Financial Markets Stability Resource Center

The constant turmoil in the financial services arena has prompted a variety of proposals in Congress, government regulators and the industry to restore stability. MBA is engaged in the debates at all levels, ensuring the needs of members are carefully considered. This new resource center provides a one-stop shop to track key initiatives regarding financial market stability. Relevant MBA policy, actions and other helpful guidance are also consolidated here.

Due to the rapidly changing nature of this very important issue, this resource center is designed to be very fluid. Check back often for information on new developments.

Financial Markets Stability Resource Center Spotlight

On November 2: MBA Opposes Additional Risk Retention

MBA submits a letter to the Hill opposing provisions of the Financial Stability Improvement Act (FSIA) requiring additional "risk retention" for residential and commercial mortgage financing and securitization. Read letter.

On October 20: MBA Testifies to Senate Committee on State of the Nation's Housing Market

MBA testifies on "The State of the Nation’s Housing Market” for the Committee on Banking, Housing and Urban Affairs United States Senate. Read testminony.

On October 19: MBA's Requests Extension of First-Time Homebuyer Tax Credit

MBA submits joint trade letter requesting support for the extension of first-time homebuyer tax credit to Treasury, HUD and National Economic Council. Read letter.

October 13: MBA Explains Loan Modification Possibilities in Current Economic Climate

On October 13, MBA launched its Loan Modification Communication Initiative, the goal of which is to explain the possibilities of loan modifications given the current economic climate. Visit the Home Loan Learning Center to learn more.

August 21: Version 7 of the Home Affordable Modification program (HAMP) Borrower Qualification Worksheet (BQW) Is Available For Download

Enhancements to Worksheet Version 7 include the following:

  • Changing the 'First Payment Due On' field so you can manually enter the Trial Period Effective Date to comply with Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-19.
  • Introducing the Worksheet's capability to account for an interim month following the Trial Period (preceding the modification effective date) so the results are more consistent with the Net Present Value test. The optional interim month, introduced July 8, 2009, by the Department of the Treasury, allows Servicers an additional month to prepare and submit modification documents for HAMP.
  • Updating our BQW Terms of Use. Please remember using the BQW is subject to the conditions outlined in the BQW Terms of Use. You will need a Mortgage Servicing Products ID to access the BQW Terms of Use. The Terms of Use can also be found in the BQW and the User Guide.
  • Enhancing the BQW display so that it allows data to be more visible and easier to read, print, and fax.
August 17, 2009: MBA Applauds Extension of Term Asset-Backed Securities Loan Facility

Michael D. Berman, Vice Chairman of the Mortgage Bankers Association (MBA), today issued the following statement after the announcement by the Federal Reserve Board approving the extension of the Term Asset-Backed Loan Facility (TALF) program for newly issued ABS and legacy CMBS through March 31, 2010 and new issue CMBS through June 30th, 2010.

"MBA has consistently advocated for a longer duration for the CMBS TALF program as an essential element for its success. We strongly endorse today's announcement by the Federal Reserve to extend the program in order to promote financial stability and to enhance liquidity in the CMBS market," said Berman.

Read the full press release.

August 10, 2009: MBA Sends a Letter to Congressional Leaders on HAMP Implementation

On Monday, August 10, 2009, MBA sent letters to Senator Chris Dodd (D-CT) and Congressman Barney Frank (D-MA), the chairmen of their chambers' banking panels, regarding the industry's efforts to implement the Home Affordable Modification Program (HAMP), its overall efforts to assist homeowners through HOPE NOW and other programs, and to recommend improvements to the Making Home Affordable and HOPE for Homeowners programs. This MBA-led letter, which was cosigned by four other financial trade associations, called on the Treasury Department to make a number of enhancements to HAMP - under which servicers have already offered more than 400,000 trial modifications. The letter went on to state that the industry believes it can meet the Obama administration's stated goal of reaching 500,000 trial modifications by November, and even exceed it if several of the changes suggested in the letter are made quickly.

Read the Letter

August 4, 2009: The Obama Administration Releases its First Monthly Servicer Performance Report

The Obama Administration released its first monthly Servicer Performance Report detailing the progress to date of the Making Home Affordable (MHA) loan modification program. The purpose of the report is to document the number of struggling homeowners already helped under the program, provide information on servicer performance and expand transparency around the initiative.

