SEVENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Seventh Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the "Seventh Amendment") is entered into as of the date set forth on 

Schedule A attached hereto as the Seventh Amendment Date (the "Amendment Date"), by and 

among the United States Department of the Treasury ("Treasury"), the undersigned party 

designated as HFA whose description is set forth in Schedule A attached hereto (for 

convenience, a "state housing finance agency" or "HFA") and the undersigned institution 

designated by HFA to participate in the program described below ("Eligible Entity"). 

Recitals 

WHEREAS, Treasury, HFA and Eligible Entity entered into that certain Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the "Original HP A") dated as 

of the Closing Date, as previously amended by that certain First Amendment to Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the "First Amendment"), as 

further amended by that certain Second Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement (the "Second Amendment"), as further amended 

by that certain Third Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the "Third Amendment"), as further amended by that certain Fourth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the "Fourth Amendment"), as further amended by that certain Fifth Amendment to Commitment 

to Purchase Financial Instrument and HFA Participation Agreement (the "Fifth Amendment"), 

and as further amended by that certain Fifth Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement (the "Sixth Amendment"; and together with the 

Original HPA as amended thereby and by the First Amendment, Second Amendment, Third 

Amendment, Fourth Amendment and Fifth Amendment, the "Current HPA"), dated as of their 

respective dates as set forth on Schedule A attached hereto, in connection with Treasury's federal 

housing program entitled the Housing Finance Agency Innovation Fund for the Hardest Hit 

Housing Markets (the "HHF Program"), which was established pursuant to the Emergency 

Economic Stabilization Act of 2008 (P.L. 110-343), as amended, as the same may be amended 

from time to time ("EESA"); 

WHEREAS, HFA and Eligible Entity submitted a request to Treasury to make certain revisions 

to their Service Schedules and Permitted Expenses, as applicable, and Treasury has agreed to the 

same; 

WHEREAS, HFA, Eligible Entity and Treasury wish to enter into this Seventh Amendment to 

document all approved modifications to the Service Schedules and Permitted Expenses, as 

applicable; 

Seventh Amendment to HPA — Rhode Island 

Doc#:USl:8279426vl 
Accordingly, in consideration of the representations, warranties, and mutual agreements set forth 

herein and for other good and valuable consideration, the receipt and sufficiency of which are 

hereby acknowledged, Treasury, HFA and Eligible Entity agree as follows. 

Agreement 

1. Amendments 

A. Definitions. All references in the Current HPA to the "Agreement" shall mean the 

Current HPA, as further amended by this Seventh Amendment; and all references in the 

Current HPA to Schedules A, B or C shall mean the Schedules A , B or C attached to this 

Seventh Amendment. All references herein to the "HPA" shall mean the Current HPA, as 

further amended by this Seventh Amendment. 

B. Schedule A. Schedule A attached to the Current HPA is hereby deleted in its entirety 

and replaced with Schedule A attached to this Seventh Amendment. 

C. Schedule B. Schedule B attached to the Current HPA is hereby deleted in its entirety 

and replaced with Schedule B attached to this Seventh Amendment. 

D. Schedule C. Schedule C attached to the Current HPA is hereby deleted in its entirety 

and replaced with Schedule C attached to this Seventh Amendment. 

2. Representations, Warranties and Covenants 

A. HFA and Eligible Entity. HFA and Eligible Entity, each for itself, make the 

following representations, warranties and covenants to Treasury and the truth and accuracy 

of such representations and warranties and compliance with and performance of such 

covenants are continuing obligations of HFA and Eligible Entity, each as to itself. In the 

event that any of the representations or warranties made herein cease to be true and correct or 

HFA or Eligible Entity breaches any of its covenants made herein, HFA or Eligible Entity, as 

the case may be, agrees to notify Treasury immediately and the same shall constitute an 

Event of Default under the HPA. 

(1) HFA and Eligible Entity each hereby certifies, represents and warrants as of the 

date hereof that each of the representations and warranties of HFA or Eligible Entity, as 

applicable, contained in the HPA are true, correct, accurate and complete in all material 

respects as of the date hereof. All covenants of HFA or Eligible Entity, as applicable, 

contained in the HPA shall remain in full force and effect and neither HFA, nor Eligible 

Entity is in breach of any such covenant. 

(2) Eligible Entity has the full corporate power and authority to enter into, execute, 

and deliver this Seventh Amendment and any other closing documentation delivered to 

Treasury in connection with this Seventh Amendment, and to perform its obligations 

hereunder and thereunder. 

(3) HFA has the full legal power and authority to enter into, execute, and deliver this 

Seventh Amendment and any other closing documentation delivered to Treasury in 
connection with this Seventh Amendment, and to perform its obligations hereunder and 

thereunder. 

3. Miscellaneous 

A. The recitals set forth at the beginning of this Seventh Amendment are true and 

accurate and are incorporated herein by this reference. 

B. Capitalized terms used but not defined herein shall have the meanings ascribed to 

them in the HPA. 

C. Any provision of the HPA that is determined to be prohibited or unenforceable in any 

jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or 

unenforceability without invalidating the remaining provisions of the HPA, and no such 

prohibition or unenforceability in any jurisdiction shall invalidate such provision in any other 

jurisdiction. 

