Doc#: US1:10098130v1 

FOURTEENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Fourteenth Amendment to Commitment to Purchase Financial Instrument and HFA 

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

Schedule A attached hereto as the Fourteenth 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”), as further amended by 

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

Participation Agreement (the “Seventh Amendment”), as further amended by that certain Eighth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the “Eighth Amendment”), as further amended by that certain Ninth Amendment to 

Commitment to Purchase Financial Instrument and HFA Participation Agreement (the “Ninth 

Amendment”) as further amended by that certain Tenth Amendment to Commitment to Purchase 

Financial Instrument and HFA Participation Agreement (the “Tenth Amendment”), as further 

amended by that certain Eleventh Amendment to Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Eleventh Amendment”); as further amended by that 

certain Twelfth Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Twelfth Amendment”); and as further amended by that certain 

Thirteenth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Thirteenth Amendment”; and together with the Original HPA as amended 

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

Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment, 
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Ninth Amendment, Tenth Amendment, Eleventh Amendment and Twelfth 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 Fourteenth Amendment to 

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

applicable; 

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 Fourteenth Amendment; and all references 

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

Fourteenth Amendment. All references herein to the “HPA” shall mean the Current 

HPA, as further amended by this Fourteenth 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 Fourteenth 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 Fourteenth 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 Fourteenth 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. 
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(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 Fourteenth Amendment and any other closing 

documentation delivered to Treasury in connection with this Fourteenth 

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 Fourteenth Amendment and any other closing documentation 

delivered to Treasury in connection with this Fourteenth Amendment, and to 

perform its obligations hereunder and thereunder. 

3. Miscellaneous 

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

purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

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

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

hereby execute and deliver this Fourteenth 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/ CJ Manthe By: 

Name: CJ Manthe Name: Mark McArdle 

Title: Administrator Title: Chief Homeownership 

Preservation Officer 

 

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Michael Hanley 

Name: Michael Hanley 

Title: CEO/Executive Director 

 
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: Nevada Affordable Housing Assistance 

Corporation 

Corporate or other organizational form: Non-profit corporation 

Jurisdiction of organization: Nevada 

Notice Information: 

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: 

Program Participation Cap: $194,026,240.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $102,800,000.00

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 

 

1

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

as amended by the Thirteenth Amendment, shall remain a part of the Current HPA. 
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 

Ninth Amendment Date: June 28, 2012

Tenth Amendment Date: September 28, 2012 

Eleventh Amendment Date: August 28, 2013 

Twelfth Amendment Date: June 12, 2014 

Thirteenth Amendment Date February 19, 2015 

Fourteenth Amendment Date June 25, 2015 

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. 
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. 
B-1-1 

SERVICE SCHEDULE B-1

The Nevada Affordable Housing Assistance Corporation 

PRINCIPAL REDUCTION PROGRAM

Summary Guidelines

1. Program Overview The Principal Reduction Program (“PRP”) will provide assistance to 

reduce the principal balance of primary (first priority) mortgages for 

borrowers with an eligible financial hardship and negative equity 

by: (a) principal reduction and a permanent modification or 

reamortization (recast) to achieve a lower monthly payment 

(“Modification or Reamortization”); (b) reduction or elimination of 

an amount up to the existing non-interest-bearing forbearance that 

was the outcome of a prior loan modification (“Forbearance 

Elimination”); or (c) principal reduction of a “non-delinquent” 

borrowers primary mortgage in a significant negative equity 

position to an amount as close to 100% loan-to-value (“LTV”) ratio 

as the amount of per-household assistance will permit to reduce the 

risk of potential default by such borrowers (“Negative Equity 

Reduction”). 

The assistance will be provided as a one-time payment to 

lenders/servicers up to a maximum of $50,000 per household. 

A borrower’s primary mortgage lender may agree to make a 

matching reduction to the principal balance of the primary 

mortgage. 

2. Program Goals The goal of the PRP is to help homeowners avoid foreclosure by 

reducing the principal balance of their primary mortgage to either 

(a) facilitate a permanent loan modification or reamortization that 

achieves an affordable monthly mortgage payment of their primary 

mortgage or (b) reduce a borrower’s negative equity position on 

their primary mortgage to an amount as close to 100% LTV ratio as 

the amount of per-household assistance will permit. 

