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NINTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Ninth Amendment to Commitment to Purchase Financial Instrument and HFA

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

Schedule A attached hereto as the Ninth 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 set forth on Schedule A attached hereto, as previously amended by those

certain Amendments to Commitment to Purchase Financial Instrument and HFA Participation

Agreement dated as of their respective dates as set forth on Schedule A attached hereto (each, 

an “Amendment” and together with the Original HPA as amended thereby, the “Current

HPA”), 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 (12 U.S.C. 

5201 et seq.), as amended, and as the same may be amended from time to time (“EESA”);

WHEREAS, on February 19, 2016 Treasury announced that it would (i) extend the HHF 

Program through 2020, and (ii) make $2 billion of additional assistance available under the HHF 

Program (the “Fifth Round Funding”) to help prevent foreclosure and stabilize housing markets

in certain states that had previously received HHF Program funding for such purposes; and

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

memorialize the extension of the HHF Program, increase the amount of HHF Program funds

available to Eligible Entity hereunder, and make certain other changes to the terms of the Current 

HPA and the Exhibits and Schedules attached thereto.

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. End of Term. The definition of End of Term in Section 2(A)(14) of the Current 

HPA is hereby deleted and replaced with the following: 
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“End of Term” shall mean the last day of the calendar month in which the Eligible Entity 

makes the last disbursement of HHF Program funds in furtherance of the Services, which

shall occur no later than December 31, 2021 (or such later date as Treasury may 

determine in its sole discretion with written notice to Eligible Entity and HFA). For the 

sake of clarity, Capital Draws shall not be permitted after the End of Term other than for 

payment of Permitted Expenses.

B. Bring Down Certificate. Section 2(A)(15) of the Current HPA is hereby amended 

by (i) striking “on each anniversary of the Effective Date during the Term (as defined 

below)” and replacing it with “on each anniversary of the Effective Date through

September 30, 2016, and from and after October 1, 2016, no later than one hundred 

twenty (120) days after the end of each of their respective fiscal years”, and (ii) by adding 

to the end “A final certification shall be delivered by each of HFA and Eligible Entity on 

the Final Repayment Date (as defined in the Financial Instrument).”

C. Program Participation Cap. Section 3(D) of the Current HPA is hereby deleted in 

its entirety and replaced with the following: 

D. The value of this Agreement is limited to the amount set forth in Schedule A as the 

Program Participation Cap, as may be adjusted from time to time as set forth on Schedule 

F attached hereto (the “Program Participation Cap”). Notwithstanding anything to the 

contrary contained herein, the aggregate Purchase Price payable to Eligible Entity under 

this Agreement with respect to all Services described on the Service Schedules may not 

exceed the amount of the Program Participation Cap.

D. Performance Reports. Section 4(A) is hereby amended by (i) striking the third 

sentence and replacing it with “HFA shall submit the Performance Report to Treasury or 

its designee no later than forty-five (45) days after the end of each calendar quarter and 

otherwise as requested by Treasury. After Treasury has communicated in writing that the 

Performance Report is in a form acceptable to Treasury, HFA shall promptly post the 

Performance Report to its website”; and (ii) adding to the end “A final Performance 

Report shall be delivered no later than forty-five (45) days after the end of the calendar 

quarter in which the End of Term occurs.”

E. Financial Reporting. Section 4(G) of the Current HPA is hereby deleted in its 

entirety and replaced with the following:

G. Each of HFA and Eligible Entity shall provide annual audited financial 

statements to Treasury no later than one hundred twenty (120) days after the end of 

its respective fiscal year, commencing with the first fiscal year ending after the 

Effective Date, and concluding with the fiscal year in which the End of Term occurs. 

