Second Amendment to HPA — Rhode Island 

TAMPA/134438.2

SECOND AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Second Amendment to Commitment to Purchase Financial Instrument and HFA 

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

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

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

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

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

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

Recitals 

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

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

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

Purchase Financial Instrument and HFA Participation Agreement (the “First Amendment”; and 

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

Amendment Date, all as set forth on Schedule A, attached hereto in connection with Treasury’s 

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

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

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

from time to time (“EESA”); 

WHEREAS, on September 24, 2010 Treasury indicated that it would make $3.5 billion of 

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

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

received HHF Program funding for such purposes; 

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

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

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

Program funds; 

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

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

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

Agreement 

1. Amendments

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

Current HPA, as further amended by this Second Amendment; and all references in the 
- 2 - 

TAMPA/134438.2 

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

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

amended by this Second Amendment. 

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

and replaced with Schedule A attached to this Second Amendment. 

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

and replaced with Schedule B attached to this Second Amendment. 

2. Representations, Warranties and Covenants

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

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

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

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

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

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

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

Event of Default under the HPA. 

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

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

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

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

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

Entity is in breach of any such covenant. 

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

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

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

hereunder and thereunder. 

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

Second Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Administrative Expenses

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

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

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

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

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

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

TAMPA/134438.2 

4. Miscellaneous

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

accurate and are incorporated herein by this reference. 

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

them in the HPA. 

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

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

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

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

jurisdiction. 

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

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

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

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

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

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Richard Godfrey By: 

Name: Richard Godfrey Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

RHODE ISLAND HOUSING AND 

MORTGAGE FINANCE CORPORATION 

By: /s/ Richard Godfrey 

Name: Richard Godfrey 

Title: Executive Director 

 

TAMPA/134438.2 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/134438.2 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Rhode Island Housing and Mortgage Finance Corporation1

Corporate or other organizational form: a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws.

Jurisdiction of organization: Rhode Island

Notice Information: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 References in the Agreement to the term “HFA” shall mean the Rhode Island Housing and Mortgage Finance 

Corporation (“Rhode Island Housing”) 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 Rhode Island Housing, in its capacity as Eligible Entity as 

such term is used in the Agreement. 
TAMPA/134438.2 

 

 

 

 

 

 

 

HFA Information: 

Name of HFA: Rhode Island Housing and Mortgage Finance Corporation1

Organizational form: a public corporation of the state of Rhode 

Island, established and existing under the 

Rhode Island Housing and Mortgage Finance 

Corporation Act, as amended Chapter 42-55, 

State of Rhode Island General Laws. 

Date of Application: May 27, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

Program Participation Cap: $79,351,573.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $43,000,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $13,570,770.00 

Permitted Expenses: $9,198,042.00

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 
TAMPA/134438.2 

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

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 
TAMPA/134438.2 4 

SCHEDULE B

SERVICE SCHEDULES

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

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

Schedule B-1, Service Schedule B-2, et. seq.), which collectively comprise Schedule B to the 

HPA. 
TAMPA/134438.2 5 

SERVICE SCHEDULE B-1 

Rhode Island Housing’s 

Loan Modification Assistance for HAMP Customers (LMA-HAMP) 

Summary Guidelines 

1. Program Overview The Loan Modification Assistance for HAMP Customers (LMAHAMP) will provide up to $6,000 in assistance to allow 

homeowners to qualify for a HAMP modification. There is 

evidence that, in many circumstances, less than $10,000 can 

reverse an adverse decision arising out of the HAMP qualification 

analysis. 

LMA-HAMP is designed to address items that may be negatively 

impacting the HAMP net present value (NPV) analysis: 

• insufficient income: unemployment or underemployment 

• insufficient equity 

• delinquent mortgage payments including escrows 

• escrow shortage payments 

• payment of non-escrowed taxes or insurances 

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

• satisfaction of subordinate liens, superior real estate tax liens 

or other liens related to the property 

This assistance is only available after the lender/servicer has 

exhausted all steps required under the HAMP waterfall process 

and has not been able to achieve a modification. 

2. Program Goals To help Rhode Island homeowners who cannot qualify for a 

HAMP modification because they do not have sufficient resources 

to achieve HAMP requirements. 

3. Target 

Population/Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities 

with the highest unemployment rates. Using a combination of the 

number of delinquencies and the number of unemployed, it is 

estimated that 70% of all Hardest-Hit funds will be spent in these 

twelve communities. Thirty-one of the thirty-nine communities in 

Rhode Island experienced an unemployment rate of 12% or higher 

in January of 2010, representing 85.45% of the state’s population. 

Therefore, we anticipate that 85% of all Hardest-Hit funding will 

be targeted to communities with unemployment rates of greater 

than 12%. 

