SEVENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Seventh Amendment to Commitment to Purchase Financial Instrument and HFA 

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

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

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

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

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

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

Recitals 

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

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

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

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

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

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

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

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

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

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

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

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

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

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

Amendment Fourth Amendment, and Fifth Amendment, the "Current ITPA"). dated as of their 

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

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

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

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

from time to time ("EESA"): 

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

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

same; 

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

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

applicable; 

Seventh Amendment to HPA — Michigan 

Doc#: USl:8614550v2 
Accordingly, in consideration of the representations, warranties, and mutual agreements set forth 

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

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

Agreement 

1. Amendments 

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

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

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

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

further amended by this Seventh Amendment. 

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

and replaced with Schedule A attached to this Seventh Amendment. 

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

and replaced with Schedule B attached to this Seventh Amendment. 

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

and replaced with Schedule C attached to this Seventh Amendment. 

2. Representations, Warranties and Covenants 

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

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

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

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

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

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

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

Event of Default under the HPA. 

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

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

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

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

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

Entity is in breach of any such covenant. 

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

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

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

hereunder and thereunder. 

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

Seventh Amendment and any other closing documentation delivered to Treasury in 

Doc#: USl:8614550v2 
connection with this Seventh Amendment, and to perform its obligations hereunder and 

thereunder. 

3. Miscellaneous 

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

accurate and are incorporated herein by this reference. 

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

them in the HPA. 

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

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

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

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

jurisdiction. 

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

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

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

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

- 3 -

Doc#-.USl;8614550v2 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

MICHIGAN STATE HOUSING 

DEVELOPMENT AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Scott Woosley 

Name: Scott Woosley 

Title: Executive Director 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

MICHIGAN HOMEOWNER ASSISTANCE 

NONPROFIT HOUSING CORPORATION 

By: /s/ Edwin R. Harlin 

Name: Edwin R. Harlin 

Title: President 

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

hereby execute and deliver this-Seventh Amendment to Commitment to Purchase _Einancial 

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

MICHIGAN STATE HOUSING 

DEVELOPMENT AUTHORITY 

By: 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: ii-iU / UA 

Name: 

Title: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

MICHIGAN HOMEOWNER ASSISTANCE 

NONPROFIT HOUSING CORPORATION 

By: 

Name: 

Title: 

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

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

Doc#: USI:8614550v2 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

Michigan Homeowner Assistance Nonprofit 

Housing Corporation 

Domestic Nonprofit Corporation 

State of Michigan 

HFA Information: 

Name of HFA: Michigan State Housing Development 

Authority 

Organizational form: Public body corporate and politic of the 

State of Michigan 

Date of Application: 

Date of Action Plan: 

Notice Information: 

April 14, 2010 

September 1,2010 

Program Participation Cap: 

Portion of Program Participation Cap 

Representing Original HHF Funds: 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: 

Permitted Expenses: 

Closing Date: 

First Amendment Date: 

Second Amendment Date: 

$498,605,738.00 

$154,500,000.00 

$128,461,559.00 

$60,266,853.00 

June 23, 2010 

September 23, 2010 

September 29, 2010 

Doc#:USl:8614550v2 
Third Amendment Date: 

Fourth Amendment Date: 

Fifth Amendment Date: 

Sixth Amendment Date: 

Seventh Amendment Date: 

Eligible Entity Depository Account Information: 

December 16, 2010 

August 3, 2011 

June 28, 2012 

November 15, 2012 

June 6, 2013 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

Doc#:USI:86145S0v2 
SCHEDULE B 

SERVICE SCHEDULES 

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

replaced with the attached Service Schedules (numbered sequentially as Service Schedule B-l, Service 

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

Doc#:USl:8614550v2 
SERVICE SCHEDULE B-l 

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY 

PRINCIPAL CURTAILMENT PROGRAM (PC) 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

6. Property/Loan 

Eligibility Criteria 

The Principal Curtailment Program will provide a one-time 

matching fund of up to $10,000 to homeowners seeking to 

modify their loans. The Lender/Servicer must agree to provide 

matching forgiveness of principal and to modify the reduced 

loan balance. 

