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 Sixth 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 — Alabama 

Doc# US1 8416604vl 
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 

- 2 -

Doc#:USl:8416604vl 
connection with this Seventh Amendment, and to perform its obligations hereunder and 

thereunder. 

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] 

- 3 

Doc# US1 8416604vl 
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: 

ALABAMA HOUSING FINANCE 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Robert Strickland 

Name: Robert Strickland 

Title: Executive Director 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

ALABAMA HOUSING FINANCE 

AUTHORITY 

By: /s/ Robert Strickland 

Name: Robert Strickland 

Title: Executive Director 

[Signature Page to Seventh Amendment to HPA — Alabama] 
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: 

ALABAMA HOUSING FINANCE 

AUTHORITY 

TREASURY: 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: By: LAW 

Name: 

Title: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

ALABAMA HOUSING FINANCE 

AUTHORITY 

By: 

Name: 

Title: 

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

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

Doc# US1 8416604vl 
SCHEDULE A 

BASIC INFORMATION 

Elifiible Entity Information: 

Name of the Eligible Entity: 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

Alabama Housing Finance Authority1 

a public corporation and instrumentality of 

the State of Alabama, established and 

existing under the Code of Alabama 1975 

§24-1 A-l pursuant to Act No. 80-585 of the 

Alabama Legislature 

Alabama 

HFA Information: 

Name of HFA: 

Organizational form: 

Date of Application: 

Date of Action Plan: 

Alabama Housing Finance Authority 

a public corporation and instrumentality of 

the State of Alabama, established and 

existing under the Code of Alabama 1975 § 

24-1 A-l pursuant to Act No. 80-585 of the 

Alabama Legislature 

August 31, 2010 

September 1,2010 

1 References in the Agreement to the term "HFA" shall mean the Alabama Housing Finance Agency ("AHFA") in 

its capacity as an HFA as such term is used in the Agreement; references in the Agreement to the term "Eligible 

Entity" shall mean AHFA, in its capacity as Eligible Entity as such term is used in the Agreement. 

Doc#:USl:8416604vl 
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. 

$162,521,345.00 

N/A 

$ 60,672,471.00 

$ 27,024,240.00 

September 23, 2010 

September 29, 2010 

December 16,2010 

January 26, 2011 

March 31, 2011 

May 25, 2011 

June 28, 2012 

March 8, 2013 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

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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. 

Doc# US1 8416604vl 
SERVICE SCHEDULE B-l 

HARDEST HIT 

A LA B A M A 

PROGRAM TERM SHEET 

SUMMARY GUIDELINES 

HARDEST HIT FOR ALABAMA'S UNEMPLOYED HOMEOWNERS 

1. Program Overview AHFA will administer HHF to subsidize 100 percent of an eligible 

unemployed or underemployed homeowner's current monthly mortgage 

payments and all other mortgage-related expenses (including 

subordinate liens, if applicable) during their time of eligibility. The 

assistance will not exceed a total of $25,000 per household. 

Alabama's HHF will provide payment not to exceed $12,500, to a 

participating homeowner's servicer(s) to bring the homeowner current 

on his or her delinquent mortgage(s). If this maximum amount that 

AHFA will provide does not exceed the total amount needed to bring the 

homeowner current on all existing mortgages, the homeowner must 

cover any shortfall. The AHFA payment can cover principal, interest, 

fees, escrow/impound expenses, delinquent taxes and/or escrow 

shortage for taxes and insurance. 

Interested homeowners will apply directly to AHFA via a secure website 

monitored and maintained by AHFA staff. Applications will be 

evaluated and approved by AHFA staff members. Approved 

homeowners will be expected to submit certain information 

documenting their employment status and inability to pay their 

mortgage and supporting their mortgage claims. 

Once in the program, all homeowners will be expected to re-certify their 

continued eligibility and residence in the home on a monthly basis. 

HHF payments will be distributed to servicers by AHFA on a monthly 

basis, contingent upon homeowner recertification and continued 

eligibility for unemployment compensation (for both unemployed and 

underemployed). Homeowners who receive unemployment 

compensation from agencies outside of the State of Alabama must 

provide a copy of a current awards letter and approved documentation to 

reflect continued eligibility. 

Monthly assistance, not to exceed a total of $25,000 per household, will 

continue (i) for up to three months following the termination of 

borrower eligibility or (ii) until the property ceases to be the borrower's 

primary residence. 

3/11/2013 1:59 PM 
2. Program Goals Provide mortgage payment assistance to unemployed or underemployed 

Alabama homeowners with a chance of sustaining homeownership. 

3. Target Population / 

Areas 

This program will assist low- to moderate-income families in Alabama. 