Read the Treasury press release.
View the report (July).
Administrative Web site for Servicers: Home Affordable Modification Program (HAMP)

April 21, 2009: Home Affordable Modification Program Updates Announced

On April 21, 2009, Fannie Mae issued Announcement 09-05R to provide additional policy clarifications and instructions regarding the Home Affordable Modification Program (HMP). This Announcement is a reissuance of Announcement 09-05, dated March 4, 2009, and supersedes that Announcement in its entirety. Additionally, the HMP Hardship Affidavit (Form 1021) has been updated.

Announcement 09-05R contains policy clarifications and new instructions, which are shown in bold type in the Announcement text. Highlights include:

-Providing more detailed guidance on evaluating borrowers using the imminent default screen by implementing a debt coverage ratio test as well as a cash reserves test.
-Redetermining the eligibility of a borrower for the HMP if his or her verified income varies from the initial income information used by the servicer to offer an HMP modification to the borrower.
-Affirming that servicers should continue full file credit reporting on borrowers in an HMP. However, if a loan is current when the borrower enters the trial period, the servicer should report the borrower current but on a modified payment, if the borrower makes timely payments by the 30th day of each trial month.
-Adding a new Compliance section.

April 14, 2009: Making Home Affordable Question and Answer Session

On April 14, HOPE NOW, The Housing Policy Council, and MBA hosted a question and answer session on the Making Home Affordable Modification Program with Robert Kimble and Angela Hsia of FHLMC,
Dave Worrall and Gwen Muse-Evans of FNMA, Lynette Burks of Treasury, Paul Leonard of Housing Policy Council and Vicky Vidal of MBA.

Listen to a recording of the call.

March 31, 2009: Making Home Affordable Question and Answer Session

On March 31, HOPE NOW, The Housing Policy Council, and MBA hosted a question and answer session on the Making Home Affordable Modification Program.

Listen to a recording of the call.

March 19, 2009: Administration Launches Consumer Web Site to Help Determine Borrower Eligibility

This week, as part of the Making Home Affordable program, the administration unveiled a new Web site for consumers, where they can find information on the loan modification and refinance programs available to borrowers. includes extensive information regarding the Making Home Affordable plan, self assessment tools and eligibility guidelines, an online calculator to estimate the reduction in the mortgage payment, additional counseling resources and a document check-list.

March 17, 2009: Making Home Affordable Question and Answer Session

On March 17, MBA hosted a conference call on loan modification with Laurie Maggiano from Treasury Housing Preservation Office, Lynn Hayden, Donald Griffith and Anthony Higgins from FHLMC and Eric Schuppenhauer, Dave Worall and Debbie Trentler from FNMA.

Listen to a recording of the call.

March 11, 2009: Federal Reserve Bank of New York Releases TALF FAQ and Related Documents

On March 11, the Federal Reserve Bank of New York released a revised set of frequently-asked-questions related to the Term Asset-Backed Securities Loan Facility. The revisions include refinements to the compliance requirements as they relate to inspection rights and recourse in the event that collateral is found ineligible, additional clarity regarding the Federal Reserve's funding commitment, description of attestation requirements for SBA 7(a) and 504 programs, refined definitions of prime and subprime as it relates to auto ABS, as well as refined eligibility criteria for floor plan auto ABS. View the TALF FAQs.

Additionally, the New York Fed has released the following related documents:

-TALF Master Loan and Security Agreement (revised and redlined original )
-Guidance for Accounting Firms in Determining TALF Collateral Eligibility
-Form of Certification as to TALF Eligibility (revised and redlined original )
-Form of Undertaking in Connection with SBA ABS -TALF Auditor Attestation Form (revised and redlined original )
-Conflicts of Interest Guidance for Primary Dealers Participating in TALF
-TALF Borrower Eligibility and New York Fed Due Diligence Policy

March 4, 2009: Treasury Releases Additional Details of Making Home Affordable, MBA Co-Hosts Calls to Discuss New Details with Administration

On March 4, the administration announced new guidelines to enable servicers to begin modifications of eligible mortgages under the Homeowner Affordability and Stability Plan (HASP) announced two weeks ago. The program, now called "Making Home Affordable," is expected to provide assistance to as many as seven to nine million homeowners.

