Eighth Amendment to HPA — Nevada

TAMPA/204496.2

EIGHTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Eighth Amendment to Commitment to Purchase Financial Instrument and HFA

Participation Agreement (the “Eighth Amendment”) is entered into as of the date set forth on

Schedule A attached hereto as the Eighth 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 HPA”) 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”), as

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

Instrument and HFA Participation Agreement (the “Sixth Amendment”), and as further amended

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

Participation Agreement (the “Seventh Amendment”; and together with the Original HPA as

amended thereby and by the First Amendment, Second Amendment, Third Amendment, Fourth

Amendment, Fifth Amendment and Sixth 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 Eighth Amendment to

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

applicable;
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TAMPA/204496.2

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 Eighth Amendment; and all references in the

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

Amendment. All references herein to the “HPA” shall mean the Current HPA, as further

amended by this Eighth 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 Eighth 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 Eighth 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 Eighth Amendment and any other closing documentation delivered to

Treasury in connection with this Eighth 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

Eighth Amendment and any other closing documentation delivered to Treasury in

connection with this Eighth Amendment, and to perform its obligations hereunder and

thereunder.
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TAMPA/204496.2

3. Miscellaneous

A. The recitals set forth at the beginning of this Eighth 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 Eighth 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 Eighth Amendment shall be treated as originals for all purposes.

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE

INTENTIONALLY LEFT BLANK]
[Signature Page to Eighth Amendment to HPA — Nevada]

In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials

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

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

NEVADA HOUSING DIVISION UNITED STATES DEPARTMENT OF THE

TREASURY

By: /s/ Charles L. Horsey By:

Name: Charles L. Horsey Name: Timothy G. Massad

Title: Administrator Title: Assistant Secretary for

Financial Stability

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING

ASSISTANCE CORPORATION

By: /s/ Charles L. Horsey

Name: Charles L. Horsey

Title: President

TAMPA/204496.2

EXHIBITS AND SCHEDULES

Schedule A Basic Information

Schedule B Service Schedules
TAMPA/204496.2

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information:

Name of the Eligible Entity: Nevada Affordable Housing Assistance

Corporation

Corporate or other organizational form: Non-profit corporation

Jurisdiction of organization: Nevada

Notice Information: Nevada Affordable Housing Assistance

Corporation

10585 Double R Blvd., Suite B

Reno, NV 89521-8909

Phone: (775) 284-0302

Fax: (775) 230-0354

Email: nhd@housing.nv.gov

ssharp@rbsllaw.com

HFA Information:

Name of HFA: Nevada Housing Division1

Organizational form: A Division of the Nevada Department of

Business and Industry of the State of

Nevada

Date of Application: April 16, 2010

Date of Action Plan: September 1, 2010

Notice Information: Nevada Housing Division

1535 Old Hot Springs Rd., Ste 50

Carson City, NV 89706

Attn: Administrator

Phone: (775) 687-2040

Fax: (775) 687-4040

Email: Chorsey@housing.nv.gov

Program Participation Cap: $194,026,240.00

Portion of Program Participation Cap

Representing Original HHF Funds: $102,800,000.00

1 Each Schedule A-1 attached to the Original HPA, the First Amendment and the Second Amendment shall remain a

part of the Current HPA.
TAMPA/204496.2

Portion of Program Participation Cap

Representing Unemployment HHF Funds: $ 34,056,581.00

Permitted Expenses: $ 24,978,556.00

Closing Date: June 23, 2010

First Amendment Date: September 23, 2010

Second Amendment Date: September 29, 2010

Third Amendment Date: December 16, 2010

Fourth Amendment Date: April 5, 2011

Fifth Amendment Date: May 25, 2011

Sixth Amendment Date: October 28, 2011

Seventh Amendment Date: December 8, 2011

Eighth Amendment Date: February 28, 2012

Eligible Entity Depository Account Information: See account information set forth in the

Depository Account Control Agreement

between Treasury and Eligible Entity

regarding the HHF Program.
TAMPA/204496.2

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-1, Service

Schedule B-2, et. seq.), which collectively comprise Schedule B to the HPA.
TAMPA/204496.2

SERVICE SCHEDULE B-1

The Nevada Affordable Housing Assistance Corporation

PRINCIPAL REDUCTION PROGRAM

Summary Guidelines

1. Program Overview To ensure that approximately 1,500 Nevada families are able to stay

in

their homes with a permanent change to their mortgages via principal

reductions which will provide qualified homeowners a

principal reduction of up to $50,000. The 1st Mortgage Principal

Reduction Program will assist the underemployed and/or income

restricted homeowner candidates to keep occupancy and ownership of

their home. This program will target HAMP eligible borrowers on a

Servicer matched 1:1 basis, if applicable. HARP eligible borrowers will

be processed on an unmatched basis.