D. This Seventh Amendment may be executed in two or more counterparts (and by 

different parties on separate counterparts), each of which shall be deemed an original, but all 

of which together shall constitute one and the same instrument. Facsimile or electronic 

copies of this Seventh Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

hereby execute and deliver this Seventh Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Richard Godfrey 

Name: Richard Godfrey 

Title: Executive Director 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION 

By: /s/ Richard Godfrey 

Name: Richard Godfrey 

Title: Executive Director 

[Signature Page to Seventh Amendment to HPA — Rhode Island] 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

hereby execute and deliver this Seventh Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

RHODE ISLAND HOUSING AND UNITED STATES DEPARTMENT OF THE 

MORTGAGE FINANCE CORPORATION TREASURY 

r\ 

By: By: / ^ //^ A ,~ / 

Name; Name: Timothy G. Massad 

Title: Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION 

By. 

Name: 

Title: 

[Signature Page to Seventh Amendment to HPA — Rhode Island] 
EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: Rhode Island Housing and Mortgage Finance Corporation 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws. 

Rhode Island 

With copies to: 

and 

HFA Information: 

Name of HFA: 

Organizational form: 

Rhode Island Housing and Mortgage Finance Corporation1 

a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws. 

Date of Application: 

Date of Action Plan: 

May 27, 2010 

September 1,2010 

1

 References in the Agreement to the term "HFA" shall mean the Rhode Island Housing and Mortgage Finance 

Corporation ("Rhode Island Housing"') in its capacity as HFA as such term is used in the Agreement; and references 

in the Agreement to the term "Eligible Entity" shall mean Rhode Island Housing, in its capacity as Eligible Entity as 

such term is used in the Agreement. 

A-l 
Notice Information: 

Program Participation Cap: 

Portion of Program Participation Cap 

Representing Original HHF Funds: 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: 

Permitted Expenses: 

Closing Date: 

First Amendment Date: 

Second Amendment Date: 

Third Amendment Date: 

Fourth Amendment Date: 

Fifth Amendment Date: 

Sixth Amendment Date: 

Seventh Amendment Date: 

Eligible Entity Depository Account Information: 

Same as notice information for Eligible Entity. 

$79,351,573.00 

$43,000,000.00 

$13,570,770.00 

$11,568,830.00 

August 3, 2010 

September 23, 2010 

September 29, 2010 

December 16, 2010 

May 25, 2011 

January 25, 2012 

March 29, 2012 

December 14, 2012 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

A-2 
SCHEDULE B 

SERVICE SCHEDULES 

The Service Schedules attached as Schedule B to the Current HPA are hereby deleted in their entirety and 

replaced with the attached Service Schedules (numbered sequentially as Service Schedule B-l, Service 

Schedule B-2, et. seq.), which collectively comprise Schedule B to the HPA. 

B-l 
SERVICE SCHEDULE B-l 

Rhode Island Housing's 

Loan Modification Assistance (LMA) 

Summary Guidelines 

1. Program Overview Loan Modification (LMA) will provide up to $25,000 (except in 

special circumstances described below) to assist homeowners 

achieve a modification. Lender must first attempt to qualify 

homeowner for a HAMP or Non-HAMP modification or workout 

solution driven by investor guidelines and regulatory oversight. If 

the homeowner fails these workout solutions, the lender may utilize 

LMA to achieve an affordable modification. HHF assistance may be 

used to reduce an interest rate, cure an arrearage, provide a principal 

curtailment, re-cast a mortgage or another restructuring of the 

mortgage which would result in an affordable modification. This 

assistance must bring the total housing debt to income ratio to 38% 

or below and will, at a minimum, temporarily adjust a homeowner's 

payment to an affordable level for a twelve-month period. 

Rhode Island Housing will review and approve on a case-by-case 

basis investor program guidelines that utilize affordable mortgage 

definitions that result in a modification with a total housing debt to 

income ratio greater than 38%. 

Lender must present modification plan for HHFRI approval prior to 

release of funds. 

For homeowners that received a modification prior to application for 

HHFRI assistance, which resulted in a housing debt to income ratio 

in excess of 38%, LMA funds may be used as monthly supplemental 

mortgage payment assistance to achieve a 31% housing debt to 

income ratio. Alternatively, where the lender uses a "cash flow 

analysis" model to determine affordability, LMA funds may be used 

as monthly supplemental mortgage payment assistance to achieve a 

positive net monthly cash flow not to exceed $500. 

Homeowners receiving a monthly mortgage payment supplement 

will be responsible for making a partial monthly payment 

contribution which will be determined according to household 

income as referenced below or at lenders option, but, in each case, 

not greater than 38%: 

B-l-1 
Gross Annual 

Household Income 

<$36,000 

$36,000 to $59,999 

$60,000 to $69,999 

>70,000 

Monthly Mortgage Payment 

Contribution 

$250 

$500 

$750 

31% of gross monthly household 

income 

In special circumstances, targeted homeowners who are at risk of 

foreclosure may receive up to $50,000 in assistance. 

Targeted homeowners include: 

• HHF-eligible homeowners age sixty-two (62) and over 

• HHF-eligible homeowners who have a deed-restricted property 

and have received federal or state subsidies and are at risk of 

foreclosure 

• HHF-eligible multi-family property homeowners who have 

experienced a loss of rental income that has compromised their 

ability to afford their mortgage payment 

• HHF-eligible homeowners who have received FEMA or other 

natural disaster assistance and still need assistance due to 

extensive property damage 

• HHF-eligible homeowners who are deployed members of the 

US Armed Forces or those discharged within the last twelve 

(12) months (includes enlisted personnel in all regular and 

reserve units of the Army, Navy, Air Force, Marines and Coast 

Guard). 