In addition to targeted populations/areas, up to $30,000 in total 
TAMPA/134438.2 6 

assistance may be available through the TIHA program for 

targeted homeowners who are at risk of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$6,900,000.00 

5. Borrower Eligibility 

Criteria 

Eligible borrowers must have monthly mortgage payments that are 

greater than 31 percent of their gross monthly income and must be 

able to document hardship circumstances that have occurred 

subsequent to the making of the loan and places the borrower at 

risk of foreclosure. Borrower will be required to complete a 

Hardship Affidavit. A hardship is defined as an uncontrollable 

increase in housing expense or an uncontrollable decrease in 

income that places the homeowner at risk of foreclosure. Examples 

of a hardship include: underemployment, reduction of income, 

unemployment, death or disability in family, unforeseen medical 

expense, and costly home repairs necessary for habitability. A loss 

of home value does not, unto itself, constitute a financial hardship, 

but may be considered to be a contributing factor in the evaluation 

of the request for assistance. Final HHF assistance must result in 

debt-to-income ratios not greater than 31% housing debt-toincome ratio and 60% total debt-to-income ratio. 

Assistance is available to homeowners who have a documented 

hardship. Unemployment will be verified in one of two ways: by 

obtaining a copy of the homeowner’s unemployment benefit rate 

decision letter and copies of 3 months bank statements to verify 

the unemployment direct deposit, or by online, automated 

verification through the Rhode Island Department of Employment 

and Training. 

Rhode Island’s Mortgage Revenue Bond income limits apply to all 

assistance programs. These eligibility limits are based on current 

income and family size. They are generally up to 140% of area 

median income. Currently, one or two person households can earn 

up to $87,800. Households of three or more can earn up to 

$102,400. 

Borrower is able to satisfy program guidelines. 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums provided the original 

mortgage was not greater than $729,750. 

Borrower’s lender must agree in writing to mediation with a HUDapproved counseling agency if after receipt of HHF assistance the 
TAMPA/134438.2 7 

borrower subsequently becomes more than 60 days delinquent and 

is at risk of foreclosure within the five-year modification period. 

7. Program Exclusions Homeowner owns other real property. 

Homeowners may not have cash reserves, non-retirement liquid 

assets, exceeding 3 months of principal, interest, taxes and 

insurance. 

8. Structure of 

Assistance 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. Recycled funds will be returned to the HHF 

Program for additional use through December 31, 2017. After 

December 31, 2017 all repayments will be returned to Treasury. 

9. Per Household 

Assistance 

LMA-HAMP program will provide up to $6,000 in assistance. 

Additional aid may be available to targeted homeowners under 

Temporary and Immediate Homeowner Assistance (TIHA). 

10. Duration of 

Assistance 

The duration of the assistance is determined by the individual need 

of each eligible borrower. Assistance will be paid directly to the 

existing servicer and may be distributed in a lump sum or on a 

monthly basis until the maximum program amount is reached. 

11. Estimated Number of 

Participating 

Households 

Up to 1,150 households will be served. 

12. Program Inception/

Duration 

30 - 45 days from Treasury approval to December 31, 2012. 

13. Program Interactions 

with Other HFA

Programs 

In addition to the $6,000 permitted under this program, an 

additional $2,500 may be available under the Temporary and 

Immediate Homeowner Assistance (TIHA) program for special 

circumstances, such as where the borrower has insufficient funds 

to provide the match. 

Also, in special circumstances, TIHA may provide up to $30,000 

aid to targeted homeowners who are at risk of foreclosure. 

14. Program Interactions 

with HAMP 

Funds will only be provided under this program to allow the 

homeowner to qualify for a HAMP modification provided that: (i) 

the Lender can document that it has made contributions having a 

value of at least an equal amount (one-for-one match), (ii) the 

borrower contributes at least 20% of the advanced amount, (if 

borrowers’ cash reserves, excluding retirement assets, are 
TAMPA/134438.2 8 

insufficient to contribute to the 20% match, borrower can access 

these funds through our Temporary and Immediate Homeowner 

Assistance program) and (iii) a HAMP modification agreement is 

signed by the borrower and lender. The lender contribution may be 

in the form of an interest rate reduction, extension of the mortgage 

term or principal forbearance or forgiveness. The timing of the 

lender contribution will be at closing of the modification. 

Forgiveness or forbearance of late fees or costs of collection will 

not be counted toward the match. 