The Principal Curtailment will prevent avoidable foreclosures 

by helping homeowners who have a qualifying, involuntary 

hardship (for example, homeowners who currently cannot 

refinance or modify their mortgages due to negative equity 

positions). Homeowners will benefit from both a restructured 

loan payment and the reduction in principal balance, reducing 

monthly payments and increasing sustainability. 

MHA does not anticipate targeting this assistance on a 

geographic basis, nor have we anticipated targeting specific 

income limits. 

$3,000,000 

MHA determines homeowner eligibility. Homeowners 

presently having negative equity, greater than 100% Loan to 

Value (LTV) or greater than 100% Combined Loan to Value 

(CLTV), and needing principal curtailment in order to reach a 

sustainable mortgage payment. Homeowners are required to 

provide a hardship affidavit; it must be the occupying 

Homeowner who has the qualifying, involuntary hardship. If 

providing assistance on a 2 lien, first lien must be 

documented as current. MHA considers a sustainable 

mortgage payment 45% or less (gross household income to 

validated mortgage payment). 

The homeowner must currently occupy the property as his/her 

primary residence and it must be located within the state of 

Michigan. Homeowners must execute all Hardest Hit Funds 

application and closing documents. Eligible structures to 

include single-family, attached or detached, or manufactured 

homes on a permanent foundation attached to real property; 1 -

4 unit properties are eligible if one unit is primary residence of 

homeowner. Existing mortgage loan balance must be equal to 

or less than $729,250. 

June 2013 
7. Program Exclusions Second homes or investment properties. Homeowners with 

Liquid- cash reserves exceeding 6 months validated 

mortgage payments. Lender/Servicer is not required to 

accept homeowner to the program if a notice of 

trustee/sheriff sale has been recorded or the trustee/sheriff 

sale is scheduled less than seven days from date the 

Lender/Servicer is notified of borrower eligibility. 

Structure of 

Assistance 

Homeowners receiving assistance will execute a secured 

Subordinate lien mortgage and note in favor of the MHA 

Loan will be 0%, non-amortizing loan, forgivable over a 5 

year term at 20% per year, which will be due on sale, transfer 

of the property, or when the property ceases to be the 

principal residence of the homeowner. If the primary lien is 

paid in full due to a no cash out, limited-term, refinance, the 

MHA may subordinate lien position in accordance with 

program guidelines. Mortgage will be recorded through 

public records and ongoing monitoring, repayments, 

discharges, and subordinations will be conducted by MHA. 

Any repayment of program funds will be re-invested back 

into program allocation. All funds remaining in the program 

will be returned to Treasury after December 31, 2017. 

Hardest Hit Funds will be available on a first come, first 

serve basis. 

The Lender/Servicer will determine terms of modification 

according to their internal guidelines. The Lender/Servicer will 

transmit modification terms to the MHA for review and agree 

to match MHA's assistance dollar for dollar towards principal 

curtailment. Awarded funds will be remitted to 

Lender/Servicer to be applied towards the capitalized balance 

resulting in a reduction in existing principal on either the 1st or 

2

nd

 Mortgage. 

Lender/Servicer is required to provide timely communication 

of homeowner's loan data to the MHA and agree to place 

collection and foreclosure activity on hold upon their 

acceptance of the homeowner into the Hardest Hit Funds 

Program; active foreclosure action to be canceled upon receipt 

of Hardest Hit Funds. Lender/Servicer is required to provide 

evidence of timely application of Hardest Hit Funds inclusive 

of their required minimum 1:1 match. Lender/Servicer is 

required to waive all accumulated late charges and nonsufficient funds (NSF) fees. 