• HHF-eligible homeowners who have a first mortgage LTV ratio 

of 140% or greater 

LMA is designed to address items that may be negatively impacting 

the homeowners ability to obtain a modification. Funding can be 

used to address: 

• insufficient income: unemployment or underemployment 

• insufficient equity 

• delinquent mortgage payments including escrows 

• escrow shortage payments 

• payment of non-escrowed taxes or insurances 

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

• satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

2. Program Goals To help Rhode Island homeowners at risk of foreclosure obtain a 

modification. 

B-l-2 
3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility Criteria 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities with 

the highest unemployment rates. Using a combination of the 

number of delinquencies and the number of unemployed, it is 

estimated that 70% of all Hardest-Hit funds will be spent in these 

twelve communities. Thirty-one of the thirty-nine communities in 

Rhode Island experienced an unemployment rate of 12% or higher 

in January of 2010, representing 85.45% of the state's population. 

Therefore, we anticipate that 85% of all Hardest-Hit funding will be 

targeted to communities with unemployment rates of greater than 

12%. 

$12,500,000.00 

Eligible borrowers must have a monthly mortgage payment that is 

greater than 31% of their gross monthly household income. 

Alternatively, lenders may use a "cash flow analysis" method to 

determine affordability, the calculation for which is as provided for 

in the program guidelines. When a cash flow method is used the 

31% gross monthly income ratio test is not a determining factor. 

Borrowers are eligible under the cash flow method if their allowable 

household expense test returns a net positive monthly cash flow of 

no more than $500.00. 

When the cash flow method is used at least twenty-four (24) months 

must have passed since the loan for which LMA assistance is 

provided was originated. 

All homeowners will be required to complete a Hardship Affidavit. 

Homeowner must be able to document hardship circumstances that 

place the borrower at risk of foreclosure. A hardship is defined as an 

uncontrollable increase in expense (excluding consumer debt) or an 

uncontrollable decrease in income that places the homeowner at risk 

of foreclosure. Examples of a hardship include: underemployment, 

reduction of income, unemployment, death or disability in family, 

unforeseen medical expense, costly home repairs necessary for 

habitability or an extended loss of rental income due to an inability 

to secure a tenant. A loss of home value does not, in itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for assistance. | 

B-l-3 
6. Property/Loan 

Eligibility Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

Notwithstanding the foregoing, borrowers with a gross annual 

household income of $50,000 or less and a housing debt-to-income 

ratio greater than 35% are considered to have a qualified hardship. 

No further hardship test is applicable in these circumstances. 

Homeowners with total debt-to-income ratios in excess of 55% will 

be encouraged to seek debt management services from a HUDapproved counseling agency. The costs of such counseling or 

services shall not be paid with HHF funds. 

Rhode Island's Mortgage Revenue Bond income limits apply to all 

assistance programs. These eligibility limits are based on current 

income and family size. They are generally up to 140% of area 

median income. Currently, one- or two-person households can earn 

up to $87,800. Households of three or more can earn up to 

$102,400. 

Borrower is able to satisfy program guidelines. 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums, provided the original 

mortgage was not greater than $729,750. 

Homeowner has cash reserves and/or non-retirement liquid assets 

exceeding $15,000. 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over five (5) years, if the homeowner 

fulfills his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. Funds will be returned to the HHF Program for 

additional use through December 31,2017. After December 31, 

2017 all repayments will be returned to Treasury. 

LMA will provide up to $25,000 (except in special circumstances 

described below) to assist the borrower and lender to achieve a loan 

modification and reinstatement assistance when necessary. 

In special circumstances, up to $50,000 in total HHF assistance 

(when combining programs) may be available for targeted 

homeowners who are at risk of foreclosure. 

B-l-4 
10. Duration of 

Assistance 

11. Estimated Number 

of Participating 

Households 

12. Program 

Inception/Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other 

Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

The duration of the assistance is determined by the individual need 

of each eligible borrower. Assistance will be paid directly to the 

existing servicer and may be distributed in a lump sum or on a 

monthly basis until the maximum program amount is reached. 

520 households will be served. 

The program began November 1, 2010 and will last until program 

funds have been exhausted. 

Additional aid may be available to eligible homeowners through 

other HHFRI programs up to program limits. 

Funds will be paid to the servicer through this program to help the 

homeowner qualify for a modification for a minimum of twelve (12) 

months. 

This program is designed to complement and supplement HAMP, 

Non-HAMP or other lender workout solutions. 

• Yes 0 No 

B-l-5 
SERVICE SCHEDULE B-2 

Rhode Island Housing's 

Temporary and Immediate Homeowner Assistance (TIHA) 

Summary Guidelines 

1. Program Overview The Temporary and Immediate Homeowner Assistance (TIHA) can 

provide up to $25,000 (except in special circumstances described 

below) for partial or full reinstatement or other mortgage related 

default assistance. Mortgage related default assistance may help pay 

delinquent taxes, insurances and association dues. 

