This story appeared in Bank Digest.
The Government Accountability Office has issued a report entitled "TROUBLED ASSET RELIEF PROGRAM: Treasury Should Estimate Future Expenditures for the Making Home Affordable Program." The report examines the extent to which Treasury is reviewing unexpended balances and cost projections for the MHA program.
The GAO recommended that Treasury: (1) estimate future expenditures for the MHA program and any unexpended balances; and (2) deobligate funds that its review shows will likely not be expended and move up to $2 billion of such funds to the TARP-funded Hardest Hit Fund as authorized. In addition, the report said Congress should consider permanently rescinding any deobligated MHA funds that are not moved to the Hardest Hit Fund and make them available for other priorities.
The GAO said that Treasury agreed with its recommendations and indicated that it has updated its cost estimates and subsequently deobligated $2 billion of MHA funds on Feb. 25, 2016.