June 2013 
9. Per Household 

Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception/ 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14, Program Interactions 

with HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

Maximum of $10,000 per household with a minimum 1:1 

match from the Lender/Servicer; total of $20,000 per 

household. 

One time assistance to homeowner paid directly to 

Lender/Servicer for application towards capitalized balance. 

300 households could be served under this program if they all 

receive the maximum funding amount of $10,000. 

Program rolled out July 12, 2010. Based on the overwhelming 

need, funds allocated to this Program will likely be exhausted 

3

rd

 quarter 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are 

eligible for this program. 

Homeowners can receive HAMP assistance (including UP 

program assistance) prior to or after receiving Hardest 

Hit Funds assistance; Hardest Hit Funds cannot be used 

to pay HAMP trial period payments. Lender/Servicers 

to follow 

current guidance issued by their investor and/or U.S. Treasury. 

Existing Lender/Servicer will be required to match Hardest Hit 

Funds at a minimum of 1:1 towards capitalized debt. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees upon receipt of Hardest Hit Funds. 

• Yes 0 No 

June 2013 
SERVICE SCHEDULE B-2 

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY 

LOAN RESCUE PROGRAM (LR) 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

Whether it was a divorce, a serious illness, or a recent period 

of unemployment, many Michigan families have encountered 

some significant obstacle in their lives that resulted in 

mortgage delinquency. This program will provide up to 

$30,000 in assistance to households who had a qualifying, 

involuntary hardship and can sustain homeownership, but 

need assistance to catch up on delinquent payments, escrow 

shortage, and/or delinquent property taxes, and/or 

delinquent condominium association fees to avoid 

foreclosure. (Condominium assessed fees as described in 

Act 59, MCL 559.101, et seq., as amended. 

This program will prevent avoidable foreclosures by putting 

homeowners, who otherwise are on the brink of foreclosure, 

back on solid footing without increasing their mortgage debt 

payments. In so doing, the program will stem the oversupply 

of foreclosed homes and short sales that dominate many 

markets and help stabilize the broader housing market in 

Michigan. 

MHA does not anticipate targeting this assistance on a 

geographic basis, nor have we anticipated targeting specific 

income limits. 

$198,026,295. 

MHA determines homeowner eligibility. Homeowners who 

have had a qualifying, involuntary hardship (for example, 

decreased income or a catastrophic event). Homeowners are 

required to provide a hardship affidavit; it must be the 

occupying Homeowner who has the qualifying, involuntary 

hardship. If providing assistance on a 2nd lien, first lien 

must be documented as current. MHA considers a 

sustainable mortgage payment 45% or less (gross household 

income to validated mortgage payment). If the property is 

free and clear of mortgage liens, sustainable housing ratio 

will be calculated on monthly payment of annual tax and 

hazard insurance expenses; must be 45% or less. 

June 2013 
6. Property/Loan 

Eligibility Criteria 

7. Program Exclusions 

The homeowner must currently occupy the property as 

his/her primary residence and it must be located within the 

state of Michigan. Homeowners must execute all Hardest Hit 

Funds application and closing documents. Eligible structures 

to include single-family, attached or detached, or 

manufactured homes on a permanent foundation attached to 

real property; 1 -4 unit properties are eligible if one unit is 

primary residence of homeowner. Existing mortgage loan 

balance must be equal to or less than $729,250. 

Second homes or investment properties. Homeowners with 

liquid cash reserves exceeding 6 months validated mortgage 

payments. Lender/Servicer is not required to accept 

homeowner to the program if a notice of trustee/sheriff sale 

has been recorded or the trustee/sheriff sale is scheduled less 

than seven days from date the Lender/Servicer is notified of 

borrower eligibility. 