AHFA does not anticipate targeting this assistance on a geographic 

basis. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$62,521,345 

5. Borrower Eligibility 

Criteria 

Unemployed and underemployed Alabama homeowners who have been 

declared eligible to receive state or federal unemployment compensation 

benefits may apply for assistance. 

Also, applicants must have a total annual household income of less than 

140 percent of the state median income. AHFA may change this limit 

annually when new income data becomes available from the U.S. 

Department of Housing and Urban Development. 

The homeowner, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, of any 

one of the following: (A) felony larceny, theft, fraud or forgery, 

(B) money laundering or (C) tax evasion. 

All homeowners will be required to provide a financial Hardship 

Affidavit attesting to their inability to pay their mortgage. HHF will be 

available to qualified homeowners on a first-come, first-served basis. 

6. Property / Loan 

Eligibility Criteria 

The homeowner must currently occupy the property as their primary 

residence and the residence must be located within the state of Alabama. 

Eligible structures include single-family homes, attached or detached, 

and manufactured housing attached to real property. Existing mortgage 

loans on the property must have an unpaid principal balance totaling no 

more than $258,690. Mortgages must be originated by a financial 

institution in the business of regularly originating mortgage loans and 

the mortgage loans must be executed and recorded prior to the 

homeowners unemployment. 

7. Program Exclusions Mortgage loans on second homes or investment properties will not be 

eligible for HHF assistance. 

8. Structure of Assistance Homeowners receiving funds will execute a note and a subordinate 

mortgage lien in favor of AHFA that will be recorded in public records 

against the property. Loans will be zero percent and non-amortizing. 

Loans originated between the pilot program commencement and 

December 31, 2012, will be forgiven at the termination of a five-year 

term. Loans originated between January 1, 2013, and December 31, 

3/11/2013 1:59 PM 
9. Per Household 

Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

2013, will be forgiven at the termination of a four-year term. Loans 

originated between January 1, 2014, and December 31, 2014, will be 

forgiven at the termination of a three-year term. No loans will be 

originated after December 31, 2014. On or before December 31, 2017, 

or such later date allowed by Treasury, any remaining or recaptured 

funds will be returned to Treasury. 

Loans will be repayable only if the homeowner sells the property before 

the forgiveness period expires and there is sufficient equity to pay all or 

part of the unforgiven balance of the loan. Repaid HHF funds will be 

re-invested back into new homeowner loans until December 31, 2014. 

Ongoing monitoring, repayments and satisfactions will be conducted 

through AHFA. 

Assistance not to exceed a total of $25,000 per household. 

AHFA will cover 100 percent of the household's monthly mortgage 

payments and all other mortgage-related expenses (including principal, 

interest, fees, escrow/impound expenses, delinquent taxes and/or escrow 

shortage for taxes and insurance) unless final payment amount exceeds 

the maximum assistance available. 

If the maximum amount that AHFA will provide (a total of $12,500 per 

household) does not exceed the total amount needed to bring the 

homeowner current on all existing mortgages, the homeowner must 

cover any shortfall. 

HHF payments (excluding the amount needed to bring the homeowner 

current) will be distributed to servicers by AHFA on a monthly basis. 

Assistance including up to three months following the termination of 

eligibility, or until the property ceases to be the homeowner's primary 

residence. Assistance will last only as long as the maximum available 

amount covers 100 percent of the household's monthly mortgage 

payments. Assistance will cease three months after eligibility to receive 

unemployment compensation terminates, regardless of whether the 

maximum available benefits have been received. 

3,100 

The pilot program began on December 15, 2010, and funds became 

available statewide on February 2, 2011. AHFA expects the initial 

funding allocation to be expended within three years, though funds will 

be recycled until December 31, 2014. 

3/11/2013 1 59 PM 
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 

AHFA has access to the largest concentration of low- to moderateincome homeowners in Alabama with an in-house servicing portfolio of 

21,000 loans; we anticipate that a number of existing AHFA customers 

will use HHF. 

This assistance can interact with any and all loan modification 

programs, including HAMP, provided that the homeowner meets the 

qualifications established by AHFA and Treasury for HHF. HHF funds 

can be utilized before or after assistance from HAMP UP. 

None. 

Ef Yes • No 

3/11/2013 1 59 PM 
SERVICE SCHEDULE B-2 

ALABAMA HOUSING FINANCE AUTHORITY 

HARDEST HIT 

ALABAM A 

PROGRAM TERM SHEET 

SUMMARY GUIDELINES 

SHORT SALE ASSISTANCE PROGRAM 

1. Program Overview 

2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

AHFA will administer HHF funds to assist financially distressed homeowners 

with the sale of their primary residence. The short sale assistance program 

will assist homeowners who can no longer sustain their monthly mortgage 

obligation due to a hardship such as unemployment, underemployment, 

divorce, or disability. The assistance will not exceed a total of $30,000 per 

household. 

