Eighth Amendment to HPA — Florida 

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EIGHTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Eighth Amendment to Commitment to Purchase Financial Instrument and HFA 

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

Schedule A attached hereto as the Eighth Amendment Date (the “Amendment Date”), by and 

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

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

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

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

Recitals 

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

Purchase Financial Instrument and HFA Participation Agreement (the “Original HPA”) dated as 

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

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

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

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

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

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

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

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

to Purchase Financial Instrument and HFA Participation Agreement (the “Fifth Amendment”), as 

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

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

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

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

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

Fourth Amendment, the Fifth Amendment, and the Sixth Amendment, the “Current HPA”), 

dated as of their respective dates as set forth on Schedule A attached hereto, in connection with 

Treasury’s federal housing program entitled the Housing Finance Agency Innovation Fund for 

the Hardest Hit Housing Markets (the “HHF Program”), which was established pursuant to the 

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

amended from time to time (“EESA”); 

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

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

same; 

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

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

applicable; 
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Accordingly, in consideration of the representations, warranties, and mutual agreements set forth 

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

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

Agreement 

1. Amendments 

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

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

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

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

further amended by this Eighth Amendment. 

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

and replaced with Schedule A attached to this Eighth Amendment. 

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

and replaced with Schedule B attached to this Eighth Amendment. 

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

and replaced with Schedule C attached to this Eighth Amendment. 

2. Representations, Warranties and Covenants 

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

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

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

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

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

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

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

Event of Default under the HPA. 

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

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

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

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

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

Entity is in breach of any such covenant. 

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

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

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

hereunder and thereunder. 

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

Eighth Amendment and any other closing documentation delivered to Treasury in 
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Doc#: US1:8816897v3 

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

thereunder. 

3. Miscellaneous 

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

and are incorporated herein by this reference. 

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

them in the HPA. 

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

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

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

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

jurisdiction. 

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

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

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

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

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

 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

FLORIDA HOUSING FINANCE 

CORPORATION 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Stephen P. Auger By: 

Name: Stephen P. Auger Name: Timothy G. Massad 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

FLORIDA HOUSING FINANCE 

CORPORATION 

By: /s/ Stephen P. Auger 

Name: Stephen P. Auger 

Title: Executive Director 

 
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EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
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SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: Florida Housing Finance Corporation1

Corporate or other organizational form: 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 V, Florida Statutes.

Jurisdiction of organization: Florida

Notice Information: 

 

HFA Information: 

Name of HFA: Florida Housing Finance Corporation1

Organizational form: 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. 

Date of Application: April 16, 2010 

Date of Action Plan: 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. 
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Notice Information: Same as notice information for Eligible 

 Entity. 

 

Program Participation Cap: $1,057,839,136.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $418,000,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $238,864,755.00 

Permitted Expenses: $105,431,750.00

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 

Fourth Amendment Date: March 31, 2011 

Fifth Amendment Date: May 30, 2012 

Sixth Amendment Date: September 28, 2012 

Seventh Amendment Date: April 25, 2013 

Eighth Amendment Date: September 20, 2013 

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. 
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.
4 

SERVICE SCHEDULE B-1 

Florida Hardest Hit Fund 

Unemployment Mortgage Assistance Program 

Summary Guidelines 

1. Program Overview 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. 

2. Program Goals • Preserving homeownership. 

• Protecting home values. 

3. Target Population/ 

Areas 

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. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$303,259,247 

5. Borrower Eligibility 

Criteria 

• 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 
5 

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). 

• 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. 

6. Property/Loan 

Eligibility Criteria 

• 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. 

7. Program Exclusions • 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 
6 

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. 

8. 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. 

9. 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 

10. Duration of Assistance The homeowner can receive up to twelve (12) months’ of 
7 

monthly mortgage payments from Florida Housing. 

11. Estimated Number of 

Participating 

Households 

Florida Housing anticipates that this strategy will be able to serve 

approximately 25,000 homeowners in the aggregate between 

UMAP and MLRP and over a five-year period. 

12. Program Inception/ 

Duration 

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

strategy will last for up to five years. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

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.

14. Program Interactions 

with HAMP 

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. 

15. Program Leverage 

with Other Financial 

Resources 

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. 

16. Qualify as an 

Unemployment 

Program 

 Yes  No 
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SERVICE SCHEDULE B-2 

Florida Hardest Hit Fund 

Mortgage Loan Reinstatement Program 

Summary Guidelines 

1. Program Overview 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. 

2. Program Goals • Preserving homeownership. 

• Protecting home values. 