The Home Affordable Refinance program will be available to homeowners who have a good-standing payment history on an existing mortgage owned by
Fannie Mae or Freddie Mac , but are unable to refinance because their homes have lost value. Borrowers will now be eligible to refinance their loans to take advantage of today's lower mortgage rates or to refinance an adjustable-rate mortgage (ARM) into a more stable mortgage. A major benefit of the program is its streamlined valuation and underwriting requirements. The Home Affordable Refinance program will be available until June 2010.

The Home Affordable Modification program will help at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. The announcement laid out eligibility and verification criteria for these modifications, including the fact that the program applies to delinquent and current loans in imminent risk of fault with a principal balance of up to $729,750, regardless of geographic location. Servicers who elect to participate in the program must service all eligible loans under the rules of the program unless explicitly prohibited by contract. Servicers must also use reasonable efforts to obtain waivers of limits on participation from investors and must enter into the program agreements with Treasury's financial agent (Fannie Mae), on or before December 31, 2009. Lenders must reduce the interest rate, principal mortgage obligation or extend the term of the loan to achieve a 38 percent debt-to-income (DTI) ratio for the borrower, and then the federal government would share dollar-for-dollar with the lender to achieve a 31 percent DTI, either through interest rate or principal deferral. The announcement also lays out various incentive payments for investors, servicers, lenders and borrowers. Servicers will be required to collect, maintain and transmit records for verification and compliance review, including borrower eligibility, underwriting, incentive payments, property verification and other documentation. Freddie Mac will audit compliance.

Immediately following the release of the new details, MBA co-hosted a call with HOPE NOW and the Housing Policy Council of the Financial Services Roundtable, to discuss these new details and field questions from MBA members.

Listen to a recording of the call.

Additional information is available at , where you can find borrower information , a Making Home Affordable fact sheet , a summary of guidelines , modification program guidelines , and counselor questions and answers . Additionally, please find Fannie Mae's Introduction to the Home Affordable Modification Program, HomeSaver Forbearance, and New Workout Hierarchy , New Refinance Options for Existing Fannie Mae Loans and Freddie Mac's bulletin to servicers.

March 3, 2009: Treasury Launches Term Asset-Backed Securities Loan Facility (TALF)

On March 3, 2009, the U.S. Department of the Treasury and the Federal Reserve, in carrying out the Financial Stability Plan, announced the launch of the Term Asset-Backed Securities Loan Facility (TALF), a component of the Consumer and Business Lending Initiative (CBLI). The TALF has the potential to generate up to $1 trillion of lending for businesses and households. The TALF is designed to reopen the securitization markets by providing financing to investors to support their purchases of certain AAA-rated asset-backed securities (ABS). By reopening these markets, the TALFs goal is to assist lenders in meeting the borrowing needs of consumers and small businesses, helping to stimulate the broader economy. The Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated ABS backed by newly and recently originated auto loans, credit card loans, student loans, and SBA-guaranteed small business loans. Subscriptions for funding in March will be accepted on March 17, 2009 and on March 25, 2009, those new securitizations will be funded by the program, creating new lending capacity for additional future loans. The Federal Reserve and Treasury currently anticipate that ABS backed by rental, commercial, and government vehicle fleet leases, and ABS backed by small ticket equipment, heavy equipment, and agricultural equipment loans and leases will be eligible for the April funding of the TALF. Other types of securities are currently being considered. Moreover, TALF will combine public financing with private capital to encourage the private securitization of loans in the asset classes eligible in the expanded program. Additional details for the TALF programs and the CBLI can be found at

Click each of the following links to find Federal Reserve Press Release and Federal Reserve Bank of New York Press Release. In addition find Frequently Asked Questions and a White Paper released by the administration

February 25, 2009: U.S. Treasury Releases Details of its Capital Assistance Program