3. Target Population / 

Areas

All qualified Nevada residents with negative equity who could 

achieve an affordable primary mortgage payment and appropriate 

level of debt with a principal reduction. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$97,146,322 

5. Borrower Eligibility General Eligibility: 
B-1-2 

Criteria • Legal U.S. resident or lawful permanent U.S. resident and 

Nevada resident. 

• Borrower must have an eligible financial hardship as determined 

by program criteria and underwriting guidelines. 

• Household income does not exceed 150% of Area Median 

Income in the county in which the borrower resides. 

• Borrower’s post-assistance housing expenses must meet the 

definition of an “Affordable Payment.” For the purposes of 

PRP, “Affordable Payment” means the borrower’s postassistance, total monthly primary mortgage payment PITI 

(principal, interest, taxes and insurance, as applicable) including 

any escrowed homeowner’s association dues or assessments, 

plus any taxes, insurance and homeowners association dues and 

assessments which are not escrowed must be no greater than 

33% of the gross household income excluding temporary 

income (e.g., unemployment or short-term disability benefits). 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

NAHAC, including a financial hardship affidavit. 

Additional Eligibility Criteria Applicable to Each Structure of 

Principal Reduction: 

(a) Modification or Reamortization Structure(i.e. principal 

reduction of a borrower’s primary mortgage accomplished 

exclusively through either an interest rate reduction and/or 

term extension to achieve a permanent modification, or a 

reamortization of the remaining unpaid principal balance to 

achieve a lower monthly payment): 

• Eligible financial hardship: reduced income due to 

underemployment, medical condition, divorce or death, 

as set forth in the program guidelines. 

• Borrower’s pre-assistance, total monthly primary 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments, 

is greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Primary mortgage must be delinquent or the borrower 

does not have liquid assets greater than three (3) months 

of PITI and homeowner’s dues and assessments (if 

applicable). 

• Pre-assistance principal balance of primary mortgage 

must exceed 110% LTV based upon valuation obtained 
B-1-3 

by NAHAC or the servicer. 

(b) Forbearance Elimination (i.e. reduction or elimination of 

an amount up to the existing non-interest-bearing 

forbearance that was the outcome of a prior loan 

modification as the amount of per-household assistance will 

permit): 

• Eligible financial hardship: borrower has a non-interest 

bearing forbearance that is the outcome of a prior 

primary mortgage modification, such as any 

forbearance structured through the Home Affordable 

Modification Program (“HAMP”) or other substantially 

similar loan modification. 

• Borrower must be current with the primary mortgage 

modification. 

• Pre-assistance principal balance of primary mortgage, 

including the forbearance amount, greater than 110% 

LTV based upon valuation obtained by NAHAC or the 

servicer. 

• Pre-assistance primary mortgage payment meets 

NAHAC’s definition of an Affordable Payment. 

(c) Negative Equity Reduction (i.e. principal reduction of a 

“non-delinquent” borrower’s primary mortgage that is in a 

severe negative equity position to an amount as close to 

100% LTV ratio as the amount of per-household assistance 

will permit to reduce the risk of potential default by such 

borrower): 

• Eligible financial hardship: (1) a negative equity 

position in which the primary mortgage LTV is 120% or 

more or (2) a negative equity position in which 10% or 

more of unpaid principal balance (“UPB”) of the 

primary mortgage constitutes negative equity so long as 

such negative equity amount is at least $20,000. 

• Borrower must be current on the primary mortgage at 

the time of PRP application. 

• Pre-assistance primary mortgage payment meets 

NAHAC’s definition of an Affordable Payment. 

6. Property / Loan 

Eligibility Criteria 

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. Mobile 

homes are eligible if they are permanently affixed to the real 

property that is secured by the primary mortgage. 

• For a Modification or Reamortization, the servicer must utilize 

the PRP monies to bring the primary mortgage current before 

applying PRP monies to the homeowner’s principal balance. 

• Properties with second mortgages are only eligible if the 
B-1-4 

borrower qualifies for and receives assistance under the Second 

Mortgage Reduction Plan. 