15. Program Leverage 

with Other Financial 

Resources 

This program is designed to act as a gateway to HAMP. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134438.2 9 

SERVICE SCHEDULE B-2 

Rhode Island Housing’s 

Loan Modification Assistance for Non-HAMP Customers (LMA-Non-HAMP) 

Summary Guidelines 

1. Program Overview The Loan Modification Assistance for Non-HAMP Customers 

(LMA-Non-HAMP) will provide up to $6,000 in assistance to allow 

homeowners to qualify for a modification. 

Many local and regional lenders do not participate in the HAMP 

program. Many of their customers are also struggling to meet 

mortgage payments. 

LMA-Non-HAMP will provide up to $6,000 to assist the borrower 

and lender to achieve a loan modification. 

Funding can be used to address: 

• insufficient income: unemployment or underemployment 

• insufficient equity 

• delinquent mortgage payments including escrows 

• escrow shortage payments 

• payment of non-escrowed taxes or insurances 

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

• satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

2. Program Goals This program is designed to help stabilize Rhode Island 

homeowners who have mortgages with lender/servicers not 

participating in the HAMP program. This assistance will temporarily 

adjust a homeowner’s payment to an affordable level for a minimum 

12 month period. 

3. Target 

Population/Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities with 

the highest unemployment rates. Using a combination of the 

number of delinquencies and the number of unemployed, it is 

estimated that 70% of all Hardest-Hit funds will be spent in these 

twelve communities. Thirty one of the thirty nine communities in 

Rhode Island experienced an unemployment rate of 12% or higher 

in January of 2010, representing 85.45% of the state’s population. 

Therefore, we anticipate that 85% of all Hardest-Hit funding will be 

targeted to communities with unemployment rates of greater than 

12%. 

In addition to targeted populations/areas, up to $30,000 in total 
TAMPA/134438.2 10 

assistance may be available through the TIHA program for targeted 

homeowners who are at risk of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$9,000,000.00 

5. Borrower 

Eligibility Criteria 

Eligible borrower with current gross annual income over $35,000 

must have a monthly mortgage payment that is greater than 35% of 

their gross monthly income and must be able to document hardship 

circumstances that have occurred subsequent to the making of the 

loan and places the borrower at risk of foreclosure. Final HHF 

assistance must result in debt-to-income ratios not greater than 35% 

housing debt-to-income ratio and 60% total debt-to-income ratio. 

If borrower current gross annual income is $35,000 or less, they 

must have a monthly mortgage payment that is greater than 31% of 

their gross monthly income and must be able to document a hardship 

that has subsequently placed them at risk of foreclosure. Final HHF 

assistance must result in debt-to-income ratios not greater than 31% 

housing debt-to-income ratio and 60% total debt-to-income ratio. 

Unemployment will be verified in one of two ways: by obtaining a 

copy of the homeowner’s unemployment benefit rate decision letter 

and copies of 3 months bank statements to verify the unemployment 

direct deposit, or by online, automated verification through the 

Rhode Island Department of Employment and Training.

Borrower will be required to complete a Hardship Affidavit. A 

hardship is defined as an uncontrollable increase in housing expense 

or an uncontrollable decrease in income that places the homeowner 

at risk of foreclosure. Examples of a hardship include: 

underemployment, reduction of income, unemployment, death or 

disability in family, unforeseen medical expense, and costly home 

repairs necessary for habitability. A loss of home value does not, in 

itself, constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for assistance. 

Assistance is available to homeowners who have exhausted all 

options in meeting their mortgage obligation. 

Rhode Island’s Mortgage Revenue Bond income limits apply to all 

assistance programs. These eligibility limits are based on current 

income and family size. They are generally up to 140% of area 

median income. Currently, one or two person households can earn 

up to $87,800. Households of three or more can earn up to 

$102,400. 
TAMPA/134438.2 11 

Borrower is able to satisfy program guidelines. 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums provided the original 

mortgage was not greater than $729,750. 

Borrower’s lender must agree in writing to mediation with a HUDapproved counseling agency if after receipt of HHF assistance the 

borrower subsequently becomes more than 60 days delinquent and is 

at risk of foreclosure within the stabilization period. 

7. Program 

Exclusions 

Homeowner owns other real property 

Homeowners may not have cash reserves or non-retirement liquid 

assets exceeding 3 months of principal, interest, taxes and insurance. 

Not available to HAMP lender/servicers 

8. Structure of 

Assistance 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. Recycled funds will be returned to the HHF 

Program for additional use through December 31, 2017. After 

December 31, 2017 all repayments will be returned to Treasury. 

9. Per Household 

Assistance 

LMA-Non-HAMP will provide up to $6,000 to assist the borrower 

and lender to achieve a loan modification. Additional aid may be 

available to targeted homeowners under Temporary and Immediate 

Homeowner Assistance (TIHA). 