On February 25, the Treasury Department released four documents detailing the terms and conditions of its Capital Assistance Program (CAP). Among these documents were the terms and conditions of the program, application procedures for the program, a white paper illuminating the CAPs role in the Financial Stability Plan, and a frequently asked questions document, all of which may be found at, as well as linked below. The administration has identified CAP as a core element of the its Financial Stability Plan. The purpose of the CAP is to restore confidence in the financial system that the nation's largest banking institutions have a sufficient capital cushion against larger than expected future losses, should they occur due to a more severe economic environment, and to support lending to creditworthy borrowers. Eligible U.S. banking institutions with assets in excess of $100 billion on a consolidated basis are required to participate in coordinated supervisory assessments, and may access the CAP immediately in order to establish any necessary additional buffer. Eligible U.S. banking institutions with consolidated assets below $100 billion may also obtain capital from the CAP. Additionally, the administration's Financial Stability Plan also includes: a Consumer Business Lending Initiative to unfreeze secondary credit markets, a Public Private Investment Fund to raise private capital to purchase legacy assets, and a Homeowner Affordability and Stability Plan to restructure or refinance mortgages to help as many as 7-9 million families stay in their homes.

Click on each of the following links to find Treasury's Press Release, Terms and Conditions, Application Guidelines, White Paper and Frequently Asked Questions.

February 23, 2009: MBA Responds to Homeowner Affordability and Stability Plan

On February 23, MBA sent a letter to Treasury Secretary Timothy Geithner and Housing and Urban Development Secretary Shaun Donovan regarding the administration’s Homeowner Affordability and Stability Plan (HASP). In the letter, MBA expresses strong support for development and implementation of uniform industry guidelines to modify mortgages. MBA also supports loan refinancing through Fannie Mae and Freddie Mac for borrowers whose loan-to-value (LTV) of the property exceeds 80 percent, up to 105 percent. To reach more financially troubled borrowers, MBA urges the Treasury Department to increase the 105 percent cap and include loans held by entities other than Fannie Mae or Freddie Mac. MBA also urges Treasury to establish an effective safe harbor to protect servicers from legal liability for modifications, which is essential in ensuring that securitized loans can be modified. MBA continues to oppose bankruptcy cram down; however, should the administration pursue that option, MBA recommends that it serve as the last resort for borrowers that have exhausted all other options.

On February 26, MBA submitted a statement for the record to the Senate Banking Committee hearing on the “Homeowner Affordability and Stability Plan.” In its statement, MBA outlined recommendations for the plan, which include input from MBA’s members on areas within HASP that would benefit from further specificity. MBA’s statement mirrors the comments and recommendations made in the aforementioned letter.

Click on each of the following links to find MBA's letter to Treasury and HUD on HASP, MBA's summary of HASP and MBA's Statement for the Record to the Senate Banking Committee hearing on HASP.

February 18, 2009: President Obama Unveils Homeowner Affordability and Stability Plan

On Wednesday, February 18, President Obama unveiled his Homeowner Affordability and Stability Plan (HASP) designed to provide assistance for struggling homeowners and entice and empower servicers to help more borrowers avoid foreclosure.

Click on each of the following links to find MBA's Letter to the administration outlining its position on HASP, MBA’s public statement, MBA summary of the plan and an executive summary, fact sheet and Q&A document from the White House.

February 17, 2009: President Obama Signs the Economic Stimulus Package

President Obama signed H.R. 1, the "American Recovery and Reinvestment Act of 2009" into law on February 17, 2009. The $787 billion legislation represents significant compromise on several major issues. For example, President Obama's promised middle-class tax cut has been reduced and the state fiscal stability fund, to be spent mostly on education, saw a $25 billion reduction.

On the real estate front, the bill restores 2008 government-sponsored enterprises (GSE) and Federal Housing Administration (FHA) loan limits for the 2009 calendar year and increases the Home Equity Conversion Mortgage (HECM) limit to $625,500. The bill voted on today also increased the $7,500 First Time Homebuyer Credit-enacted under the Housing and Economic Recovery Act (HERA)-to $8,000 and extends the credit to December 1, 2009, with no repayment requirement. MBA was working to increase the credit to $15,000 or ten percent of the area median house price, and to have the credit available at closing. The bill allows small businesses-enterprises with less than $15 million in annual revenues-to elect a five-year Net Operating Loss (NOL) carryback incurred for tax years ending or alternatively, beginning in 2008.