June 2013 
8. Structure of Assistance Homeowners receiving assistance will execute a secured 

subordinate lien mortgage and note in favor of the Eligible 

Entity. Loan will be 0%, non-amortizing loan, forgivable 

over a 5 year term at 20% per year, which will be due on sale, 

transfer of the property, or when the property ceases to be the 

principal residence of the homeowner. If the primary lien is 

paid in full due to a no cash out, limited-term, refinance, the 

MHA may subordinate lien position in accordance with 

program guidelines. Mortgage will be recorded through 

public records and ongoing monitoring, repayments, 

discharges, and subordinations will be conducted by MHA. 

Any repayment of program funds will be re-invested back 

into program allocation. All funds remaining in the program 

will be returned to Treasury after December 31, 2017. 

Hardest Hit Funds will be available on a first come, first 

serve basis. 

If assistance is paid directly to tax authority or condominium 

association, homeowner will execute an additional, 

simultaneous Demand Note in the amount of delinquent taxes 

and/or delinquent condominium association fees. 

Lender/Servicer and/or eligible third party (property tax 

authority or condominium association) is required to provide 

timely communication of homeowner's loan data to the MHA 

and agree to place collection and foreclosure activity on hold 

upon their acceptance of the homeowner into the Hardest Hit 

Funds Program; active foreclosure action to be canceled 

upon receipt of Hardest Hit Funds. Lender/Servicer and/or 

eligible third party (property tax authority or condominium 

association) is required to provide evidence of timely 

application of Hardest Hit Funds. Lender/Servicer is required 

to waive all accumulated late charges and non-sufficient 

funds (NSF) fees. 

Per Household 

Assistance 

One time award up to $30,000 per household. 

June 2013 
10. Duration of Assistance 

11. Estimated Number 

of Participating Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

One-time assistance to homeowner, paid directly to 

Lender/Servicer and/or eligible third party, for application 

towards homeowner's total, accrued delinquent mortgage 

payments, escrow shortages, corporate advances, excluding 

late charges and NSF fees, delinquent property taxes and/or 

delinquent condominium association fees on homeowners' 

account. If funds are to be paid through the Lender/Servicer 

to be applied towards delinquent property taxes, the 

Lender/Servicer should set up an escrow account to pay 

homeowners' future property taxes for future sustainability. 

If Lender/Service is not able to set up an escrow account, 

assistance to pay delinquent property taxes will be disbursed 

directly to the tax authority. 

Based upon maximum program funding of $30,000 per 

household, 6,600 households may be assisted. 

Based on the overwhelming need, funds allocated to this 

Program will likely be exhausted 3rd quarter, 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are 

eligible for this program. Homeowners are eligible for 

simultaneous disbursements to multiple, eligible entities 

in this Program. 

Homeowners can receive HAMP assistance (including UP 

program assistance) prior to or after receiving Hardest 

Hit Funds assistance; Hardest Hit Funds cannot be used 

to pay HAMP trial period payments. Lender/Servicers 

to follow current guidance issued by their investor and/or 

U.S. Treasury. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees. No further matching is required. 

• Yes 0 No 

June 2013 
SERVICE SCHEDULE B-3 

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY 

UNEMPLOYMENT MORTGAGE SUBSIDY PROGRAM (UMS) 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target Population / 

Areas 

Michigan, through its Unemployment Mortgage Subsidy 

Program, directly provides funds to the Lender/Servicer to 

subsidize an eligible homeowner's current or modified 

mortgage payment. 

This Program assists the homeowner who has had a qualifying, 

unemployment-related hardship in retaining homeownership 

by subsidizing up to 50% or $1,000 (whichever is less) of the 

monthly mortgage payment. The monthly subsidy will not 

exceed a total of 12 consecutive months or $12,000. 

Homeowners will be responsible for the unsubsidized portion 

of their monthly payment, which will be collected by MHA's 

special sub-servicer and sent to MHA; MHA will always remit 

the full mortgage payment directly to the Lender/Servicer. 