• Mortgage balance cannot exceed the current GSE loan limit. 

7. Program Exclusions • Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the total amount of assistance provided. 

• Borrowers with an active bankruptcy. 

• Borrowers in an active Home Affordable Modification Program 

(HAMP) trial period plan. 

• Borrowers with a bankruptcy discharge who did not reaffirm 

their current mortgages in the bankruptcy. 

• Borrowers who fail to satisfy underwriting guidelines of the 

lender/servicer or NAHAC. 

• Borrowers with a post-assistance LTV ratio greater than 140% 

or less than 100% based upon valuation obtained by NAHAC or 

the servicer. 

• Borrowers with a post-assistance total monthly first-lien 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments less 

than 25% of the homeowner’s gross monthly household income, 

excluding temporary income (e.g., unemployment and shortterm disability benefits), or greater than NAHAC’s definition of 

an Affordable Payment. 

• Property is subject to a first priority lien securing a Home Equity 

Line of Credit. 

• Property is subject to a current foreclosure proceeding (judicial 

or non-judicial) under any lien encumbering the property, 

including the lien of a Homeowners Association. 

• Property is abandoned, vacant or condemned. 

• Property has more than two mortgages. 

• Property is listed for sale. 

8. Structure of 

Assistance

The assistance will be administered as a one-time direct payment to 

the servicer. The assistance will be structured as a 0% interest 

forgivable loan with no monthly payment evidenced by a 

promissory note with a sixty (60) month term. The loan will be 

secured by a junior lien on the property. If the borrower complies 

with the terms of the loan, the loan will be considered satisfied at 

the end of the sixty (60) month period following funding and the 

lien released. 

Borrowers will not always receive the maximum assistance amount 

of $50,000. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 
B-1-5 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all net equity proceeds after payment of borrower’s closing 

costs (with the commission to real estate brokers, if applicable, by 

the borrower limited to 5 percent) and the payment to the primary 

mortgage lienholder will be due and payable to NAHAC to satisfy 

payment of all or a portion of the loan funds. 

All funds returned to NAHAC may be used to assist additional 

homeowners until December 31, 2017; thereafter they must be 

returned to Treasury. 

9. Per Household 

Assistance

The maximum amount of mortgage principal reduction receivable 

by a qualified borrower is $50,000. 

10. Duration of 

Assistance

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

servicer. 

11. Estimated Number of 

Participating 

Households

Approximately 2,550 households could be assisted under this 

program assuming an average assistance amount of $38,000. 

12. Program Inception / 

Duration

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2017, whichever occurs first. 

13. Program 

Interactions with 

Other HFA 

Programs

It is possible that a homeowner may also receive assistance through 

the Second Mortgage Reduction Plan and/or other HHF Programs. 

Borrowers may receive assistance from more than one HHF 

Program as long as the total combined assistance does not exceed 

$100,000. 

14. Program 

Interactions with 

HAMP

PRP may work in conjunction with aspects of the Making Home 

Affordable Program to help eligible borrowers achieve desired 

housing debt-to-income ratios, permanent affordability and establish 

an appropriate level of mortgage debt. Additionally, a Forbearance 

Elimination PRA may be used to reduce or eliminate an existing 

non-interest bearing forbearance balance from a prior HAMP 

Modification. 

15. Program Leverage 

with Other Financial 

Resources

While NAHAC does not require a contribution from the servicer, it 

will be encouraged and in addition, servicers will be requested to 

waive fees. 
B-2-1 

SERVICE SCHEDULE B-2

The Nevada Affordable Housing Assistance Corporation

SECOND MORTGAGE REDUCTION PLAN

Summary Guidelines

1. Program Overview The Second Mortgage Reduction Plan (SMRP) will provide 

assistance to borrowers with an eligible financial hardship who have 

a second mortgage lien and who: (i) could achieve affordable 

monthly mortgage payments and an appropriate level of debt if their 

second mortgage (second lien) were eliminated; or (ii) could achieve 

affordable monthly mortgage payments and an appropriate level of 

debt with a principal reduction and reamortization (recast) or 

modification of their second mortgage. 