February 10, 2009: Treasury Secretary Geithner Introduces Financial Stability Plan

Treasury Secretary Timothy Geithner outlined the administration’s plan to help recapitalize the banking system and aid struggling homeowners. Substantive details of the program will be issued later this month. Secretary Geithner discussed efforts to help homeowners who are having difficulty making their mortgage payments. Helping stem the tide of foreclosures is a crucial part of stabilizing both the housing market and the overall economy and we hope to work with the administration and regulators to craft a plan to further help homeowners. MBA supports Treasury's goal of bringing all stakeholders together around a uniform and workable standard for modifying loans to help troubled homeowners achieve an affordable monthly payment.

Secretary Geithner also unveiled a multi-pronged approach to restart the stalled credit markets and encourage financial institutions to start lending again. We are pleased, particularly with the expansion of the TALF to specifically include commercial mortgage-backed securities. We hope the program will contain support for both new and existing assets including private label residential mortgage-backed securities. The market for new private label RMBS and CMBS has essentially disappeared, and this will hopefully help spur lending for commercial and multifamily projects.

According to Geithner, the program includes the following initiatives by Treasury:

  1. Consult with the federal banking agencies to develop a stress test to determine, evaluate and disclose bank balance sheet risk. Banks needing capital support, as determined by the test, will receive Treasury funds as a bridge to private capital.

  2. Establish a Public-Private Investment Fund with the Federal Reserve, FDIC, and the private sector to provide government capital and financing to help leverage private capital and target the legacy toxic loans and assets held by financial institutions. It will start on a scale of $500 billion, and expand it based on what works.
  3. Expand the size and scope of the Term Asset-Backed Securities Loan Facility (TALF), pending Treasury’s receipt of additional TARP funds. According to a simultaneously issued Federal Reserve press release, the TALF could be expanded up to $1 trillion, and include as eligible collateral AAA-rated commercial MBS, private-label residential MBS, and other asset-backed securities.
  4. Increase the federally guaranteed portion of Small Business Administration (SBA) loans, and give more power to the SBA to expedite loan approvals.
  5. Launch a comprehensive housing program to address the housing crisis. The focus will be on reducing mortgage payments and interest rates with a commitment of resources authorized the Emergency Economic Stabilization Act.

Geithner also announced a new Web site, which details how government funds are allocated and under what conditions. The Web site will also disclose executive compensation requirements for companies receiving government aid, and the impact of government programs on the overall flow of lending and cost of borrowing.

Read Geithner's speech.

February 6, 2009: Federal Reserve Board releases updates TALF details

The Federal Reserve Board (Board) on February 6, 2009, released additional terms and conditions-including loan rates and collateral haircuts-of the Term Asset-Backed Securities Loan Facility (TALF). The additions were determined after continued analysis and consultation with participants in the asset-backed securities (ABS) market. New terms and conditions also include a revised definition of eligible borrowers - any U.S. company that owns eligible collateral may borrow from the TALF, provided the company maintains an account relationship with a primary dealer- and additional specifications regarding eligible ABS collateral.

The Board authorized the TALF on November 24, 2008 to help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration. The ABS markets historically have been a critical funding source for consumer credit and small business loans guaranteed by the Small Business Administration (SBA), but deteriorating conditions in ABS markets have caused issuance of such securities to come to a near standstill in recent months. Under the TALF, the Federal Reserve Bank of New York will lend up to $200 billion to eligible owners of certain AAA-rated ABS backed by newly and recently originated auto loans, credit card loans, student loans, and SBA-guaranteed small business loans. TALF loans will have a term of three years; will be non-recourse to the borrower; and will be fully secured by eligible ABS. The U.S. Treasury Department will provide $20 billion of credit protection to the Federal Reserve in connection with the TALF. The Board provided further details about the terms and conditions for the program on December 19, 2008, and has updated those terms, conditions, and frequently asked questions again. The date that the TALF will commence operations will be announced later this month.

Read more TALF details.

