SEVENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Seventh Amendment to Commitment to Purchase Financial Instrument and HFA 

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

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

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

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

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

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

Recitals 

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

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

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

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

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

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

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

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

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

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

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

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

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

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

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

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

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

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

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

from time to time ("EESA"V. 

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

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

same; 

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

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

applicable; 

Seventh Amendment to HPA — Florida 

Doc#:USl:8490920v2 
Accordingly, in consideration of the representations, warranties, and mutual agreements set forth 

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

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

Agreement 

1. Amendments 

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

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

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

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

further amended by this Seventh Amendment. 

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

and replaced with Schedule A attached to this Seventh Amendment. 

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

and replaced with Schedule B attached to this Seventh Amendment. 

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

and replaced with Schedule C attached to this Seventh Amendment. 

2. Representations. Warranties and Covenants 

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

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

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

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

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

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

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

Event of Default under the HPA. 

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

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

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

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

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

Entity is in breach of any such covenant. 

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

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

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

hereunder and thereunder. 

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

Seventh Amendment and any other closing documentation delivered to Treasury in 

Doc#:USI:8490920v2 
connection with this Seventh Amendment, and to perform its obligations hereunder and 

thereunder. 

3. Miscellaneous 

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

accurate and are incorporated herein by this reference. 

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

them in the HPA. 

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

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

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

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

jurisdiction. 

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

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

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

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

-3-

Doc#;USI-.8490920v2 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

FLORIDA HOUSING FINANCE 

CORPORATION 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: I si Stephen P. Auger 

Name: Stephen P. Auger 

Title: Executive Director 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

FLORIDA HOUSING FINANCE 

CORPORATION 

By: /s/ Stephen P. Auger 

Name: Stephen P. Auger 

Title: Executive Director 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

FLORIDA HOUSING FINANCE 

CORPORATION 

By: 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: 

Name: 

Title: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

FLORIDA HOUSING FINANCE 

CORPORATION 

By: 

Name: 

Title: 

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

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

Doc#:USl:8490920v2 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

Florida Housing Finance Corporation1 

a public corporation and a public body 

corporate and politic, established and 

existing under the Florida Housing Finance 

Corporation Act, as amended. Chapter 420, 

Part Y, Florida Statutes. 

Florida 

HFA Information: 

Name of HFA: 

Organizational form: 

Date of Application: 

Date of Action Plan: 

Florida Housing Finance Corporation1 

a public corporation and a public body 

corporate and politic, established and 

existing under the Florida Housing Finance 

Corporation Act, as amended. Chapter 

420m, Part V, Florida Statutes. 

April 16, 2010 

September 1, 2010 

1

 References in the Agreement to the term "HFA" shall mean the Florida Housing Finance Corporation, in its 

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

Entity" shall mean the Florida Housing Finance Corporation, in its capacity as Eligible Entity as such term is used in 

the Agreement. 

Notwithstanding anything to the contrary in the Agreement, (A) for purposes of Section 4(G) thereof, annual audited 

financial statements shall be due no later than one hundred eighty (180) day's after the end of Florida Housing 

Finance Corporation's fiscal year, and (B) for purposes of Section 7 thereof, the powers and authority of Florida 

Housing Finance Corporation shall be governed by and construed in accordance with the laws of the State of 

Florida. 

Doc#:USI:8490920v2 
Notice Information: 

Program Participation Cap: 

Portion of Program Participation Cap 

Representing Original HHF Funds: 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: 

Permitted Expenses: 

Closing Date: 

First Amendment Date: 

Second Amendment Date: 

Third Amendment Date: 

Fourth Amendment Date: 

Fifth Amendment Date: 

Sixth Amendment Date: 

Seventh Amendment Date: 

Eligible Entity Depository Account Information: 

$1,057,839,136.00 

$418,000,000.00 

$238,864,755.00 

$105,431,750.00 

June 23, 2010 

September 23, 2010 

September 29, 2010 

December 16, 2010 

March 31, 2011 

May 30, 2012 

September 28, 2012 

April 25, 2013 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

Doc#:USl:8490920v2 
SCHEDULE B 

SERVICE SCHEDULES 

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

entirety and replaced with the attached Service Schedules (numbered sequentially as Service 