Lender/Servicer agrees to apply the funds towards validated 

mortgage payments and not homeowner/condominium 

association (HOA) fees unless such payments have been 

escrowed and are included in the monthly mortgage payment. 

Homeowners will also be eligible for upfront assistance to 

contribute towards a mortgage delinquency; inclusive of 

current mortgage payment due, delinquent mortgage 

payments, escrow shortages, corporate advances, excluding 

accrued late charges and non-sufficient funds (NSF) fees, on 

homeowners' mortgage account. Maximum reinstatement 

amount cannot exceed the maximum program reservation of 

$30,000 less the total amount initially reserved for 12 

monthly subsidy amounts. 

Provide mortgage payment assistance to Michigan 

unemployed residents helping them remain successful in 

homeownership. 

MHA does not anticipate targeting this assistance on a 

geographic basis, nor have we anticipated specific hard income 

limits. 

June 2013 
4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

$128,461,559. 

MHA determines homeowner eligibility. Homeowners who 

have lost their job and have received Michigan unemployment 

benefits within the last 30 days of application date (not 

registration date). Homeowners are required to provide a 

hardship affidavit; it must be the occupying Homeowner who 

has the qualifying, involuntary hardship. Qualifying ratio of 

45% or less (gross household income, including 

unemployment compensation, to borrower's required portion 

of the validated mortgage payment). 

The homeowner must currently occupy the property as his/her 

primary residence and it must be located within the state of 

Michigan. Homeowners must execute all Hardest Hit Funds 

application and closing documents. Eligible structures to 

include single-family, attached or detached, or manufactured 

homes on a permanent foundation attached to real property; 

1-4 unit properties are eligible if one unit is primary residence 

of homeowner. Existing mortgage loan balance must be 

equal to or less than $729,250. 

Homeowners, as described above, not receiving Michigan 

Un-employment benefits. Second homes or investment 

properties. Homeowners with liquid cash reserves exceeding 

6 months validated mortgage payments. Assistance may not 

be provided on a loan in a 2nd lien position. Lender/Servicer is 

not required to accept homeowner to the program if a notice 

of trustee/sheriff sale has been recorded or the trustee/sheriff 

sale is scheduled less than seven days from date the 

Lender/Servicer is notified of borrower eligibility. 

June 2013 
8. Structure of Assistance 

9. Per Household 

Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

Homeowners receiving assistance will execute a secured 

subordinate lien mortgage and note in favor of the MHA. Loan 

will be 0%, non-amortizing loan, forgivable over a 5 year term 

at 20% per year, which will be due on sale, transfer of the 

property, or when the property ceases to be the principal 

residence of the homeowner. If the primary lien is paid in full 

due to a no cash out, limited-term, refinance, the MHA may 

subordinate lien position in accordance with in program 

guidelines. Mortgage will be recorded through 

public records and ongoing monitoring, repayments, 

discharges, and subordinations will be conducted by MHA. 

Any repayment of program funds will be re-invested back 

into program allocation. All funds remaining in the program 

will be returned to Treasury after December 31, 2017. 

Lender/Servicer is required to provide timely communication 

of homeowner's loan data to the MHA and agree to place 

collection and foreclosure activity on hold upon their 

acceptance of the homeowner into the Hardest Hit Funds 

Program; active foreclosure action to be canceled upon receipt 

of Hardest Hit Funds. Lender/Servicer is required to provide 

evidence of timely application of Hardest Hit Funds. 

Lender/Servicer is required to waive all accumulated late 

charges and NSF fees. 

$ 30,000 maximum per household. 

Monthly subsidy ceases after 12 months consecutive monthly 

payments OR if homeowner fails to pay their portion of the 

payment in accordance with terms of the Note. 

Based upon maximum program funding of $30,000 per 

household, 4,282 households may be assisted. 

Based on the overwhelming need, funds allocated to this 

program will likely be exhausted 3rd quarter, 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are 

eligible for this program. 

