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October 2008
The TARP SIG is required to report to the appropriate Congressional committees, 60 days after
appointment, and every calendar quarter thereafter, the SIG’s activities that took place 120 days before
reporting. The report will disclose a detailed statement of all purchases, obligations, expenditures and
revenues associated with the programs established under the Secretary’s authority.
Section 122 – Increase in Statutory Debt Limit
Increases the Statutory debt limit to $11.315 trillion.
Section 123 – Credit Reform
Provides that the treatment of costs, cash flows associated with the purchase or insurance of troubled
assets or other activities authorized by the EESA are to be determined as provided by the Federal Credit
Reform Act.
Section 124 – HOPE for Homeowners Amendments
Amends the recently enacted HOPE for Homeowners program to allow for broader eligibility by troubled
borrowers, including a substantial amendment allowing for the use of funds generated through the
financing of HOPE Bonds already authorized to be used to pay second lien holders.
Specifically, this section extends the March 1, 2008 date on which an eligible borrower’s mortgage debt to
income ratio must have been at least 31 percent. The amendment allows borrowers to qualify if their
mortgage debt to income goes to 31 percent or higher after March 1, 2008 due to a reset in the terms of
their mortgage loan. This section also allows the Board overseeing the Hope for Homeowners program to
allow for the outstanding principal obligation on a loan refinanced under the program to exceed 90
percent. This section also allows for payments to be made to subordinate lien holders in lieu of any future
appreciation payments already authorized under Hope for Homeowners. Significantly, this section allows
funds raised through the issuance of HOPE Bonds (already authorized as part of the Hope for
Homeowners program) to be used to pay second lien holders.
Section 125 – Congressional Oversight Panel
Establishes a 5-Member “Congressional Oversight Panel” appointed by the Majority and Minority
Leadership of the House and Senate. The panel is to review the current state of the financial markets and
report regularly to Congress beginning 30 days after Treasury first uses its loan purchasing authority. The
reports are to include an assessment of the impact of Treasury’s loan purchases and effectiveness of the
foreclosure mitigation efforts, among other things. A special report is required not later than January 20,
2009 analyzing the current regulatory system that is to include recommendations on whether there are any
gaps in existing consumer protections and whether participants outside of the current regulatory system
should be covered. The Panel can hold hearings and has the right to obtain data from other agencies. The
panel terminates on or about June 30, 2010.
Section 126 – FDIC Authority
Prohibits misuse of the FDIC’s name and logo to falsely represent that deposits are insured. This can be
enforced by the appropriate Federal banking agency or by the FDIC if that agency fails to act. For sales
of bank assets in either an assisted transaction or a failed bank situation, a financial institution can submit
AMERICAN BANKERS ASSOCIATION 7