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

HPA. 
SERVICE SCHEDULE B-l 

Florida Hardest Hit Fund 

Unemployment Mortgage Assistance Program 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target Population/ 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

The Unemployment Mortgage Assistance Program ("UMAP" or 

the "Program") focuses on the creation of a sustainable solution to 

keep Florida unemployed or substantially underemployed 

homeowners in their current homes by helping those who are 

struggling to make their current mortgage payments because of 

hardships sustained since purchasing the home. The Florida 

Housing Finance Corporation ("Florida Housing") will use HHF 

funds to pay up to twelve (12) months' of a portion of the 

mortgage payments on behalf of a qualified homeowner based on 

the criteria and requirements of each servicer. HHF funds will be 

used to pay, directly to the first mortgage loan servicer, the 

monthly mortgage payment (principal and interest plus any 

required escrow payments, such as taxes and insurance) required 

under the first mortgage loan. This will provide a reasonable 

period of time for homeowners to become re-employed at a salary 

that is sufficient for them to either resume making full mortgage 

payments or qualify for a mortgage modification that will lower 

the payments on the mortgage to an affordable level. 

• Preserving homeownership. 

• Protecting home values. 

To determine geographic targeting for HHF funding, Florida 

Housing carried out an analysis of data, relying on data similar to 

that used by Treasury to allocate funding, to determine the hardest 

hit areas of the state. Florida Housing evaluated three measures 

across all sixty-seven Florida counties - housing price decline 

from peak prices, unemployment rate and seriously delinquent 

mortgage loans - and then combined ratios for each to create an 

allocation methodology that will guide how funding is 

geographically targeted. The majority of the HHF funds will be 

allocated to those counties that were determined to be hardest hit, 

although there will be funds available to all sixty-seven counties. 

$519,232,792 

• Borrower must be a legal U.S. citizen or lawful permanent 

resident. 

• At least one borrower must be able to document that he or she 

is unemployed or substantially underemployed and must 
6. Property/Loan 

Eligibility Criteria 

7. Program Exclusions 

provide a financial hardship affidavit. A borrower and/or coborrower who suffers a hardship that has resulted in a loss of 

income of at least 10% will be considered "substantially 

underemployed". 

• The maximum household income level for participation will 

be 140% of the Area Median Income (AMI). 

• The total housing expense (PITIA) must exceed 31% of the 

total gross income of the household. 

• Borrowers who have unencumbered liquid assets or cash 

reserves (not including retirement or qualified education 

plans) equal to or exceeding three times the total monthly 

mortgage payment (including tax and insurance payments) or 

$5,000, whichever is greater, must first use those assets above 

such amount towards mortgage payments before being 

eligible for HHF funds. 

• The property must be a single-family home, a condominium 

unit, a townhome, a manufactured or mobile home on 

foundation permanently affixed to real estate owned by the 

borrower, or a two-four family dwelling unit of which one 

unit is occupied by the mortgagor as his or her principal 

residence. 

• The property must be the borrower's principal residence, be 

located in Florida, and not be abandoned, vacant or 

condemned. 

• The outstanding principal balance of the first mortgage must 

be $400,000 or less at the time of application, regardless of 

number of dwelling units. 

• Applicants who have voluntarily left work without good cause 

attributable to their employing unit or have been discharged 

by the employing unit for misconduct connected with his or 

her work, based on a finding by the Department of Economic 

Opportunity. 

• Bankruptcies that have not been discharged or dismissed. 

• The borrower may not have an ownership interest in more 

than one property other than his or her primary residence. 

• The servicer is not required to accept mortgage assistance 

payments if a notice of trustee/sheriff sale has been recorded 

and the trustee/sheriff sale is scheduled less than seven days 
from date the servicer is notified of borrower approval by the 

HFA. 

• Condominium units where financial reporting for the 

condominium association, pursuant to s. 718.111(13), F.S., 

for the most recent two years are not provided by the 

applicant. 

Structure of 

Assistance 

HHF funds under UMAP will be made available to homeowners 

in the form of a zero-percent interest, non-recourse, forgivable 

loan. This loan will be evidenced by a note and mortgage in favor 

of Florida Housing. The HHF loan is forgivable and will be for a 

period of five and a half (5.5) years. The first 20% of the loan will 

be forgiven eighteen (18) months after the loan closing. The 

remainder of the loan will be forgiven 20% per year annually 

thereafter. 

