Second Amendment to HPA — Nevada 

TAMPA/134432.3

SECOND AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Second Amendment to Commitment to Purchase Financial Instrument and HFA 

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

Schedule A attached hereto as the Second 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”; and 

together with the Original HPA as amended thereby, the “Current HPA”), dated as of the First 

Amendment Date, all 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, on September 24, 2010 Treasury indicated that it would make $3.5 billion of 

additional assistance available under the HHF Program for foreclosure prevention programs for 

homeowners struggling to make their mortgage payments in certain states that had previously 

received HHF Program funding for such purposes; 

WHEREAS, Treasury desires to increase the available HHF Program funds available to Eligible 

Entity and as such, Treasury, HFA and Eligible Entity wish to enter into this Second Amendment 

to document all modifications and additional provisions necessary to address the additional HHF 

Program funds; 

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 Second Amendment; and all references in the 
- 2 - 

TAMPA/134432.3

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

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

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

Treasury in connection with this Second 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 

Second Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Administrative Expenses

Notwithstanding anything to the contrary contained in the Current HPA as amended by this 

Second Amendment, HFA and Eligible Entity may from time to time submit adjusted budgets to 

Treasury requesting approval to re-allocate HHF Funds to pay actual program expenses as set 

forth on a proposed Schedule C. In the event that Treasury shall approve an adjusted budget, in 

Treasury’s sole discretion, the parties shall enter into an amendment to the HPA to modify 

Schedules A, B and C as necessary. 
- 3 - 

TAMPA/134432.3

4. Miscellaneous

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

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

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

hereby execute and deliver this Second 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: Herbert M. Allison, Jr. 

Title: Administrator Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Lon A. DeWeese 

Name: Lon A. DeWeese 

Title: Secretary / Treasurer 

 

TAMPA/134432.3

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/134432.3

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 

 

1 See attached Schedule A-1 that is attached to, and forms a part of this Second Amendment. 
TAMPA/134432.3

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: $ 18,359,784.00

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

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/134432.3

SCHEDULE A-1

The following shall constitute additional and/or modified terms to the Second Amendment 

and are hereby incorporated into the Second Amendment. 

1. Section 3 of the Second Amendment is replaced with the following: 

Administrative Expenses Notwithstanding anything to the contrary contained in the Current HPA as 

amended by this Second Amendment, Eligible Entity may from time to time submit adjusted budgets to 

Treasury requesting approval to re-allocate HHF Funds to pay actual program expenses as set forth on a 

proposed Schedule C. In the event that Treasury shall approve an adjusted budget, in Treasury’s sole 

discretion, the parties shall enter into an amendment to the HPA to modify Schedules A, B and C as 

necessary. 

2. Ratification 

Except as herein modified and amended, the terms and conditions of the Second Amendment, including 

the Schedules and Exhibits included as a part thereof, and all of the documents executed with respect to 

the foregoing are hereby ratified and affirmed and shall remain in full force and effect. All references in 

any of the foregoing to the “Second Amendment” shall be deemed to refer to the Second Amendment, 

including the Schedules and Exhibits included as a part thereof, as further modified and amended by this 

Schedule A-1. 

 
TAMPA/134432.3

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/134432.3

SERVICE SCHEDULE B-1

The Nevada Affordable Housing Assistance Corporation 

PRINCIPAL REDUCTION PROGRAM 

Summary Guidelines 

1. Program Overview To ensure that nearly 2,500 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 $25,000, with a 1:1 match from the note holder if 

possible. The 1st Mortgage Principal Reduction Program will assist the 

underemployed, income restricted homeowner candidates to keep 

occupancy and ownership of their home. 

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

respect to at least 2,500 homeowners throughout the State of Nevada 

such that their loan to value ratios are reduced to 115% or less and 

correspondingly, the PITI payment reduced to 31% 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) 

$115,731,738.89 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Any cash out borrowing in past five years must be limited to: 

• Home improvement - real, not personal property classification. 

• Medical bills - documented. 

• Paying off existing revolving debt - documented. 

• Current income does not exceed 120% of Area Median Income 

(2010). 

• Borrower must be facing eminent default, if delinquent cannot be 

more than 6 months maximum - target to be 3 months maximum. 

• Delinquency based on a financial hardship due to circumstances 

beyond the homeowner’s control (no contrived defaults allowed). 
TAMPA/134432.3

Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. Eligible 

hardships to include but not limited to the following: 

• Underemployment. 

• Illness, disability or death of wage earner in family in 

possession. 

• Divorce or legal separation. 

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

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

portal of the contract agents (foreclosure mitigation and mediation 

agencies). 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. Daily monitoring of funding commitments/pipelines 

by zone will allow sufficient trend evidence to allow for sufficient lead 

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

available resources. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

• Must have only one existing mortgage. 