10. Duration of 

Assistance 

The duration of the assistance is determined by the individual need 

of each eligible borrower. Assistance will be paid directly to the 

existing servicer and may be distributed in a lump sum or on a 

monthly basis until the maximum program amount is reached. 

11. Estimated Number 

of Participating 

Households 

Up to 1,500 households will be served 

12. Program 

Inception/Duration 

30 – 45 days from Treasury approval to 24 months 

13. Program 

Interactions with 

Other HFA

In addition to the $6,000 permitted under this program, an additional 

$2,500 may be available under the Temporary and Immediate 

Homeowner Assistance (TIHA) program for special circumstances, 

such as where the borrower has insufficient funds to provide the 
TAMPA/134438.2 12 

Programs match, where there may be a third-party creditor, or when an escrow 

shortfall needs addressing. 

Also, in special circumstances, TIHA may provide up to $30,000 aid 

to targeted homeowners who are at risk of foreclosure. 

14. Program 

Interactions with 

HAMP 

None 

15. Program Leverage 

with Other 

Financial 

Resources 

This program is designed for homeowners that have mortgages with 

local and regional lender/servicers who do not participate in HAMP. 

As a condition of participating in this program, lenders must agree 

to assume the full cost of modifying the loan, for a minimum of 12 

months, to a payment amount that is 38% of the borrower’s income 

(“debt-to-income ratio” or “DTI”) based on the borrower’s income 

at the time when the loan was originally made. Assistance under this 

program will be made to the lenders to further modify the loan to 

reduce the payment to a level that is 35% or 31% housing debt to 

income ratio based on the borrower’s current income. The lender 

will match HHF funds on a one-for-one basis to fund these 

additional reductions, subject to a $6,000 cap of HHF assistance. 

The lender contribution may be in the form of an interest rate 

reduction, extension of the mortgage term or principal forbearance 

or forgiveness. Forgiveness or forbearance of late fees or costs of 

collection will not count toward the match. The timing of the lender 

contribution will be at closing of the modification. The lender must 

agree in writing to mediation with a HUD-approved counseling 

agency if the borrower becomes more than 60 days delinquent and is 

at risk of foreclosure during the subsequent 24 month period before 

it can proceed to foreclosure. 

Lenders participating in this program who demonstrate local 

servicing capability may access the program directly. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134438.2 13 

SERVICE SCHEDULE B-3 

Rhode Island Housing’s 

Temporary and Immediate Homeowner Assistance (TIHA) 

Summary Guidelines 

1. Program Overview The Temporary and Immediate Homeowner Assistance (TIHA) will 

provide up to $6,000 in homeowner retention assistance. Up to 

$2,500 of TIHA program funds may be used if a homeowner is 

receiving assistance through LMA-HAMP or LMA-Non-HAMP. 

Also, in special circumstances, up to $30,000 aid may be available 

to targeted homeowners who are at risk of foreclosure. 

Targeted homeowners include: 

 HHF-eligible homeowners age 62 and over who are unable to 

refinance an unaffordable mortgage and need assistance to meet 

the lender’s minimum refinancing requirements 

 HHF-eligible homeowners who have a deed restricted property 

and have received federal or state subsidies and are at risk of 

foreclosure. 

 HHF-eligible multi-family property homeowners who have 

experienced a loss of rental income that has compromised their 

ability to afford their mortgage payment 

 HHF-eligible homeowners who have received FEMA or other 

federal flood assistance and still need assistance due to 

extensive property damage 

There are many situations where payments made by or on behalf of 

the borrower toward the first mortgage are not sufficient to prevent 

an avoidable foreclosure. These include, but are not limited to, 

situations where a borrower has had a temporary loss of income or 

increase in expenses that have created a first mortgage delinquency 

or another delinquency that has or may result in a default under the 

first mortgage, which, if not cured, may result in foreclosure. This 

situation could arise even when the borrower’s current income may 

be sufficient to pay the first mortgage going forward. There are also 

situations where a borrower cannot provide the matching funds 

needed under LMA-HAMP or LMA-Non-HAMP, or where the 

borrower needs temporary supplemental mortgage payment 

assistance for the borrower and lender to agree on a mortgage 

modification. This is frequently the result of a temporary 

interruption in or reduction of employment. 

As such, these funds can be used by homeowners who may or may 
TAMPA/134438.2 14 

not qualify for permanent modifications. Funding can be used to 

address: 

• insufficient income: unemployment or underemployment 

• insufficient equity 

• delinquent mortgage payments including escrows 

• escrow shortage payments 

• payment of non-escrowed taxes or insurances 

• satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

• satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property

2. Program Goals To help a homeowner avoid foreclosure when faced with temporary 

or immediate crisis. 