The assistance will be provided as a one-time payment to 

lenders/servicers up to a maximum of $50,000 per household. 

2. Program Goals The goals of the SMRP are to help homeowners avoid foreclosure 

by reducing or eliminating the principal balance of their second 

mortgage or to facilitate a permanent loan modification or recast 

that achieves an affordable monthly mortgage payment and reduces 

the likelihood that a borrower will default. 

3. Target Population / 

Areas

All qualified Nevada residents who could achieve affordable 

mortgage payments and an appropriate level of debt if their second 

mortgage were eliminated or reduced. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$35,942,324 

5. Borrower Eligibility 

Criteria

• Legal U.S. resident or lawful permanent U.S. resident and 

Nevada resident. 

• Borrower must have an eligible financial hardship as determined 

by program criteria and underwriting guidelines. Eligible 

financial hardships include (a) borrowers with a reduced income 

due to underemployment, medical condition, divorce or death, as 

set forth in the program guidelines, with a negative equity 

position in which the borrower’s combined total loan to value 

ratio (“CTLV”) is 110% or more; or (b) (1) a negative equity 

position in which the borrower’s CLTV is 120% or more or (2) a 

negative equity position in which 10% or more of the combined 
B-2-2 

unpaid principal balances (“UPB”) constitutes negative equity so 

long as such negative equity amount is at least $20,000. 

• Borrowers qualifying with a hardship as described in (a), in the 

previous bullet, must also have pre-assistance, total monthly 

mortgage payments for their primary and second mortgages PITI 

(principal, interest, taxes and insurance, as applicable) including 

any escrowed or non-escrowed homeowner’s association dues or 

assessments, is greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or short-term 

disability benefits). 

• Household income does not exceed 150% of Area Median 

Income in the county in which the borrower resides. 

• Borrower’s post-assistance housing expenses must meet the 

definition of an “Affordable Payment.” For the purposes of 

SMRP, “Affordable Payment” means the borrower’s postassistance, total monthly mortgage payments for the primary and 

second mortgages PITI including any escrowed homeowner’s 

association dues or assessments, plus any taxes, insurance and 

homeowner’s association dues or assessments which are not 

escrowed must be no greater than 33% of the gross household 

income excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

NAHAC, including a financial hardship affidavit. 

• Second mortgage must be delinquent or the borrower must have 

(1) a negative equity position in which the CLTV is 120% or 

more or (2) a negative equity position in which 10% or more of 

the UPBs constitute negative equity so long as such negative 

equity amount is at least $20,000. 

6. Property / Loan 

Eligibility Criteria

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. 

Mobile homes are eligible if they are permanently affixed to the 

real property that is secured by the first and second mortgages. 

• The servicer must utilize the SMRP monies to bring the second 

mortgage current before applying SMRP monies to the 

homeowner’s principal balance. 

• If the amount of SMRP monies is not sufficient to extinguish the 

second mortgage, the servicer/lender must agree to reamortize or 
B-2-3 

modify the second mortgage. 

• Combined mortgage balances cannot exceed the current GSE 

loan limit. 

• Post-assistance combined principal balance of the primary and 

second mortgages must not be less than 100% CLTV based 

upon valuation obtained by NAHAC or the servicer. 

7. Program Exclusions • Borrowers with an active bankruptcy. 

• Borrowers in an active Home Affordable Modification Program 

(HAMP) or a Second Lien Modification Program (“2MP”) trial 

period plan. 

• Borrowers with a bankruptcy discharge who did not reaffirm 

their current mortgages in the bankruptcy. 

• Property is listed for sale. 

• Property is currently subject to a current foreclosure proceeding 

(judicial or non-judicial) under any lien encumbering the 

property, including the lien of a Homeowners Association. 

• Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the total amount of assistance provided. 

• Property is abandoned, vacant or condemned. 

• Property has more than two mortgages. 

• Property is subject to a first priority lien securing a Home Equity 

Line of Credit. 