January 9, 2009: MBA Releases Summary of Barney Frank Bill to Amend TARP

MBA released its summary of House Financial Services Committee Chairman Barney Frank's (D-MA) bill that modifies how Treasury operates the Troubled Assets Relief Program (TARP), which was also released today. The bill establishes additional reporting requirements and restricts how TARP funds can be used by recipients. The bill would require Treasury to use at least $50 billion of new TARP funds for foreclosure relief. Treasury must implement a foreclosure mitigation plan for owner-occupied residences, address second liens, provide a guarantee for loan modifications and provide a "safe harbor" for servicers modifying loans according to the Treasury plan. The proposed language also requires Treasury to expedite TARP funds to qualified smaller financial institutions. It also subjects TARP fund recipients to examination by federal regulators for compliance. MBA requested changes, that are included in the draft bill outline, which would significantly improve the HOPE for Homeowners program, such as eliminating the three percent upfront FHA insurance fee, reducing the annual FHA premium, and raising the maximum loan-to-value (LTV) on the new loan above 90 percent for some borrowers. Further provisions include a homebuyer stimulus measure and clarification on Treasury's authority to support consumer and commercial real estate loans. MBA is currently reviewing the bill and will notify MBA members of updates.

Read MBA's Summary.

January 7, 2009: MBA Urges Tax Relief for Cancellation of Indebtedness

MBA along with other industry groups sent a letter to Members of Congress urging their consideration of tax relief for cancellation of indebtedness including a temporary forbearance for taxes on gains resulting from companies repurchasing their own or related party indebtedness at a discount. The proposal is included in the current version of the economic stimulus package. Presently, companies that purchase their own or related party debt at a discount are required to pay income tax on the difference between the purchase price and the original issuance price of the debt. The proposal would provide temporary tax relief for companies that purchase this debt, which would allow many companies to restructure their balance sheets and reposition for positive growth. As companies continue to slash capital expenditures, slow hiring or lay off employees, the need for business debt reduction increases. MBA believes that this proposal would help to preserve or create jobs, strengthen the balance sheets of financial institutions and facilitate the de-leveraging of the economy.

Read the letter.

December 30, 2008: Federal Reserve Issued Additional Details About Its Program to Purchase Agency MBS

The Federal Reserve issued additional details about its program to purchase agency MBS. Private investment managers will act as the Fed’s agents in implementing the program. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers. The program does not include CMOs, REMICs, Trust IOs/Trust POs and other mortgage derivatives or cash equivalents. Eligible assets may be purchased or sold in specified pools, in “to be announced” (TBA) transactions, and in the dollar roll market.

Further information regarding the structure and operation of the MBS purchase program is provided in the Federal Reserve Bank of New Yorks' FAQs.

December 5, 2008: Interim Assistant Secretary for Financial Stability Neel Kashkari Remarks on Financial Markets and TARP Update
Read Kashkari's remarks.
December 2, 2008: United States Department of the Treasury Third Tranche Report to Congress
Read the report.

November 25, 2008: Term Asset-Backed Securities Loan Facility (TALF) Terms and Conditions

On Tuesday, November 25, Treasury announced the allocation of $20 billion from the TARP to back the creation of the a $200 billion Term Asset-Backed Securities Loan Facility (TALF) at the Federal Reserve Bank of New York. This facility will support the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA), reducing the cost of credit to consumers and small businesses vital to our economy.

Read the Terms and Conditions.
Read Secretary Paulson's Remarks.

November 25, 2008: Federal Reserve to Purchase the Direct Obligations of Housing-Related Government-Sponsored Enterprises (GSEs)

On Tuesday, November 25, The Federal Reserve announced it will initiate a program to purchase the direct obligations of housing-related government-sponsored enterprises (GSEs)--Fannie Mae, Freddie Mac, and the Federal Home Loan Banks--and mortgage-backed securities (MBS) backed by Fannie Mae, Freddie Mac, and Ginnie Mae to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally.

Read the release.

November 25, 2008: TARP AIG SSFI Investment and Capital Purchase Program Transaction Report
Read the report.
November 20, 2008: FDIC Releases Loan Modification Program Tools

On Thursday, November 20, FDIC released the "Mod in a Box" program tools for the implementation of the systematic and streamlined loan modification program modeled after a similar program at IndyMac Federal Bank. The program aims to modify mortgages that are 60 days delinquent or more by making the payments more affordable and sustainable for homeowners as well as rehabilitate troubled mortgages into performing loans. The program will provide loan modifications with a maximum 38 percent down to 31 percent housing-to-income ratio through the use of interest rate reductions, amortization term extension and in certain cases, principal deferment. The program not only gives borrowers an affordable mortgage payment but it also improves the values troubled mortgages held by investors.