• Principal balance must not exceed 115% based upon current appraisal 

following principal balance reduction nor PITI exceed 31%. 

• Current mortgage cannot be secured by one of the following entities 

FHA/VA, Fannie Mae, Freddie Mac if the existing loan qualifies for 

one of those entities existing programs (direct lender program option 

must be exhausted first). 

• All modified mortgages will be changed to fixed rate 30 year or 

longer mortgages. 

The higher Targeted Area limit calculation will be utilized (115% of area 

median). Thus, per the HUD Procedure, the maximum mortgage limits 

would be: 

• Clark County: $427,184 

• Reno/Sparks SMSA: $431,189 

• Rural Nevada Areas: $347,087 

7. Program Exclusions • Having failed a HAMP loan temporary period by voluntary noncompliance, as determined by Eligible Entity. 

• Borrowers who took out 2nd liens for reasons other than those listed 

above under the Borrower Eligibility Criteria. 
TAMPA/134432.3

8. Structure of 

Assistance 

Assistance will be structured as a forgivable loan in favor of the Eligible 

Entity secured by a junior lien recorded against the property. Borrowers 

who follow through and earn the loan forgiveness will not be required to 

repay their principal reduction loans. The earned forgiveness loan will 

amortize on a straight-line basis of 1/36 per month. A recapture of up to 

20% of the note will be invoked in the event the home is sold in months 

37 through 60 post-closing of the recast mortgage. The recapture 

provision will self extinguish on the first day of the 61st month. 

9. Per Household 

Assistance 

The maximum amount receivable by a qualified borrower is $25,000 

assuming a $1:$1 match is occurring from the banks or GSEs. The 

median amount is expected to be close to the maximum (skewed right 

poisson distribution) amount. It is possible that there could be a bimodal 

distribution. Thus, if there are numerous HAMP fails of under $10,000 

that this level of assistance or less represents a large (disproportionate) 

share of the distribution of aid in the principal reduction program. 

Therefore, in this scenario there will be a large portion under $10,000 

and a large portion of applicants at the full $25,000 level and very few in 

between. 

10. Duration of 

Assistance 

Borrower participation in Program is a one time payment. 

11. Estimated Number of 

Participating 

Households 

Assuming a $1 for $1 level of matching principal reduction assistance is 

achieved in conjunction with the loan servicers, approximately 2,468 

households could be assisted under this Program. Should there be the bimodel distribution (as referenced in #9 above) the number of households 

assisted could exceed 5,000. 

12. Program Inception / 

Duration 

The planned implementation will be directly impacted by the time 

needed to secure agreements/contracts for lender matching and could 

take up to 75 days from the approval of the program to have agreements 

in place and begin flowing clients through the screening process. This 

Program could last up to 24 months. 

13. Program 

Interactions with 

Other HFA 

Programs 

The 1st mortgage principal reduction program is aimed at the 

underemployed population of income qualified/limited home owners, not 

the unemployed. Thus, it is possible that a homeowner could receive a 

1st mortgage principal reduction through this Program and then 

subsequently lose their job and eventually need a short-sale assistance 

program through another NAHAC HHF Program. 

14. Program 

Interactions with 

HAMP 

NAHAC expects an active interface with the HAMP program. During 

the ‘in-take’ process, 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. Where there is a 
TAMPA/134432.3

HAMP failure of <=$10,000 or less, then this program element will be 

accessed to accommodate the HAMP ‘pass’. Additionally, if someone 

does not qualify for a HAMP or has a ‘fails’ >=$10,000 then the 

applicant will be directed into the regular HAFA program. If the 

applicant needed added HAFA type of assistance, then NAHAC’s ShortSale program will be utilized. 

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

reduction and subsequently qualify for either a HAMP modification in 

need of supplementation or a regular 1st mortgage principal reduction 

program. 

15. Program Leverage 

with Other Financial 

Resources 

Nevada will endeavor to get applicable servicer/lenders to match on a $1 

for $1 basis. This programmatic goal will form the basis of all servicer 

agreements if possible. However, if the servicer/lender is unable to agree 

to a $1 for $1 arrangement, a lesser match may be acceptable. The 

matching funds will be provided at closing. 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/134432.3

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 lien interfering with either a short-sale 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 1,200 families 

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

either a 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) 

$19,702,671.81 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Any cash out borrowing in past five years must be limited to: 

• Home improvement - real, not personal property 

classification. 

• Medical bills - documented. 

• Paying off existing revolving debt -documented. 

• Current income does not exceed 120% of Area Median Income 

(2010). 