Eligible Entity shall provide quarterly unaudited financial statements to Treasury no 

later than forty-five (45) days after the end of each quarter, commencing with the 

first full quarter ending after the Effective Date and concluding with the quarter in 

which the End of Term occurs.
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F. Term. Section 5(A) of the Current HPA is hereby deleted in its entirety and 

replaced with the following:

(A) The term of this Agreement (“Term”) shall begin on the Effective Date and 

extend to the End of Term, or earlier termination of this Agreement by Treasury 

pursuant to the provisions hereof, or earlier suspension or termination of the Services 

by Treasury. Subject to the foregoing, new Services may be undertaken (e.g., 

approval of assistance actions with respect to unique homeowners or properties, 

including, where applicable, final underwriting decisions and payment schedules), 

through and including December 31, 2020 (or such later date as may be determined 

by Treasury in its sole discretion upon prior written notice to Eligible Entity). It is 

understood and agreed that certain administrative, monitoring, reporting, compliance 

and oversight obligations and requirements set forth in this Agreement and the 

Financial Instrument survive the expiration or termination of this Agreement or the 

End of Term, and that funds are to be reserved as set forth in Schedule C to pay for 

the cost of the same, through and including the Final Repayment Date.

G. Modifications. 

(a) Section 9(A) of the Current HPA is hereby amended by inserting “and except as 

expressly set forth herein,” after “Subject to Section 9.B.,”

(b) Section 9(B) of the Current HPA is hereby amended by adding the following at the 

end: 

Notwithstanding anything to the contrary contained herein, Treasury may approve 

revisions proposed by Eligible Entity and HFA to any Schedule or Exhibit attached 

hereto, by written notice to Eligible Entity and HFA, pursuant to a procedure 

established by Treasury in its sole discretion and provided to Eligible Entity and 

HFA. The applicable Schedule or Exhibit shall be deemed modified for all 

purposes hereunder as of the date such written notice is received pursuant to 

Section 8 hereof.

(c) Section 9(C) of the Current HPA is hereby amended by deleting the last sentence 

in its entirety.

H. Exhibit A. Exhibit A attached to the Current HPA is hereby deleted in its entirety 

and replaced with Exhibit A attached to this Amendment.

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

entirety and replaced with Schedule A attached to this Amendment.

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

entirety and replaced with Schedule B attached to this Amendment.

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

entirety and replaced with Schedule C attached to this Amendment.
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L. Schedule F. A new Schedule F is added to the Current HPA in the form attached 

to this Amendment as Schedule F.

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

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

to the “Financial Instrument” shall mean the Amended and Restated Financial Instrument 

in the form attached to this Amendment as Exhibit A; and all references in the Current 

HPA to Exhibit A or Schedules A, B, C or F shall mean the Exhibit A or Schedules A, B, 

C or F attached to this Amendment. All references herein to the "HPA" shall mean the 

Current HPA, as further amended by this Amendment.

2. Substitution of Financial Instrument. 

Eligible Entity shall deliver to Treasury on the date hereof an Amended and Restated 

Financial Instrument in the form attached to this Amendment as Exhibit A. By executing 

this Amendment, Treasury, HFA and Eligible Entity authorize The Bank of New York 

Mellon to cancel the Financial Instrument previously delivered under the Current HPA 

against delivery of such Amended and Restated Financial Instrument and direct The Bank 

of New York Mellon to return the cancelled Financial Instrument to (or at the direction 

of) the Eligible Entity.

3. 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 Amendment, the Amended and Restated Financial Instrument, 

and any other closing documentation delivered to Treasury in connection therewith, 

and to perform its obligations hereunder and thereunder.

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

this Amendment and any other closing documentation delivered to Treasury in 

connection therewith, and to perform its obligations hereunder and thereunder.
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4. Miscellaneous

A. The recitals set forth at the beginning of this 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 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 Amendment, the Amended and Restated Financial Instrument, and 

any other closing documentation delivered in connection therewith, shall be treated as originals

for all purposes.

