Fourth Amendment to HPA — Nevada 

TAMPA/172183.1

FOURTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Fourth Amendment to Commitment to Purchase Financial Instrument and HFA 

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

Schedule A attached hereto as the Fourth 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”), and as further 

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

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

amended thereby and by the First Amendment and Second 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 and Treasury has agreed to the same; 

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

document all approved modifications to the Service Schedules and Permitted Expenses; 

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 Fourth Amendment; and all references in the 
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TAMPA/172183.1 

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

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

further amended by this Fourth 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 Fourth 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 Fourth 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 Fourth 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 Fourth Amendment and any other closing documentation delivered to 

Treasury in connection with this Fourth 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 

Fourth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous

A. The recitals set forth at the beginning of this Fourth 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. 
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TAMPA/172183.1 

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 Fourth 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 Fourth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

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

TAMPA/172183.1

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

NEVADA HOUSING DIVISION UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Charles L. Horsey By: 

Name: Charles L. Horsey Name: Timothy G. Massad 

Title: Administrator Title: Acting Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Lon A. DeWeese 

Name: Lon A. DeWeese 

Title: Director, Secretary/Treasurer 

 

TAMPA/172183.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/172183.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Nevada Affordable Housing Assistance 

Corporation

Corporate or other organizational form: Non-profit corporation

Jurisdiction of organization: Nevada

Notice Information: 

 

 

 

 

 

 

HFA Information: 

Name of HFA: Nevada Housing Division1

Organizational form: A Division of the Nevada Department of 

Business and Industry of the State of 

Nevada 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

 

 

 

 

 

 

Program Participation Cap: $194,026,240.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $102,800,000.00 

 

1

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

part of the Current HPA. 
TAMPA/172183.1 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $ 34,056,581.00 

Permitted Expenses: $ 24,978,556.00

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 

Fourth Amendment Date: April 5, 2011 

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/172183.1 

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/172183.1 

SERVICE SCHEDULE B-1

The Nevada Affordable Housing Assistance Corporation 

PRINCIPAL REDUCTION PROGRAM 

Summary Guidelines 

1. Program Overview To ensure that approximately 3,000 Nevada families are able to stay in 

their homes with a permanent change to their mortgages via principal 

reductions which will provide qualified homeowners a principal 

reduction of up to $25,000, with a 1:1 match from the note holder if 

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

underemployed and/or income restricted homeowner candidates to keep 

occupancy and ownership of their home. 

Depending on the agreement with the lender/servicer, one of two 

methods will be used to reduce the principal balance of a borrower’s 

primary mortgage: 

• A forgivable loan may be made to eligible borrowers for up to 

$25,000 with such assistance provided in a one time up-front 

payment to the lender/servicer; or 

• Up to $25,000 in assistance may be provided over a threeyear period. 

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

respect to at least 3,000 homeowners throughout the State of Nevada 

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

correspondingly, the PITI payment reduced to 31% or less of the 

homeowner’s gross income. 

3. Target Population / 

Areas 

The funding will be distributed via a geographic formula of 1/3+1/3+1/3 

weight for unemployment + foreclosure rate + population. There will be 

target population segmentation into (a) the Clark County/Las Vegas 

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada. 

Where a finer breakdown is possible within each of the three geographic 

areas, zip code and census track targeting will be utilized. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$75,412,386.70 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Loan originated 1/1/2009 or earlier. 

• Home is currently owner occupied. 

• Any cash out borrowing in past five years must be limited to: 
TAMPA/172183.1 

• Home improvement – real, not personal property classification. 

• Medical bills – documented. 

• Paying off existing revolving debt – documented. 

• Tuition or paying off student loans – documented. 

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

then published by HUD. 

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

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

• Delinquency based on a financial hardship due to circumstances 

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

Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. Eligible 

hardships to include but not limited to the following: 

• Underemployment. 

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

possession. 

• Divorce or legal separation. 

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

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

of the contract agents (foreclosure mitigation and mediation agencies) or 

by the designated call center. If applicants meet screening criteria, 

application packages will be assembled and forwarded onto the NAHAC 

underwriters who will do the full verifications/confirmation and begin 

the relationship with the participating banks/lenders/servicers to work 

through the calculation of aid levels. 

Funding will be provided on a first come-first-served basis within each 

geographical zone. Daily monitoring of funding commitments/pipelines 

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

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

available resources. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

• Must have only one existing mortgage. 