June 2013 
14. Program Interactions 

with HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

Homeowners can receive HAMP assistance (including UP | 

program assistance) prior to or after receiving Hardest Hit 

Funds assistance; Hardest Hit Funds cannot be used to 

pay HAMP trial period payments. Lender/Servicers to 

follow current guidance issued by their investor and/or 

U.S. Treasury. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees. No further matching is required. 

0 Yes D No 

June 2013 
SERVICE SCHEDULE B-4 

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY 

MODIFICATION PLAN PROGRAM 

(MP) Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

Michigan's Modification Plan Program provides a permanent 1 

solution to many homeowners who have fallen behind due to a 

qualifying, involuntary hardship, for example loss of income, but 

have the ability to sustain homeownership if their mortgage 

payment is modified. Up to $30,000 in assistance may be 

provided to the Lender/Servicer to pay the capitalized balance in 

order to contribute towards reaching a lower, sustainable 

monthly payment. Re-amortization only or Recast Modifications 

are eligible. 

This program will prevent avoidable foreclosures by putting 

homeowners, who otherwise are on the brink of foreclosure, into 

a permanent, affordable loan modification allowing them to 

maintain homeownership, curb vacancies and stabilize local 

communities. 

MHA does not anticipate targeting this assistance on a 1 

geographic basis, nor have we anticipated targeting specific 

income limits. 

$8,851,031 

MHA determines homeowner eligibility. Homeowners who have 

had a qualifying, involuntary hardship (for example, decreased 

income or a catastrophic event) and present housing payment 

is greater than 45%. MHA considers a sustainable mortgage 

payment 45% or less (gross household income to validated 

mortgage payment). Homeowners are required to provide a 

hardship affidavit; it must be the occupying Homeowner who 

has the qualifying, involuntary hardship. 

Doc#: USl:8614550v2 
6. Property/Loan 

Eligibility Criteria 

7. Program Exclusions 

The homeowner must currently occupy the property as his/her | 

primary residence and it must be located within the state of 

Michigan. Homeowners must execute all Hardest Hit Funds 

application and closing documents. Eligible structures to include 

single-family, attached or detached, or manufactured homes on a 

permanent foundation attached to real property; 1 -4 unit 

properties are eligible if one unit is primary residence of 

homeowner. Existing mortgage loan balance must be equal to 

or less than $729,250. 

Homeowners whose Lender/Servicer is unable to permanently 

modify their existing lien. Assistance may not be provided on a 

loan in a 2nd lien position. Second homes or investment 

properties. Homeowners with liquid cash reserves exceeding 6 

months validated mortgage payments. Lender/Servicer is not 

required to accept homeowner to the program if a notice of 

trustee/sheriff sale has been recorded or the trustee/sheriff sale is 

scheduled less than seven days from date the Lender/Servicer is 

notified of borrower eligibility. 

Doc#: USl:8614550v2 
Structure of 

Assistance 

Homeowners receiving assistance will execute a secured 

subordinate lien mortgage and note in favor of the MHA. Loan 

will be 0%, non-amortizing loan, forgivable over a 5 year term at 

20% per year, which will be due on sale, transfer of the property, 

or when the property ceases to be the principal residence of the 

homeowner. If the primary lien is paid in full due to a no cash 

out, limited-term, refinance, the MHA may be willing to 

subordinate lien position. Mortgage will be recorded through 

public records and ongoing monitoring, repayments, discharges, 

and subordinations will be conducted by MHA. Any repayment 

of program funds will be re-invested back into program 

allocation. All funds remaining in the program will be returned 

to Treasury after December 31, 2017. Hardest Hit Funds will 

be available on a first come, first serve basis. 

The Lender/Servicer will determine terms of modification 

according to their internal guidelines. The Lender/Servicer will 

transmit modification terms to the MHA for review. MHA will 

determine amount of assistance up to program maximum based 

on delinquency amount or if the loan is current, based on 

amount required to improve negative equity position. Awarded 

funds will be remitted to Lender/Servicer to be applied towards 

the capitalized balance. 