The following method will be used to reduce the principal balance of a

borrower’s primary mortgage:

 A forgivable loan may be made to eligible borrowers for up to

$50,000 with such assistance provided in a one-time up-front

payment to the lender/servicer for both HAMP and HARP

eligible borrowers; or

 Up to $50,000 in assistance may be provided over a threeyear period for HAMP eligible borrowers which receive a

matching contribution from their Servicer.

2. Program Goals The primary goal is to reduce first mortgage principal balances such that

their loan to value ratios are reduced and correspondingly, the PITI

payment reduced to 43% or less of the homeowner’s gross income.

3. Target Population /

Areas

The funding will be distributed via a geographic formula of 1/3+1/3+1/3

weight for unemployment + foreclosure rate + population. There will be

target population segmentation into (a) the Clark County/Las Vegas

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada.

Where a finer breakdown is possible within each of the three geographic

areas, zip code and census track targeting will be utilized.

4. Program Allocation

(Excluding

Administrative

Expenses)

$75,412,386.70
TAMPA/204496.2

5. Borrower Eligibility

Criteria

 Legal US Resident.

 Home is currently owner occupied.

 Current income does not exceed 150% of Area Median Income as

then published by HUD.

 Borrower will be required to provide a Hardship Affidavit.

Eligibility criteria will be first analyzed by the referring loan Servicer

before referral to Nevada’s Hardest Hit Fund. If applicants meet

screening criteria by participating Servicer, application packages will be

assembled and forwarded onto the NAHAC underwriters who will do the

full verifications/confirmation and begin the relationship with the

participating banks/lenders/servicers to work through the calculation of

aid levels.

Funding will be provided on a first come-first-served basis within each

geographical zone.

6. Property / Loan

Eligibility Criteria

 Owner occupied.

 Pre-reduction / Pre-modification principal balance must exceed 115%

based upon valuation obtained by NAHAC or the Servicer. The post

assistance PITI payment cannot exceed 43%.

 Servicers will be encouraged to refinance mortgages to a fixed rate

30 year or longer mortgage.

 Mortgage balance cannot exceed $729,750.

7. Program Exclusions  Borrower owns other real property.

8. Structure of

Assistance

Depending on the agreement with the lender/servicer, the structure of

assistance may be provided in one of two ways:

 No lien will be required in the event the Servicer provides a

dollar for dollar match of funds provided by Nevada Hardest

Hit Fund toward the borrower’s Principal Reduction.

 In the event there is no matching contribution by the

Servicer, assistance may be structured as a forgivable lien

recorded against the property. Borrowers who maintain

homeownership for the 36 months following assistance will

earn lien forgiveness and will not be required to repay their

assistance. The lien has a term of 36 months and is

forgiven at a rate of 33% per year with full forgiveness at

the end of year 3. If the borrower sells the property before

the forgiveness period expires; all net sale proceeds up to the

full principal balance outstanding and not yet forgiven will

be due and payable to NAHAC. All funds returned to

NAHAC may be recycled until December 31, 2017;

thereafter they will be returned to Treasury.
TAMPA/204496.2

 Assistance may be provided to the Servicer in equal

installments per the preference of the Servicer over a three

year period, at months 13, 25 and 37, provided the

homeowner remains in the home and continues to make

current mortgage payments. This three payment structure

will not require a loan in favor of the Eligible Entity.

Alternatively, assistance may be paid to the Servicer in one

installment so long as the borrower has successfully

completed a trial modification when applicable

In the event that the program recipient subsequently participates in the

NAHAC’s Short Sale Acceleration Program, then the lien recorded as a

result of participation in the Principal Reduction Program may be

extinguished.

9. Per Household

Assistance

The maximum amount of 1st mortgage curtailment receivable by a

qualified borrower is $50,000. The median amount is expected

to be close to the maximum (skewed right poisson distribution) amount.

10. Duration of

Assistance

Program funds will be distributed as a one-time payment unless the

Servicer elects the three payment mode.

11. Estimated Number of

Participating

Households

Approximately 1,500 households could be assisted under this Program.

12. Program Inception /

Duration

The HAMP specific segment of this program began on March 1, 2010.

This Program could last up to 48 months.

The HARP specific segment of this program is to be introduced in

January 2012. This Program could last up to 48 months.

13. Program

Interactions with

Other HFA

Programs

The 1st mortgage principal reduction program is aimed at both

the

underemployed population and the fully employed income

qualified/limited home owners, not the unemployed. Thus, it is possible

that a homeowner could receive a 1st mortgage curtailment type

principal reduction through this Program and then subsequently lose

their job and eventually need the short-sale assistance program.