• Principal balance must not exceed 115% based upon valuation 

obtained by NAHAC or the Servicer following principal balance 

reduction nor PITI exceed 31%. 

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

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

one of those entities existing programs (direct lender program option 

must be exhausted first). 

• Servicers will be encouraged to modify mortgages to a fixed rate 30 

year or longer mortgage. 

The higher Targeted Area Mortgage limit calculation will be utilized 

(115% of area median). Thus, per the HUD Procedure, the current 
TAMPA/172183.1 

maximum mortgage limits would be: 

• Clark County: $427,184 

• Reno/Sparks SMSA: $431,189 

• Rural Nevada Areas: $347,087 

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

• Borrower owns other real property. 

8. Structure of 

Assistance 

Depending on the agreement with the lender/servicer, the structure of 

assistance may be provided in one of two ways: 

• Assistance may be structured as a forgivable loan in favor of 

the Eligible Entity secured by a junior lien recorded against 

the property. Borrowers who follow through and earn the 

loan forgiveness will not be required to repay their principal 

reduction loans. The loan has a term of 5 years and is 

forgiven at a rate of 20% per year with full forgiveness at the 

end of year 5. If the borrower sells the property before the 

forgiveness period expires; all net sale proceeds up to the full 

principal balance outstanding and not yet forgiven will be due 

and payable to NAHAC. All funds returned to NAHAC may 

be recycled until December 31, 2017; thereafter they will be 

returned to Treasury. 

• Assistance may be provided in equal installments over a three 

year period, at months 13, 25 and 37, provided the 

homeowner remains in the home and continues to make 

current mortgage payments. This structure will not require a 

loan in favor of the Eligible Entity. 

In the event that the program recipient subsequently participates in the 

NAHAC’s Short Sale Acceleration Program, then the lien recorded as a 

result of participation in the Principal Reduction Program may be 

extinguished. 

9. Per Household 

Assistance 

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

assuming a $1 for $1 match is occurring from the lenders/servicers or 

GSEs. The median amount is expected to be close to the maximum 

(skewed right poisson distribution) amount. It is possible that there 

could be a bimodal distribution. Thus, if there are numerous HAMP fails 

of under $10,000 that this level of assistance or less represents a large 

(disproportionate) share of the distribution of aid in the principal 

reduction program. Therefore, in this scenario there will be a large 

portion under $10,000 and a large portion of applicants at the full 

$25,000 level and very few in between. 

10. Duration of Depending on the agreement with the servicer/lender, program funds will 
TAMPA/172183.1 

Assistance either be distributed as a one time payment or in three separate 

installments over a three year period. 

11. Estimated Number of 

Participating 

Households 

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

achieved in conjunction with the loan servicers, approximately 3,016 

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

assisted could exceed 5,000. 

12. Program Inception / 

Duration 

The planned implementation will be directly impacted by the time 

needed to secure agreements/contracts for lender matching and could 

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

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

Program could last up to 24 months. 

13. Program 

Interactions with 

Other HFA 

Programs 

The 1st mortgage principal reduction program is aimed at the 

underemployed population of income qualified/limited home owners, not 

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

1st mortgage principal reduction through this Program and then 

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

program through another NAHAC HHF Program. 

14. Program 

Interactions with 

HAMP 

NAHAC expects an active interface with the HAMP program. During 

the ‘in-take’ process, the applicants will be screened for HAMP 

eligibility and where it is indicated that a borrower would be eligible, 

they will channeled into a HAMP loan modification. Where there is a 

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

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

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

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

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

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

reduction and subsequently qualify for either a HAMP modification in 

need of supplementation or a regular 1st mortgage principal reduction 

program. 

15. Program Leverage 

with Other Financial 

Resources 

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

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

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

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

event of a less than $1 to $1 match then the structure of assistance must 

be in the form of a loan as described in the first bullet under section 8 

above. The matching funds will be provided at closing, or over a three 

year period depending on the agreement with the lender/servicer. 

Nevada will also request that the loan servicer waive certain fees like late 

charges, delinquency fee and penalties and recast the principal reduced 
TAMPA/172183.1 

loan and participate in its recordation. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/172183.1 

SERVICE SCHEDULE B-2

The Nevada Affordable Housing Assistance Corporation 

SECOND MORTGAGE REDUCTION PLAN 

Summary Guidelines 

1. Program Overview The Second Mortgage Reduction Plan is aimed at assisting borrowers 

who have a second lien interfering with either a short-sale, refinance or 

modification of the first mortgage. The expected applicant pool is 

believed to be both unemployed and underemployed families. 