Lender/Servicer is required to provide timely communication of 

homeowner's loan data to the MHA and agree to place collection 

and foreclosure activity on hold upon their acceptance of the 

homeowner into the Hardest Hit Funds Program; active 

foreclosure action to be canceled upon receipt of Hardest Hit 

Funds. Lender/Servicer is required to provide evidence of timely 

application of Hardest Hit Funds. Lender/Servicer is required to 

waive all accumulated late charges and non-sufficient funds 

(NSF) fees. 

9. Per Household 

Assistance 

One-time award up to $30,000 per household. 

10. Duration of 

Assistance 

One-time assistance to homeowner, paid directly to 

Lender/Servicer, for application towards capitalized balance, 

excluding late fees and NSF fees, on homeowners' mortgage 

account. 

Based upon maximum program funding of $30,000 per 

household, 295 households may be assisted. 

11. Estimated Number 

of Participating 

Households 

Doc#;USl:86i4550v2 
12. Program Inception/ 

Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

Program rolled out July 2012. Based on the 

Over-whelming need, funds allocated to this Program will 

likely be exhausted 3rd quarter 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are eligible 

for this program. 

Homeowners can receive HAMP assistance (including UP 

program assistance) prior to or after receiving Hardest Hit Funds 

assistance; Hardest Hit Funds cannot be used to pay HAMP trial 

period payments. Lender/Servicers to follow current guidance 

issued by their investor and/or U.S. Treasury. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees. No further matching is required. 

• Yes 0 No 

Doc#: USl:8614550v2 
SERVICE SCHEDULE B-5 

MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY 

BLIGHT ELIMINATION PROGRAM (BE) 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Property Eligibility 

Criteria 

Strategically target residential and multifamily demolition in 

designated areas within the state of Michigan, by partnering with 

land banks, non-profit and/or for- profit organizations (together, 

"Partners"). 

The Blight Elimination Program (BE) primary purpose and goal is 

to focus efforts on decreasing foreclosures and stabilizing 

neighborhoods through the demolition and greening of vacant and 

abandoned single family and multi family structures in designated 

areas across Michigan. MHA will work with program Partners to 

identify meaningful indicators that will enable them to track and 

quantify the Blight Elimination Program's impact in the 

designated communities. 

Demolition funds will be focused in the cities of Detroit, Flint, 

Grand Rapids, Pontiac and Saginaw. MHA may authorize 

demolition to immediately adjacent neighborhoods to the 

designated cities if there is consensus among the applicable 

Partners that activity will promote increased values of 

remaining property and promote a positive economic impact. 

$100,000,000. 

MHA determines property eligibility. Property will be considered 

blighted if it meets the following criteria as determined by the 

local governing body in their master plan and pursuant to program 

guidelines. 

• Considered a public nuisance according to local code or 

ordinance. 

• Is a nuisance due to age, physical condition or use. 

• Has had utilities, plumbing, heating or sewage disconnected, 

destroyed, removed or rendered ineffective so that property is 

unfit for the intended use. 

Doc#: USl:8614550v2 
6. Ownership/Loan 

Eligibility Criteria 

7. Program Exclusions 

• Eligibility for residential (1-4 units) and multi-family (4+ 

units) demolition will be determined by MHA internal 

committee, ensuring funds will be appropriately spent, 

providing the greatest good for the city and neighborhood as 

defined in the program guidelines. 

• MHA to issue note and mortgage not to exceed $25,000 for 

actual costs incurred to acquire, demolish, green, and maintain 

property for a period not to exceed five years. 

Commercial structures. 

Doc#: USl:8614550v2 
8. Structure of 

Assistance 

MHA/MSHDA will determine project sites in direct consultation 

with Partners. 