If the homeowner sells the home during any part of the loan term, 

the remaining principal balance will be due to Florida Housing in 

the event there are sufficient equity proceeds from the sale. If 

there is not enough equity in the home to repay the entire amount 

due, Florida Housing will forgive the excess portion or all of the 

remaining principal balance so as to not create additional 

hardships on the seller at closing. Any loans repaid will be 

recycled back into the Program and used to provide assistance to 

additional homeowners for the duration of the Program up to 

December 31, 2017. After December 31, 2017, all funds 

remaining or received shall be returned to Treasury. 

Per Household 

Assistance 

Estimated Median Amount Mortgage Payments - $12,000 

Maximum Amount - $24,000 

Borrowers who have previously received HHF assistance and 

were not involuntarily terminated and borrowers who are 

currently receiving HHF assistance and remain in good standing 

are eligible for the additional assistance being offered under the 

changes to the UMAP and MLRP programs, but only to the 

extent that the total of the HHF assistance received does not 

exceed the following limits: 

• UMAP - 12 months or $24,000, whichever comes first 

• MLRP with UMAP - maximum of $ 18,000 towards 

reinstatement 

MLRP only - maximum of $25,000 towards reinstatement 

The homeowner can receive up to twelve (12) months' of 

monthly mortgage payments from Florida Housing 

10. Duration of Assistance 

Florida Housing anticipates that this strategy will be able to serve 

approximately 45,000 homeowners over a five-year period. 

11. Estimated Number of 

Participating 
Households 

12. Program Inception/ 

Duration 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

14. Program Interactions 

with HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

The Program commenced in June 2012. It is anticipated that this 

strategy will last for up to five years. 

This Program will interact with the Mortgage Loan Reinstatement 

Program ("MLRP"). Borrowers who qualify for UMAP will have 

arrearages on their first mortgage reinstated up front in an amount 

not to exceed $ 18,000. The maximum amount of combined 

UMAP and MLRP assistance is $42,000. 

HHF funds would be utilized prior to the HAMP forbearance 

described in Supplemental Directive 10-04. Implementing the 

Program in this order is the most beneficial to the customer and 

investor since payments would continue to be made instead of 

capitalized and no late charges or adverse credit reporting would 

occur. If the borrower has already been through an UP 

forbearance before applying for this Program, then this Program 

may follow UP. 

Many servicers have in-house mortgage modification products 

that can be used in conjunction with this Program. Florida 

Housing will work with servicers to determine how these 

programs may best be combined. 

Servicers will not charge administrative fees (e.g., NSF, late 

charges) in any month where a full contract payment is made. If 

the loan is reinstated or modified following HFA mortgage 

assistance, servicers will waive all administrative fees accrued 

since the beginning of the delinquency. 

El Yes • No 
SERVICE SCHEDULE B-2 

Florida Hardest Hit Fund 

Mortgage Loan Reinstatement Program 

Summary Guidelines 

17. Program Overview 

18. Program Goals 

19. Target Population/ 

Areas 

20. Program Allocation 

(Excluding 

Administrative 

Expenses) 

21. Borrower Eligibility 

Criteria 

The Mortgage Loan Reinstatement Program ("MLRP" or the 

"Program") focuses on the creation of a sustainable solution to 

keep Florida homeowners in their current homes by helping those 

who have fallen behind on their mortgage payments because of 

financial hardship sustained since purchasing the home as a result 

of unemployment or substantial underemployment. HHF funds 

will be used to pay, directly to the first mortgage loan servicer, 

payments which include items such as principal and interest plus 

any required escrow payments (such as taxes and insurance), late 

fees and insufficient fund fees. 

• Preserving homeownership. 

• Protecting home values. 

To determine geographic targeting for HHF funding, the Florida 

Housing Finance Corporation ("Florida Housing") carried out an 

analysis of data, relying on data similar to that used by Treasury 

to allocate funding, to determine the hardest hit areas of the state. 

Florida Housing evaluated three measures across all sixty-seven 

Florida counties - housing price decline from peak prices, 

unemployment rate and seriously delinquent mortgage loans -

and then combined ratios for each to create an allocation 

methodology that will guide how funding is geographically 

targeted. The majority of the HHF funds will be allocated to 

those counties that were determined to be hardest hit, although 

there will be funds available to all sixty-seven counties. 

