HHF Georgia Date: October 1, 2018

B-1-1

SERVICE SCHEDULE B-1

Georgia Housing Finance Authority

Mortgage Payment Assistance (MPA)

Summary Guidelines

1. Program Overview The Georgia Housing and Finance Authority (GHFA) Mortgage 

Payment Assistance (MPA) program will provide loans to 

unemployed and substantially underemployed homeowners to help 

them remain in their homes and prevent avoidable foreclosures 

despite loss of income due to involuntary job loss. Loan proceeds will 

be used to pay mortgage payments (PITIA) while the homeowner 

seeks employment or completes training for a new career. Full 

payments will be remitted to the homeowners’ servicer each month. 

Homeowners may pay an affordable portion of the mortgage payment 

directly to GHFA. The MPA program is limited to once per 

household.

2. Program Goals The goal is to provide assistance to 8,450 homeowners to prevent 

foreclosures. Mortgage Payment Assistance (MPA) will be provided 

as follows:

Mortgage Payment Assistance

Up to 24 monthly mortgage payments on first and closed-end second 

mortgages to assist unemployed or substantially underemployed 

homeowners while they seek employment or complete training for a 

new career.

Homeowners who are enrolled in an eligible educational institution 

and making satisfactory academic progress toward a degree prior to 

the end of such 24-month period may be eligible for an additional 

12 months of assistance (“Education Extension”). If homeowner 

ceases to participate in the education program after 24 months, 

benefits would end at that time.

Reinstatement Assistance

Up to 15 months of the 24 MPA payments plus eligible lender fees 

may be used for the reinstatement of delinquent first and closed-end 

second mortgages.
B-1-2

3. Target 

Population/Areas

Homeowners who are or were unemployed or substantially 

underemployed and suffered a substantial loss of income, causing the 

mortgage to become delinquent or be in imminent default. 

This Program will be available in all Georgia counties.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Homeowners who, through no fault of their own, are or were 

unemployed or substantially underemployed and are at risk of 

foreclosure, but with temporary assistance are likely to be successful 

in retaining their homes. Homeowners will be required to provide a 

financial hardship affidavit with appropriate documentation on the 

cause of their hardship. For most homeowners, this will be 

documentation from the Georgia Department of Labor confirming a 

job loss and receipt of unemployment benefits. 

Underwriting Criteria:

• Homeowner became unemployed through no fault of his/her 

own:

o To qualify as underemployed, a homeowner must show a 

minimum 25% reduction in household income. 

o To qualify as underemployed for self-employed, a 

homeowner must show that gross receipts for their 

business have been reduced by a minimum of 30%;

• Must not be more than 12 months past due at time of 

application;

• Satisfactory mortgage payment history prior to the job 

loss/income loss;

• Monthly mortgage payments (PITIA) are greater than 25% of 

household income after job/income loss;

• Hardship must have occurred in the last four calendar years; 

• Total Unpaid Principal Balance less than or equal to the current 

GSE conforming amount;

• Property must be owner occupied as homeowner’s principal 

residence;

• Homeowner must be a legal resident of the United States;

• Applicant must be the owner of subject property;

• To qualify for the Education Extension homeowner must be 

enrolled in an eligible educational institution and making 

satisfactory academic progress toward a degree prior to the end 
B-1-3

of their initial 24 months of assistance. Such homeowners 

must remain enrolled in order to continue to receive Education 

Extension assistance; and 

• Additional underwriting criteria apply per program guidelines.

6. Property / Loan 

Eligibility Criteria

Existing single-family homes or condominiums (attached or 

detached) including manufactured homes (permanently affixed to a 

foundation on real estate owned by the borrower and taxed as real 

property). 

Owner-occupied, primary residences located in Georgia, with total 

unpaid principal balance of all mortgages on subject property less 

than or equal to the current GSE conforming amount.

Mortgage must be held by a Lender or Servicer licensed in the state of 

Georgia or exempt from licensing due to federal regulatory oversight. 

7. Program Exclusions Mortgages with:

• Total Unpaid Principal Balances (all mortgages on property) 

greater than the current GSE conforming amount.