• Borrower must be facing eminent default, if delinquent cannot be 

more than 6 months maximum - target to be 3 months maximum. 

• 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 financial Hardship Affidavit 

attesting to their inability to make mortgage payments. Eligible 

hardships to include but not limited to the following: 
TAMPA/134432.3

• Underemployment. 

• Illness, disability or death of wage earner in family in 

possession. 

• Divorce or legal separation. 

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

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

portal of the contract agents (foreclosure mitigation and mediation 

agencies). 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. Daily 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. 

• Must have only one existing mortgage and a 2nd lien. 

• Principal balance must not exceed 115% based upon current 

appraisal following principal balance reduction nor PITI exceed 

31%. 

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

an accompanying lien release and waiver of deficiency judgment 

rights. 

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

element must be equal to or less than $41,250. 

• First mortgage must be per HUD Rev Procedure 2009-18. The 

higher Targeted Area limit calculation will be utilized (115% of 

area median). 

7. Program Exclusions • Borrowers who took out 2nd liens for reasons other than those listed 

above under the Borrower Eligibility Criteria. 

• If a second lien exceeds the program limit of $41,250 or program 

contribution of >$16,500 then the borrower would be ineligible. 

8. Structure of 

Assistance 

Assistance will be structured as a forgivable loan in favor of the Eligible 

Entity secured by a junior lien recorded against the property. Borrowers 

who follow through and earn the loan forgiveness will not be required to 

repay their principal reduction loans. The earned forgiveness loan will 

amortize on a straight-line basis of 1/36 per month. A recapture of up to 

20% of the note will be invoked in the event the home is sold in months 

37 through 60 post-closing of the recast mortgage. The recapture 
TAMPA/134432.3

provision will self extinguish on the first day of the 61st month. 

9. Per Household 

Assistance 

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

be $16,500 toward removal of liens whose value is <=$41,250. 

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 1,246 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 Principal Reduction Program will be available to borrowers within 

3 months after approval by Treasury and could last up to 2 years, with 

an outside date of July 30th 2012. 

13. Program 

Interactions with 

Other HFA 

Programs 

None. 

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 2nd lien relief program is to ‘free up’ the first mortgage 

note holder to complete the necessary modification 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 $0.60 for each 

$0.40 contributed by this program. Additionally, if the lending 

institution whose 2nd lien is being relieved also holds the 1st mortgage, 

they (note holder) would have to contribute $0.50 to each dollar of 1st 

mortgage principal relief from NAHAC’s other HHF programs. The 

matching funds will be provided at closing. 

16. Qualify as an  Yes ; No 
TAMPA/134432.3

Unemployment 

Program 
TAMPA/134432.3

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 a $8,025 level of average funding per family 

assisted up to 1,371 families facing immanent foreclosure threat due to 

unemployment, will have the burden of their home mortgage eliminated 

and the threats of a default judgment removed. 

3. Target Population / 

Areas 

Unemployed population of Nevada (189,000 in February or 13.9% 

level) who are facing eminent threat of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$6,175,464.30 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Any cash out borrowing in past five years must be limited to: 

• Home improvement - real, not personal property 

classification. 

• Medical bills - documented. 

• Paying off existing revolving debt - documented. 

• Borrower must have short-sale agreement in place with lender. 

• Borrower must have been enrolled in Unemployment Insurance 

Program (UIP) with State of Nevada. 

• Borrower must have home listed for sale and listing agreement. 

• Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. 
TAMPA/134432.3

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

• Must have only one existing mortgage. 

• Borrower/family must be committed to living in a rental property 

from the eligible list of participating properties provided and 

execute a 6 month or longer lease at the close of the home sale 

transaction. 

7. Program Exclusions • Borrowers completing a short-sale but unwilling/unable to stay in 

Nevada due to job opportunities elsewhere. 

• Borrowers who took out 2nd liens for reasons other than those listed 

above under the Borrower Eligibility Criteria. 

8. Structure of 

Assistance 

This program is direct assistance through direct payment to vendors at 

closing of the escrow. The payments will not be structured as a loan. 

9. Per Household 

Assistance 

The maximum is $8,025 paid out to a qualified family in this short sale 

program. 

10. Duration of 

Assistance 

The Short-Sale Acceleration program element in the NAHAC Business 

Plan is expected to last up to 24 months. Due to current economic 

projections showing double digit unemployment rates in Nevada 

through the 3rd quarter of 2013, it is expected that this program will 

simply exhaust its funding or be unable to accept more applicants by the 

end of the 24th month. 

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 will be available to borrowers 

within 3 months after approval by Treasury and will last up to 2 years. 