For homeowners who have experienced a temporary loss of income, 

TIHA can also be used to provide supplemental mortgage payment 

assistance provided that a minimum of twelve (12) months 

mortgage payment assistance can be offered. 

In special circumstances, targeted homeowners who are at risk of 

foreclosure may receive up to $50,000 in assistance. 

Targeted homeowners include: 

• HHF-eligible homeowners age sixty-two (62) and over 

• HHF eligible homeowners who have a deed-restricted property 

and have received federal or state subsidies and are at risk of 

foreclosure 

• HHF-eligible owner-occupied multi-family property 

homeowners who have experienced a loss of rental income that 

has compromised their ability to afford their mortgage payment 

• HHF-eligible homeowners who have received FEMA or other 

natural disaster assistance and still need assistance due to 

extensive property damage 

• HHF-eligible homeowners who are deployed members of the 

US Armed Forces or those discharged within the last twelve 

(12) months (includes enlisted personnel in all regular and 

reserve units of the Army, Navy, Air Force, Marines and Coast 

Guard). 

There are many situations where payments made by or on behalf of 

the borrower toward the first mortgage are not sufficient to prevent 

an avoidable foreclosure. These include, but are not limited to, 

situations where a borrower has had a temporary loss of income or 

increase in expenses that have created a first mortgage delinquency 

or another delinquency that has or may result in a default under the 

B-2-1 
2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility Criteria 

first mortgage, which, if not cured, may result in foreclosure. This 

situation could arise even when the borrower's current income may 

be sufficient to pay the first mortgage going forward. There are also 

situations where the borrower needs temporary supplemental 

mortgage payment assistance for the borrower and lender to agree 

on a mortgage modification. This is frequently the result of a 

temporary interruption in or reduction of employment. 

As such, these funds can be used by homeowners who may or may 

not qualify for permanent modifications. Funding can be used to 

address: 

• insufficient income caused by a temporary interruption or a 

reduction in employment 

• insufficient equity 

• delinquent mortgage payments including escrows 

• escrow shortage payments 

• payment of non-escrowed taxes or insurances 

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

• satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

To help a homeowner avoid foreclosure when faced with temporary 

or immediate crisis. 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities with 

the highest unemployment rates. Using a combination of the 

number of delinquencies and the number of unemployed, it is 

estimated that 70% of all Hardest-Hit funds will be spent in these 

twelve communities. Thirty-one of the thirty-nine communities in 

Rhode Island experienced an unemployment rate of 12% or higher 

in January of 2010, representing 85.45% of the state's population. 

Therefore, we anticipate that 85% of all Hardest-Hit funding will be 

targeted to communities with unemployment rates of greater than 

12%. 

$12,000,000.00 

Reinstatement Assistance: 

TIHA provides one-time lump sum mortgage reinstatement 

or other mortgage default assistance for eligible 

homeowners. 

B-2-2 
Borrower must demonstrate that the hardship resulted in a 

housing debt-to-income ratio greater than 31%) and caused 

the delinquency. 

When TIHA is used in conjunction with LMA and a "cash 

flow analysis" method is used to determine LMA eligibility, 

the LMA eligibility test will apply to eligibility for TIHA 

assistance. 

The monthly mortgage payment includes principal, interest, 

property taxes, hazard insurance, mortgage insurance, flood 

insurance, condominium association fees and other 

homeowner association fees, as applicable, regardless of 

whether these expenses are included in the borrowers current 

mortgage payment. It also includes any escrow payment 

shortage amounts that are subject to a repayment plan. The 

monthly mortgage payment does not include payments due to 

holders of subordinate liens. 

Homeowners with total debt-to-income ratios in excess of 

55% will be referred to a HUD-approved counseling agency 

for debt management services. The costs of such counseling 

or services shall not be paid with HHF funds. 

Supplemental Mortgage Payment Assistance: 

TIHA provides supplemental mortgage payment assistance 

for eligible homeowners who have experienced a temporary 

loss of income. 

Borrower must demonstrate that the temporary loss of 

income resulted in a housing debt-to-income ratio greater 

than 31%. 

When TIHA is used in conjunction with LMA and a "cash 

flow analysis" method is used to determine LMA eligibility, 

the LMA eligibility test will apply to eligibility for TIHA 

assistance. 

The monthly mortgage payment includes principal, interest, 

property taxes, hazard insurance, mortgage insurance, flood 

insurance, condominium association fees and other 

homeowner association fees, as applicable, regardless of 

whether these expenses are included in the borrowers current 

mortgage payment. It also includes any escrow payment 

B-2-3 
shortage amounts that are subject to a repayment plan. The 

monthly mortgage payment does not include payments due 

to holders of subordinate liens. 

When TIHA is used as supplemental mortgage payment 

assistance the term cannot exceed sixty (60) months or 

$25,000 (except in special circumstances described below), 

whichever is reached first. Homeowners receiving 

supplemental payment assistance will be required to 

contribute to their contractual monthly mortgage payment. 

Homeowners monthly payment contribution will be 

determined according to household income as stated below: 

Gross Annual 

Household Income 

<$36,000 

$36,000 to $59,999 

$60,000 to $69,999 

>70,000 

Monthly Mortgage Payment 

Contribution 

$250 

$500 

$750 

3 1% of gross monthly household income 

Homeowners with total debt-to-income ratios in excess of 

55%) will be referred to a HUD-approved counseling agency 

for debt management services. The costs of such counseling 

or services shall not be paid with HHF funds. 