• Total monthly payments (PITIA) less than 25% of current 

income.

Manufactured homes that are not considered real property.

Open ended second mortgages.

Second homes and investment property; charged off mortgage liens; 

homes titled in trusts.

Homeowners who are non-legal U.S. residents or in active 

bankruptcy.

8. Structure of Assistance No (0%) interest, non-recourse, deferred-payment, forgivable, 

subordinate loan. Twenty percent (20%) of the loan balance will be 

forgiven each year on the anniversary of the final monthly 

assistance payment.

The loan will only be repaid if the borrower sells or refinances the 

property before the forgiveness period expires, and there are equity 

proceeds available to pay towards the portion of the loan that has not 

yet been forgiven. If the property is sold and does not generate 
B-1-4

proceeds sufficient to repay the entire note, the portion of the note 

remaining unpaid after the proceeds are applied will be forgiven. 

The loan will be in the form of a subordinate mortgage evidenced by 

a promissory note and secured by a deed on the property. Borrowers 

will be required to sign and acknowledge the program guidelines via 

written agreement.

Any funds returned according to established program guidelines will 

be recaptured and used to assist additional homeowners in accordance 

with the Agreement. 

9. Per Household 

Assistance

The maximum household assistance amount is up to 36 times the 

monthly PITIA for first and closed-end second mortgages, plus 

eligible lender fees (e.g. Corporate and Escrow Advances).

GHFA expects the average loan amount will be $22,164.

10. Duration of Assistance The Duration of Assistance for eligible borrowers under the program 

will be no more than 36 months including those borrowers who are 

currently receiving assistance. 

Borrowers may continue to receive assistance for up to 2 months after 

reemployment (not to exceed 36 months in total.)

11. Estimated Number of 

Participating 

Households

8,450 homeowners.

Estimated number served based on an average loan amount of 

$22,164.

12. Program Inception / 

Duration

Program rollout was April 1, 2011 and is expected to last through 

December 31, 2020 or until all funds are exhausted. 

13. Program Interactions 

with Other HFA 

Programs

None.

14. Program Interactions 

with HAMP

The MPA program will provide assistance to eligible unemployed or 

substantially underemployed homeowners first, and then the servicer 

would follow with any eligible programs offered by the investor, 

servicer, or GSE.

Borrowers can receive HAMP assistance prior to or after receiving 

Hardest Hit Fund assistance. For example, a borrower can receive UP 

assistance for 3-6 months and then receive MPA Assistance. GHFA 
B-1-4

will agree to subordinate all assistance loans for borrowers who 

refinance their mortgage(s) to receive more favorable loan terms.

To the maximum extent possible, GHFA will coordinate with eligible 

homeowners’ servicers to assist them in obtaining a loan modification 

from HAMP, if needed after program completion.

15. Program Leverage 

with Other Financial 

Resources

The program will strongly encourage servicers to waive late fees and 

any other non-3rd party expenses. 
B-2-1

SERVICE SCHEDULE B-2

Georgia Housing Finance Authority

Mortgage Reinstatement Assistance

Summary Guidelines

1. Program Overview The Georgia Housing and Finance Authority (GHFA) Mortgage 

Reinstatement Assistance program will provide loans to 

homeowners who became delinquent on their mortgage due to an 

involuntary reduction of income or a catastrophic medical 

hardship. The loan proceeds will be used to reinstate the 

mortgage to help prevent foreclosure. 

Reinstatement assistance is limited to once per household. 

2. Program Goals The goal is to provide assistance to 1,000 homeowners to prevent 

foreclosures.

Reinstatement Assistance

Reinstatement Assistance will cover past due payments on first 

and closed-end second mortgage loans that occurred as a result of 

an eligible hardship.

Program will help homeowners who have income to resume 

mortgage payments but need help to bring their mortgage current.

3. Target 

Population/Areas

Homeowners who suffered an involuntary loss or reduction in 

income due to an eligible hardship and are able to resume 

mortgage payments.