It is also possible that a homeowner may receive a 2nd lien reduction

or Mortgage Payment Assistance.

Each HARP eligible candidate will be screened for 2nd lien reduction

eligibility.
TAMPA/204496.2

14. Program

Interactions with

HAMP

Participating Servicers will screen their databases for HAMP eligible

borrowers on a regular basis and make referrals as appropriate.

15. Program Leverage

with Other Financial

Resources

While Nevada does not require a contribution from the Servicer, it

will

be encouraged. Nevada will also request that the loan servicer waive

certain fees like late charges, delinquency fee and penalties and recast the

principal reduced loan and participate in its recordation.

16. Qualify as an

Unemployment

Program

 Yes  No
TAMPA/204496.2

SERVICE SCHEDULE B-2

The Nevada Affordable Housing Assistance Corporation

SECOND MORTGAGE REDUCTION PLAN

Summary Guidelines

1. Program Overview The Second Mortgage Reduction Plan is aimed at assisting

borrowers

who have a second mortgage lien interfering with either a short-sale,

refinance or modification of the first mortgage. The expected applicant

pool is believed to be both unemployed and underemployed families.

2. Program Goals The expected outcome of this program is to assist up to 2,200

families

remove the impediment of a second lien on their property such that

either a short sale, refinancing or first mortgage modification can be

carried out and thus prevent a foreclosure.

3. Target Population /

Areas

The funding will be distributed via a geographic formula of

1/3+1/3+1/3 weight for unemployment + foreclosure rate +

population. There will be target population segmentation into (a) the

Clark County/Las Vegas valley area, (b) the Reno-Sparks SMSA area

and (c) all of rural Nevada. Where a finer breakdown is possible within

each of the three geographic areas, zip code and census track targeting

will be utilized.

4. Program Allocation

(Excluding

Administrative

Expenses)

$ 36,552,962.00

5. Borrower Eligibility

Criteria

• Legal US Resident.

• Home is currently owner occupied

• Current income does not exceed 150% of Area Median Income as

then published by HUD.

• Borrower must be i n d e f a u l t o r facing imminent default

or participating in a principal curtailment application under

the HHF Principal Reduction Program with their HHF

participating Servicer.

• Delinquency based on a financial hardship due

to circumstances beyond the homeowner’s control (no

contrived defaults allowed).

• Borrower will be required to provide a Hardship Affidavit.
TAMPA/204496.2

Eligibility criteria will be analyzed either on-line by the borrower’s visit

to the web site and using the ‘screening tool,’ directly at the

intake portal of the contract agents (foreclosure mitigation and

mediation agencies) or by the designated call center. If applicants

meet screening criteria, application packages will be assembled and

forwarded onto the NAHAC underwriters who will do the full

verifications/confirmation and begin the relationship with the

participating banks/lenders/servicers to work through the calculation of

aid levels.

Funding will be provided on a first come-first-served basis within each

geographical zone. Monitoring of funding commitments/pipelines by

zone will allow sufficient trend evidence to allow for sufficient lead

time to ‘cut-off’ further funding commitments what might exceed

available resources.

6. Property / Loan

Eligibility Criteria

 Owner occupied.

 Should have only one existing mortgage and a 2nd lien.

In circumstances where there exists a 3rd lien strictly associated

with a governmental or non-profit sponsored ‘down payment

assistance program’ the 3rd lien relief will also be accepted

for assistance under this program.

• The PITI cannot exceed 43% following the removal of the 2nd

lien except in conjunction with a short sale, when the borrower can

provide verification that they are in pursuit of a homeownership

sustainment program or when the 2nd lien is held by a down

payment assistance provider.

• All 2nd liens obtaining relief through this program element will

have an accompanying lien release.

• The maximum 2nd lien size eligible for relief under this

program element must be equal to or less than $41,250 unless the

lien holder agrees to write down a greater balance.

• 1

st mortgage balance cannot exceed $729,750.

7. Program Exclusions • If a second lien exceeds the program limit of $41,250 (unless

the lien holder agrees to write down a greater balance) or a

program contribution of >$16,500 is needed then the borrower

would be ineligible.

• Borrower owns other real property.
TAMPA/204496.2

8. Structure of

Assistance

Depending on the agreement with the lender/servicer, the structure

of assistance may be provided in one of two ways:

 No lien will be required in the event the Servicer provides a

dollar for dollar match of funds provided by Nevada Hardest Hit

Fund.