2. Program Goals The expected outcome of this program is to assist up to 2,200 families 

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

either a short sale, refinancing or first mortgage modification can be 

carried out and thus prevent a foreclosure. 

3. Target Population / 

Areas 

The funding will be distributed via a geographic formula of 1/3+1/3+1/3 

weight for unemployment + foreclosure rate + population. There will 

be target population segmentation into (a) the Clark County/Las Vegas 

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada. 

Where a finer breakdown is possible within each of the three geographic 

areas, zip code and census track targeting will be utilized. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$ 36,552,962.00 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Loan originated 1/1/2009 or earlier. 

• Home is currently owner occupied. 

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

• Home improvement - real, not personal property 

classification. 

• Medical bills - documented. 

• Paying off existing revolving debt – documented. 

• Tuition or paying off student loans – documented. 

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

then published by HUD. 

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

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

• Delinquency based on a financial hardship due to circumstances 

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

Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. Eligible 
TAMPA/172183.1 

hardships to include but not limited to the following: 

• Underemployment. 

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

possession. 

• Divorce or legal separation. 

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

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

portal of the contract agents (foreclosure mitigation and mediation 

agencies) or by the designated call center. If applicants meet screening 

criteria, application packages will be assembled and forwarded onto the 

NAHAC underwriters who will do the full verifications/confirmation 

and begin the relationship with the participating banks/lenders/servicers 

to work through the calculation of aid levels. 

Funding will be provided on a first come-first-served basis within each 

geographical zone. Daily monitoring of funding commitments/pipelines 

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

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

available resources. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

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

• Principal balance must not exceed 115% based upon valuation 

obtained by NAHAC or the Servicer following principal balance 

reduction nor PITI exceed 31%. 

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

an accompanying lien release and waiver of deficiency judgment 

rights. 

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

element must be equal to or less than $41,250 unless the lien holder 

agrees to write down a greater balance. The higher Targeted Area 

Mortgage limit calculation will be utilized (115% of area median). 

Thus, per the HUD Procedure, the current maximum mortgage 

limits would be: 

• Clark County: $427,184 

• Reno/Sparks SMSA: $431,189 

• Rural Nevada Areas: $347,087 

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

above under the Borrower Eligibility Criteria. 

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

lien holder agrees to write down a greater balance) or a program 

contribution of >$16,500 is needed then the borrower would be 

ineligible. 

• Borrower owns other real property. 
TAMPA/172183.1 

8. Structure of 

Assistance 

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

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

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

repay their principal reduction loans. The loan has a term of 5 years and 

is forgiven at a rate of 20% per year with full forgiveness at the end of 

year 5. If the borrower sells the property before the forgiveness period 

expires; all net sale proceeds up to the full principal balance outstanding 

and not yet forgiven will be due and payable to NAHAC. All funds 

returned to NAHAC may be recycled until December 31, 2017; 

thereafter they will be returned to Treasury. 

In the event a program recipient subsequently participates in the 

NAHAC’s Short Sale Acceleration Program, the lien recorded as a 

result of participation in the Second Mortgage Reduction Plan program 

may be extinguished. 

9. Per Household 

Assistance 

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

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

Servicers will be allowed to write down second liens above the $41,250 

but the Hardest Hit Fund assistance is limited to the $16,500 per 

dwelling. 

10. Duration of 

Assistance 

The 2nd lien elimination program will be a one time payment program. 

11. Estimated Number of 

Participating 

Households 

It is estimated that up to 2,200 applicants/families could receive 2nd lien 

relief under this program. If the level of lender participation exceeds 

60% versus the program’s 40% or the average program funding level 

averages less than the maximum of $16,500 in necessary funding to 

create the 2nd lien relief, then there could be an increase in the number 

of borrowers assisted. 

12. Program Inception / 

Duration 

The Second Mortgage Reduction Plan program will be available to 

borrowers within 3 months after approval by Treasury and could last up 

to 2 years. 

13. Program 

Interactions with 

Other HFA 

Programs 

None. 

14. Program 

Interactions with 

HAMP 

The program will have an active interface with the HAMP program. 