Week of November 17, 2008: EESA Congressional Oversight Panelist Chosen

During the week of November 17, 2008, Senate Republican Leader Mitch McConnell (R-KY) and House Republican Leader John Boehner (R-OH) appointed Senator Judd Gregg (R-NH) and Representative Jeb Hensarling (R-TX) as Congressional Oversight Panel members. The panel, which was formed as a requirement of the Emergency Economic Stabilization Act (EESA), must issue a special report analyzing the current state of the regulatory system and its effectiveness at overseeing the participants in the financial system, as well as protecting consumers. The panel must also provide recommendations for improvements and evaluate whether there are any gaps in existing consumer protections. This review is due no later than January 20, 2009.

November 18, 2008: NCUA's Share Insurance Fund to Guarantee Unsecured Debt

On Tuesday, November 18, the National Credit Union Administration (NCUA) published in the Federal Register a notice about NCUA's Temporary Corporate Credit Union Liquidity Guarantee Program. The notice announced that NCUA Share Insurance Fund will guarantee certain unsecured debt of participating corporate credit unions issued from October 16, 2008 to June 30, 2009, including federal funds purchased, promissory notes, commercial paper and unsubordinated unsecured notes. Qualifying debt will remain guaranteed until it is fully repaid.

November 12, 2008: Treasury Secretary Abandons Initial TARP Program

On Wednesday, November 12, Treasury Secretary Henry Paulson announced plans to suspend the program authorized by the Emergency Economic Stabilization Act (EESA) that would enable Treasury to purchase troubled assets directly from financial institutions. Secretary Paulson cited that implementation of the plan would not be the most effective use of resources. At present, the Treasury has committed $250 billion of the $700 billion allotted in EESA to purchase preferred stock in various banking institutions. Secretary Paulson stated that the remaining funds should be used to address three priorities that include: reinforcing the stability of the financial systems, supporting the markets for securitizing credit outside the banking system and reducing the rate of foreclosures. In addition to the action already being taken by the administration, Secretary Paulson discussed further strategies to build capital in financial institutions, support consumer access to credit outside the banking system and mitigate mortgage foreclosures. Read Paulson's Remarks.

November 13, 2008: FDIC, FRB, OCC and OTS Encourage Lending to Creditworthy Borrowers

On Thursday, November 13, the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) issued interagency guidance to promote prudent lending practices by financial institutions. The guidance was issued as a complement to several agency programs initiated to promote financial stability and mitigate the negative pro-cyclical effects of the U.S. economy. The Interagency statement promotes several principles that all financial institutions are expected to adhere to, including: providing credit in a safe and sound manner; increasing foreclosure prevention and loss mitigation efforts by adopting "systematic, proactive and streamlined mortgage loan modifications protocols;" maintaining strong capital positions by taking risks into account; and evaluating management compensation policies to deter "perverse" incentives.

See more updates and resources below

MBA Resources
  • MBA Submits a Statement for the Record to the Senate Banking Committee Hearing on the "Homeowner Affordability and Stability Plan"
    (February 26, 2009)
  • MBA Letter to Treasury and HUD Regarding the Homeowner Affordability and Stability Plan
    (February 23, 2009)
  • MBA Releases Summary of Homeowner Affordability and Stability Plan (Updated February 25, 2009)
  • MBA Releases Summary of Barney Frank Bill to Amend TARP
    (January 9, 2009)
  • MBA Power Point on the Emergency Economic Stabilization Act: TARP- A Brief Summary of Significant Provisions (December 11, 2008)
  • MBA Letter to Treasury Regarding Comments on a Guarantee Program for Troubled Assets
    (October 28, 2008)
  • MBA's TARP Flow Chart
    (October 24, 2008)
  • MBA's Summary of Final TARP Legislation HR 1424
    (October 3, 2008)
  • MBA's Summary of the House's of Troubled Asset Relief Program (TARP) Legislation (September 28, 2008)
  • MBA's Suggested Improvements to Troubled Asset Relief Program (TARP) Legislation (sent to Capitol Hill on September 24, 2008)
  • MBA Letter to Congress Regarding Changes to the Bankruptcy Code
    (sent to Congress on September 23, 2008)
MBA Statements and Press Releases

