Second Amendment to HPA — South Carolina 

TAMPA/134431.1

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/134431.1 

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/134431.1 

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 — South Carolina] 

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: 

SOUTH CAROLINA STATE HOUSING 

FINANCE AND DEVELOPMENT 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Valarie M. Williams By: 

Name: Valarie M. Williams Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

SC HOUSING CORP. 

By: /s/ Valarie M. Williams 

Name: Valarie M. Williams 

Title: Executive Director 

 
TAMPA/134431.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/134431.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: SC Housing Corp. (“SCHC”)

Corporate or other organizational form: Nonprofit corporation

Jurisdiction of organization: South Carolina

Notice Information: 

 

 

 

 

 

HFA Information: 

Name of HFA: South Carolina State Housing Finance and 

 Development Authority 

Organizational form: a public body, corporate and politic under 

 the laws of the State of South Carolina 

Date of Application: June 1, 2010 

Date of Action Plan: September 1, 2010 

 Notice Information: 

 

 

 

 

 

Program Participation Cap: $295,431,547.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $138,000,000.00 
TAMPA/134431.1 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $58,772,347.00 

Permitted Expenses: $35,411,436.90

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

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

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 
MIAMI/4256402.8 

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. 
MIAMI/4256402.8 2 

SERVICE SCHEDULE B-1

SC State Housing Finance and Development Authority

Monthly Payment Assistance Program

Summary Guidelines 

1. Program Overview The Monthly Payment Assistance Program will assist eligible 

borrowers by making their full monthly mortgage payments for a 

period of time. The terms and length of assistance will vary 

based on the unemployment rate for the county in which the 

property is located, and will be reviewed periodically during the 

assistance period. 

Assistance under this Program will be capped at 24 months and 

$36,000 per household, depending on county unemployment. 

(See Section 3 for more information.) 

2. Program Goals To bridge eligible borrowers across a gap in employment, or 

other short-term reduction in income, and allow them to stay 

current on their mortgages. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a short-term 

affordability problem. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$212,159,200.00

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Borrower must be unemployed and receiving 

unemployment insurance (“UI”) payments as administered 

by the State of South Carolina. 

• Payment to Income ratio must exceed 38%, including UI 

payments. 

• Borrower must provide a financial hardship affidavit. 
MIAMI/4256402.8 3 

• Mortgage can be no more than 90 days delinquent. 

• Mortgage must have been current for 12 months preceding 

unemployment with no more than two 30-day late 

occurrences. 

• Borrower must demonstrate continued efforts to become 

re-employed. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and 

the original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary 

residence located in South Carolina.

7. Program Exclusions • Borrowers already under a non-South Carolina HFA HardestHit Fund program will be ineligible to participate. 

• A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity 

from their home for non-essential purposes, or overall 

mismanagement of their personal budget. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household for targeted counties (as described in Section 3), and 

$18,000 per household for all other counties.Expected Median: 

$15,000

10. Duration of Assistance Assistance under this Program will be capped at 24 months for 

targeted counties (as described in Section 3), and 12 months for 

all other counties. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 4,200 – 8,500 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 90 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 
MIAMI/4256402.8 4 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with: 

• Direct Loan Assistance Program - Households that are 

delinquent at the time monthly assistance begins may 

be eligible for direct assistance to help with any 

capitalized arrearage that exists. 

• HAMP Assistance Program - Households 

successfully coming out of the Program may be 

eligible for HAMP Assistance to obtain a permanent 

modification. 

• Property Disposition Assistance Program - 

Households that are not self-supporting after 

exhausting allowable funding under this Program may 

be eligible for the Property Disposition Assistance 

Program. 

14. Program Interactions 

with HAMP 

The Program will effectively “hand off” the borrower to HAMP 

once the borrower is reemployed, if required. Households 

successfully coming out of the Program may be eligible for 

HAMP assistance to obtain a permanent modification. 

The funds from this Program would be utilized prior to UP. 

Implementing the Program in this order is most beneficial to the 

borrower and the investor since payments would continue to be 

made instead of capitalized and no late charges or adverse credit 

report would occur. Should the borrower still be unemployed after 

the assistance from this Program ends, they may be eligible to roll 

into UP. 

Beneficiaries who participated in UP prior to making application 

to SC HELP would be eligible to participate in this Program. 

It is also expected that this Program may act as a front-end 

extension of existing forbearance with deed-in-lieu wrap 

programs. 

15. Program Leverage 

with Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No
MIAMI/4256402.8 5 

SERVICE SCHEDULE B-2

SC State Housing Finance and Development Authority

Direct Loan Assistance Program

Summary Guidelines 

1. Program Overview In some cases borrowers may have fallen behind on their 

mortgage payments, but have since regained the ability to make 

the full payment. However, there may still be an accrued 

arrearage owed to the lender which, until paid, places a hardship 

on the borrower due to a continued accumulation of late fees and 

other charges. Under the Direct Loan Assistance Program, 

funding will be provided to bring such loans current. Funds may 

also be made available for principal reductions in order ensure 

long-term affordability. 