8. Structure of 

Assistance

The assistance will be administered as a one-time direct payment to 

the servicer. The assistance will be structured as a 0% interest 

forgivable loan with no monthly payment evidenced by a 

promissory note with a sixty (60) month term. The loan will be 

secured by a junior lien on the property. If the borrower complies 

with the terms of the loan, the loan will be considered satisfied at 

the end of the sixty (60) month period following funding and the 

lien released. 

Borrowers will not always receive the maximum assistance amount 

of $50,000. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all net equity proceeds after payment of borrower’s closing 

costs (with the commission to real estate brokers, if applicable, by 

the borrower limited to 5 percent) and the payment to the holders of 

the senior deeds of trust, will be due and payable to NAHAC to 

satisfy payment of all or a portion of the loan funds. 
B-2-4 

All funds returned to NAHAC may be used to assist additional 

homeowners until December 31, 2017; thereafter they must be 

returned to Treasury. 

9. Per Household 

Assistance

The maximum amount of second mortgage principal reduction 

receivable by a qualified borrower is $50,000. 

10. Duration of 

Assistance

Program funds will be disbursed as a onetime payment to the 

servicer. 

11. Estimated Number of 

Participating 

Households

Approximately 1,300 households could be assisted under this 

program assuming an average assistance amount of $27,500. 

12. Program Inception / 

Duration

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2017, whichever occurs first. 

13. Program 

Interactions with 

Other HFA 

Programs

This program could interact with the Principal Reduction Program 

and other HHF Programs pre- and post-assistance. Borrowers may 

receive assistance from more than one HHF Program as long as the 

total combined assistance does not exceed $100,000. 

14. Program 

Interactions with 

HAMP

Borrowers not eligible for 2MP may be considered for the SMRP. 

15. Program Leverage 

with Other Financial 

Resources

While NAHAC does not require a contribution from the servicer, it 

will be encouraged and in addition, servicers will be requested to 

waive fees. 
B-3-1 

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, deed in lieu of foreclosure or a similar foreclosure 

mitigation measure 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 a $5,000 level of average funding per family 

approximately 100 families facing imminent foreclosure threat will 

have the burden of their home mortgage eliminated. 

3. Target Population / 

Areas 

Those Nevadans that are facing imminent threat of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$289,179 

5. Borrower Eligibility 

Criteria

• Legal U.S. resident or lawful permanent U.S. resident. 

• Borrower must have short-sale approval in place with lender if 

pursuing a short-sale. 

• Borrower must provide verification of short-sale approval or 

deed in lieu of foreclosure agreement. 

• Borrower will be required to sign a financial hardship affidavit 

attesting to their inability to make mortgage payments. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 

circumstances beyond the homeowner’s control (no contrived 

defaults allowed). 

• 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. 

6. Property / Loan 

Eligibility Criteria

• Home is currently owner-occupied and serves as the borrower’s 

primary residence. 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. 
B-3-2 

• Borrowers with a second lien will also be considered for the 

Second Mortgage Reduction Plan program. 

7. Program Exclusions • None. 

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 program benefit per household is $8,025. Assistance 

can be used to cover the cost of up to three (3) months of rent (not to 

exceed $4,500), fees incurred by a storage facility (not to exceed 

$1,000) and/or certain fees which are interfering with the short-sale 

closing – specifically HOA liens and utility liens. 

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 100 

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 on March 1, 2010 and 

terminated on December 31, 2012. 

13. Program 

Interactions with 

Other HFA 

Programs 

This program cannot be used when HAFA is also being utilized. 

14. Program 

Interactions with 

HAMP 

None 

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. 
B-4-1 

SERVICE SCHEDULE B-4 

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM (MAP) 

Summary Guidelines 

1. Program Overview The Mortgage Assistance Program (MAP) will provide 

reinstatement assistance to borrowers in default who either: 

(a) Were unemployed and are now employed or underemployed. 

(The current employment may or may not be at the same 

income level as the borrower’s prior employment). 

or 

(b) Are underemployed and their underemployment was caused 

by a substantial reduction of hours or salary reduction. 

The assistance will be provided to eligible borrowers to bring their 

primary (first-lien) mortgage current by curing all past due 

principal, interest, taxes, homeowner’s association dues and 

assessments and insurance, as applicable (together “Property 

Related Expenses”) as set forth in the program guidelines. 