3. Target 

Population/Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities with 

the highest unemployment rates. Using a combination of the 

number of delinquencies and the number of unemployed, it is 

estimated that 70% of all Hardest-Hit funds will be spent in these 

twelve communities. Thirty-one of the thirty-nine communities in 

Rhode Island experienced an unemployment rate of 12% or higher 

in January of 2010, representing 85.45% of the state’s population. 

Therefore, we anticipate that 85% of all Hardest-Hit funding will be 

targeted to communities with unemployment rates of greater than 

12%. 

In addition to targeted populations/areas, up to $30,000 in total 

assistance may be available for targeted homeowners who are at risk 

of foreclosure. 

4. Program Allocation

(Excluding 

Administrative 

Expenses) 

$37,182,761.00 

5. Borrower 

Eligibility Criteria 

Eligible borrowers must have monthly mortgage payments that are 

greater than 31% of their gross monthly income or 35% if 

participating in LMA-Non-HAMP and their income is greater than 

$35,000, and must be able to document a hardship that has 

subsequently placed them at risk of foreclosure. 

Borrower must contribute, at a minimum, at least 31% of their gross 

monthly income or 35% if participating in LMA-Non-HAMP and 

their income is greater than $35,000. 

With this assistance, the borrowers overall debt–to-income ratio 
TAMPA/134438.2 15 

cannot exceed 60%. 

Unemployment will be verified in one of two ways: by obtaining a 

copy of the homeowner’s unemployment benefit rate decision letter 

and copies of 3 months bank statements to verify the unemployment 

direct deposit, or by online, automated verification through the 

Rhode Island Department of Employment and Training.

Borrower must be able to document the reason for the hardship and 

will be required to complete a Hardship Affidavit. A hardship is 

defined as an uncontrollable increase in housing expense or an 

uncontrollable decrease in income that has placed the homeowner at 

risk of foreclosure. Additionally, the homeowners combined 

income loss or expense increase under the TIHA program must be 

greater than the indicated percentage of income at the time the loan 

was made according to the following schedule: 

Income Level Combined minimum income loss or 

cost increase 

less than $35,000 up to 5% 

$35,001 to $50,000 5% 

$50,001 to $65,000 10% 

$65,001 to $80,000 15% 

above $80,000 20% 

Examples of a hardship include: Underemployment, reduction of 

income, unemployment, death or disability in family, unforeseen 

medical expense, and costly home repairs necessary for habitability. 

A loss of home value does not, unto itself, constitute a financial 

hardship, but may be considered to be a contributing factor in the 

evaluation of the request for assistance. 

Assistance is available to homeowners who have exhausted all 

options in meeting their mortgage obligation. 

Rhode Island’s Mortgage Revenue Bond income limits apply to all 

assistance programs. These eligibility limits are based on current 

income and family size. They are generally up to 140% of area 

median income. Currently, one or two person households can earn 

up to $87,800. Households of three or more can earn up to 

$102,400. 

Borrower is able to satisfy program guidelines. 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums provided the original 

mortgage was not greater than $729,750. 
TAMPA/134438.2 16 

7. Program 

Exclusions 

Homeowner owns other real property. 

Homeowners may not have cash reserves, non-retirement liquid 

assets, exceeding 3 months of principal, interest, taxes and 

insurance. 

8. Structure of 

Assistance 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. Borrowers who refinance, transfer title or sell the 

property within the five-year period must repay the loan on a prorata basis provided there is sufficient equity from such refinance, 

title transfer or sale. Recycled funds will be returned to the HHF 

Program for additional use through December 31, 2017. After 

December 31, 2017 all repayments will be returned to Treasury. 

9. Per Household 

Assistance 

The amount of assistance under TIHA is $6,000 per household, but 

is limited to $2,500 when the maximum assistance has been 

provided under LMA-HAMP or LMA Non-HAMP. Up to $30,000 

in assistance may be available for targeted homeowners who are at 

risk of foreclosure. 

10. Duration of 

Assistance 

The duration of the assistance is determined by the individual need 

of each eligible borrower. Assistance will be paid directly to the 

existing servicer and may be distributed in a lump sum or on a 

monthly basis until the maximum program amount is reached. 

11. Estimated Number 

of Participating 

Households 

Up to 1,800 households will be served 

12. Program 

Inception/Duration 

30 – 45 days from Treasury approval to 24 months 

13. Program 

Interactions with 

Other HFA 

Programs 

Up to $2,500 of TIHA program funds may be used if a homeowner 

is receiving assistance through LMA-HAMP or LMA-Non-HAMP. 

The combined assistance permitted under these programs is $8,500 

per household and may be made on a lump sum or monthly basis. 