[SIGNATURE PAGE FOLLOWS;REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK]
[Signature Page to Ninth Amendment to HPA – New Jersey]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

NEW JERSEY HOUSING AND 

MORTGAGE FINANCE AGENCY

UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Anthony L. Marchetta By:

Name: Anthony L. Marchetta Name: Mark McArdle

Title: Executive Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

NEW JERSEY HOUSING AND 

MORTGAGE FINANCE AGENCY

By: /s/ Anthony L. Marchetta

Name: Anthony L. Marchetta

Title: Executive Director 
EXHIBITS AND SCHEDULES

Exhibit A Form of Amended and Restated Financial Instrument

Schedule A Basic Information

Schedule B Service Schedules

Schedule C Permitted Expenses

Schedule F HHF Fifth Round Funding Reallocation Model
EXHIBIT A

FORM OF AMENDED AND RESTATED FINANCIAL INSTRUMENT

This Amended and Restated Financial Instrument is delivered by the undersigned party 

(“Eligible Entity”) as provided in Section 1 of the Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Commitment”), entered into as of the Effective Date, as 

modified by those certain Amendments to Commitment to Purchase Financial Instrument and 

HFA Participation Agreement dated as of the dates set forth on Schedule A to the Commitment

(together, the “Agreement”), by and among the United States Department of the Treasury 

(“Treasury”), the party designated as HFA in the Commitment (“HFA”) and Eligible Entity. 

This Amended and Restated Financial Instrument is effective as of June 28, 2016. All of the 

capitalized terms that are used but not defined herein shall have the meanings ascribed to them in 

the Agreement.

Recitals

WHEREAS, Eligible Entity executed and delivered that certain Financial Instrument dated as of 

the Effective Date to Treasury (“Original Financial Instrument”); and

WHEREAS, Treasury and Eligible Entity desire to amend certain terms of the Original Financial 

Instrument regarding repayment of the Purchase Price in connection with the extension of the 

HHF Program through 2020 and availability of additional assistance under the HHF Program

Fifth Round Funding; and

WHEREAS, Treasury and the Eligible Entity desire to restate and replace the Original Financial 

Instrument in its entirety.

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

hereby acknowledged, Eligible Entity agrees as follows:

1. Eligible Entity Obligation; Purchase Price Consideration.

(a) Eligible Entity shall perform all Services described in the Service Schedules in 

consideration for the Purchase Price described in subsection (b) below, in 

accordance with the terms and conditions of the Agreement, to the satisfaction of 

Treasury. The conditions precedent to the payment by Treasury of the Purchase 

Price with respect to the Services are set forth in Section 3(B) of the Agreement.

(b) This Amended and Restated Financial Instrument is being purchased by Treasury 

pursuant to Section 3 of the Agreement through the payment by Treasury of 

various payments referred to collectively in the Agreement as the “Purchase 

Price”. This Amended and Restated Financial Instrument is being purchased by 

Treasury in connection with Eligible Entity’s participation in the Housing Finance 

Agency Innovation Fund for the Hardest Hit Housing Markets program (the 

“HHF Program”) created under the Emergency Economic Stabilization Act of 
2008 (12 U.S.C. 5201 et seq.) as amended, as the same may be amended from 

time to time (“EESA”).

2. Repayment of Purchase Price. 

If a recipient of HHF Program funds repays any or all of the funds received from Eligible 

Entity in connection with the Services (“Repaid Funds”), and such repayment occurs on 

or before the Final Repayment Date (hereinafter defined), Eligible Entity shall deposit 

such Repaid Funds in the Depository Account and use such Repaid Funds to provide 

Services or to fund the Permitted Expenses to the extent the full amount as indicated on 

Schedule C to the Agreement has not been drawn from Treasury pursuant to Section 3(A) 

of the Agreement. Any Repaid Funds retained by Eligible Entity to fund Permitted 

Expenses shall correspondingly reduce the amount that Eligible Entity may draw from 

Treasury pursuant to Section 3(A) of the Agreement to fund Permitted Expenses.

For the sake of clarity, if a recipient of HHF Program funds repays any or all of the funds 

received from Eligible Entity in connection with the Services, and such repayment occurs 

after the Final Repayment Date, such repaid funds shall not be considered HHF Program 

funds. 