The terms of assistance will vary based on the unemployment rate 

for the county in which the property is located, and will be 

reviewed periodically during the assistance period. 

Assistance under this Program will be capped at $10,000 per 

household, depending on county unemployment (See Section 3 

for more detail.) 

Program is a one-time payment per borrower household. 

2. Program Goals To help borrowers become current on their mortgage following a 

brief interruption or reduction in income and to ensure long-term 

affordability. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$19,000,000.10 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 
MIAMI/4256402.8 6 

Other specific criteria: 

• Must be able to demonstrate that delinquency was the 

result of circumstances beyond the borrower’s control. 

• Payment to Income ratio must not exceed 31%. 

• Borrower must provide a financial hardship affidavit. 

• Mortgage can be no more than 90 days delinquent. 

• Mortgage must have been current for 12 months preceding 

delinquency event with no more than two 30-day late 

occurrences. 

• Borrower must demonstrate that circumstances that led to 

the delinquency have been resolved. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and 

the original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary 

residence located in South Carolina. 

7. Program Exclusions A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity from 

their home for non-essential purposes, or overall mismanagement 

of their personal budget. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $10,000 per 

household for targeted counties (as described in Section 3), and 

$5,000 per household for all other counties.Expected Median: 

$7,000.

10. Duration of Assistance Program is a one-time payment per borrower household. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 2,400 – 2,500 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 90 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 
MIAMI/4256402.8 7 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• HAMP Assistance Program – One of the primary 

goals of the Program is to prepare borrowers for a 

HAMP modification. Homeowners may progress 

to the HAMP Assistance Program 

• Monthly Payment Assistance Program – Households 

with a capitalized arrearage and a temporarily reduced 

level of income may be eligible for the Program and 

the Monthly Payment Assistance Program to cure the 

immediate delinquency and to insure that further 

delinquencies are not incurred. 

• Second Mortgage Assistance Program – The Program 

may be combined with the Second Mortgage 

Assistance Program in circumstances where the 

borrower has a capitalized arrearage and a nonparticipating second lien holder.

14. Program Interactions 

with HAMP 

This Program may be used in conjunction with the HAMP 

Assistance Program to assist the borrower become eligible for 

HAMP or to cure an accrued delinquency for a borrower already 

under a HAMP modification.

15. Program Leverage 

with Other Financial 

Resources 

Servicer/Investor will be required to waive all non-expense fees 

(i.e. late fees). 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
MIAMI/4256402.8 

SERVICE SCHEDULE B-3

SC State Housing Finance and Development Authority

HAMP Assistance Program

Summary Guidelines 

1. Program Overview The majority of lenders in South Carolina are offering troubled 

borrowers the opportunity to modify their loans under certain 

circumstances. The most notable of these programs is the Home 

Affordable Modification Program (“HAMP”). According to 

many loan servicers, there are many borrowers whose proposed 

modifications fail the net-present-value (NPV) test for eligibility 

by a relatively small amount. Under the HAMP Assistance 

Program, funding will be provided to bridge the gap so that the 

mortgage can be modified to an affordable level. 

Assistance under this Program will be capped $5,000 per 

household. 

Program is a one-time payment per borrower household. 

2. Program Goals To provide limited funding to help borrowers become eligible for 

HAMP. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$5,000,000.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Must be able to demonstrate that delinquency was the 

result of circumstances beyond the borrower’s control. 

• Borrower must provide a financial hardship affidavit. 

• Must meet all other HAMP requirements. 

• Must successfully complete HAMP trial period prior to 

final payment to investor. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 
MIAMI/4256402.8 2 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and 

the original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary 

residence located in South Carolina. 

7. Program Exclusions A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity from 

their home for non-essential purposes, or overall mismanagement 

of their personal budget. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped $5,000 per 

household. 

Expected Median: $4,000.

10. Duration of Assistance Program is a one-time payment per borrower household. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 1,000 – 1,500 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 120 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance- Households 

successfully coming out of the Monthly Assistance 

Program may be eligible for this Program to obtain a 

permanent modification. 

• Second Mortgage Assistance – Households may need 

direct HAMP assistance to cure an NPV fail along 

with assistance to insure that a non-participating 

second lien holder will agree to the revised terms. 

14. Program Interactions 

with HAMP 

This Program is intended be used in conjunction with HAMP to 

assist with borrower eligibility. 

15. Program Leverage 

with Other Financial 

Resources 

Servicer/Investor will be required to waive all non-expense fees 

(i.e. late fees). 
MIAMI/4256402.8 3 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
MIAMI/4256402.8 

SERVICE SCHEDULE B-4

SC State Housing Finance and Development Authority

Second Mortgage Assistance Program

Summary Guidelines 

1. Program Overview Many borrowers find themselves ineligible for HAMP or other 

modification programs due to the presence of a second lien where 

the investor holding that lien is unwilling or unable to agree to the 

modified loan terms, or the servicer is not a HAMP participating 

entity. Under the Second Mortgage Assistance Program, funding 

will be used to either provide a financial incentive to the 

servicer/investor, or, in some cases, to acquire the second lien 

from the current servicer/investor, thus making the borrower 

eligible for first mortgage modification programs, including 

HAMP. 