$383,174,594 

• Borrower must be a legal U.S. citizen or lawful permanent 

resident. 

• At least one borrower must be able to document that he or she 

is unemployed or substantially underemployed and must 

provide a financial hardship affidavit. A borrower and/or coborrower who suffers a hardship that has resulted in a loss of 

income of at least 10% will be considered "substantially 

underemployed". 

• The maximum household income level for participation will 

be 140% of the Area Median Income (AMI). 

Doc#: USI:8490920v2 
22. Property/Loan 

Eligibility Criteria 

23. Program Exclusions 

• For MLRP-only applicants, the total housing expense (PITIA) 

must be less than 31% of the total gross income of the 

household unless the applicant can show that he or she has 

recovered from the hardship and is no longer "substantially 

underemployed". 

• Borrowers who have unencumbered liquid assets or cash 

reserves (not including retirement or qualified education 

plans) equal to or exceeding three times the total monthly 

mortgage payment (including tax and insurance payments) or 

$5,000, whichever is greater, must first use those assets above 

such amount towards reinstatement before being eligible for 

HHF funds. 

• The property must be a single-family home, a condominium 

unit, a townhome, a manufactured or mobile home on 

foundation permanently affixed to real estate owned by the 

borrower, or a two-four family dwelling unit of which one 

unit is occupied by the mortgagor as his or her principal 

residence. 

• The property must be the borrower's principal residence, be 

located in Florida, and not be abandoned, vacant or 

condemned. 

• The outstanding principal balance of the first mortgage must 

be $400,000 or less at the time of application, regardless of 

number of dwelling units. 

• Applicants who have voluntarily left work without good cause 

attributable to his or her employing unit or has been 

discharged by the employing unit for misconduct connected 

with his or her work, based on a finding by the Department of 

Economic Opportunity. 

• Bankruptcies that have not been discharged or dismissed. 

• The borrower may not have an ownership interest in more 

than one property other than his or her primary residence. 

• The servicer is not required to accept mortgage assistance 

payments if a notice of trustee/sheriff sale has been recorded 

and the trustee/sheriff sale is scheduled less than seven days 

from date the servicer is notified of borrower approval by the 

HFA. 

Doc#:USl:8490920v2 
24. Structure of 

Assistance 

25. Per Household 

Assistance 

26. Duration of Assistance 

27. Estimated Number of 

Participating 

Households 

28. Program Inception/ 

Duration 

• Condominium units where financial reporting for the 

condominium association, pursuant to s. 718.111(13), F.S., 

for the most recent two years are not provided by the 

applicant. 

HHF funds under the Mortgage Loan Reinstatement Program will 

be made available to homeowners in the form of a zero-percent 

interest, non-recourse, forgivable loan. This loan will be 

evidenced by a note and mortgage in favor of Florida Housing. 

The HHF loan is forgivable and will be for a period of five and a 

half (5.5) years. The first 20% of the loan will be forgiven 

eighteen (18) months after the loan closing. The remainder of the 

loan will be forgiven 20% per year annually thereafter. 

If the homeowner sells the home during any part of the loan term, 

the remaining principal balance will be due to Florida Housing in 

the event there are sufficient equity proceeds from the sale. If 

there is not enough equity in the home to repay the entire amount 

due, Florida Housing will forgive the excess portion or all of the 

remaining principal balance so as to not create additional 

hardships on the seller at closing. Any loans repaid will be 

recycled back into the Program and used to provide assistance to 

additional homeowners for the duration of the Program up to 

December 31,2017. After December 31,2017, all funds 

remaining or received shall be returned to Treasury. 

Estimated Median Amount Mortgage Payments - $9,000 

Maximum Amount - $18,000 for those using both UMAP and 

MLRP; $25,000 for those needing MLRP only. 

Borrowers who have previously received HHF assistance and 

were not involuntarily terminated and borrowers who are 

currently receiving HHF assistance and remain in good standing, 

are eligible for the additional assistance being offered under the 

changes to the UMAP and MLRP programs, but only to the 

extent that the total of the HHF assistance received does not 

exceed the following limits: 

• UMAP - 12 months or $24,000, whichever comes first 

• MLRP with UMAP - maximum of $ 18,000 towards 

reinstatement 

• MLRP only - maximum of $25,000 towards reinstatement 

Assistance is provided as a one-time payment. 