 In the event there is no matching contribution by the Servicer,

assistance will be structured as a forgivable lien recorded

against the property. Borrowers who follow through and earn

the loan forgiveness will not be required to repay their lien. The

lien has a term of 3 years and is forgiven at a rate of 33% per

year with full forgiveness at the end of year 3. If the borrower

sells the property before the forgiveness period expires; all net

sale proceeds up to the unforgiven lien balance will be due and

payable to NAHAC. All funds returned to NAHAC may be

recycled until December 31, 2017; thereafter they will be

returned to Treasury.

 Assistance will be structured as a one-time payout to the

Servicer.

In the event a program recipient subsequently participates in the

NAHAC’s Short Sale Acceleration Program, the lien recorded as a

result of participation in the Second Mortgage Reduction Plan program

may be extinguished.

9. Per Household

Assistance

The maximum amount of 2nd mortgage lien relief from the program

will be $16,500.

10. Duration of

Assistance

The 2nd lien elimination program will be a one-time payment program.

11. Estimated Number of

Participating

Households

It is estimated that up to 2,200 applicants/families could receive 2nd lien

relief under this program. If the level of lender participation exceeds

60% versus the program’s 40% or the average program funding level

averages less than the maximum of $16,500 in necessary funding to

create the 2nd lien relief, then there could be an increase in the number

of borrowers assisted.

12. Program Inception /

Duration

The Second Mortgage Reduction Plan program began March 1, 2010

and could last up to 48 months.

13. Program

Interactions with

Other HFA

Programs

None.
TAMPA/204496.2

14. Program

Interactions with

HAMP

The program will have an active interface with the HAMP

program.

During the ‘in-take’ process with the foreclosure mitigation/mediation

agencies, the applicants will be screened for HAMP eligibility and

where it is indicated that a borrower would be eligible, they will

channeled into a HAMP loan modification. If the applicant needs 2nd

lien relief in order to effectuate a HAMP or 1st mortgage principal

reduction program process then the 2nd lien relief element will be

utilized. NAHAC wishes to supplement and complement the federal

programs and where needed to create added funds flow to ensure long

term solutions to the borrower’s need.

15. Program Leverage

with Other Financial

Resources

The basis of the 2ndlien relief program is to ‘free up’ the first

mortgage note holder to complete the necessary modification or

refinance to keep

the borrower current and in their home. In order to leverage the 2nd lien

relief funds, the program requires participating lenders to contribute a

minimum of $0.60 for each $0.40 contributed by this program

except in the event the 2nd or 3rd lien is held by a down

payment assistance program provider, in which event no matching

funds will be required.

16. Qualify as an

Unemployment

Program

 Yes  No
TAMPA/204496.2

SERVICE SCHEDULE B-3

The Nevada Affordable Housing Assistance Corporation

SHORT-SALE ACCELERATION PROGRAM

Summary Guidelines

1. Program Overview The Short-Sale Acceleration Program is aimed at assisting

borrowers

who are beginning or need to initiate the short-sale process to relieve

themselves of the mortgage burdens that they cannot sustain—even with

a material loan principal reduction.

2. Program Goals It is expected that at an $8,025 level of average funding per

family

assisted up to 1,371 families facing imminent foreclosure threat, will

have the burden of their home mortgage eliminated and the threats of a

default judgment removed.

3. Target Population /

Areas

Those Nevadans that are facing imminent threat of foreclosure.

4. Program Allocation

(Excluding

Administrative

Expenses)

$6,175,464.30

5. Borrower Eligibility

Criteria

 Legal US Resident.

 Home is currently owner occupied. If vacant, homeowner must be

able to prove that they moved due to extenuating circumstances and

that the home was most recently used as a primary residence – not

an investment property.

 Borrower must have short-sale approval in place with lender.

 Borrower must provide verification of short sale approval.

 Borrower will be required to provide a financial Hardship Affidavit

attesting to their inability to make mortgage payments.

6. Property / Loan

Eligibility Criteria

 Borrowers with a 2nd lien will also be considered for the Second

Mortgage Reduction Plan.

 Borrowers who chose to leave the State of Nevada will not receive

the rental assistance component of benefits under this program but

will be entitled to all others.

7. Program Exclusions  Borrower owns other real property.
TAMPA/204496.2

8. Structure of

Assistance

This program is direct assistance through direct payment to vendors at

closing of the escrow, or immediately post short-sale closing. The

payments will not be structured as a loan.

9. Per Household

Assistance

The maximum is program benefit per household is $8,025.

10. Duration of

Assistance

Assistance will be a one-time set of payments.

11. Estimated Number of

Participating

Households

The Business Plan calls for this program element to assist up to 1,371

families complete their home abandonment/ownership through a short

sale and matriculate to a rental property somewhere else in Nevada.

