandothersmayhavebeenwell‐intentioned,designedtoensuretherewasenoughmoneytospreadaround.Nearlysevenyearslater,withbillionsofdollarsleft,andthemoneyslowtoflow,stateagenciesshoulddeterminewhethereachprogramcriteriaisreallynecessary.
Evengoodprogramscanbebetter.TheHardestHitFundcanbemoreeffectiveandefficientsothatthestateagenciescanhelpmoreofAmerica’sworkingclasssavetheirhome.Thatisagoalworthstrivingfor,butittakeschange,includingunlockingthefullpotentialofthisprogrambydeletingunnecessaryrestrictions.
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Recommendations
1. ToimprovetheeffectivenessofdistributingHardestHitFunddollarstohelpunemployedandotherhomeownerssavetheirhomesandleveltheplayingfieldforhomeownersacrossstates,Treasuryandstateagenciesshouldeliminateunnecessaryprogrameligibilitycriteriathatpreventlow‐incomehomeownersfromgettingHardestHitFundassistance,includingthosecriteriathatdonotreflecttherealityofthestate’sworkingclassandthosethatdonotapplytohomeownersinotherstatesfortheseFederaldollars.
2. TohelpAmerica’sworkingclasssavetheirhomes,TreasuryandstateagenciesshouldopenupeligibilitytotheHardestHitFundtoworkerssubjecttoactualorannouncedlayoffs,plantclosings,orothersimilarreductions‐in‐forcesothattheydonothavetowaituntiltheyactuallyfallbehindontheirmortgagepaymentstobecomeeligibleforHardestHitFundassistance.
3. TreasuryshouldrequirestateagenciestokeepdetailedrecordsonwhytheydeniedeachpersonforHardestHitFundassistance,includingthespecificprogramcriterianotmet.
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Management Comments and SIGTARP’s Response
Inresponsetoadraftofthisreport,Treasuryprovidedaletterandsometechnicalcomments,whichSIGTARPaddressedwhereapplicable.Initsresponse,TreasurydidnotaddressSIGTARP’sfindings,butsaidit“…appreciatesSIGTARP’sanalysisandiscloselyexamining[SIGTARP’s]recommendations.”
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Appendix A – Objective, Scope, and Methodology
SIGTARPperformedthisevaluationunderauthorityofPublicLaw110‐343,asamended,whichalsoincorporatesthedutiesandresponsibilitiesofinspectorsgeneralundertheInspectorGeneralActof1978,asamended.SIGTARPinitiatedthisevaluationaspartofSIGTARP’scontinuingoversightofTreasury’sHardestHitFund(“HHF”)program.Theevaluation’sobjectivewastoassessthedenialofhomeownersapplyingforHardestHitFundassistance.ThescopeofthisevaluationcoveredHHFhomeownerassistanceprogramsforall19stateagencies.Giventhelimitationsoftherecordskeptbystateagencies,thescopeofthisevaluationlargelyfocusedonincomesofhomeownerswhoappliedandweredeniedHHFassistance.SIGTARPconductedthisevaluationfromFebruary2016throughDecember2016inWashington,D.C.
SIGTARPobtainedandanalyzeddatafromeachstateagencyaboutindividualhomeownerswhoweredeniedHHFunemploymentassistanceasofJune30,2016(theNevadastateagencyonlyprovidedhomeownerdenialdataasofSeptember30,2015).Becausestateagenciesdeniedmanyhomeownersbeforetheyverifiedthehomeowners’reportedincomes,whereavailable,SIGTARPusedtheearnedincomes(wages,self‐employmentincome,andrentalincome)reportedbyapplicantsandco‐applicantsintheirapplications.SIGTARPalsoobtainedandanalyzedstateagencydata,whereavailable,regardingthereasonswhyhomeownersweredeniedHHFassistance.SIGTARPalsoheldinterviewswithstateagenciestogainanunderstandingoftheirrecordkeepingformaintainingdataonhomeownersdeniedfortheprogram.
SIGTARPalsoanalyzedstateagencyquarterlyperformancedata,andperformedalimitedreviewofstateagencyagreementswithTreasuryandadditionaldetailedprogram‐leveleligibilitycriteria,policiesandprocedures.Inaddition,SIGTARPcollectedinformationregardingautomotiveindustryplantclosuresinMichiganandOhio.
SIGTARPconductedthisevaluationinaccordancewiththe“QualityStandardsforInspectionandEvaluation,”January2012edition,establishedbytheCounciloftheInspectorsGeneralonIntegrityandEfficiency.ThosestandardsrequirethatSIGTARPplanandperformtheevaluationtoobtainevidencesufficienttoprovideareasonablebasisforfindingsandconclusionsbasedontheevaluationobjectives.SIGTARPbelievesthattheevidenceobtainedprovidesareasonablebasisforthefindingsandconclusionsbasedontheevaluationobjectives.