This Program will be available in all Georgia counties.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.
B-2-2

5. Borrower Eligibility 

Criteria

Homeowners will be required to provide a financial hardship 

affidavit with appropriate documentation on the cause of their 

hardship per program guidelines. 

Underwriting Criteria:

• Hardship resulted due to an involuntary loss or reduction 

in income of 10% or greater;

• Hardship must have occurred in 2008 or later ; 

• Total unpaid principal balance less than or equal to 

current GSE conforming amount; 

• Property must be owner occupied as homeowner’s 

principal residence; 

• Homeowner must be a legal resident of the United States;

• Applicant must be the owner of subject property;

• Homeowner is now able to meet mortgage payment 

requirements as outlined in program underwriting 

guidelines or per Lender/Servicer guidelines;

• Mortgage delinquency cannot exceed the amount of 

assistance; and

•

• Additional underwriting criteria apply per program 

guidelines.

6. Property / Loan 

Eligibility Criteria

Existing single-family homes or condominiums (attached or 

detached) including manufactured homes (permanently affixed to 

a foundation on real estate owned by the borrower and taxed as 

real property). 

Owner-occupied, primary residences located in Georgia, with 

total unpaid principal balance of all mortgages on subject 

property less than or equal to the current GSE conforming 

amount.

Mortgage must be held by a Lender or Servicer licensed in the 

state of Georgia or exempt from state licensing due to federal 

regulatory oversight.

7. Program Exclusions Mortgages with total unpaid principal balances (all mortgages on 

property) greater than the current GSE conforming amount.
B-2-3

Open-ended second mortgages.

Manufactured homes that are not considered real property.

Second homes and investment property; charged off mortgage 

liens; homes titled in trust.

Homeowners who are non-legal U.S. residents or are in active 

bankruptcy.

8. Structure of 

Assistance 

No (0%) interest, non-recourse, deferred-payment, forgivable, 

subordinate loan. Twenty percent (20%) of the loan balance 

will be forgiven each year on the anniversary of the final 

assistance payment.

The loan will only be repaid if the borrower sells or refinances 

the property before the forgiveness period expires, and there are 

equity proceeds available to pay towards the portion of the loan 

that has not yet been forgiven. If the property is sold and does 

not generate proceeds sufficient to repay the entire note, the 

portion of the note remaining unpaid after the proceeds are 

applied will be forgiven. 

The loan will be in the form of a subordinate mortgage evidenced 

by a promissory note and secured by a deed on the property. 

Borrowers will be required to sign and acknowledge the program 

guidelines via written agreement.

Any funds returned according to established program guidelines 

will be recaptured and used to assist additional homeowners in 

accordance with the Agreement.

9. Per Household 

Assistance

The maximum household reinstatement assistance is up to: 

$50,000 including eligible lender fees (e.g. Corporate and Escrow 

Advances).

GHFA expects the average loan amount will be $12,000.

10. Duration of Assistance Assistance ends after the payment to the lender/servicer.
B-2-3

11. Estimated Number of 

Participating 

Households

1,000 homeowners.

Estimated number served based on an average loan amount of 

$ 12,000

12. Program Inception / 

Duration

Program rollout was February 1, 2014 and will last until 

December 31, 2020 or until all funds are exhausted. 

13. Program Interactions 

with Other HFA 

Programs

None. 

14. Program Interactions 

with HAMP

Reinstatement will bring borrowers current on their mortgage. 

15. Program Leverage 

with Other Financial 

Resources

The program will strongly encourage servicers to waive late fees 

and any other non-3rd party expenses.
B-3-1

SERVICE SCHEDULE B-3

Georgia Housing Finance Authority

Recast/Modification

Summary Guidelines

1. Program Overview Two options are available: Recast/Modification and 

Principal Curtailment.

The Recast/Modification option will provide funds for principal 

reduction to facilitate a recast or permanent modification of the 

mortgages to provide an affordable payment to a homeowner 

who has a permanent reduction of income. This option will assist 

Georgia homeowners who are financially unable to make their 

payments based on an eligible hardship.

• Funds provided under this option can also be applied to 

reinstate past-due amounts in order to obtain an affordable 

payment.