12. Program Inception /

Duration

The Short Sale Acceleration Program began March 1, 2010 and could

last up to 48 months.

13. Program

Interactions with

Other HFA

Programs

To the fullest extent possible, absent specific federal

program

prohibitions/limitations, the Short-Sale Acceleration Program element

will build on or utilize the H.A.F.A. program in parallel. If it is

possible to utilize both the federal H.A.F.A. program funds underneath

the Short- Sale Acceleration Program funds, then the number of

possible candidates assisted through the painful short-sale

process would increase beyond the projected 1,371.

14. Program

Interactions with

HAMP

The candidates for the Short-Sale Acceleration program will have

been

through a HAMP or similar private bank or GSE loan modification

process and ‘failed’ by a sufficiently material level to not even qualify

for NAHAC’s 1st mortgage Principal Reduction Program. Thus, the

data/processes will show factually that the only realistic result for the

borrower is the short-sale.

15. Program Leverage

with Other Financial

Resources

In the event the short sale program recipient has incurred a lien as

a

result of earlier participation in NAHAC’s Principal Reduction, Second

Mortgage Reduction Plan or Mortgage Assistance Program, then the

lien may be extinguished for the purpose of helping to facilitate the

short sale request.

16. Qualify as an

Unemployment

Program

 Yes  No
TAMPA/204496.2

SERVICE SCHEDULE B-4

The Nevada Affordable Housing Assistance Corporation

MORTGAGE ASSISTANCE PROGRAM (MAP)

Summary Guidelines

1. Program Overview The Nevada Mortgage Assistance Program (MAP) is designed to help

keep first mortgages current for approximately 5,220 families who

have an unemployed or underemployed wage earner. The program

will assist those qualified families by making up to the lesser of:

(a) $1,000 (one thousand dollars ) of the principal, interest, property

taxes and property insurance (when impounded) excluding Home

Owner Association fees or (b) total payment due for those four

components, to the family’s monthly first mortgage payment only.

Further, the borrower will be responsible for contributing a minimum

of seventy-five dollars ($75) per month toward completing the full

payment due. MAP payments may be extended for qualified families

for up to 9 months with the right to extend up to 12 months if still

unemployed or underemployed. The MAP payments are aimed at

providing a financial bridge to unemployed or underemployed persons.

For the purpose of this program, unemployed will be defined as an

individual that is not currently working. Underemployed will be

defined as any individual that is in in default or in a situation of

imminent threat of going into default on their mortgage due to a

change in economic status, working less than 50% of full time hours or

a material reduction in measureable income, all subject to satisfaction

of all other borrower eligibility criteria.

Borrowers will submit their partial payment to the Nevada Affordable

Housing Assistance Corporation (NAHAC) where it will be combined

with the HHF funds and a full remittance made to the loan servicer for

the loan. Borrowers can apply either through participating

lenders/servicers who have received special training or directly

through the NAHAC offices after first completing an appropriate

screening tool and being given an appointment with the NAHAC loan

underwriter. MAP payments will invoke a non-recourse lien which

will have an earned forgiveness embedded in the Note. Borrowers

who are able to sustain their homeownership for 30 successive months

following the end of the MAP payments will have their lien

extinguished.

A final component of the MAP program will be a reinstatement

component which will provide up to $12,500 per qualified borrower

who was a MAP benefit recipient and has subsequently become reemployed. Under this final phase of the MAP, borrowers who can
TAMPA/204496.2

demonstrate that they can sustain their mortgage under their new

income on an ongoing basis per the criteria outlined in the Principal

Reduction Program, but have an arrearage or accrued penalties will be

eligible to a reinstatement benefit.

NAHAC intends to retain/set aside 1% of the total direct support funds

for contingency situations, wherein certain recipients may be in need

of one-two months (maximum) of added support payment (e.g. while a

training programs are completed). These exceptional cases must be

approved by the NAHAC Board of Directors. If the contingency is not

needed as program capacity is reached, the contingency funds will be

put into the normal available funds for the MAP program. Further, the

contingency will be reduced pro rata to total MAP program capacity

over time so that as the program reaches 60% of capacity without use

of any contingency funds, then 60% of the contingency will be

released back into the main MAP fund.

2. Program Goals The MAP program’s goal is to increase the probability that a borrower

and/or recipient’s family has a stronger chance of sustaining

homeownership with the assistance from the HHF program. The

enhanced home ownership through re-employment and job

maintenance should decrease both the numbers and probability of

foreclosures.