HHF Participating Servicers may refer interested sellers for participation in the 

program. The servicer must provide evidence the seller has been approved for 

a short sale, contingent upon receipt of HHF funds. The seller will apply via a 

secure website monitored and maintained by AHFA staff. Applications will 

be evaluated and approved by HHA staff members. Sellers will be expected to 

submit certain information documenting their income, short sale approval 

(contingent upon receipt of HHF funds), executed sales contract, the value of 

the property, and payoff statement(s) from a Participating Servicer(s). 

Participating Servicers must agree to accept a minimum loss of $1,000 on the 

first mortgage loan of each short sale assisted. 

AHFA will provide a single disbursement which can cover closing costs and 

any remaining principal amount—up to 10% of the sales price, not to exceed 

$30,000. The funds will be disbursed at closing and made payable to the 

servicer and the closing agent (with respect to closing costs). 

Provide assistance to Alabama homeowners who are unable to sustain their 

monthly mortgage obligation. 

This program will assist low- to moderate-income families in Alabama. AHFA 

does not anticipate targeting this assistance on a geographic basis. 

$36,487,880 

Applicants must have a total annual household income of less than 140 percent 

3/11/2013 1 59 PM 
Criteria 

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 

of the state median income. AHFA may change this income limit annually 

when new income data becomes available from the U.S. Department of 

Housing and Urban Development. 

The homeowner, in connection with a mortgage or real estate transaction, 

cannot have been convicted, within the last 10 years, of any one of the 

following: (A) felony larceny, theft, fraud or forgery, (B) money laundering or 

(C) tax evasion. 

Homeowners will be required to provide a financial Hardship Affidavit 

attesting to their inability to pay their mortgage. HHF will be available to 

qualified homeowners on a first-come, first-served basis. 

Homeowner's eligibility will also depend on the servicer's evaluation of 

homeowner for a short sale program. 

The homeowner must occupy the property as their primary residence at the 

time of sale and the residence must be located within the state of Alabama. 

Eligible structures include single-family homes, attached or detached, and 

manufactured housing attached to real property. Existing mortgage loans on 

the property must have an unpaid principal balance totaling no more than 

$258,690. 

Mortgage loans on second homes or investment properties will not be eligible 

for HHF assistance. 

A single payment made payable to the servicer and the closing agent (with 

respect to closing costs) will be disbursed at closing. Loan forgiveness will be 

immediate. No additional monitoring will be required. 

HHF assistance per household not to exceed $30,000. 

A single HHF payment made payable to the seller and closing agent will be 

disbursed at closing. 

1,500 

The short sale program will be available to homeowners after the Seventh 

Amendment Date and will last as long as the allocated amount of funds is 

available. After successful completion of a 60-day pilot program, AHFA will 

make the funds available for a statewide release. 

As AHFA has access to the largest concentration of low- to moderate-income 

homeowners in Alabama, with an in-house servicing portfolio of 21,000 loans, 

we anticipate that a number of existing AHFA customers will use HHF. 

3/11/2013 1 59 PM 
14. Program Interactions 

with HAMP 

15. Program Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment Program 

N/A 

None. 

• Yes Ef No 

3/11/2013 1 59 PM 
SERVICE SCHEDULE B-3 

ALABAMA HOUSING FINANCE AUTHORITY 

r sNRv 

HARDEST HIT 

A LA B A M A 

PROGRAM TERM SHEET 

SUMMARY GUIDELINES 

LOAN MODIFICATION ASSISTANCE PROGRAM 

1. Program Overview 

2. Program Goals 

To aid in the prevention of foreclosures in Alabama, the Loan Modification 

Assistance Program will provide funds, not to exceed $30,000 per household, 

to assist financially distressed and/or underemployed borrowers in achieving 

modification of their home loans. 

Under the program, a one-time contribution of funds will be made to the 

mortgage servicer to be used to fill a financial gap that limits a homeowner's 

eligibility for a loan modification. 

Funds may be used to reduce the outstanding principal balance, pay delinquent 

escrow or arrearages. 

Modification must result in a mortgage payment (including principal, interest, 

taxes, and insurance) of no more than 31 percent of a homeowner's income. 

Homeowner must have demonstrated ability to maintain the mortgage under 

the new terms. 

The program is designed to work with both HAMP and non-HAMP 

modifications. 

HHF Participating Servicers may refer interested homeowners for 

participation in the program. The homeowner will apply via a secure website 

monitored and maintained by AHFA staff. Applications will be evaluated and 

approved by AHFA staff members. Approved homeowners will be expected 

to submit certain information documenting their inability to pay their 

mortgage and supporting their mortgage claims. 