Partners will be responsible for property acquisition, demolition 

work and on-going property maintenance. 

Partners will submit to MHA/MSHDA the following for each 

demolition candidate: 

• Acquisition information including deed, title insurance or 

equivalent. 

• Evidence of eligibility including location, project description 

and photographs. 

• Third party inspection report providing proof of completion of 

demolition. 

• Third party inspection report providing proof of asbestos 

abatement and remediation (when applicable). 

• Third party inspection report disclosing any other hazardous or 

otherwise adverse conditions of the property. 

Upon receipt of the above documentation, MHA will provide 

Hardest Hit funding to Partner after Partner's execution of a 

mortgage and note for a maximum of $25,000 in favor of MHA. 

Total assistance will provide for payoff of any existing lien, 

demolition costs and $150 per year maintenance for a term of 5 

years. 

Loan will be 0%, non-amortizing loan, forgivable over a 5 year 

term at 20% per year, as long as covenants are met; outstanding 

balance of loan will be due on sale, transfer, or unauthorized use of 

the property, to the extent of net proceeds received. Mortgage will be 

recorded through public records and ongoing monitoring, 

repayments, and discharges will be conducted by MHA. Any 

repayment of program funds will be re-invested back into program 

allocation. All funds remaining in the program will be returned to 

Treasury after December 31, 2017. Special considerations may be 

made by MHA to release lien prior to 5 year term based on merit of 

request and to promote positive economic impact to community as 

set forth in program guidelines. 

9. Per Property Assistance Maximum of $25,000 per property which includes payoff of 

existing lien; demolition and maintenance for 5 years. 

Doc#: USl:8614550v2 
10. Frequency of 

Assistance 

11. Estimated Number of 

Properties demolished 

12. Program Inception/ 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

One time assistance per property. 1 

4,000 properties could be served under this program if they all 

receive the maximum funding amount of $25,000. Further 

economies of scale savings will be investigated to drive costs down 

throughout all communities served for the BE program. This will in 

essence increase the total number of properties served to be greater 

than 4,000. 

Program roll out July 1, 2013. Based on the overwhelming 1 

need, funds allocated to this Program will likely be exhausted 

end of second quarter 2014. 

Property will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned properties may be eligible 

for this program. 

Doc#: USI:8614550v2 
SCHEDULE C 

PERMITTED EXPENSES 

One-time 1 Start-Up Expenses: 

Initial Personnel 

Building, Equipment, Technology 

Professional Services 

Supplies / Miscellaneous 

Marketing /Communications 

Travel 

Website development /Translation 

Contingency 

Subtotal 

$0.00 

$0.00 

$325,000.00 

$0.00 

$262,500.00 

$0.00 

$0.00 

$0.00 

$587,500.00 

Operating / Administrative 

Expenses: 

Salaries 

Professional Services (Legal, 

Compliance, Audit, Monitoring) 

Travel 

Buildings, Leases & Equipment 

Information Technology & 

Communications 

Office Supplies/Postage and 

Delivery/Subscriptions 

Risk Management/ Insurance 

Training 

Marketing/PR 

Miscellaneous 

Subtotal 

$37,256,910.00 

$2,240,000.00 

$35,000.00 

$590,000.00 

$450,000.00 

$478,000.00 

$50,000.00 

$7,860,003.00 

$4,800,000.00 

$53,759,913.00 

Transaction Related Expenses: 

Recording Fees 

Wire Transfer Fees 

Counseling Expenses 

File Intake 

Decision Costs 

Successful File 

Key Business Partners On-Going 

Subtotal 

$1,850,000 

$225,000 

$604,440.00 

$0.00 

$0.00 

$3,240,000 

$5,919,440.00 

Grand Total $60,266,853.00 | 

Doc#: USl:86l4550v2 
WV:&=f:^ 

% of Total Award 12.09% 

Award Amount $498,605,738.00 

Doc#:USl:8614550v2