Additional Updates and Resources
  • Administrative Web site for Servicers: Home Affordable Modification Program (HAMP)(August 17, 2009)

  • White House materials on the Homeowner Affordability and Stability Plan (executive summary, fact sheet and Q&A document )
    (February 17, 2009)
  • Treasury Financial Stability Web site.
    (February 10, 2009)
  • Interim Assistant Secretary for Financial Stability Neel Kashkari Remarks on Financial Markets and TARP Update
    (December 5, 2008)
  • United States Department of the Treasury Third Tranche Report to Congress
    (December 2, 2008)
  • TARP AIG SSFI Investment and Capital Purchase Program Transaction Report
    (November 25, 2008)
  • Secretary Paulson Remarks on Consumer ABS Lending Facility
    (November 25, 2008)
  • Term Asset-Backed Securities Loan Facility (TALF) Terms and Conditions (November 25, 2008)
  • Federal Reserve to Purchase the Direct Obligations of Housing-Related Government-Sponsored Enterprises (GSEs)
    (November 25, 2008)
  • FRB Chairman Ben S. Bernanke Testimony on the Troubled Asset Relief Program and the Federal Reserve's liquidity facilities Before the Committee on Financial Services, U.S. House of Representatives
    (November 18)
  • FRB Chairman Ben S. Bernanke Comments At the Fifth European Central Bank Central Banking Conference, The Euro at Ten: Lessons and Challenges, Frankfurt, Germany
    (November 14)
  • Testimony of Interim Assistant Secretary for Financial Stability Neel Kashkari before the House Committee on Oversight and Government Reform, Subcommittee on Domestic Policy (November 14)
  • President's Working Group on Financial Markets initiatives to strengthen oversight and the infrastructure of the over-the-counter derivatives market
    (November 14)
  • Remarks by Secretary Henry M. Paulson, Jr. on Financial Rescue Package and Economic Update
    (November 12)
  • Treasury Interim Assistant Secretary for Financial Stability Neel Kashkari Remarks on GSE, HOPE NOW Streamlined Loan Modification Program
    (November 11)
  • Treasury to Invest in AIG Restructuring Under the Emergency Economic Stabilization Act (November 10)
  • Federal Reserve Board and the U.S. Treasury on Monday announced the restructuring of the government's financial support to the American International Group (AIG) (November 10)
  • Treasury Hires Legal Firms Under the Emergency Economic Stabilization Act (November 3)
  • Kashkari Testimony before the Senate Committee on Banking, Housing and Urban Affairs (October 23)
  • Treasury Names Interim Chief Investment Officer for TARP (October 22)
  • Treasury, Regulators Issue Additional Guidance on Capital Purchase Program
    (October 20)
  • Treasury Hires Legal Adviser Under the Emergency Economic Stabilization Act
    (October 16)
  • U.S. Government Actions to Strengthen Market Stability (October 14)
  • U.S. Department of Commerce's Web site -, "a resource for the American people to find help to keep their homes, find jobs and protect their savings"
  • U.S. Department of Treasury's Emergency Economic Stabilization Act (EESA) Web site
  • House Financial Services Committee Summary of HR 1424
    (October 3, 2008)
  • H.R. 1424 as passed by House and signed by the President
    (October 3, 2008)
  • Congressional Research Service Financial Market Intervention FAQ
  • U.S. House Financial Services Committee
  • U.S. Senate Committee on Banking, Housing and Urban Affairs
  • U.S. Department of Treasury
  • Board of Governors of the Federal Reserve System
  • Office of Federal Housing Enterprise Oversight (OFHEO)/ Federal Housing Finance Agency (FHFA)
Federal Government Steps to Protect the U.S. Economy, Strengthen Public Confidence in U.S. Financial Institutions and Foster the Robust Functioning of the Credit Markets
(announced October 14, 2008)

U.S. Department of Treasury's Solicitations for Financial Agents
(announced October 6, 2008)

  • Custodian, Accounting, Auction Management, and Other Infrastructure Services
  • Securities Asset Management Services
  • Whole Loan Asset Management Services
  • Interim Guidelines for Conflicts of Interest
  • Authorities and Procedures for selecting contractors
  • Process for Selecting Asset Managers Pursuant to the EESA