The terms of assistance will vary based on the unemployment rate 

for the county in which the property is located, and will be 

reviewed periodically during the assistance period. 

Assistance under this Program will be capped at $10,000 per 

household, depending on county unemployment. (See Section 3 

for more detail.) 

Program is a one-time payment per borrower household.

2. Program Goals To provide a financial incentive to the services/investor, or, in 

some cases, to acquire the second lien from the current 

servicer/investor, thus making the borrower eligible for first 

mortgage modification. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a short-term 

affordability problem. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$11,860,910.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 
MIAMI/4256402.8 2 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Must be able to demonstrate that delinquency was the 

result of circumstances beyond the borrower’s control. 

• Borrower must provide a financial hardship affidavit. 

• Must meet all HAMP requirements. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible (first mortgage) loans must be fixed term, fully 

amortizing, and the original loan amount must be within GSE 

limits. 

• Eligible properties must be owner-occupied primary residence 

located in South Carolina. 

7. Program Exclusions • Subordinate mortgages where the proceeds were used for 

something other than acquiring, improving, or preserving the 

subject property will be ineligible. 

• A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity 

from their home for non-essential purposes, or overall 

mismanagement of their personal budget. 

• Borrower is HAMP eligible and the second mortgage is held 

by a 2MP servicer. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $10,000 per 

household for targeted counties (as described in Section 3), and 

$7,500 per household for all other counties.Expected Median: 

$8,000.

10. Duration of Assistance Program is a one-time payment per borrower household. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 1,600 – 2,600 families will be assisted 

under this Program. 
MIAMI/4256402.8 3 

12. Program Inception/ 

Duration 

This Program will be available statewide within 120 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• HAMP Assistance Program - Households may need 

direct assistance to cure an NPV fail along with 

assistance to insure that a non-participating second 

lien holder will agree to the revised terms. 

• Direct Loan Assistance Program - May be combined 

with the Second Mortgage Assistance Program in 

circumstances where the borrower has a capitalized 

arrearage and a non-participating second lien holder.

14. Program Interactions 

with HAMP 

This Program may be used in conjunction with HAMP to assist 

with borrower eligibility. 

15. Program Leverage 

with Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/134431.1 

SERVICE SCHEDULE B-5

SC State Housing Finance and Development Authority

Property Disposition Assistance Program

Summary Guidelines 

1. Program Overview There may be a segment of borrowers whose position is 

unrecoverable, and who need assistance in gracefully exiting 

homeownership. The Property Disposition Assistance Program 

will be used to facilitate short sales and deeds in lieu of 

foreclosure, as well as to help provide deposits and other funds 

needed to transition families from homeownership to renting. 

The terms of assistance will vary based on the unemployment rate 

for the county in which the property is located, and will be 

reviewed periodically during the assistance period. 

Assistance under this Program will be capped at $5,000 per 

household. (See Section 3 for more detail.) 

Program is a one-time payment per borrower household. 

2. Program Goals To assist borrowers in unrecoverable situations in transitioning 

from homeownership to rental housing. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a long-term or 

permanent affordability problem with little expectation for 

financial recovery. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$12,000,000.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Circumstances leading to delinquency and foreclosure 
TAMPA/134431.1 

event must be beyond the borrower’s control, and must be 

properly documented. 

• Payment to Income ratio must exceed 45%, including UI 

payments from South Carolina. 

• Borrower must provide a financial hardship affidavit. 

• Delinquency event must be ongoing with little or no 

expectation for financial recovery (i.e. prolonged underemployment, divorce, death of a spouse, etc.). 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and the 

original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary residence 

located in South Carolina. 

7. Program Exclusions • Borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity 

from their home for non-essential purposes, or overall 

mismanagement of their personal budget. 

• Borrower receiving assistance under the Home Affordable 

Foreclosure Alternative (HAFA) Program. 

8. Structure of 

Assistance 

Assistance under this Program will be provided directly to the 

homeowner, and will not be structured as a loan, nor will it be 

secured by the subject property. No payments may be made 

directly to homeowners until a short sale, cash for keys or deedin-lieu agreement is executed. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $5,000 per 

household for targeted counties (as described in Section 3), and 

$3,000 per household for all other counties.Expected Median: 

$4,000

10. Duration of Assistance Program is a one-time payment to borrowers. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 2,200 – 3,700 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 120 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance Program - Households that are 

not self-supporting after exhausting allowable funding under 

the Monthly Payment Assistance Program may be eligible for 

this Program. 
TAMPA/134431.1 

14. Program Interactions 

with HAMP 

None. 

15. Program Leverage 

with Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No