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Limitations on Data
SIGTARPreliedonstateagenciestoprovideapplicant‐leveldataanddataconcerningwhyapplicantsweredenied.Inmanycasestheapplicantdatathestateagenciesprovidedcontainedblankfields,asnotedinthereport.SIGTARPalsoreliedonTreasury’sQuarterlyPerformanceReports.ItispossiblethatthedocumentationprovidedbystateagenciestoSIGTARPdidnotreflectacomprehensiveresponsetoSIGTARP’sdatarequest,potentiallylimitingSIGTARP’sreview.
Use of Computer-Processed Data
SIGTARPreliedoncomputer‐processeddataforthisevaluation.Specifically,SIGTARPreliedonthestateagencies’dataprovidedtoSIGTARPtodeterminethenumbersandpercentagesofdeniedhomeownersandtheirincomes.SIGTARPreliedonTreasury’squarterlyperformancereportstodeterminethenumbersandpercentagesofapprovedhomeownersandtheirincomes.SIGTARPdidnotvalidatetheaccuracyoftheunderlyingdataprovidedbyTreasuryorthestateagencies.
Internal Controls
Toaddressthereportingobjectiveinthisevaluation,SIGTARPperformedalimitedreviewofinternalcontrolsbyinterviewingstateagencyofficialsandbyreviewingselectedstateagencyagreementswithTreasuryandstateagencyeligibilitycriteria,policiesandprocedures.
Prior Coverage
SIGTARPhascoveredtheHHFprograminfivepreviousreports.OnApril12,2012,SIGTARPreleasedanauditreporttitled,“FactorsAffectingImplementationoftheHardestHitFundProgram.”OnApril21,2015,SIGTARPreleasedanauditreporttitled,“TreasuryShouldDoMuchMoretoIncreasetheEffectivenessoftheTARPHardestHitFundBlightEliminationProgram.”OnOctober6,2015,SIGTARPreleasedanevaluationreporttitled,“FactorsImpactingtheEffectivenessofHardestHitFundFlorida.”OnJune16,2016,SIGTARPreleasedanauditreporttitled,“Treasury’sHHFBlightEliminationProgramLacksImportantFederalProtectionsAgainstFraud,Waste,andAbuse.”OnSeptember9,2016,SIGTARPreleasedanauditreporttitled,“WasteandAbuseintheHardestHitFundinNevada.”SIGTARPalsoissuedanalertletteron
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December14,2015,thataddressedariskrelatedtodivertingTARPfundstodemolishlived‐inproperties,whichcouldunderminethesuccessofHHF’sBlightEliminationProgram.
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Appendix B – Acronyms and Abbreviations
GM GeneralMotors
HAMP HomeAffordableModificationProgram
HHF HousingFinanceAgencyInnovationFundfortheHardestHitHousingMarkets(also“HardestHitFund”)
Stateagency Statehousingfinanceagency
TARP TroubledAssetReliefProgram
Treasury U.S.DepartmentoftheTreasury
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Appendix C – Evaluation Team Members
ThisevaluationwasconductedandthereportwaspreparedunderthedirectionofJennifferF.Wilson,DeputySpecialInspectorGeneralforAuditandEvaluation,andChristopherBosland,AssistantDeputySpecialInspectorGeneralforAuditandEvaluation,OfficeoftheSpecialInspectorGeneralfortheTroubledAssetReliefProgram.
StaffmemberswhoconductedtheevaluationandcontributedtothereportincludeCraigMeklir,KamruzZaman,WilliamSaunders,andJeffBanks.
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Appendix D – Management Comments
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SIGTARP-17-001 January 11, 2017
SIGTARP Hotline
If you are aware of fraud, waste, abuse, mismanagement, or misrepresentations associated with the Troubled Asset Relief Program, please contact SIGTARP.
By UOnline Form: Uwww.SIGTARP.govU
By Phone: Call toll free: (877) SIG-2009
By Fax: (202) 622-4559
By Mail: Office of the Special Inspector General for the Troubled Asset Relief Program 1801 L Street., NW, 3rd Floor Washington, DC 20220
Press Inquiries If you have any inquiries, please contact our Press Office:
Robert Sholars Director of Communications Robert.Sholars@treasury.gov 202-927-8940
Legislative Affairs For Congressional inquiries, please contact our Legislative Affairs Office:
Joseph Cwiklinski Director of Legislative Affairs Joseph.Cwiklinski@treasury.gov 202-927-9159
Obtaining Copies of Testimony and Reports To obtain copies of testimony and reports, please log on to our website at Uwww.SIGTARP.govU.
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