The Principal Curtailment option will provide funds for a 

standalone principal reduction for low- to moderate-income 

homeowners whose mortgages are impacted by a significant 

negative equity (>110% combined loan-to-value ratio) 

hardship. 

• Funds provided under this option can be applied to 

achieve a post-assistance loan-to-value ratio between 

100%-125% for homeowners who have been making their 
B-3-1

payments and stayed in their homes.

• Funds can also be applied to reinstate past due amounts 

caused by a qualifying hardship prior to principal 

reduction if the homeowner has an affordable payment.

2. Program Goals The goal of this program is to assist underwater homeowners by 

bringing their mortgage balance in line with the property value. 

This program will also provide mortgage payment relief and 

stable, long-term mortgage payments to those homeowners 

whose income has been permanently reduced.

3. Target Population/Areas Homeowners suffering a program eligible financial hardship 

related to a permanent reduction of income or significant 

negative equity.

This program will be available in all Georgia counties.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Homeowners must be those with a program eligible hardship due 

to an involuntary permanent reduction or loss of income or 

significant negative equity. Homeowners will be required to 

provide a financial hardship affidavit with appropriate 

documentation on the cause of the hardship.

Underwriting Criteria for Both Options:

• Total household income does not exceed 140% of the Area 

Median Income (AMI);

•

• Property must be owner occupied as the homeowner’s 

principal residence and be the only residential property 

owned;

• Homeowner must be a legal resident of the United States;

• Applicant must be the owner of the subject property;

• Additional underwriting criteria apply as provided in 

program guidelines; and
B-3-3

• At least one person in the household must have 

consistent employment and/or income sources.

Additional Underwriting Criteria for Recast/Modification:

• Monthly mortgage payment after modification or recast 

(including reinstatement, if applicable) must not exceed 

the affordable level as outlined in program underwriting 

guidelines or per lender/servicer guidelines;

• Modified monthly mortgage payment to gross monthly 

income ratio will not be reduced below 25%; and

• The post-assistance combined loan-to-value ratio cannot 

be reduced below 80%.

Additional Underwriting Criteria for Principal Curtailment:

• Satisfactory mortgage history as provided in program 

guidelines;

• Pre-assistance combined loan-to-value ratio is equal to or 

greater than 110%; and

• Post assistance combined loan-to-value ratio falls between 

100-125%.

6. Property / Loan 

Eligibility Criteria

Existing single-family homes or condominiums (attached or 

detached) including manufactured homes (permanently affixed 

to a foundation on real estate owned by the borrower, evidenced

by a deed and taxed as real property.) 

Owner-occupied, primary residences located in Georgia, with 

total unpaid principal balance of all mortgages on subject 

property less than or equal to the current GSE conforming loan 

amount.

Mortgage must be held by a Lender/Servicer licensed in the state 

of Georgia or exempt from state licensing due to federal 

regulatory oversight.

7. Program Exclusions • Second homes or investment property.

• Homes titled in trusts.

• Total pre-assistance monthly payments (PITIA) of 31% 

or less of income under the Recast/Modification option.

• Homeowners with $5,000 or less negative equity under

the Principal Curtailment option.
B-3-3

• Homeowners who are non-legal U.S. residents or are in 

active bankruptcy.

8. Structure of Assistance 0% interest, non-recourse, deferred-payment, forgivable, 

subordinate 5-year loan. Twenty percent (20%) of the loan 

balance will be forgiven each year on the anniversary of the final 

assistance payment to the borrower.

The loan will only be repaid if the borrower sells or refinances 

the property before the forgiveness period expires, and there are 

equity proceeds available to pay towards the portion of the loan 

that has not yet been forgiven. If the property is sold and does 

not generate proceeds sufficient to repay the entire note, the 

portion of the note remaining unpaid after the proceeds are 

applied will be forgiven. 

The loan will be in the form of a subordinate mortgage 

evidenced by a promissory note and secured by a deed on the 

property. Borrowers will be required to sign and acknowledge 

the program guidelines via written agreement.