The reinstatement benefit for MAP recipients that can demonstrate the

sustainability of their mortgage is intended to prevent future

foreclosures by helping borrowers regain current status. Sustainability

for purposes of reinstatement means lending ratios equal or better than

those of the Principal Reduction Program.

3. Target Population /

Areas

The State of Nevada is currently enduring the USA’s highest

unemployment rate in its workforce. However, the highest levels of

unemployed persons in Nevada are primarily centered in the two urban

areas (Clark County/Las Vegas area and Reno/Sparks MSA) versus the

rural agricultural and mining areas. With the assistance of the Nevada

Department of Employment, Training and Rehabilitation’s (“DETR”)

published data, MAP funds will be allocated on a pro-rata basis to

jurisdictions based on a ratio of actual number of unemployed to total

State-wide unemployed as a general allocation matter. However, a

semiannual assessment will be undertaken to ensure allocations of

remaining funds are representative of changes to the unemployed and

underemployed populations in all jurisdictions.
TAMPA/204496.2

4. Program Allocation

(Excluding

Administrative

Expenses)

$45,906,871.00

5. Borrower Eligibility

Criteria

To ensure both consistencies with previously approved Participation

Agreement programs and to lessen the burdens of administering the

MAP program, adherence to the same underwriting qualification

standards will be generally utilized. Thus, Applicant Eligibility

Criteria will consist of:

 Legal US Resident.

 Home is currently owner occupied.

 Current income does not exceed 150% of Area Median Income as

then published by HUD.

 Applicant must be in default or facing imminent default.

 Applicant must be experiencing financial hardship due specifically

to unemployed or underemployed status.

 Applicant will be required to provide a financial hardship affidavit

attesting to their inability to make mortgage payments.

 Reinstatement candidates must demonstrate sustainability of

current payments with existing mortgage as per the Principal

Reduction Program criteria, but still have little or no ability to

extinguish past missed payments, penalties or fees.

Basic eligibility criteria will be analyzed either on-line by the

applicant’s visit to the web site and using the ‘screening tool,’ directly

at the NAHAC offices or by the designated call center. If applicants

meet screening criteria, application packages will be assembled by the

NAHAC underwriters who will do the full verifications/confirmation,

enter the applicant’s data into the NAHAC database and accounts

payable systems and begin the relationship with the borrower’s

participating banks/lenders/servicers to ensure aid is acceptable to

them.

6. Property / Loan

Eligibility Criteria

 Owner occupied.

 Mortgage balance cannot exceed $729,750.

7. Program Exclusions  Borrower owns other real property.

8. Structure of

Assistance

This program is administered through direct payment to the Servicer.

All MAP program assistance will be structured as a 0% interest,

forgivable lien recorded against the property, which will be forgiven

over a period of time not to exceed 5 years. The loans will only be

repayable if the borrower sells the property before the 5 year time

period expires and there is sufficient equity to pay the loan. All MAP
TAMPA/204496.2

provided funds returned to program may be recycled until U.S.

Treasury imposed deadline of December 31, 2017. Thereafter they

will be returned to Treasury. The MAP assistance will be structured as

an ‘earned forgiveness’ loan that is forgiven 33% each year.

MAP recipients who qualify for reinstatement will have their up to

$12,500 payments made on a ‘one-time basis’ directly to the mortgage

servicer.

9. Per Household

Assistance

The planned MAP program level of assistance should average

approximately $1,000/month per recipient for up to 9 months or an

expected average total mortgage payment assistance of $9,000.

Reinstatement candidates will be limited to a ‘one-time’ amount that is

the lesser of up to $12,500 or 100% of the delinquent payments fees or

penalties accrued leading up to their MAP program original eligibility.

10. Duration of

Assistance

The MAP assistance will last up to 9 months with a possible extension

of up to 12 months if still receiving Unemployment Insurance benefits.

11. Estimated Number of

Participating

Households

Based upon average assistance of $9,000 for 80% of the recipients and

up to 12 months for 20% of the recipients, then the expected number of

potential recipients should be approximately 5,200 net of the number

already served under this program through February 2012 and those

funds exhausted as a result of reinstatement. This number may also be

decreased slightly if the contingency funds described in Section 1 are

utilized for such purpose.

12. Program Inception /

Duration

This program began on March 1, 2010 and could last up to 48 months.

13. Program Interactions

with Other HFA

Programs

The MAP program could have some forms of interaction with the

other HHF programs. Specifically, if a MAP program recipient does

achieve re-employment status and would possibly be a candidate for a

HHF principal reduction program, then NAHAC will advise the

borrower of such. However, if the recipient drops out of the MAP

program due to failing to remit their portion of the monthly mortgage

payment, and it appears evident that the borrower may lose their home

due to lack of means to sustain the mortgage, then the borrower will be

advised about the HHF short-sale program.