Florida Housing anticipates that this strategy will be able to serve 

approximately 45,000 homeowners over a five year period. 

The Program commenced in June 2012. It is anticipated that this 

Program will last for up to five years. 

Doc#'. USl-.8490920v2 
29. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

30. Program Interactions 

with HAMP 

31. Program Leverage 

with Other Financial 

Resources 

32. Qualify as an 

Unemployment 

Program 

This Program will interact with the Unemployment Mortgage 

Assistance Program ("UMAP"). Borrowers who qualify for 

UMAP will have arrearages on their first mortgage reinstated up 

front in an amount not to exceed $18,000. The maximum amount 

of combined UMAP and MLRP assistance is $42,000. 

HHF funds would be utilized prior to the HAMP forbearance 

described in Supplemental Directive 10-04. Implementing the 

Program in this order is the most beneficial to the customer and 

investor since payments would continue to be made instead of 

capitalized and no late charges or adverse credit reporting would 

occur. If the borrower has already been through an UP 

forbearance before applying for this Program, then this Program 

may follow UP. 

Many servicers have in-house mortgage modification products 

that can be used in conjunction with this Program. Florida 

Housing will work with servicers to determine how these 

programs may best be combined. 

Servicers will not charge administrative fees (e.g., NSF, late 

charges) in any month where a full contract payment is made. If 

the loan is reinstated or modified following HFA mortgage 

assistance, servicers will waive all administrative fees accrued 

since the beginning of the delinquency. 

0 Yes • No 

Doc#:USl:8490920v2 
SERVICE SCHEDULE B-3 

Florida Hardest Hit Fund 

Modification Enabling Pilot Program (MEP) 

Summary Guidelines 

1. Program 

Overview 

This Modification Enabling Pilot Program ("MEP") is being administered 

by the Florida Housing Finance Corporation ("Florida Housing") in 

partnership with National Community Capital LLC ("NCC"). Funding 

under this Program is designed to provide directed assistance to eligible 

borrowers under the NCC ReStart Program with the intent to permanently 

modify and reduce the borrower's loan amount to an affordable level to 

achieve a monthly total housing payment that does not exceed 35% of the 

borrower's monthly income. Borrowers meeting the eligibility 

requirements described in Section 5 below may be eligible for MEP 

assistance through the NCC ReStart Program. 

Eligible loan pools under MEP include only loans in Florida sold under 

the Department of Housing and Urban Development's ("HUD") 

Distressed Asset Stabilization Program ("DASP") in calendar years 2012 

and in 2013 that are purchased by NCC. 

The Florida Housing agreement with the NCC ReStart Program will be 

used to enable and facilitate permanent modifications by advancing a 

forgivable loan to eligible borrowers in an amount not to exceed 

$50,000.00 to enable a loan modification to occur immediately. MEP 

funding may not be used to reduce the principal balance of an eligible 

borrower's mortgage loan below 100% of the current market value of the 

property. However, the NCC ReStart Program may reduce the principal 

amount of an eligible borrower's mortgage loan below 100% of the 

property's current market value to achieve a permanently modified 

mortgage loan as long as NCC uses its own capital and not MEP funding. 

As the funding formula for the maximum amount MEP assistance 

expressly states, a floor of 100% of the property's current market value 

assures that MEP's assistance is limited to funding principal reduction for 

eligible borrowers only down to 100% of the property's current market 

value. 

Consistent with the terms of MEP, the NCC ReStart Program may 

permanently modify and reduce the existing first mortgage loan to an 

amount with a net present value does not exceed the lesser of: 

• A loan amount equal to 100% of the current market value of the 

property; or 

• A loan amount with a net present value (using 30 year 

amortization at an interest rate equal to 300 basis points above the 

30 year FHA rate as quoted by Wells Fargo Mortgage) results in a 

monthly total housing payment that does not exceed 35% of the 

Doc#:USl:8490920v2 
2. Program Goals 

3. Target 

Population/Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility Criteria 

borrower's adjusted gross monthly income. 