The assistance will be provided as a one-time payment to 

lender/servicer up to a maximum of $35,000 per household. 

2. Program Goals The goal of MAP is to help re-employed and underemployed 

homeowners avoid foreclosure and keep their homes by reinstating 

their primary mortgages and by curing their delinquent Property 

Related Expenses. 

3. Target Population / 

Areas 

All qualified Nevada residents with an employment-related financial 

hardship who can demonstrate that they now have the ability to 

afford their monthly mortgage payments. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$34,056,581 

5. Borrower Eligibility 

Criteria 

General Requirements: 

• Legal U.S. resident or lawful permanent U.S. resident and 

Nevada resident. 

• Household income does not exceed 150% of Area Median 

Income in the county in which the borrower resides. 

• Borrower agrees to provide all necessary documentation to 
B-4-2 

satisfy program guidelines within the timeframes established 

by NAHAC, including a financial hardship affidavit. 

• Eligible Financial Hardships: (i) past unemployment with 

current employment; (ii) past unemployment with current 

underemployment; or (iii) current underemployment due to a 

substantial hour or salary reduction. The unemployment or 

underemployment must have been caused by circumstances 

outside the control of the borrower. 

o If the eligible borrower is underemployed, the borrower 

must provide documentation of an income reduction of at 

least 15%, based on a highest income tax year 

comparison of the past five (5) tax years prior to the date 

of application. 

• Borrower must demonstrate satisfactory mortgage payment 

history prior eligible financial hardship. 

• Borrower’s mortgage payment must meet the definition of 

an “Affordable Payment.” For the purposes of MAP, 

“Affordable Payment” means the borrower’s total monthly 

primary mortgage payment PITI (principal, interest, taxes 

and insurance, as applicable) including any escrowed or nonescrowed homeowner’s association dues or assessments, 

must be no greater than 33% of the gross household income 

excluding temporary income (e.g., unemployment or shortterm disability benefits). 

6. Property / Loan 

Eligibility Criteria

• Primary mortgage must be delinquent. 

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. Mobile 

homes are eligible if they are permanently affixed to the real 

property that is secured by the primary mortgage. 

• Mortgage balance does not exceed the current GSE loan limit. 

• Properties with second mortgages are only eligible if the 

borrower qualifies for and receives assistance under the Second 

Mortgage Reduction Plan. 

7. Program Exclusions • Property is subject to a current foreclosure proceeding (judicial 

or non-judicial) under any lien encumbering the property, 

including the lien of a Homeowners Association. 

• Borrowers in an active Home Affordable Modification Program 

(“HAMP”) trial period plan. 

• Borrowers under review for a short sale or a deed in lieu. 

• Property has more than two mortgages. 

• Borrowers with an active bankruptcy. 

• Borrowers with a bankruptcy discharge who did not reaffirm 

their current mortgages in the bankruptcy. 
B-4-3 

• The property is subject to a first priority lien securing a Home 

Equity Line of Credit. 

• Property listed for sale. 

• Property is abandoned, vacant or condemned. 

• Borrowers who are not currently working and collecting a fixed 

income such as that associated with one of the following: 

o Retirement 

o Disability 

o Social Security 

• Borrowers with liquid assets, other than exempt retirement 

assets, in excess of $10,000. 

8. Structure of 

Assistance

The assistance will be administered as a one-time direct payment to 

the servicer. The assistance will be structured as a 0% interest 

forgivable loan with no monthly payment evidenced by a 

promissory note with a sixty (60) month term. The loan will be 

secured by a junior lien on the property. If the borrower complies 

with the terms of the loan, the loan will be considered satisfied at 

the end of the sixty (60) month period following funding and the 

lien released. 

Borrowers will not always receive the maximum assistance amount 

of $35,000. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all proceeds after payment of borrower’s closing costs (with 

the commission to real estate brokers, if applicable, by the borrower 

limited to 5 percent) and the payment to the holders of the senior 

deeds of trust, will be due and payable to NAHAC to satisfy 

payment of all or a portion of the loan funds. 

All funds returned to NAHAC may be used to assist additional 

homeowners until December 31, 2017; thereafter they must be 

returned to Treasury. 