14. Program Interactions

with HAMP

The MAP program could have some form of interaction with HAMP.

HHF Funds (MAP) would be utilized prior to HAMP UP.

Implementing the program in this order is the most beneficial to the

borrower and investor since payments would continue to be made

instead of capitalized, and no late charges or adverse credit reporting
TAMPA/204496.2

would occur. If a MAP program recipient does achieve reemployment status and the borrower would possibly be a candidate for

either a HAMP modification and/or a HAMP principal reduction

program, then NAHAC will advise the borrower of such.

15. Program Leverage

with Other Financial

Resources

NAHAC will work with loan servicers for each qualified recipient to

ensure that the funds from the MAP program payments are utilized

strictly for the borrower’s ‘current first mortgage loan payments,

excluding homeowner association dues and fees and not to ‘make up’

any past due penalties or payments. NAHAC accounting staff will

communicate with the servicer to ensure that the MAP payments are

credited only toward current amounts of principal, interest, property

taxes and property insurance due by the borrower on their first

mortgage. If this means that the borrower and servicer have to execute

some form of forbearance or forgiveness on past due amounts,

NAHAC will be prepared to assist the borrower with the servicer on

this. It is hoped that the servicers will cooperate on these matters. But

until NAHAC actually begins distributing Servicer Participation

Agreements for the MAP program, actual servicer participation cannot

be accurately determined.

16. Qualify as an

Unemployment

Program

 Yes  No
TAMPA/204496.2

SERVICE SCHEDULE B-5

The Nevada Affordable Housing Assistance Corporation

MORTGAGE ASSISTANCE PROGRAM

ALTERNATIVE (MAPA)

Summary Guidelines

1. Program Overview The Nevada Mortgage Assistance Program Alternative (MAPA)

is designed to help keep first mortgages current for approximately

416 individuals who are not currently working and collecting a

fixed income such as that associated with one of the following:

• Retirement

• Disability

• Social Security

The program will assist those qualified families by paying the

lesser of:

(a) $1,000 (one thousand dollars) of the principal, interest,

property taxes and property insurance (when impounded)

toward the monthly first mortgage payment

(b) Total first mortgage payment due for the four

aforementioned components

Further, the borrower will be responsible for contributing a

minimum of seventy-five dollars ($75) per month toward

completing the full payment due. MAPA payments may be

extended for qualified families for up to 9 months.

MAPA payments are aimed at providing a financial bridge to

income restricted, unemployed homeowners that are in pursuit of

a homeownership sustainment program.

For the purpose of this program, the target population will include

individuals which cannot return to the workforce through no fault

of their own and are in default or in a situation of imminent threat

of going into default due to limited income – subject to

satisfaction of all other borrower eligibility criteria.

Borrowers will submit their partial payment to the Nevada

Affordable Housing Assistance Corporation (NAHAC) where it

will be combined with the HHF funds and a full remittance made

to the loan servicer. Borrowers can apply directly through the

NAHAC offices after first completing an appropriate screening

tool and being given an appointment with the NAHAC loan
TAMPA/204496.2

underwriter. MAPA payments will invoke a non-recourse lien

which will have an earned forgiveness embedded in the Note.

Borrowers who are able to sustain their homeownership for 36

successive months following closing will have their lien

extinguished.

A final component of MAPA will be a reinstatement component

which will provide up to $12,500 per qualified borrower who

participated in MAPA and has subsequently enrolled in a

homeownership sustainment program or can demonstrate that

their economic situation has improved in such a way that the

mortgage payment is now sustainable (i.e. reemployment). Under

this final phase of MAPA, those borrowers who can demonstrate

that they can sustain homeownership through their verifiable

enrollment in a homeownership sustainment program, are entitled

to a reinstatement benefit which will cover un-extinguished

arrearage/penalties and missed payments.

2. Program Goals The MAPA program’s goal is to increase the probability that a

recipient sustaining homeownership with assistance from the

HHF program. Enhanced homeownership through MAPA,

subsequent homeownership sustainment programs and

reinstatement should decrease both the numbers and probability

of foreclosures.

The reinstatement benefit for qualified MAPA recipients is

intended to prevent future foreclosures by helping borrowers

regain current status. Sustainability for purposes of reinstatement

means lending ratios equal or better than those of the Principal

Reduction Program.

3. Target Population /

Areas

Funding will be distributed on a first come, first served basis with

target populations spanning (a) the Clark County/Las Vegas

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural

Nevada.