Any funds returned according to established program guidelines 

will be recaptured and used to assist additional homeowners in 

accordance with the Agreement.

9. Per Household 

Assistance

Eligible homeowners may receive up to $50,000.00

10. Duration of Assistance Assistance ends after a onetime payment to the servicer. 

11. Estimated Number of 

Participating Households

3,000 homeowners.

Estimated number served based on an average loan amount of 

$34,000.

12. Program Inception / 

Duration

Program rollout was February 1, 2014; the program will last until 

December 31, 2020 or until all funds are exhausted. 

13. Program Interactions 

with Other HFA 

Programs

None.
B-3-4

14. Program Interactions 

with HAMP

Applicants denied for other HHF programs or Making Home 

Affordable (MHA) programs may be eligible for assistance 

through this program.

15. Program Leverage with 

Other Financial 

Resources

Under the Recast/Modification option, the program will disburse 

funds up to $50,000.00 if the lienholder agrees to a loan 

modification or recast that shows direct benefit to the borrower. 

Under the Principal Curtailment option, the program will disburse 

funds up to $50,000.00; this allows, but does not require, a recast by 

the lienholder.

Investor match is not required on either option.
B-4-1

SERVICE SCHEDULE B-4

Georgia Housing Finance Authority

Down Payment Assistance

Summary Guidelines

1. Program Overview The Down Payment Assistance (“DPA”) Program will provide an 

incentive to qualified homebuyers to purchase a primary residence 

in targeted areas in Georgia that have been hardest hit by serious 

delinquency, negative equity, distressed sales, and foreclosures. It 

will strengthen demand in those areas, stabilize housing prices and 

prevent future foreclosures. DPA will be offered in ten (10) Georgia 

counties.

2. Program Goals The goal of the DPA Program is to help homeowners avoid 

foreclosure by strengthening demand and stabilizing housing prices 

in targeted areas.

Georgia will identify meaningful indicators to measure and track 

the DPA Program’s impact in the targeted areas.

3. Target 

Population/Areas

Targeted areas will be referred to as “HHF Designated Areas”

in the Georgia Dream Homeownership Program Guide and consist

of the following ten counties: Bibb, Chatham, Clayton, DeKalb,

Douglas, Fulton, Gwinnett, Henry, Muscogee, and Paulding.

In selecting the ten (10) counties eligible for HHF DPA funding, 

Georgia Housing and Finance Authority (GHFA) evaluated five 

housing market distress indicators across all 159 Georgia counties 

(seriously delinquent mortgage loans, negative equity, short sales, 

REO sales, and foreclosures), as well as loan origination volume by 

GHFA. The selected counties contain at least three zip codes 

exceeding the statewide average in at least four out of the five 

distressed housing market indicators and the county met a minimum 

threshold origination volume.
B-4-2

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Eligible borrowers must qualify for and meet all requirements of 

the GHFA Georgia Dream Homeownership Program for first 

mortgage loans originated through a participating lender. 

Allowable first mortgages are 30-year, fixed rate, loans insured or 

guaranteed by the Federal Housing Administration (FHA), 

Veterans Administration (VA), and U.S. Department of 

Agriculture-Rural Development (RD), or conventional loans with 

the loan to value ratio at or below 80%. Eligible borrowers must 

also meet the following criteria:

• Borrowers must meet income limits that do not exceed 115% 

of the Area Median Income (“AMI”), as specified in the 

Georgia Dream Homeownership Program Guide.

• Borrowers must be First-Time Homebuyers. For 

purposes of the DPA Program, a First-Time Homebuyer is 

someone who has not had an ownership interest in their 

primary residence in the past three years, unless qualifying 

under a Veteran’s exception or purchasing a home in a 

federally designated targeted area as specified in the Georgia 

Dream Homeownership Program Guide.

• Borrowers must complete a GHFA Georgia Dream 

Homeownership Program approved pre-purchase homebuyer 

education course.

• Borrowers must be legal residents of the United States.

• Borrowers must provide a Dodd-Frank affidavit as specified 

in the DPA Program Guide.