Provide assistance to underemployed Alabama homeowners who are unable to 

sustain their monthly mortgage obligation under the current loan terms. 

Providing funds will allow for a successful loan modification for borrowers 

who would, otherwise, be ineligible for modification and will, ultimately, 

prevent foreclosures. 

Doc# US1 8416604vl 
3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of 

Assistance 

This program will assist low- to moderate-income families in Alabama. AHFA 

does not anticipate targeting this assistance on a geographic basis. 

$36,487,880 

Applicants must have a total annual household income of less than 140 

percent of the state median income. AHFA may change this income limit 

annually when new income data becomes available from the U.S. Department 

of Housing and Urban Development. 

The homeowner, in connection with a mortgage or real estate transaction, 

cannot have been convicted, within the last 10 years, of any one of the 

following: (A) felony larceny, theft, fraud or forgery, (B) money laundering or 

(C) tax evasion. 

Homeowners will be required to provide a financial Hardship Affidavit 

attesting to their inability to pay their mortgage. HHF will be available to 

qualified homeowners on a first-come, first-served basis. 

Homeowner eligibility will also depend on the servicer's evaluation of the 

homeowner for a loss mitigation option. 

The homeowner must currently occupy the property as their primary 

residence, and the residence must be located within the state of Alabama. 

Eligible structures include single-family homes, attached or detached, and 

manufactured housing attached to real property. The homeowner's current 

first-lien mortgage must have an unpaid principal balance totaling no more 

than $258,690. 

Mortgage loans on second homes or investment properties will not be eligible 

for HHF assistance. 

A single payment made payable to the servicer will be disbursed. 

Homeowners receiving funds will execute a note and a subordinate mortgage 

lien in favor of AHFA that will be recorded in public records against the 

property. Loans will be zero percent and non-amortizing. 

Loans originated between the pilot program commencement and December 

31, 2013, will be forgiven at the termination of a four-year term. Loans 

originated between January 1, 2014, and December 31, 2014, will be forgiven 

at the termination of a three-year term. No loans will be originated after 

December 31, 2014. On or before December 31, 2017, or such later date 

allowed by Treasury, any remaining or recaptured funds will be returned to 

Doc#:USl:8416604vl 
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 

16. Qualify as an 

Unemployment 

Program 

Treasury. 

Loans will be repayable only if the homeowner sells the property before the 

forgiveness period expires and there is sufficient equity to pay all or part of 

the unforgiven balance of the loan. Repaid HHF funds will be re-invested 

back into new homeowner loans until December 31, 2014. 

Ongoing monitoring, repayments and satisfactions will be conducted through 

AHFA. 

HHF assistance per household not to exceed $30,000. 

A single HHF payment made payable to the servicer will be disbursed. 

1,200 

The loan modification program will be available to homeowners after 

Treasury approval and will last as long as the allocated amount of funds is 

available. After successful completion of a 60-day pilot program, AHFA will 

make the funds available for a statewide release. 

As AHFA has access to the largest concentration of low- to moderate-income 

homeowners in Alabama with an in-house servicing portfolio of 21,000 loans, 

we anticipate that a number of existing AHFA customers will use HHF. 

This assistance can interact with any and all loan modification programs, 

including HAMP, provided that the homeowner meets the qualifications 

established by AHFA and Treasury for HHF. HHF funds can be utilized 

before or after assistance from HAMP UP. 

None. 

• Yes • 0 No 

Doc#:USl:8416604vl 
SCHEDULE C 

PERMITTED EXPENSES 

Alabama 

One-time / Start-Up Expenses: 

Initial Personnel 

Building, Equipment, Technology 

Professional Services 

Supplies / Miscellaneous 

Marketing /Communications 

Travel 

Website development /Translation 

Contingency 

Subtotal 

$1,146,126.00 

$668,463.00 

$199,914.00 

$131,193.00 

$346,726.00 

$12,494.00 

$50,000.00 

$131,193.00 

$2,686,109.00 

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 

$6,766,750.00 

$1,800,000.00 

$50,000.00 

$300,000.00 

$2,158,491.00 

$149,935.00 

$120,000.00 

$100,000.00 

$750,000.00 

$134,145.00 

$12,329,321.00 

Transaction Related Expenses: 

Recording Fees 

Wire Transfer Fees 

Counseling Expenses 

File Intake 

Decision Costs 

Successful File 

Key Business Partners On-Going 

$2,000,000.00 

$83,109.00 

$2,139,707.00 

$0.00 

$693,452.00 

$7,092,542.00 

Doc# US1 8416604vl 
Subtotal $12,008,810.00 

Grand Total $27,024,240.00 

% of Total Award 

Award Amount 

16.63% 

$162,521,345.00 

Doc# US1 8416604vl