3. Target Population/ 

Areas 

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. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$224,148,139 

5. Borrower Eligibility 

Criteria 

• 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). 
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• 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. 

6. Property/Loan 

Eligibility Criteria 

• 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. 

7. Program Exclusions • 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. 
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• 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. 

8. Structure of 

Assistance 

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. 

9. Per Household 

Assistance 

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 

10. Duration of Assistance Assistance is provided as a one-time payment. 

11. Estimated Number of 

Participating 

Households 

Florida Housing anticipates that this strategy will be able to serve 

approximately 25,000 homeowners in the aggregate between 

UMAP and MLRP over a five year period. 

12. Program Inception/ 

Duration 

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

Program will last for up to five years. 
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13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

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.

14. Program Interactions 

with HAMP 

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. 

15. Program Leverage 

with Other Financial 

Resources 

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. 

16. Qualify as an 

Unemployment 

Program 

 Yes  No 
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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#: US1:8816897v3 

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. 

2. Program Goals 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. 

3. Target 

Population/Areas

The targeted populations are households whose loans NCC is able to 

acquire under the HUD DASP sales in 2012 and 2013. 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$50,000,000.00 

5. Borrower 

Eligibility Criteria

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#: US1:8816897v3 

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. 

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s 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. 

7. Program 

Exclusions

• 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. 

8. Structure of 

Assistance

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#: US1:8816897v3 

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. 

9. Per Household 

Assistance

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

estimated median amount of assistance. 

10. Duration of 

Assistance

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

qualified applicants by NCC ReStart Program. 

11. Estimated 

Number of 

Participating 

Households

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

in avoiding imminent foreclosures. 

12. Program 

Inception/Duration

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. 

13. Program 

Interactions with 

Other Programs 

(e.g. other HFA 

programs)

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. 

14. Program 

Interactions with 

HAMP

None. 

15. Program 

Leverage with 

Other Financial 

Resources

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#: US1:8816897v3 

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. 

16. Qualify as an 

Unemployment 

Program 

 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. 
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SERVICE SCHEDULE B-4 

Florida Hardest Hit Fund 

 Principal Reduction (PR) Program 

Summary Guidelines 

1. Program 

Overview

The Principal Reduction (“PR”) Program is designed to assist severely 

underwater, low-to-moderate income homeowners who have been 

consistently “current” on their mortgage payments by providing Hardest 

Hit Funds to reduce the amount of their outstanding principal loan balance 

to an amount as close to 100% LTV as possible and reduce their monthly 

mortgage payment. By bringing such a program online in 2013, we will 

be assisting the homeowners who have stayed in their homes, remained 

committed to their neighborhoods and honored their obligation to make 

their mortgage payments. Most strategic defaulters have already 

abandoned their homes and, as home prices have now mostly stabilized 

throughout the state, there is less of a danger that home values will decline 

further after Hardest Hit Funds are made available to the homeowners. 

2. Program Goals The goal of PR is to assist severely underwater homeowners who have 

been honoring their promise to make their mortgage payments by 

reducing the amount of the unpaid principal balance on their first 

mortgage to an amount that is in line with the current value of the 

property, subject to program limits. 

In addition, the program will also further assist these homeowners by 

recasting or refinancing their loan and thus reducing their monthly 

mortgage payment. 

3. Target 

Population/Areas

Low-to-moderate income borrowers who are severely underwater (>125% 

LTV) and who have been “current” on their first mortgage payments for 

the past two years. 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$350,000,000.00 

5. Borrower 

Eligibility Criteria

Eligible borrowers under PR 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 have an Unpaid Principal Balance (“UPB”) on their first 

mortgage loan that does not exceed $350,000. 

• Must have a Loan-to-Value (“LTV”) ratio on their first mortgage 

loan of 125% or greater. 

• Must show that they have remained “current” on their payments 
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on their first mortgage loan, meaning that they cannot have been 

60 days or more late on their payments within the last two years. 

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s 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. 

• The homeowner must have acquired the property prior to January 1, 

2010. 

• The servicer must agree to recast the borrower’s first mortgage loan 

unless such loan is in a GNMA security (i.e. is an FHA, VA or 

USDA-RD loan). For GNMA-secured loans, the borrower is required 

to refinance the loan within 180 days from the date that the principal 

reduction payment is made on their behalf. 

• The borrower’s first mortgage loan must be with a regulated financial 

institution. 

7. Program 

Exclusions

• Borrowers who have a subordinate lien that is in foreclosure. 

• Borrowers with bankruptcies that have not been discharged or 

dismissed. 