9. Per Household 

Assistance 

The maximum amount of assistance receivable by a qualified 

borrower is $35,000. 

10. Duration of 

Assistance 

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

servicer, Homeowner’s Association or County Treasurer as 

applicable. 

11. Estimated Number Approximately 3,900 households could be assisted under this 
B-4-4 

of Participating 

Households 

program assuming an average assistance amount of $8,700 

12. Program Inception / 

Duration 

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2017, whichever occurs first. 

13. Program 

Interactions with 

Other HFA 

Programs 

The MAP program could have some form of interactions with other 

HHF programs both pre- and post-assistance. 

Borrowers may receive assistance from more than one HHF 

program as long as the total combined assistance does not exceed 

$100,000. 

14. Program 

Interactions with 

HAMP 

MAP funds may be applied prior to HAMP on a case-by-case basis. 

15. Program Leverage 

with Other Financial 

Resources

NAHAC will request that the loan servicer waive fees (e.g., NSF 

and late charges). 

 
B-5-1 

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 415 

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 of the principal, interest, property taxes and property 

insurance (PITI) (when impounded) toward the monthly first 

mortgage payment or 

(b) Total first mortgage payment due for the aforementioned 

components. 

Further, the borrower will be responsible for contributing a 

minimum of $75 per month toward completing the full payment 

due. MAPA payments may be extended for qualified families for 

up to nine (9) months (MAPA Participation Period). 

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 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 
B-5-2 

and being given an appointment with the NAHAC loan 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 thirty-six (36) successive months 

following closing will have their lien extinguished. 

If, during or after the MAPA Participation Period, the borrower can 

demonstrate that he/she can sustain mortgage payments with a debtto-income ratio (DTI) below 43%, the borrower may become 

eligible for additional reinstatement assistance (Reinstatement). In 

order to achieve a DTI below 43%, the borrower may, but is not 

required to enroll in a homeownership sustainment program. 

Reinstatement assists qualified borrowers by providing up to 

$12,500 to eliminate arrearages and bring the loan current. 

Reinstatement is only applicable when the entire amount of 

arrearages can be eliminated. 

2. Program Goals The MAPA goal is to assist fixed-income borrowers in keeping their 

homes during a period of temporary financial hardship and, thereby, 

prevent avoidable defaults and foreclosures. MAPA in conjunction 

with subsequent homeownership sustainment programs and 

Reinstatement aims to decrease both the number and probability of 

future foreclosures in Nevada. 

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) 

$1,613,278 

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, borrower eligibility criteria will consist of: 

• Legal U.S. resident or lawful permanent U.S. resident. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 

circumstances beyond the homeowner’s control (no contrived 

defaults allowed). 

• Borrower will be required to sign a financial hardship affidavit 

attesting to their inability to make mortgage payments. 
B-5-3 

Reinstatement candidates must demonstrate sustainability of 

current payments. By definition that would mean that their 

mortgage payment is less than 43% of their household income. 

The borrower must also demonstrate they still have little or no 

ability to extinguish past missed payments, penalties or fees. 

Reinstatement will only be allocated in those instances where 

the entire past due balance and/or accrued penalties can be 

eliminated such that the borrower is in good standing post 

assistance. 

Basic eligibility criteria will be analyzed either on-line (through the 

borrower’s visit to the website and use of the ‘screening tool’), 

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

borrowers meet screening criteria, application packages will be 

assembled by the NAHAC underwriters who will do the full 

verifications/confirmation, enter the borrower’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 

• Home is currently owner occupied and serves as the borrower’s 

primary residence. 

• Mortgage balance is less than the current GSE loan limit. 

7. Program Exclusions Borrowers that have received nine (9) months of assistance through 

MAP will be ineligible for assistance through MAPA. In the event a 

borrower has received less than nine (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 nine (9) months of combined 

assistance. 

8. Structure of 

Assistance 

Borrower must proactively pursue homeownership sustainment 

program which must be verified with forty-five (45) days of closing 

on MAPA or borrower will be disenrolled from program. 