All homeowners will be required to complete a Hardship Affidavit. 

Homeowner must be able to document the reason for the hardship. 

A hardship is defined as an uncontrollable increase in expenses 

(excluding consumer debt) or an uncontrollable decrease in income 

that has placed the homeowner at risk of foreclosure. 

Examples of a hardship include: underemployment, reduction of 

income, unemployment, death or disability in family, unforeseen 

medical expense, costly home repairs necessary for habitability or 

an extended loss of rental income due to an inability to secure a 

tenant. A loss of home value does not, unto itself, constitute a 

financial hardship, but may be considered to be a contributing factor 

in the evaluation of the request for assistance. 

Notwithstanding the foregoing, borrowers with a gross annual 

household income of $50,000 or less and a housing debt-to-income 

ratio greater than 35% are considered to have a qualified hardship. 

No further hardship test is applicable in these circumstances. 

Rhode Island's Mortgage Revenue Bond income limits apply to all 

assistance programs. These eligibility limits are based on current 

B-2-4 
6. Property/Loan 

Eligibility Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

11. Estimated Number 

of Participating 

Households 

12. Program 

Inception/Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

income and family size. They are generally up to 140%) of area 

median income. Currently, one- or two-person households can earn 

up to $87,800. Households of three or more can earn up to 

$102,400. 

Borrower is able to satisfy program guidelines. 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums, provided the original 

mortgage was not greater than $729,750. 

Homeowner has cash reserves and/or non-retirement liquid assets 

exceeding $15,000. 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. Funds will be returned to the HHF Program for 

additional use through December 31, 2017. After December 31, 

2017 all repayments will be returned to Treasury. 

The amount of assistance under TIHA is up to $25,000 (except in 

special circumstances described below) per household. 

In special circumstances, up to $50,000 in total HHF assistance 

(when combining programs) may be available for targeted 

homeowners who are at risk of foreclosure. 

The duration of the assistance is determined by the individual need 

of each eligible borrower. Assistance will be paid directly to the 

existing servicer, taxing authority or lien holder, and may be 

distributed in a lump sum or on a monthly basis until the maximum 

program amount is reached. 

642 households will be served. 

November 1, 2010 until program funds are exhausted. 

Additional aid may be available to eligible homeowners through 

other HHFRI programs up to program limits. 

This program does not interact with HAMP. 

B-2-5 
15. Program Leverage 

with Other 

Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

None. 

• Yes 0 No 

B-2-6 
SERVICE SCHEDULE B-3 

Rhode Island Housing's 

Moving Forward Assistance 

Summary Guidelines 

1. Program Overview The Moving Forward Assistance Program (MFA) will provide 

eligible homeowners who can no longer afford to stay in their 

home with up to $10,500 (except in special circumstances 

described below) to assist in the transition. 

The MFA assistance can be used to facilitate a short sale or 

deed in lieu of foreclosure and/or assist with moving and 

relocation expenses. Eligible homeowners can receive up to a 

$2,000 allowance to pay for moving and relocation expenses 

and up to $8,500 towards satisfaction of a subordinate lien to 

facilitate a short sale/deed-in-lieu (except in special 

circumstances described below). Moving and relocation 

expenses may be disbursed directly to eligible homeowners. 

Moving and relocation expenses above this amount will be paid 

when documented. The total amount available for facilitation of 

short sale/deed in lieu plus moving expenses cannot exceed 

$10,500 (except in special circumstances described below). 

When MFA funds are used to encourage a short sale or satisfy 

other real estate liens the amount cannot exceed the amount of 

the lender charge-off. 

MFA assistance is available to homeowners who resided in the 

property within one of the following time frames: (i) within six 

(6) months of application for HHF assistance, or (ii) within 

ninety (90) days prior to the property having been listed as a 

short sale. In no case shall MFA assistance be provided where 

the short sale or deed-in-lieu transaction has occurred prior to 

the disbursement of assistance. 

In addition, up to $50,000 in total assistance may be available 

to facilitate a short sale or deed in lieu of foreclosure for 

homeowners of targeted affordable properties that are at risk of 

foreclosure. 

Targeted homeowners are: 

• HHF-eligible homeowners who have a deed- restricted 

property and have received federal or state subsidies and 

B-3-1 
2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

are at risk of foreclosure. 

• HHF-eligible homeowners who are deployed members 

of the US Armed Forces or those discharged within the 

last twelve (12) months (includes enlisted personnel in 

all regular and reserve units of the Army, Navy, Air 

Force, Marines and Coast Guard). 

In some circumstances, the best outcome for borrower, lender 

and community may be for the borrower to relinquish the 

property in an orderly process. MFA assistance can take the 

form of a contribution to the primary or secondary lender to 

help facilitate a short sale or deed in lieu of foreclosure. It could 

also be used to provide the borrower relocation assistance 

including a security deposit/first and last months rent, moving 

expenses, or utility deposit MFA assistance could be used to 

satisfy subordinate or superior real estate tax liens against the 

real estate that prevent the homeowner from transferring clear 

title. These liens may include mechanics liens, defects, 

inheritance taxes, water fees, fire district or sewer fees, condo 

fees, PUD lien sale or other legal encumbrances on the property 

or to satisfy judgments or loan deficiency balances resulting 

from a short sale. 