14. Program 

Interactions with 

HAMP 

This program complements HAMP by providing additional 

resources to reverse a negative HAMP decision. It also 

complements the Unemployment Program by providing payment 

assistance to unemployed homeowners. 

15. Program Leverage 

with Other 

Financial 

Resources 

Leverage with LMA-HAMP and LMA-Non-HAMP 

16. Qualify as an 

Unemployment 

 Yes ; No 
TAMPA/134438.2 17 

Program 
TAMPA/134438.2 

SERVICE SCHEDULE B-4 

Rhode Island Housing’s 

Moving Forward Assistance 

Summary Guidelines 

1. Program Overview The Moving Forward Assistance Program (MFA) will provide 

eligible homeowners with up to $4,000 of assistance when it is 

determined that they can no longer afford to stay in their home. 

Additionally in special circumstances, up to $30,000 aid may be 

available through the TIHA program to facilitate a short sale or 

deed in lieu of foreclosure for homeowners of targeted 

affordable properties that are at risk of foreclosure. 

Targeted homeowners are: 

HHF eligible homeowners who have a deed restricted property 

and have received federal or state subsidies and are at risk of 

foreclosure. 

In some circumstances the best outcome for borrower, lender 

and community may be for the borrower to relinquish the 

property in an orderly process. MFA assistance can take the 

form of a contribution to the primary or secondary lender to 

help facilitate a short sale or deed in lieu of foreclosure. It could 

also be used to provide the borrower relocation assistance 

including a security deposit/first and last months rent, moving 

expenses, or utility deposit MFA assistance could be used to 

satisfy subordinate or superior real estate tax liens against the 

real estate that prevent the homeowner from transferring clear 

title. These liens may include judgments, mechanics liens, 

defects, inheritance taxes, water fees, fire district or sewer fees, 

condo fees, PUD lien sale or other legal encumbrances on the 

property or to satisfy judgments or loan deficiency balances 

resulting from a short sale.

Funds will be provided directly to the ultimate recipient (i.e. 

lender, apartment owner), not through the borrower. 

2. Program Goals Rhode Island Housing envisions that these monies would be 

used to complement other federal or lender programs designed 

specifically to stabilize communities by providing assistance to 

borrowers who have suffered a financial hardship and as a 

result are no longer financially able to stay in their home. 
TAMPA/134438.2 

3. Target 

Population/Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities 

with the highest unemployment rates. Using a combination of 

the number of delinquencies and the number of unemployed, it 

is estimated that 70% of all Hardest-Hit funds will be spent in 

these twelve communities. Thirty one of the thirty nine 

communities in Rhode Island experienced an unemployment 

rate of 12% or higher in January of 2010, representing 85.45% 

of the state’s population. Therefore, we anticipate that 85% of 

all Hardest-Hit funding will be targeted to communities with 

unemployment rates of greater than 12%. 

Additionally in special circumstances, up to $30,000 aid may be 

available through the TIHA program to homeowners of targeted 

properties that are at risk of foreclosure. 

4. Program Allocation

(Excluding 

Administrative 

Expenses) 

$3,500,000.00 

5. Borrower 

Eligibility Criteria 

Borrower must be able to document the reason for the hardship 

and will be required to complete a Hardship Affidavit. A 

hardship is defined as an uncontrollable increase in housing 

expense or an uncontrollable decrease in income that has placed 

the homeowner at risk of foreclosure. Examples of a hardship 

include: Underemployment, reduction of income, 

unemployment, death or disability in family, unforeseen 

medical expense, and costly home repairs necessary for 

habitability. A loss of home value does not, unto itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for 

assistance. 

Unemployment will be verified in one of two ways: by 

obtaining a copy of the homeowner’s unemployment benefit 

rate decision letter and copies of 3 months bank statements to 

verify the unemployment direct deposit, or by online, 

automated verification through the Rhode Island Department of 

Employment and Training.

Assistance is available to homeowners who have a documented 

hardship. 

Rhode Island’s Mortgage Revenue Bond income limits apply to 

all assistance programs. These eligibility limits are based on 
TAMPA/134438.2 

current income and family size. They are generally up to 140% 

of area median income. Currently, one or two person 

households can earn up to $87,800. Households of three or 

more can earn up to $102,400. 

Borrower is able to satisfy program guidelines. 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums provided the 

original mortgage was not greater than $729,750. 

7. Program 

Exclusions 

Homeowner owns other real property. 

Homeowners accessing these funds may not have cash reserves, 

non-retirement liquid assets, exceeding $1,500. 