This program is administered through direct payments to the 

servicer. All MAPA assistance will be structured as a 0% interest, 

forgivable loan secured by a lien recorded against the subject 

property. The lien has a term of three (3) years and is forgiven 

following final funding at a rate of thirty-three percent (33%) per 

year with full forgiveness at the end of year three (3) provided the 

borrower complies with the terms of the loan. The loan will be 

repayable if the borrower defaults under the terms of the loan or if 

the borrower sells the property before the three (3) year time period 

expires and there is equity in the property after payment of the 1st

priority lien holder. All funds returned to NAHAC will be recycled 
B-5-4 

until December 31, 2017; thereafter any remaining funds must 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’ directly 

to the mortgage servicer. 

9. Per Household 

Assistance 

The maximum MAPA assistance should not exceed $1,000/month 

per recipient for up to nine (9) months for a total aggregate 

mortgage payment assistance of $9,000. 

Reinstatement candidates will be eligible to receive a limited, onetime payment of up to $12,500. 

The combined maximum amount of MAPA assistance available to a 

qualified borrower is $21,500. 

10. Duration of 

Assistance 

MAPA will last up to nine (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 176 

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 for Reinstatement 

candidates, a total of approximately forty-two (42) households. 

12. Program Inception / 

Duration 

This program began February 2012 and terminated on October 1, 

2012. 

13. Program 

Interactions with 

Other HFA 

Programs 

The MAPA program could have some form of interactions with the 

other HHF programs both pre- and post-assistance. Borrowers may 

receive assistance from more than one HHF program as long as the 

total combined assistance does not exceed $100,000. 

14. Program 

Interactions with 

HAMP 

MAPA recipients that become employed or have an improvement in 

their economic situation during the period of assistance may also 

benefit from HAMP. 

MAPA funds may be applied 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. 
B-5-5 

15. Program Leverage 

with Other Financial 

Resources 

NAHAC will work directly with a loan servicer in conjunction with 

each MAPA borrower to ensure that MAPA funds are strictly used 

for MAPA-eligible purposes. NAHAC accounting staff will 

communicate with the servicer to ensure that the MAPA payments 

are credited only toward current amounts of PITI due on the 

borrower’s first mortgage. Funds will not be applied toward past 

due penalties except in those instances where the borrower qualifies 

for Reinstatement. 
B-6-1 

SERVICE SCHEDULE B-6

The Nevada Affordable Housing Assistance Corporation

HOME RETENTION PROGRAM

PROGRAM DEFUNDED ON JUNE 25, 2015 

 
B-7-1 

SERVICE SCHEDULE B-7

The Nevada Affordable Housing Assistance Corporation 

NEVADA RECAST REFINANCE AND MODIFICATION PROGRAM (NRRM) 

PROGRAM DEFUNDED ON JUNE 25, 2015 
C-1 

SCHEDULE C 

PERMITTED EXPENSES 

Nevada 

 

 One-time / Start-Up Expenses: 

Initial Personnel $361,409 

Building, Equipment, Technology $114,868 

Professional Services $302,034 

Supplies / Miscellaneous $11,836 

Marketing /Communications $23,333 

Travel $7,404 

Website development /Translation $14,400 

Contingency $0 

 Subtotal $835,284 

 

Operating / Administrative Expenses: 

Salaries $13,067,190 

Professional Services (Legal, Compliance, Audit, Monitoring) $2,114,657 

Travel $251,148 

Buildings, Leases & Equipment $1,330,119 

Information Technology & Communications $2,655,922 

Office Supplies/Postage and Delivery/Subscriptions $345,380 

Risk Management/ Insurance $339,358 

Training $40,150 

Marketing/PR $531,805 

Miscellaneous $20,000 

 Subtotal $20,695,729 

 

 Transaction Related Expenses: 

Recording Fees $453,806 

Wire Transfer Fees $267,275 
C-2 

 Subtotal $721,081 

 

 Counseling Expenses: 

File Intake $2,124,575 

Decision Costs $64,439 

Successful File $48,095 

Key Business Partners On-Going $489,353 

 Subtotal $2,726,462 

 

 Grand Total $24,978,556.00 

% of Total Award 12.87% 

Award Amount $194,026,240.00