• Borrowers must be credit worthy and meet minimum FICO 

scores and maximum debt-to-income ratios as specified in the 

Georgia Dream Homeownership Program Guide.

Borrowers will be required to sign and acknowledge the program 

guidelines via written agreement.
B-4-3

6. Property / Loan 

Eligibility Criteria

• The property must be an existing, previously occupied 

single-family home, including a condominium unit, 

townhome, or manufactured home (permanently affixed to a 

foundation on real estate owned by the borrower and taxed as 

real property).

• The property must be located in one of the ten (10) counties 

identified as HHF Designated Areas. 

• The property must meet purchase price limits as specified in 

the Georgia Dream Homeownership Program Guide.

• The property and the loan must meet all applicable (GHFA, 

FHA, VA, USDA-RD, or GSE (Fannie Mae or Freddie Mac) 

underwriting guidelines.

• The borrower must occupy the property as a primary residence.

7. Program Exclusions • Borrowers, properties and loans not meeting the eligibility 

requirements specified in the Georgia Dream Homeownership 

Program Guide.

• The borrower must not have been convicted of a mortgage 

related felony in the past ten years.

• The assistance cannot be combined with other state down 

payment assistance funds.

• The property must not be new construction.

The property must not be a manufactured home that is not 

considered real property.

8. Structure of 

Assistance

The loan will be a no (0%) interest, non-recourse, deferred-payment 

subordinate loan. The loan will be in the form of a subordinate 

mortgage evidenced by a promissory note and secured by a deed on 

the property.

The loan balance will be forgiven five years after the closing date. 

However, the loan balance will be due and payable if the borrower 

sells the property before the 5-year period expires. If the property 

is sold and the sale does not generate proceeds sufficient to repay 

the note, the portion of the note remaining unpaid after the proceeds 

are applied will be forgiven.

Any funds returned according to established program guidelines 

will be recaptured and used to assist additional homeowners.
B-4-4

9. Per Household 

Assistance

$15,000

10. Duration of 

Assistance

DPA Program funds will be used to reimburse participating lenders 

who table fund the loan at closing once it is determined that all DPA 

Program requirements have been met.
B-4-5

11. Estimated Number of 

Participating 

Households

1,429

12. Program 

Inception/Duration

DPA will begin in early second quarter of 2017 and is projected to be

fully committed by December 31, 2018. 

13. Program Interactions 

with Other HFA 

Programs

None.

14. Program Interactions 

with HAMP

None.

15. Program Leverage 

with Other Financial 

Resources

None.
HHF Georgia Date: October 1, 2018

C-1

SCHEDULE C

PERMITTED EXPENSES

Georgia

One-time / Start-Up Expenses:

Initial Personnel $0.00 

Building, Equipment, Technology $90,612.00 

Professional Services $0.00 

Supplies / Miscellaneous $10,000.00 

Marketing /Communications $0.00 

Travel $2,000.00 

Website development /Translation $260,000.00 

Contingency $0.00 

Subtotal $362,612.00 

Operating / Administrative 

Expenses:

Salaries $18,062,918.00 

Professional Services (Legal, 

Compliance, Audit, Monitoring)

$19,665,710.00 

Travel $113,348.00 

Buildings, Leases & Equipment $1,384,315.00 
HHF Georgia Date: October 1, 2018

C-2

Information Technology & 

Communications

$810,870.00 

Office Supplies/Postage and 

Delivery/Subscriptions

$965,657.00 

Risk Management/ Insurance $0.00 

Training $0.00 

Marketing/PR $2,206,000.00 

Miscellaneous $0.00 

Subtotal $43,208,818.00 

Transaction Related Expenses:

Recording Fees $635,043.00 

Wire Transfer Fees $219,422.00 

Counseling Expenses

File Intake 

Decision Costs $637,531.00 

Successful File $2,788,690.00 

Key Business Partners On-Going $0.00 

Subtotal $4,280,686.00 

Grand Total $47,852,116.00 

% of Total Award 12.91%

Award Amount $370,574,260.00 
HHF Georgia Date: October 1, 2018

F-0