Rhode Island Housing envisions that these monies would be 

used to complement other federal or lender programs designed 

specifically to stabilize communities by providing assistance to 

borrowers who have suffered a financial hardship and as a 

result are no longer financially able to stay in their home. 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities 

with the highest unemployment rates. Using a combination of 

the number of delinquencies and the number of unemployed, it 

is estimated that 70% of all Hardest-Hit funds will be spent in 

these twelve communities. Thirty-one of the thirty-nine 

communities in Rhode Island experienced an unemployment 

rate of 12%) or higher in January of 2010, representing 85.45% 

of the state's population. Therefore, we anticipate that 85% of 

all Hardest-Hit funding will be targeted to communities with 

unemployment rates of greater than 12%. 

$1,000,000.00 

B-3-2 
5. Borrower 

Eligibility Criteria 

6. Property/Loan 

Eligibility Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Borrower must be able to document the reason for the hardship 

and will be required to complete a Hardship Affidavit. 

A hardship is defined as an uncontrollable increase in housing 

expense or an uncontrollable decrease in income that has placed 

the homeowner at risk of foreclosure. Examples of a hardship 

include: underemployment, reduction of income, 

unemployment, death or disability in family, unforeseen 

medical expense, and costly home repairs necessary for 

habitability. A loss of home value does not, unto itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for 

assistance. 

Notwithstanding the foregoing, borrowers with a gross annual 

household income of $50,000 or less and a housing debt-toincome ratio greater than 35% are considered to have a 

qualified hardship. No further hardship test is applicable in 

these circumstances. 

Rhode Island's Mortgage Revenue Bond income limits apply to 

all assistance programs. These eligibility limits are based on 

current income and family size. They are generally up to 140% 

of area median income. Currently, one- or two-person 

households can earn up to $87,800. Households of three or 

more can earn up to $102,400. 

Borrower is able to satisfy program guidelines. 

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums, provided 

the original mortgage was not greater than $729,750. 

Homeowner has cash reserves and/or non-retirement liquid 

assets exceeding $15,000. 

Funds are provided to eligible homeowners as a nonrecoverable grant. 

Assistance under this program will be limited up to $10,500 per 

family (except in special circumstances described below) to 

facilitate a short sale or deed in lieu of foreclosure and/or to 

assist the homeowner with relocation. 

In special circumstances, up to $50,000 in total HHF assistance 

(when combining programs) may be available for targeted 

homeowners who are at risk of foreclosure. 

Participation in this program is a one-time payment. 

B-3-3 
Assistance 

11. Estimated Number 

of Participating 

Households 

12. Program Inception/ 

Duration 

13. Program Leverage 

/Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other 

Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

66 households will be served. 

November 1, 2010 until program funds have been exhausted. 

MFA can provide assistance, up to the household cap, if a 

homeowner has used other HHF programs and subsequently 

can no longer afford to stay in the home. 

MFA can provide assistance, up to the household cap, if a 

homeowner has obtained a HAMP or other HHF program 

assistance and subsequently can no longer afford to stay in the 

home. 

Rhode Island Housing intends to leverage its current emergency 

and rental assistance programs which include 

www.homelocatorri.net and other relocation services which 

include Homeless Protection and Rapid Placement (HPRP) and 

Road Home Emergency Housing Assistance. 

• Yes 0 No 

B-3-4 
SERVICE SCHEDULE B-4 

Rhode Island Housing 

Mortgage Payment Assistance - Unemployment Program (MPA-UP) 

for Unemployed and/or Underemployed Homeowners 

Summary Guidelines 

1. Program Overview The Mortgage Payment Assistance - Unemployment Program 

(MPA-UP) will provide up to $25,000 (except in special 

circumstances described below) in assistance to help stabilize 

unemployed and/or underemployed homeowners. 

MPA-UP assistance may be used to pay partial mortgage and 

mortgage-related expenses until the maximum household 

assistance amount is reached or the homeowner returns to work. 

MPA-UP funds may also be used for partial and or full 

reinstatement assistance or other mortgage related default 

assistance provided that a minimum of twelve (12) months 

mortgage payment assistance can be offered. 

Mortgage related default assistance may help pay delinquent 

taxes, insurances and association dues. 

Monthly mortgage payment assistance term cannot exceed sixty 

(60) months or $25,000 (except in special circumstances 

described below), whichever is reached first. 

Homeowners monthly payment contribution will be determined 

according to household income as stated below: 

Gross Annual Household 

Income 

<$36,000 

$36,000 to $59,999 

$60,000 to $69,999 

>70,000 

Monthly Payment Contribution 

$250 

$500 

$750 

31% of gross monthly household income 

The homeowner may continue receiving assistance for up to two 

(2) months after reemployment or substantially increased 

employment, as long as the program household assistance limit 

has not been reached. Assistance funds will be paid directly to 

the lender/servicers. Rhode Island Housing or its designee will 

collect the homeowner's portion of the payment. Assistance 

funds will be paid directly to the lender/servicers. 

B-4-1 
2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

MPA-UP assistance may be used to make ongoing partial 

mortgage payments and related expenses such as: 

• Escrows 

• Taxes and insurance 

• Condo association fees 

This Program will work as both a stand alone program or to 

complement other HHFRI programs. Homeowners may receive 

assistance from one or more HHFRI Programs, up to the 

maximum total benefit amount for which the homeowner 

qualifies. 