• Dodd-Frank exclusion for having been convicted of a mortgagerelated felony in the past ten years. 

8. Structure of 

Assistance

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

to eligible borrowers for up to $50,000.00. The note evidencing this 

mortgage loan will carry the following terms: 

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

• Five-year term with a pro rata 20% forgiveness of the original 

mortgage loan amount on each annual anniversary date. The note 

will be forgiven on the fifth (5th) anniversary date providing the 

borrower has satisfied all terms of the loan. Exception: for 

GNMA-secured loans, if the borrower fails to refinance the loan 

within 180 days from the date that the principal reduction 

payment is made on their behalf, then the loan will only be 

forgiven 100% at the end of the fifth year (no incremental 

forgiveness). 

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 are due to satisfy the amount of the 

loan that has not been forgiven. 

If there are insufficient or no net proceeds available, all or a portion of the 

note will be forgiven as not to create additional hardships on the 
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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. 

9. Per Household 

Assistance

Up to $50,000.00 or the amount necessary to reduce the UPB on the first 

mortgage loan to 100% LTV, whichever is less. If the household has 

received HHF assistance under any other HHF program, the maximum 

amount of all assistance may not exceed $50,000. The minimum amount 

of assistance needed must equal or exceed $5,000. 

10. Duration of 

Assistance

PR assistance will be disbursed in full to the borrower’s servicer upon 

loan closing and agreement of the servicer to accept the PR funds. 

11. Estimated 

Number of 

Participating 

Households

It is anticipated that the PR Program will assist approximately 10,000 

households. 

12. Program 

Inception/Duration

The PR Program will begin in August 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. 

13. Program 

Interactions with 

Other Programs 

(e.g. other HFA 

programs)

The PR Program will most likely not interact with Florida’s other current 

HHF programs. If the household has received HHF assistance under any 

other HHF Program, the maximum amount of all assistance may not 

exceed $50,000. 

14. Program 

Interactions with 

HAMP

None. 

15. Program 

Leverage with 

Other Financial 

Resources

Servicers will be required to recast a borrower’s first mortgage loan, 

except if the loan is in a GNMA security (i.e. FHA, VA or USDA-RD 

loans). Borrowers with GNMA-secured loans will be required to execute a 

streamline (or equivalent) refinance to receive the benefit of incremental 

forgiveness of the HHF loan. Both the recast and the refinance will result 

in a lower monthly mortgage payment for the borrower. 

16. Qualify as an 

Unemployment 

Program 

 Yes  No 
Doc#: US1:8816897v3 

SERVICE SCHEDULE B-5 

Florida Hardest Hit Fund 

Elderly Mortgage Assistance Program (Elmore) 

Summary Guidelines 

1. Program 

Overview

The Elderly Mortgage Assistance Program (“Elmore”) is designed to 

assist senior homeowners in Florida who are facing foreclosure due to the 

inability to pay their property taxes, homeowners’ insurance and 

homeowners’ and/or condo association dues (“Property Charges”) now 

that the senior homeowners have been paid all the equity that they were 

due under the terms of their Home Equity Conversion Mortgage (HECM), 

as well as other types of “Reverse Mortgages”. 

The Florida Housing Finance Corporation (“Florida Housing”) will use 

HHF funds to provide an up-front, forgivable loan to eligible borrowers to 

be used to (i) repay the amounts advanced on their behalf by their 

mortgage loan servicer for the payment of Property Charges and (ii) pay 

the anticipated amount of upcoming Property Charges for a set period of 

time or until they recover from the hardship. 

2. Program Goals The goal of the Elmore Program is to help senior homeowners remain in 

their homes. 

3. Target 

Population/Areas

Low-to-moderate income senior Reverse Mortgage borrowers who have 

suffered a hardship that has resulted in the inability to repay the amounts 

advanced on their behalf by their mortgage loan servicer for the payment 

of Property Charges. 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses)

$25,000,000.00 

5. Borrower 

Eligibility Criteria

Eligible borrowers under Elmore 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 have suffered a hardship that has resulted in the inability to 

repay the amounts advanced on their behalf by their mortgage loan 

servicer for the payment of Property Charges. Such hardships may 

include: 

o Medical expenses; 

o Home repairs for systems or appliances or due to a natural 

disaster (fire, hurricane, etc.); 

o Reduction in household income; 

o Unemployment or underemployment; 

o Divorce; 
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o Disability and the resulting expenses for specialized 

equipment, care or retrofitting for the home; and 

o Victimization by burglary, fraud or financial exploitation.