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 ShortSale 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. 
TAMPA/134432.3

15. Program Leverage 

with Other Financial 

Resources 

See 13 above. No additional leverage. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134432.3

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 up to 11,352 families who have an 

unemployed wage earner. The program will assist those qualified 

families by making up to the lesser of 1/3 of the principal and interest 

portion or a $500 payment supplement to the family’s monthly 

principal and interest portion of the first mortgage payment only. The 

property taxes and insurance amounts due and owing will remain fully 

a borrower’s responsibility and are not part of the MAP supplement. 

MAP payments may be extended for qualified families for up to 6 

months. The MAP payments are aimed at providing a financial bridge 

to those unemployed persons who are attempting to upgrade their work 

skills. The payments/mortgage supplements are aimed directly at 

unemployed persons who are enrolled in either a special skills training 

program, an institution of higher education or other professional 

retraining program aimed at increasing the marketability of the 

unemployed person’s job skills. Applicants will be assessed for their 

ability and likelihood for being able to find timely re-employment soon 

after the payment supplements end. 

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 be enrolled 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 60 successive months 

following the end of the MAP payments will have their lien 

extinguished. 

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 while their 

training programs are completed. These exceptional cases must be 

approved by the NAHAC Board of Directors after evidence of eminent 

re-employment contingent upon completion of a training program 

documented. If the contingency is not needed as program capacity is 
TAMPA/134432.3

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. This 

outcome would be due to the increased chances of being rehired with 

newly enhanced skills which are obtained during mortgage payment 

bridging period. It is hoped that qualified recipients will have assessed 

their current job skills and the chances of rapid re-employment and 

determined to take affirmative steps to upgrade their job skills in such 

a way that their re-employment chances are enhanced. Thus, their 

ability to keep and sustain current homeownership will be greatly 

improved in the long run. The enhanced home ownership through reemployment and job maintenance should decrease both the numbers 

and probability of foreclosures. 

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 

quarterly assessment will be undertaken to ensure allocations of 

remaining funds are representative of changes to the unemployed 

populations in all jurisdictions. Nevada’s MAP program will be 

targeting the unemployed population that is working to upgrade their 

job-market skills in ways that most likely will lead to re-employment 

shortly after the end of the MAP assistance. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$34,056,581.00 

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 
TAMPA/134432.3

Criteria will consist of: 

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Current income does not exceed 120% of Area Median Income 

(2010). 

• Applicant must be facing eminent default. 

• Applicant must be experiencing financial hardship due specifically 

to unemployed status which must be verified via the Nevada 

Department of Employment, Training and Rehabilitation. 

• Applicant will be required to provide a financial Hardship 

Affidavit attesting to their inability to make mortgage payments. 

• Applicant must be currently enrolled or will be enrolled during the 

period of assistance, in a viable retraining, new skills training or 

academic program that creates new or upgraded job skills. New 

training must relate specifically to making applicant able to be 

employed in a short-period of time following assistance and 

therefore sustain homeownership going forward. 

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

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

directly at the NAHAC offices. 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. 

The higher Targeted Area limit calculation will be utilized (115% of 

area median). Thus, per the HUD Procedure, the maximum mortgage 

limits would be: 

a. Clark County: $427,184 

b. Reno/Sparks SMSA: $431,189 

c. Rural Nevada Areas: $347,087 

7. Program Exclusions • Having failed a HAMP loan temporary period by voluntary noncompliance, as determined by Eligible Entity. 

8. Structure of 

Assistance 

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

forgivable nonrecourse loan, secured by a junior 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 60 month time period expires and there is 

sufficient equity to pay the loan. All MAP provided funds returned to 
TAMPA/134432.3

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 as an ‘earned forgiveness’ loan that is forgiven 

20% each year. 

9. Per Household 

Assistance 

The planned MAP program level of assistance should average 

approximately $500/month per recipient for up to 6 months or an 

expected average mortgage payment assistance of $3,000. 

10. Duration of 

Assistance 

The MAP assistance will last the lesser of 6 months or up to 2 months 

after reemployment.

11. Estimated Number of 

Participating 

Households 

Based upon average assistance of $3,000 then the expected number of 

potential recipients should be approximately 11,352. However, this 

number may be decreased slightly if the contingency funds described 

in Section 1 are utilized for such purpose. 

12. Program Inception / 

Duration 

Approximately 45 days after final U.S. Treasury approval. Given the 

program limit of six months worth of assistance, this means that the 

full utilization of MAP program funds should run down in 

approximately 15-18 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 complete their retraining program, 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 

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 P&I payments and not to ‘make up’ 

any past due penalties or payments. NAHAC underwriting staff will 
TAMPA/134432.3

communicate with the servicer to ensure that the MAP payments are 

credited only toward current amounts of P&I due by the borrower. 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