Analysis of SIGTARP's Issued HAMP and HHF Recommendations

The Home Affordable Modification Program (HAMP) and the Hardest Hit Fund (HHF) are two of the largest housing programs Treasury implemented under the Emergency Economic Stabilization Act of 2008 (EESA). Both programs were created to help families keep their homes and stabilize communities in the wake of the 2007-2008 financial crisis. As part of its oversight of EESA, SIGTARP has issued multiple audit and evaluation reports and other products on HAMP and HHF. These reports and products included numerous findings and recommendations to Treasury that aimed to improve the efficiency and effectiveness of the two programs; enhance transparency and accountability; and reduce the risk of fraud, waste, and abuse. The objectives for this evaluation were to summarize the findings and recommendations SIGTARP made in its reports and other products on HHF and HAMP, to assess the status of the recommendations, and to identify lessons learned for ongoing and future housing programs. SIGTARP’s products identified findings that led to 285 recommendations on the HHF (221) and HAMP (64) programs. SIGTARP organized its recommendations by three categories including (1) promote economy, efficiency, and effectiveness of the programs; (2) prevent and detect fraud, waste, and abuse; and (3) promote transparency and accountability. Nearly 50% of the recommendations aimed to promote economy, efficiency, and effectiveness of HHF and HAMP, while 40% of the recommendations sought to prevent and detect fraud, waste, and abuse. Treasury fully implemented 98, or 34 percent, of SIGTARP’s recommendations and partially implemented 105, or 37 percent. Treasury’s implementation of these recommendations resulted in program changes that enabled more eligible struggling homeowners to receive much needed assistance, recoveries of wasted program funds, and greater protections from fraud, waste, and abuse. Almost 30 percent of SIGTARP’s recommendations remain unimplemented, representing missed opportunities to further enhance the programs and lessons learned for future housing and federal programs.