During the ‘in-take’ process with the foreclosure mitigation/mediation 

agencies, the applicants will be screened for HAMP eligibility and 

where it is indicated that a borrower would be eligible, they will 

channeled into a HAMP loan modification. If the applicant needs 2nd

lien relief in order to effectuate a HAMP or 1st mortgage principal 

reduction program process then the 2nd lien relief element will be 
TAMPA/172183.1 

utilized. NAHAC wishes to supplement and complement the federal 

programs and where needed to create added funds flow to ensure long 

term solutions to the borrower’s need. 

15. Program Leverage 

with Other Financial 

Resources 

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

note holder to complete the necessary modification or refinance to keep 

the borrower current and in their home. In order to leverage the 2nd lien 

relief funds, the program requires participating lenders to contribute a 

minimum of $0.60 for each $0.40 contributed by this program except in 

the event the 2nd lien is held by a downpayment assistance program 

provider, in which event no matching funds will be required. 

Additionally, if the lending institution whose 2nd lien is being relieved 

also holds the 1st mortgage, they (note holder) would have to contribute 

$0.50 to each dollar of 1st mortgage principal relief if they choose to 

subsequently participate in NAHAC’s Principal Reduction Program. 

The matching funds will be provided at closing. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/172183.1 

SERVICE SCHEDULE B-3

The Nevada Affordable Housing Assistance Corporation 

SHORT-SALE ACCELERATION PROGRAM 

Summary Guidelines 

1. Program Overview The Short-Sale Acceleration Program is aimed at assisting borrowers 

who are beginning or need to initiate the short-sale process to relieve 

themselves of the mortgage burdens that they cannot sustain—even with 

a material loan principal reduction. 

2. Program Goals It is expected that at an $8,025 level of average funding per family 

assisted up to 1,371 families facing imminent foreclosure threat, will 

have the burden of their home mortgage eliminated and the threats of a 

default judgment removed. 

3. Target Population / 

Areas 

Those Nevadans that are facing imminent threat of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$6,175,464.30 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Loan originated 1/1/2009 or earlier. 

• Home is currently owner occupied. 

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

• Home improvement – real, not personal property 

classification. 

• Medical bills – documented. 

• Paying off existing revolving debt – documented. 

• Tuition or paying off student loans – documented. 

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

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

• Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. 

6. Property / Loan 

Eligibility Criteria 

• Must have only one existing mortgage unless eligible to participate 

in NAHAC’s Second Mortgage Reduction Plan. 

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

property (Single or Multi-Family) and execute a 6 month or longer 

lease at the close of the home sale transaction. 

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

Nevada due to job opportunities elsewhere. 
TAMPA/172183.1 

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

above under the Borrower Eligibility Criteria. 

• Borrower owns other real property. 

8. Structure of 

Assistance 

This program is direct assistance through direct payment to vendors at 

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

9. Per Household 

Assistance 

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

program. 

10. Duration of 

Assistance 

Assistance will be a one time set of payments. 

11. Estimated Number of 

Participating 

Households 

The Business Plan calls for this program element to assist up to 1,371 

families complete their home abandonment/ownership through a short 

sale and matriculate to a rental property somewhere else in Nevada. 

12. Program Inception / 

Duration 

The Short Sale Acceleration Program will be available to borrowers 

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

13. Program 

Interactions with 

Other HFA 

Programs 

To the fullest extent possible, absent specific federal program 

prohibitions/limitations, the Short-Sale Acceleration Program element 

will build on or utilize the H.A.F.A. program in parallel. If it is possible 

to utilize both the federal H.A.F.A. program funds underneath the ShortSale Acceleration Program funds, then the number of possible 

candidates assisted through the painful short-sale process would 

increase beyond the projected 1,371. 

14. Program 

Interactions with 

HAMP 

The candidates for the Short-Sale Acceleration program will have been 

through a HAMP or similar private bank or GSE loan modification 

process and ‘failed’ by a sufficiently material level to not even qualify 

for NAHAC’s 1st mortgage Principal Reduction Program. Thus, the 

data/processes will show factually that the only realistic result for the 

borrower is the short-sale. 

15. Program Leverage 

with Other Financial 

Resources 

In the event the short sale program recipient has incurred a lien as a 

result of earlier participation in NAHAC’s Principal Reduction, Second 

Mortgage Reduction Plan or Mortgage Assistance Program, then the 

lien may be extinguished for the purpose of helping to facilitate the 

short sale request. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/172183.1 

SERVICE SCHEDULE B-4

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM (MAP) 

Summary Guidelines 

1. Program Overview The Nevada Mortgage Assistance Program (MAP) is designed to help 

keep first mortgages current for up to 16,969 families who have an 

unemployed or underemployed wage earner. The program will assist 

those qualified families by making up to the lesser of 1/3 of the 

principal and interest portion or a $500 payment supplement to the 

family’s monthly principal and interest portion of the first mortgage 

payment only. The property taxes and insurance amounts due and 

owing will remain fully a borrower’s responsibility and are not part of 

the MAP supplement. MAP payments may be extended for qualified 

families for up to 6 months. The MAP payments are aimed at 

providing a financial bridge to unemployed or underemployed persons. 