In order to make the mortgage payments affordable to the borrower, a 

MEP forgivable second mortgage loan of up to $50,000.00 will be made 

to eligible borrowers to fund a modification of the mortgage loan amount 

to an amount equal to 100% of the current market value (or as close to 

100% of the current market value as the $50,000.00 in MEP assistance 

will permit and as long as the reduced mortgage loan amount results in a 

total housing payment not greater than 35% of the borrower's adjusted 

gross monthly income). 

There is a required dollar-for-dollar private capital match under the NCC 

Program. As a result of this private capital match, the final amount of 

MEP assistance will be determined by (i) subtracting the current market 

value of the property from borrower's UPB multiplied by 50% or (ii) 

$50,000, whichever is less. 

The structure of the MEP assistance is described in Section 8. 

The central goal of MEP is to help homeowners avoid foreclosure by 

permanently modifying a borrower's primary mortgage to achieve a 

monthly total housing payment that does not exceed 35% of the 

borrower's adjusted gross monthly income. 

MEP aspires to achieve a 75% success rate in loans assisted under the 

Program that continue to make on-time monthly payments for at least 

twenty-four (24) months after the permanent modification occurred. 

The targeted populations are households whose loans NCC is able to 

acquire under the HUD DASP sales in 2012 and 2013. 

$50,000,000.00 

Eligible borrowers under MEP must meet the following criteria: 

• Must be a legal U.S. Citizen or lawful permanent resident. 

• Must document adjusted household income that does not exceed 

140% Area Median Income (AMI). 

• Must demonstrate an ability to maintain a financial obligation for 

the home based upon an affordable mortgage with a total monthly 

housing payment equal to or less than 35% of their gross monthly 

income. 

• Must meet the LTV requirements described in this Section. 

Doc#:USl:8490920v2 
6. Property/Loan 

Eligibility Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

Borrowers with current UPB's equal to or greater than 105% of the 

property's current market value are eligible for MEP assistance if they 

meet one of the following financial hardships and provide a financial 

hardship affidavit. 

Eligible financial hardships include: 

• Reduced income due to changes in employment. 

• Medical condition(s). 

• Divorce. 

• Death. 

Borrowers that are unable to document any of these financial hardships 

may be eligible for MEP assistance if their current UPB is equal to or 

greater than 125% of the property's current market value. 

• Property must be the borrowers principal residence, located in Florida 

and may not be abandoned, vacant or condemned. 

• The property must be a single family home, a condominium, a 

townhome, a manufactured or mobile home on foundation 

permanently affixed to real estate owned by the mortgagor, or a twofour family dwelling unit of which one unit is occupied by the 

mortgagor as their principal residence that is owner-occupied with a 

UPB equal to or less than $400,000.00. 

• Mortgage must a distressed loan with a UPB that equals or exceeds the 

required percentages described in Section 5 above. Market value will 

be established by a FIRREA-compliant appraisal completed by an 

appraiser licensed and in good standing under Chapter 475 of the 

Florida statutes for NCC at the time the appraisal is performed. 

• Borrower's whose current loan-to-value is less than 105% of the 

property's current market value. 

• Borrowers who are in an active Chapter 7 bankruptcy. 

The structure of assistance will be provided as an up-front, forgivable loan 

to eligible borrowers for up to $50,000.00 depending upon individual 

circumstances. The note evidencing the second mortgage loan will carry 

the following terms: 

• Zero-percent (0%) interest, zero-payment loan 

• Five-year term in favor of Florida Housing with a pro rata 20% 

forgiveness of the original second mortgage loan amount on each 

annual anniversary date. The note will be extinguished on the 

fifth (5th) anniversary date providing the borrower has satisfied all 

terms of the loan. 

If a property is sold on or before the end of the five-year term, the loan is 

"due on sale" and any net proceeds due to Florida Housing after reducing 

Doc#:USl:8490920v2 
9. Per Household 

Assistance 

10, Duration of 

Assistance 

11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception/Duration 

13. Program 

Interactions with 

Other Programs 

(e.g. other HFA 

programs) 

14. Program 

Interactions with 

HAMP 

15. Program 

Leverage with 

Other Financial 

Resources 

the sales price by: 

o usual and customary costs of sale and attorney's fees; 

o taxes and any other payments due to federal, state and local 

governmental entities; and 

o satisfaction of the first mortgage loan amount due NCC 

Program and it's successors and assigns. 