8. Structure of 

Assistance 

None 

9. Per Household 

Assistance 

Assistance under this program will be limited up to $4,000 per 

family; up to $1,500 to facilitate a short sale or deed in lieu of 

foreclosure and up to $2,500 to assist the homeowner with 

relocation. Up to $30,000 aid may be available through the 

TIHA program to homeowners of targeted properties. 

10. Duration of 

Assistance 

Participation in this program is a one-time payment made to 

directly to the ultimate recipient (i.e. lender, apartment owner). 

11. Estimated Number 

of Participating 

Households 

Approximately 550 

12. Program Inception/

Duration 

30 - 45 days from Treasury approval to 24 months 

13. Program Leverage 

/Interactions with 

Other HFA 

Programs 

MFA can provide assistance, up to the household cap, if a 

homeowner has used other HHF programs and subsequently 

can no longer afford to stay in the home. 

Additionally in special circumstances, up to $30,000 aid may be 

available through the TIHA program to homeowners of targeted 

properties. 

14. Program 

Interactions with 

HAMP 

MFA can provide assistance, up to the household cap, if a 

homeowner has obtained a HAMP or other HHF program 

assistance and subsequently can no longer afford to stay in the 

home. 

15. Program Leverage 

with Other 

Financial 

Rhode Island Housing intends to leverage its current emergency 

and rental assistance programs which include, 

www.homelocatorri.net and other relocation services which 
TAMPA/134438.2 

Resources include Homeless Protection and Rapid Placement (HPRP) and 

RoadHome Emergency Housing Assistance. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134438.2 

SERVICE SCHEDULE B-5 

Rhode Island Housing 

Mortgage Payment Assistance - Unemployed Program (MPA-UP) 

Summary Guidelines 

1. Program Overview The Mortgage Payment Assistance - Unemployed Program 

(MPA-UP) will provide up to $6,000 in assistance to help 

unemployed homeowners make partial mortgage payments 

while they search for a new job or participate in a job training 

program. 

Unemployed homeowners will be screened for and directed to 

this program through the Hardest Hit Fund Rhode Island 

(HHFRI) Intake process. The number of months and terms of 

assistance will be specified in the HHFRI Action Plan prepared 

by the lender/servicer or counselor, agreed to by the homeowner 

and approved by Rhode Island Housing. 

Homeowner will be required to contribute the greater of 25% of 

their total mortgage payment (PITI) or 31% of the total gross 

monthly household income toward their mortgage obligation as 

agreed to by the HHFRI Action Plan. 

MPA-UP assistance will be used to pay partial mortgage and 

mortgage-related expenses until the maximum household 

assistance amount is reached or the Homeowner returns to work. 

The homeowner may continue receiving assistance for up to 2 

months after reemployment as long as the program household 

assistance limit has not been reached. Assistance funds will be 

paid directly to the lender/servicers. Rhode Island Housing or its 

designee will collect the homeowner’s portion of the payment 

only if the Lender/Servicer will not accept a partial payment. 

MPA-UP assistance may be used to address the following 

mortgage related expenses: 

• Delinquent payments from periods of unemployment 

• Escrows 

• Property taxes and insurance 

• Condo association fees 

• Subordinate liens 
TAMPA/134438.2 

This Program will work as both a stand alone program or as a 

gateway into other HHFRI programs aimed at achieving a 

reinstatement or a sustainable loan modification. Homeowners 

may receive assistance from one or more HHFRI Programs. The 

HHFRI Action Plan will determine type(s) and amount of 

assistance for each homeowner, up to the maximum total benefit 

amount for which the homeowner qualifies. 

2. Program Goals To assist unemployed homeowners to remain in their homes and 

make on-time, monthly payments on their mortgages during 

unemployment so that they may avoid delinquency and 

foreclosure; and to help stabilize homeowners so that they can 

obtain a sustainable loan modification, if necessary, after they 

have regained employment. 

3. Target Population / 

Areas 

An analysis of all Rhode Island cities and towns reveals that the 

twelve communities with the highest rates of mortgage 

delinquencies and foreclosures are also among the communities 

with the highest unemployment rates. Using a combination of 

the number of delinquencies and the number of unemployed, it 

is estimated that 70% of all Hardest-Hit funds will be spent in 

these twelve communities. Thirty-one of the thirty-nine 

communities in Rhode Island experienced an unemployment 

rate of 12% or higher in January of 2010, representing 85.45% 

of the state’s population. Therefore, we anticipate that 85% of 

all Hardest-Hit funding will be targeted to communities with 

unemployment rates of greater than 12%. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$13,570,770.00 

5. Borrower Eligibility 

Criteria 

Unemployed homeowners, who through no fault of their own, 

are unable to make their mortgage payments and are at risk of 

foreclosure. Borrowers will be required to provide a financial 

hardship affidavit with appropriate documentation on the cause 

of their hardship. Unemployment will be verified by obtaining a 

copy of the homeowner’s unemployment benefit rate decision 

letter and copies of 3 months bank statements to verify the 

unemployment direct deposit, or by automated verification 

through the Rhode Island Department of Labor and Training 

(DLT).