For the purpose of this program, unemployed will be defined as an 

individual that is not currently working. Underemployed will be 

defined as any individual that is in a situation of imminent threat of 

going into default on their mortgage due to a change in economic 

status, working less than 50% of full time hours or a material reduction 

in measureable income, all subject to satisfaction of all other borrower 

eligibility criteria. 

Borrowers will submit their partial payment to the Nevada Affordable 

Housing Assistance Corporation (NAHAC) where it will be combined 

with the HHF funds and a full remittance made to the loan servicer for 

the loan. Borrowers can apply either through participating 

lenders/servicers who have received special training or directly 

through the NAHAC offices after first completing an appropriate 

screening tool and being given an appointment with the NAHAC loan 

underwriter. MAP payments will invoke a non-recourse lien which 

will have an earned forgiveness embedded in the Note. Borrowers 

who are able to sustain their homeownership for 60 successive months 

following the end of the MAP payments will have their lien 

extinguished. 

NAHAC intends to retain/set aside 1% of the total direct support funds 

for contingency situations, wherein certain recipients may be in need 

of one-two months (maximum) of added support payment (e.g. while a 

training programs are completed). These exceptional cases must be 

approved by the NAHAC Board of Directors. If the contingency is not 

needed as program capacity is reached, the contingency funds will be 

put into the normal available funds for the MAP program. Further, the 

contingency will be reduced pro rata to total MAP program capacity 
TAMPA/172183.1 

over time so that as the program reaches 60% of capacity without use 

of any contingency funds, then 60% of the contingency will be 

released back into the main MAP fund. 

2. Program Goals The MAP program’s goal is to increase the probability that a borrower 

and/or recipient’s family has a stronger chance of sustaining 

homeownership with the assistance from the HHF program. The 

enhanced home ownership through re-employment and job 

maintenance should decrease both the numbers and probability of 

foreclosures. 

3. Target Population / 

Areas 

The State of Nevada is currently enduring the USA’s highest 

unemployment rate in its workforce. However, the highest levels of 

unemployed persons in Nevada are primarily centered in the two urban 

areas (Clark County/Las Vegas area and Reno/Sparks MSA) versus the 

rural agricultural and mining areas. With the assistance of the Nevada 

Department of Employment, Training and Rehabilitation’s (“DETR”) 

published data, MAP funds will be allocated on a pro-rata basis to 

jurisdictions based on a ratio of actual number of unemployed to total 

State-wide unemployed as a general allocation matter. However, a 

semi annual assessment will be undertaken to ensure allocations of 

remaining funds are representative of changes to the unemployed and 

underemployed populations in all jurisdictions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$50,906,871.00

5. Borrower Eligibility 

Criteria 

To ensure both consistencies with previously approved Participation 

Agreement programs and to lessen the burdens of administering the 

MAP program, adherence to the same underwriting qualification 

standards will be generally utilized. Thus, Applicant Eligibility 

Criteria will consist of: 

• Legal US Resident. 

• Loan originated 1/1/2009 or earlier. 

• Home is currently owner occupied. 

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

then published by HUD. 

• Applicant must be facing imminent default. 

• Applicant must be experiencing financial hardship due specifically 

to unemployed or underemployed status. 

• Applicant will be required to provide a financial hardship affidavit 

attesting to their inability to make mortgage payments. 

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

applicant’s visit to the web site and using the ‘screening tool,’ directly 
TAMPA/172183.1 

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

meet screening criteria, application packages will be assembled by the 

NAHAC underwriters who will do the full verifications/confirmation, 

enter the applicant’s data into the NAHAC database and accounts 

payable systems and begin the relationship with the borrower’s 

participating banks/lenders/servicers to ensure aid is acceptable to 

them. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

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

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

mortgage limits would be: 

a. Clark County: $427,184 

b. Reno/Sparks SMSA: $431,189 

c. Rural Nevada Areas: $347,087 

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

• Borrower owns other real property. 