4. Program Allocation

(Excluding

Administrative

Expenses)

$5,000,000.00

5. Borrower Eligibility

Criteria

To ensure both consistencies with previously approved

Participation Agreement programs and to lessen the burdens of

administering the MAPA program, adherence to the same

underwriting qualification standards will be generally utilized.

Thus, applicant eligibility criteria will consist of:

• Legal US Resident

• Owner occupied

• Current income does not exceed 150% of Area Median
TAMPA/204496.2

Income as then published by HUD

• Applicant must be in default or facing imminent default

• Applicant must be experiencing financial hardship

• Applicant will be required to provide a financial hardship

affidavit attesting to their inability to make mortgage

payments

• Reinstatement candidates must demonstrate sustainability

of current payments with existing mortgage as per Principal

Reduction Program criteria, but still have little or no ability

to extinguish past missed payments, penalties or fees.

Basic eligibility criteria will be analyzed either on-line by the

applicant’s visit to the web site and using the ‘screening tool,

directly at the NAHAC offices or by the designated call center. If

applicants meet screening criteria, application packages will be

assembled by the NAHAC underwriters who will do the full

verifications/confirmation, enter the applicant’s data into the

NAHAC database and accounts payable systems and begin the

relationship with the borrower’s participating

banks/lenders/servicers to ensure aid is acceptable to them.

6. Property / Loan

Eligibility Criteria

• Mortgage balance cannot exceed $729,750.

7. Program Exclusions • Borrowers that have received 9 months of assistance

through MAP will be ineligible for assistance through

MAPA. In the event a borrower has received less than 9

months of assistance through MAP or MAPA, the borrower

can reapply to receive assistance through either program on

a pro-rata basis where any borrower will receive a

maximum of 9 months of combined assistance

• Borrowers that own other real property will be ineligible

8. Structure of

Assistance

This program is administered through direct payment to the

Servicer. Payments will be structured as a non-interest bearing,

forgivable lien recorded against the property. The lien will be

automatically forgiven over the 36 month timeframe following

closing. Forgiveness will occur in equal installments of 33.33%

annually.

The lien will only be repayable if the borrower sells the property

inside of the 36 month timeframe and IF there is sufficient equity

to pay the remaining unforgiven balance.

All MAPA provided funds returned to program may be recycled

until U.S. Treasury imposed deadline of December 31, 2017.

Thereafter they will be returned to Treasury.

MAPA recipients who qualify for reinstatement will have up to

$12,500 in reinstatement funds made on a ‘one-time basis’
TAMPA/204496.2

directly to the mortgage servicer.

9. Per Household

Assistance

Planned MAPA assistance (not including reinstatement) should

average approximately $1,000/month per recipient for up to 9

months or an expected average total mortgage payment assistance

of $9,000.

Reinstatement is limited to a ‘one-time’ amount that is the lesser

of up to $12,500 or 100% of the delinquent payments fees or

accrued penalties.

10. Duration of

Assistance

MAPA will last up to 9 months.

11. Estimated Number of

Participating

Households

Based upon average assistance of $9,000 per household, it is

anticipated that 75% of the program funds be exhausted by

monthly mortgage payment expenditures – for a total of

approximately 416 households.

The average reinstatement payout is expected to be $12,500 per

eligible borrower with a portion of MAPA eligible borrowers also

qualifying and receiving reinstatement benefits. The remaining

25% of program funds are anticipated to be used in this category

– for a total of 100 households.

Thus, a total of 100 households are expected to benefit from both

MAPA and reinstatement.

12. Program Inception /

Duration

This program began in February 2012 and could last through

December 31, 2017.

13. Program

Interactions with

Other HFA

Programs

MAPA recipients could have some interaction with other HHF

programs. MAPA recipients that have a second mortgage could

possibly become candidates for the HHF second lien relief

program.

If a MAPA recipient is unable to remit their portion of the

monthly mortgage payment due to lack of means to sustain the

mortgage, then they could pursue the HHF short-sale program.

14. Program

Interactions with

HAMP

MAPA recipients that achieve re-employment status or have an

improvement in their economic situation could also benefit from

HAMP.

MAPA funds would be used prior to HAMP since it is most

beneficial to both the homeowner and mortgage servicer as

payments would be made instead of capitalized and no additional

late charges accrued.

15. Program Leverage

with Other Financial

Resources

NAHAC will work with loan servicers for each qualified

recipient to ensure that funds from MAPA payments are utilized

strictly for the borrower’s first mortgage loan payments to include
TAMPA/204496.2

principal, interest, taxes and insurance (excluding homeowner

association dues). Funds will not be applied toward past due

penalties except in those instances where the borrower qualifies

for reinstatement.

16. Qualify as an

Unemployment

Program

 Yes  No