If there are insufficient or no net proceeds available after reducing the sale 

amount by the above items, all or a portion of the note will be forgiven as 

not to create additional hardships on the borrower/seller at the time of 

closing. Any loan proceeds that are returned to the Program would be 

reutilized to assist additional homeowners. All funds recycled into the 

Program will be returned to Treasury after December 31, 2017. 

$50,000.00 is the maximum amount of assistance. $33,333.33 is the 

estimated median amount of assistance. 

MEP assistance will be disbursed in full upon the loan closing for 

qualified applicants by NCC ReStart Program. 

It is anticipated that the MEP will assist a minimum of 1,500 households 

in avoiding imminent foreclosures. 

This Program component will begin in May 2013 and it is projected that 

assistance will be expended over a two-year period of time. However, 

repayment of assistance may extend this time frame up to five additional 

years. 

MEP will interact with Florida Housing's Mortgage Loan Reinstatement 

Program ("MLRP") and Unemployment Mortgage Assistance Program 

("UMAP") in the following manner. At the time NCC assessed the 

borrower for eligibility under MEP, if it finds that the borrower is not 

eligible for MEP it will then assess whether the borrower is eligible for 

MLRP or UMAP assistance. If the borrower is eligible for either MLRP 

or UMAP, the application and approval process will be completed in the 

manner prescribed by Florida Housing. Borrowers may receive assistance 

from more than one of these programs as long as the total combined 

assistance does not exceed $50,000.00. 

None. 

As the NCC ReStart Program will reduce the existing first mortgage loan 

in accordance with the MEP there will be a minimum 1:1 private capital 

leveraged match. However, as the NCC ReStart Program will likely fund 

with private capital additional principal reductions for eligible borrowers 

below 100% of the property's current market value in order to achieve a 

Doc#:USl:8490920v2 
16. Qualify as an 

Unemployment 

Program 

principal reduction it is expected that the leveraged match will be closer to 

3 to 1. Lender match amounts shall be documented at the time of closing 

of the modification. 

0 Yes • No 

MEP assistance qualifies as an unemployment program when the NCC 

ReStart Program modifies loans and provides assistance to borrowers 

meeting the Section 5 financial hardship criteria relating to borrowers 

whose incomes have been reduced due to changes in their employment. 

Doc#:USl:8490920v2 
SCHEDULE C 

PERMITTED EXPENSES 

Florida 

1 

One-time / Start-Up Expenses: 

Initial Personnel 

Building, Equipment, Technology 

Professional Services 

Supplies / Miscellaneous 

Marketing /Communications 

Travel 

Website development /Translation 

Contingency 

Subtotal 

$0.00 

$20,750.00 

$50,000.00 

$1,000.00 

$10,000.00 

$20,000.00 

$183,500.00 

$0.00 

$285,250.00 

1 1 

Operating /Administrative 

Expenses: 

Salaries 

Professional Services (Legal, 

Compliance, Audit, Monitoring) 

Travel 

Buildings, Leases & Equipment 

Information Technology & 

Communications 

Office Supplies/Postage and 

Delivery/Subscriptions 

Risk Management/ Insurance 

Training 

Marketing/PR 

Miscellaneous 

Subtotal 

$11,130,000.00 

$2,390,000.00 

$535,000.00 

$1,015,000.00 

$17,972,500.00 

$1,115,000.00 

$140,000.00 

$1,245,000.00 

$134,000.00 

$970,000.00 

$36,646,500.00 

I 1 

Transaction Related Expenses: 

Recording Fees 

Wire Transfer Fees 

Counseiing Expenses 

File Intake 

Decision Costs 

Successful File 

Key Business Partners On-Going 

Subtotal 

$4,200,000.00 

$600,000.00 

$0.00 

$22,500,000.00 

$11,200,000.00 

$30,000,000.00 

$68,500,000.00 

r

 .. 

Grand Total $105,431,750.00 

_ __ _ _ __ _ _ _ _ 

% of Total Award 

Award Amount 

9.97% 

$1,057,839,136 

Doc*!:USl:8490920v2