To assist unemployed and/or underemployed homeowners to 

remain in their homes and make on-time, monthly payments on 

their mortgages during their hardship so that they may avoid 

delinquency and foreclosure; and to help stabilize homeowners 

so that they can obtain a sustainable loan modification, if 

necessary, after they have regained full employment. 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities 

with the highest unemployment rates. Using a combination of 

the number of delinquencies and the number of unemployed, it 

is estimated that 70% of all Hardest-Hit funds will be spent in 

these twelve communities. Thirty-one of the thirty-nine 

communities in Rhode Island experienced an unemployment 

rate of 12%) or higher in January of 2010, representing 85.45% 

of the state's population. Therefore, we anticipate that 85%) of 

all Hardest-Hit funding will be targeted to communities with 

unemployment rates of greater than 12%. 

$41,282,743.00 

Eligible borrowers are unemployed or underemployed 

homeowners, who through no fault of their own, are unable to 

make their mortgage payments and are at risk of imminent 

default or foreclosure, as specified in the program guidelines. 

Borrowers will be required to provide a financial hardship 

affidavit with appropriate documentation on the cause of their 

unemployment or underemployment. Unemployment will be 

verified by obtaining a copy of the homeowner's unemployment 

benefit rate decision letter and copies of two (2) months bank 

statements to verify the unemployment direct deposit, or by 

B-4-2 
automated verification through the Rhode Island Department of 

Labor and Training (DLT). 

If information from DLT is unavailable, a letter or other written 

verification from the former employer indicating job loss was 

not the fault of the borrower will serve as a substitute. 

Eligible borrowers must have monthly mortgage payments that 

are greater than 31% of their gross monthly household income 

or have a gross annual household income equal to or less than 

$36,000. 

All eligible borrowers must be able to document the 

unemployment hardship that has placed them at risk of 

imminent default or foreclosure. 

Household income must be fully documented and verifiable, 

income limits apply based on borrowers household gross annual 

income and family size. Rhode Island's Mortgage Revenue 

Bond income limits apply to all assistance programs. These 

eligibility limits are based on the current income and family 

size. Currently, one- or two-person households can earn up to 

$87,800. Households of three or more can earn up to $102,400. 

Self-employed borrowers will be required to document loss of 

business and income and submit appropriate documentation. 

Homeowner will be required to contribute to their contractual 

monthly mortgage obligation. They must make their portion of 

the mortgage payment as directed by Rhode Island Housing or 

its designee, on time; and must actively seek reemployment 

during the assistance period. 

Borrower is able to satisfy program guidelines. 

Property / Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums, provided the 

original mortgage was not greater than $729,750. 

7. Program Exclusions Homeowner has cash reserves and/or non-retirement liquid 

assets exceeding $15,000. 

8. Structure of Assistance Funds will be provided in the form of a zero-percent interest, 

non-recourse, non-amortizing loan secured by the property and 

forgivable at 20%) per year over five (5) years, if the homeowner 

fulfills his or her obligations on a timely basis under the 

assistance agreement. Borrowers who refinance, transfer title or 

sell the property within the five-year period must repay the loan 

B-4-3 
9. Per Household 

Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage with 

Other Financial 

Resources 

on a pro-rata basis provided there is sufficient equity from such 

refinance, title transfer or sale. Funds will be returned to the 

HHFRI Program for additional use through December 31, 2017. 

After December 31, 2017, all remaining and recaptured funds 

will be returned to Treasury. 

The amount of assistance under MPA-UP is up to $25,000 

(except in special circumstances described below) per 

household. 

In special circumstances, up to $50,000 in total HHF assistance 

(when combining programs) may be available for targeted 

homeowners who are at risk of foreclosure. 

The duration of the assistance is determined by the individual 

need of each eligible borrower, but is up to two (2) years of 

payment assistance or the maximum household limit, whichever 

is reached first. The homeowner may continue receiving 

assistance for up to two (2) months after reemployment or 

substantially increased employment, as long as the program 

household limit has not been reached. 

Assistance will be paid directly to the existing servicer, 

municipality, association, insurer or lien holder and may be 

distributed in a lump sum or on a monthly basis until the 

maximum program amount is reached. 

Based on the allocation of funds it is anticipated that 

approximately 2,058 households will receive up to $25,000. It 

is estimated that 1,000 of these households may receive 

additional assistance through other HHFRI programs. 

December 1, 2010 until program funds have been exhausted. 

MPA-UP program provides up to $25,000 (except in special 

circumstances) in assistance and acts as a gateway to other 

HHFRI programs. 

MPA-UP program funds may be used in combination with other 

HHFRI nroerams un to nroeram limits. 

MPA-UP complements the federal HAMP-UP Program by 

providing assistance to unemployed homeowners who do not 

qualify for it. For those that do qualify for HAMP-UP, MPA-UP 

assistance may precede a HAMP-UP forbearance or be used to 

extend it. 

There is no investor match required for this program. However, 

lender/servicers must be willing to participate. 