8. Structure of 

Assistance 

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

forgivable, nonrecourse loan, secured by a junior lien recorded against 

the property, which will be forgiven over a period of time not to 

exceed 5 years. The loans will only be repayable if the borrower sells 

the property before the 5 year time period expires and there is 

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

program may be recycled until U.S. Treasury imposed deadline of 

December 31, 2017. Thereafter they will be returned to Treasury. The 

MAP assistance will be as an ‘earned forgiveness’ loan that is forgiven 

20% each year. 

In the event that the MAP recipient subsequently participates in 

NAHAC’s Short Sale Acceleration Program, then the lien recorded as 

a result of participation in MAP can be extinguished. 

9. Per Household 

Assistance 

The planned MAP program level of assistance should average 

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

expected average total mortgage payment assistance of $3,000. 

10. Duration of 

Assistance 

The MAP assistance will last up to 6 months.

11. Estimated Number of 

Participating 

Households 

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

potential recipients should be approximately 16,969. However, this 

number may be decreased slightly if the contingency funds described 

in Section 1 are utilized for such purpose. 
TAMPA/172183.1 

12. Program Inception / 

Duration 

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

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

full utilization of MAP program funds should run down in 

approximately 15-18 months.

13. Program Interactions 

with Other HFA 

Programs 

The MAP program could have some forms of interaction with the 

other HHF programs. Specifically, if a MAP program recipient does 

achieve re-employment status and would possibly be a candidate for a 

HHF principal reduction program, then NAHAC will advise the 

borrower of such. However, if the recipient drops out of the MAP 

program due to failing to remit their portion of the monthly mortgage 

payment, and it appears evident that the borrower may lose their home 

due to lack of means to sustain the mortgage, then the borrower will be 

advised about the HHF short-sale program. 

14. Program Interactions 

with HAMP 

The MAP program could have some form of interaction with HAMP. 

HHF Funds (MAP) would be utilized prior to HAMP UP. 

Implementing the program in this order is the most beneficial to the 

borrower and investor since payments would continue to be made 

instead of capitalized, and no late charges or adverse credit reporting 

would occur. If a MAP program recipient does achieve reemployment status and the borrower would possibly be a candidate for 

either a HAMP modification and/or a HAMP principal reduction 

program, then NAHAC will advise the borrower of such. 

15. Program Leverage 

with Other Financial 

Resources 

NAHAC will work with loan servicers for each qualified recipient to 

ensure that the funds from the MAP program payments are utilized 

strictly for the borrower’s ‘current P&I payments and not to ‘make up’ 

any past due penalties or payments. NAHAC accounting staff will 

communicate with the servicer to ensure that the MAP payments are 

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

this means that the borrower and servicer have to execute some form 

of forbearance or forgiveness on past due amounts, NAHAC will be 

prepared to assist the borrower with the servicer on this. It is hoped 

that the servicers will cooperate on these matters. But until NAHAC 

actually begins distributing Servicer Participation Agreements for the 

MAP program, actual servicer participation cannot be accurately 

determined. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No 
TAMPA/172183.1 

SCHEDULE C

PERMITTED EXPENSES

Nevada 

 

 One-time / Start-Up Expenses: 

Initial Personnel $377,800.00

Building, Equipment, Technology $666,198.00

Professional Services $260,240.00

Supplies / Miscellaneous $115,600.00

Marketing /Communications $109,250.00

Travel $1,200.00

Website development /Translation $15,700.00

Contingency $1,170,000.00

 Subtotal $2,715,988.00 

 

Operating / Administrative 

Expenses: 

Salaries $4,342,251.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $2,506,051.00

Travel $35,500.00

Buildings, Leases & Equipment $239,120.00

Information Technology & 

Communications $1,708,974.00

Office Supplies/Postage and 

Delivery/Subscriptions $525,715.00

Risk Management/ Insurance $304,646.00

Training $14,511.00

Marketing/PR $553,350.00

Miscellaneous $0.00

 Subtotal $10,230,118.00 

 

 Transaction Related Expenses: 

Recording Fees $1,083,881.00

Wire Transfer Fees $32,200.00

 Counseling Expenses   

File Intake $10,639,169.00

Decision Costs $277,200.00

Successful File $0.00

Key Business Partners On-Going $0.00

 Subtotal $12,032,450.00 

 

Grand Total $24,978,556.00 

% of Total Award 12.87% 

Award Amount $194,026,240.00