If information from DLT is unavailable, a notarized letter from 

the former employer indicating job loss was not the fault of the 
TAMPA/134438.2 

borrower will serve as a substitute. 

The borrower must currently occupy the property as his/her 

primary residence. The unemployed homeowner must have been 

obligated on the original note. 

Eligible borrowers must have monthly mortgage payments that 

are greater than 31% of their gross monthly household income 

and must be able to document the unemployment hardship that 

has placed them at risk of foreclosure. 

Household income must be fully documented and verifiable, 

income limits apply based on borrowers household gross annual 

income and family size. Rhode Island’s Mortgage Revenue 

Bond income limits apply to all assistance programs. These 

eligibility limits are based on the current income and family 

size. Currently, one or two person households can earn up to 

$87,800. Households of three or more can earn up to $102,400. 

Self-employed borrowers will be required to document loss of 

business and income and submit appropriate documentation. 

Homeowner must be able to contribute the greater of 25% of 

their total mortgage payment (PITI) or 31% of the total gross 

monthly household income toward their mortgage obligation. 

They must make their portion of the mortgage payment to 

Rhode Island Housing or its designee, or the Lender/Servicer, as 

applicable, on time; and must actively seek reemployment 

during the assistance period. 

Borrower is able to satisfy program guidelines. 

6. Property / Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums provided the 

original mortgage was not greater than $729,750. 

7. Program Exclusions Homeowner owns other real property. 

Homeowner has cash reserves, non-retirement liquid assets, 

exceeding 3 months of principal, interest, taxes and insurance. 

Homeowners with a total PITI payment of less than 31% of 

current gross monthly income are not eligible. 
TAMPA/134438.2 

8. Structure of Assistance Funds will be provided in the form of a zero-percent interest, 

non-recourse, non-amortizing loan secured by the property and 

forgivable at 20% per year over 5 years, if the homeowner 

fulfills his or her obligations on a timely basis under the 

assistance agreement. Borrowers who refinance, transfer title or 

sell the property within the five-year period must repay the loan 

on a pro-rata basis provided there is sufficient equity from such 

refinance, title transfer or sale. Recycled funds will be returned 

to the HHFRI Program for additional use through December 31, 

2017. After December 31, 2017, all remaining and recaptured 

funds will be returned to Treasury. 

9. Per Household 

Assistance 

Maximum amount available per household is $6,000. 

When MPA-UP interacts with other HHFRI programs (LMAHAMP or LMA-Non-HAMP and TIHA), maximum household 

assistance is capped at $14,500. When MPA-UP interacts with 

MFA, maximum household assistance is capped at $10,000. 

10. Duration of Assistance The duration of the assistance is determined by the individual 

need of each eligible borrower up to the maximum household 

limit of $6,000. The homeowner may continue receiving 

assistance for up to 2 months after reemployment as long as the 

program household limit has not been reached. 

Assistance will be distributed to the lender/servicer on a 

monthly basis. 

11. Estimated Number of 

Participating 

Households 

Based on the allocation of funds it is anticipated that 

approximately 2,000 households will receive up to $6,000. It is 

estimated that 1,000 of these households may receive additional 

assistance through other HHFRI programs. 

12. Program Inception / 

Duration 

The program will begin 30 – 45 days from Treasury approval 

and the funds are expected to last 24 months. Recapture of funds 

will be recycled to assist additional homeowners which may 

extend the program. 

13. Program Interactions 

with Other HFA 

Programs 

When MPA-UP interacts with other HHFRI programs (LMAHAMP or LMA-Non-HAMP and TIHA), maximum household 

assistance is capped at $14,500. When MPA-UP interacts with 

MFA, maximum household assistance is capped at $10,000. 

14. Program Interactions 

with HAMP 

MPA-UP complements the federal HAMP-UP Program by 

providing assistance to unemployed homeowners who do not 

qualify for it. For those that do qualify for HAMP-UP, MPA-UP 

assistance may precede a HAMP-UP forbearance or be used to 
TAMPA/134438.2 

extend it. 

Lender/Servicers are required to have a written policy detailing 

when a monthly mortgage payment under HAMP-UP will be 

required and how it will be determined, and the policy can not 

change based on the availability of a HHFRI program. 

15. Program Leverage with 

Other Financial 

Resources 

There is no investor match required for this program. However, 

lender/servicers must be willing to participate. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No