B-4-4 
16. Qualify as an 

Unemployment 

Program 

0 Yes • No 

B-4-5 
SERVICE SCHEDULE B-5 

Principal Reduction Program 

Hardest Hit Fund 

Summary Guidelines 

1. Program 

Overview 

2. Program Goals 

3. Target 

Population / 

Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility 

Criteria 

In the current housing crisis, many borrowers have found themselves 

owing more than their homes are worth (i.e. are "underwater"); there 

is also growing evidence that these loans are more likely to default, 

and that principal reduction may further the long-term sustainability 

of a loan. This program, designed by Bank of America, provides 

financial assistance, matched by the investor, to reduce the principal 

balance of underwater mortgages. The assistance (up to $25,000) will 

be matched on a dollar-for-dollar basis. Borrowers may access the 

program through the HFA either directly or by referral from servicer 

(with HFA approval). 

Leverage HHF dollars by reducing the principal balances of 

"underwater mortgages" (specifically mortgages for which the markto-market LTV is greater than 115%) and provide financial assistance 

to qualifying homeowners to remain in their homes during this period 

of steep declines in value. 

A reduction in principal can achieve desired income and loan-to-value 

ratios that result in an affordable payment for a customer on the 

existing mortgage loan or can be used in conjunction with a loan 

modification. 

The target population includes customers whose loans are at least 

sixty (60) days or more delinquent, where hardship is documented. 

The goal of the program is to target and address the needs of a 

customer's specific situation in lieu of targeting certain regions or 

counties. 

$1,000,000.00 

Generally consistent with HAMP Criteria 

• At least sixty (60) days delinquent or in imminent default 

• Signed hardship affidavit, that complies with HAMP 

• Low to Moderate Income - AMI <= 120%) (based on fourperson household; states to provide county income limits) 

B-5-1 
6. Property/Loan 

Eligibility 

Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception / 

Duration 

13. Program 

Interactions 

with Other HFA 

The property must be the customer's principal residence; other 

criteria include: 

• Owner-Occupied, Single-Family 1-4 unit property 

• First Lien, Purchase or Rate & Term Refinance 

• Unpaid principal balance below $729,750 

• Property not vacant or condemned 

Exclusions include: 

• Mortgage is a Cash-out-Refinance 

• Loan Originated after 1/1/2009 

• LTV < 115% 

• Notice of trustee sale has been recorded and the trustee sale is 

scheduled within seven (7) days of date application received 

by servicer. 

Assistance will not be structured as a loan, since there is a dollar-fordollar match on assistance. HHFRI assistance will be provided in 

accordance with the Servicers Principal Reduction schedule. 

Up to $25,000 HHF dollars (not including investor match). 

HHFRI assistance will be provided in accordance with the Servicers 

Principal Reduction schedule. 

45 

Approximately one to three years or until HHF funds are fully 

utilized. 

Additional aid may be available to eligible homeowners under 

Temporary and Immediate Homeowner Assistance (TIHA) and 

Moving Forward Assistance (MFA) up to program limits. 

B-5-2 
Programs 

14. Program 

Interactions 

with HAMP and 

other Programs 

15. Program 

Leverage with 

Other Financial 

Resources 

16. Servicer 

reporting to 

HFA 

17. Qualify as an 

Unemployment 

Program 

HHF / Investor principal reduction will be the first step in the 

principal reduction assistance waterfall, prior to the HAMP 

alternative waterfall (per the guidance contained within the MHA 

Handbook) and any proprietary servicer programs. Borrower may 

access this program after unemployment assistance, but must be able 

to demonstrate their ability to sustain the modified mortgage. 

The applicable investor matches state contributed HHF principal 

reduction funds on a dollar-for-dollar basis. Servicer waives certain 

NSF and late charges. 

The servicer will be able to identify all loans which received 

assistance through a HHF program and provide the HFA updates on 

the status of the loan (e.g. current/delinquent, foreclosure, short sale, 

etc.) on a quarterly basis for a period of twelve (12) months after 

assistance ends. 

• Yes 0 No 

B-5-3 
SCHEDULE C 

PERMITTED EXPENSES 

One-time 1 Start-Up Expenses: 

Initial Personnel 

Building, Equipment, Technology 

Professional Services 

Supplies / Miscellaneous 

Marketing /Communications 

Travel 

Website development /Translation 

Contingency 

Subtotal 

Operating / Administrative Expenses: 

Salaries 

Professional Services (Legal, Compliance, 

Audit, Monitoring) 

Travel 

Buildings, Leases & Equipment 

Information Technology & Communications 

Office Supplies/Postage and 

Delivery/Subscriptions 

Risk Management/ Insurance 

Training 

Marketing/PR 

Miscellaneous 

Subtotal 

Transaction Related Expenses: 

Recording Fees 

Wire Transfer Fees 

Counseling Expenses 

File Intake 

Decision Costs 

Successful File 

Key Business Partners On-Going 

Subtotal 

Grand Total 

% of Total Award 

Award Amount 

Rhode Island 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$0.00 

$6,246,507.00 

$238,062.00 

$0.00 

$840,974.00 

$204,268.00 

$75,872.00 

$53,147.00 

$0.00 

$480,000.00 

$1,730,000.00 

$9,868,830.00 

$0.00 

$200,000.00 

$1,500,000.00 

$0.00 

$0.00 

$0.00 

$1,700,000.00 

$11,568,830.00 

14.58% 

$79,351,573.00 

C-l