• Must show a reasonable likelihood of recovering from the 

hardship so as to afford the Property Charges on an ongoing basis 

using methods of analysis specified in the program guidelines.

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s principal residence, located in Florida 

and may not be abandoned, vacant or condemned. 

• The property must be currently subject to a reverse mortgage. 

• The borrower’s Reverse Mortgage must be serviced by a HUDapproved HECM servicer or a regulated financial institution. 

7. Program 

Exclusions

• Borrowers who have a subordinate lien that is in foreclosure. 

• Borrowers with bankruptcies that have not been discharged or 

dismissed. 

• Dodd-Frank exclusion for having been convicted of a mortgagerelated felony in the past ten years. 

8. Structure of 

Assistance

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

to eligible borrowers for up to $25,000 depending upon individual 

circumstances. The note evidencing the subordinate mortgage loan will 

carry the following terms: 

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

• Two-year term with a pro rata 50% forgiveness of the original 

mortgage loan amount on each annual anniversary date. The note 

will be forgiven on the second (2nd) anniversary date providing 

the borrower has satisfied all terms of the loan. 

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

“due on sale” and any net proceeds are due to satisfy the amount of the 

loan that has not been forgiven. 

If there are insufficient or no net proceeds available, all or a portion of the 

note will be forgiven so 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 and not later expended will be returned to 

Treasury after December 31, 2017. 

9. Per Household 

Assistance

The lesser of $25,000.00 or the amount necessary to (i) repay the amounts 

advanced on the borrower’s behalf by its mortgage loan servicer for the 

payment of Property Charges and (ii) pay anticipated Property Charges 

for up to twelve (12) months or until recovery from the hardship. If the 

household has received HHF assistance under any other HHF program, 

the maximum amount of all assistance may not exceed $50,000. 

10. Duration of Assistance will be disbursed in full to the borrower’s servicer upon loan 
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Assistance closing and agreement of the servicer to accept the HHF funds. 

11. Estimated 

Number of 

Participating 

Households

It is anticipated that the Elmore Program will assist approximately 2,500 

senior households in Florida who are delinquent under the terms of their 

reverse mortgage. 

12. Program 

Inception/Duration

The Elmore Program will begin in October 2013 and it is projected that 

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

13. Program 

Interactions with 

Other Programs 

(e.g. other HFA 

programs)

The Elmore Program will most likely not interact with Florida’s other 

current HHF programs. 

14. Program 

Interactions with 

HAMP

None. 

15. Program 

Leverage with 

Other Financial 

Resources

FHFC is partnering with the Florida Department of Elder Affairs, local 

Area Agencies on Aging, Fannie Mae, the National Council on Aging, 

Credability and others to coordinate the reinstatement that is being done 

through the Elmore Program with other available resources. Specifically, 

senior homeowners will be screened for eligibility for other assistance, 

such as assistance with the costs of food and medicine, to free up income 

that may be used towards future property tax and homeowners’ insurance 

bills. This “benefits check-up” will show whether there is a reasonable 

likelihood that the senior homeowners will be able to afford their Property 

Charges on an ongoing basis. 

16. Qualify as an 

Unemployment 

Program 

 Yes  No 
Doc#: US1:8816897v3 

SCHEDULE C 

PERMITTED EXPENSES 

Florida 

One-time / Start-Up Expenses: 

Initial Personnel $0.00

Building, Equipment, Technology $20,750.00

Professional Services $50,000.00

Supplies / Miscellaneous $1,000.00

Marketing /Communications $10,000.00

Travel $20,000.00

Website development /Translation $183,500.00

Contingency $0.00

Subtotal $285,250.00

Operating / Administrative 

Expenses: 

Salaries $11,130,000.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $2,390,000.00

Travel $535,000.00

Buildings, Leases & Equipment $1,015,000.00

Information Technology & 

Communications $17,972,500.00

Office Supplies/Postage and 

Delivery/Subscriptions $1,115,000.00

Risk Management/ Insurance $140,000.00

Training $1,245,000.00

Marketing/PR $134,000.00

Miscellaneous $970,000.00

Subtotal $36,646,500.00

Transaction Related Expenses: 

Recording Fees $4,200,000.00

Wire Transfer Fees $600,000.00

Counseling Expenses 

File Intake $0.00

Decision Costs $22,500,000.00

Successful File $11,200,000.00

Key Business Partners On-Going $30,000,000.00

Subtotal $68,500,000.00

Grand Total $105,431,750.00

% of Total Award 9.97%

Award Amount $1,057,839,136