3. Final Repayment. In the event Eligible Entity is holding any HHF Program funds, 

including, but not limited to, amounts reserved for payment of Permitted Expenses and 

Repaid Funds, as of the date that is ninety (90) days after the End of Term (the “Final 

Repayment Date”), all such funds shall be returned to Treasury or its designee prior to

1:00pm Eastern Time on the Final Repayment Date. For the sake of clarity, no Capital 

Draws will be permitted after the Final Repayment Date.

4. Security Interest. As security for the performance of the Services and the other 

obligations of Eligible Entity under the Agreement, as such obligations are evidenced in 

this Amended and Restated Financial Instrument, Eligible Entity has granted to Treasury 

a first lien priority security interest in the Depository Account and in any moneys, or 

investments, if any, held therein.

5. Representations, Warranties and Covenants. Eligible Entity represents and warrants that 

the representations and warranties set forth in the Agreement, on the date hereof, are, and 

on the date of each Capital Draw hereunder, shall be, true, correct, accurate and complete 

in all material respects. The truth and accuracy of such representations and warranties 

are continuing obligations of Eligible Entity. Additionally, all covenants of Eligible 

Entity set forth in Section 2 of the Agreement are incorporated herein by reference and 

Eligible Entity, on the date hereof, is not, and on the date of each Capital Draw 

hereunder, shall not be in breach of any such covenants. In the event that any of the 

representations or warranties made herein or in the Agreement cease to be true and 

correct, or the Eligible Entity breaches any of the covenants made herein or in the 

Agreement, Eligible Entity agrees to notify Treasury immediately and the same shall 

constitute an Event of Default hereunder. 
6. Limitation of Liability 

IN NO EVENT SHALL TREASURY, OR ITS OFFICERS, EMPLOYEES, AGENTS 

OR AFFILIATES BE LIABLE TO ELIGIBLE ENTITY WITH RESPECT TO THE 

SERVICES OR THE AGREEMENT, OR FOR ANY ACT OR OMISSION 

OCCURRING IN CONNECTION WITH THE FOREGOING, FOR ANY DAMAGES 

OF ANY KIND, INCLUDING, BUT NOT LIMITED TO DIRECT DAMAGES, 

INDIRECT DAMAGES, LOST PROFITS, LOSS OF BUSINESS, OR OTHER 

INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF ANY 

NATURE OR UNDER ANY LEGAL THEORY WHATSOEVER, EVEN IF ADVISED 

OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER 

OR NOT THE DAMAGES WERE REASONABLY FORESEEABLE; PROVIDED, 

HOWEVER, THAT THIS PROVISION SHALL NOT LIMIT TREASURY’S 

OBLIGATION TO REMIT PURCHASE PRICE PAYMENTS TO ELIGIBLE ENTITY 

IN ACCORDANCE WITH THE AGREEMENT.

7. Indemnification 

Eligible Entity agrees as set forth on Schedule E to the Agreement, which Schedule E is 

hereby incorporated into this Amended and Restated Financial Instrument by reference.

IN WITNESS WHEREOF, Eligible Entity hereby executes this Amended and Restated Financial 

Instrument on the date set forth below.

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY]

By:

Name: 

Title: 

Date: ____________ __, 2016
A-1

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information:

Name of the Eligible Entity: New Jersey Housing and Mortgage Finance 

Agency1

Corporate or other organizational form: body, politic and corporate of the State of New 

Jersey established and existing under the New 

Jersey Statutes Annotated (N.J.S.A.) § 55:14K 

et. seq.

Jurisdiction of organization: New Jersey

Notice Information:

HFA Information:

Name of HFA: New Jersey Housing and Mortgage Finance 

Agency

Organizational form: body, politic and corporate of the State of New 

Jersey established and existing under the New 

Jersey Statutes Annotated (N.J.S.A.) § 55:14 et. 

seq.

Date of Application: September 1, 2010

Date of Action Plan: September 1, 2010

Notice Information:

Program Participation Cap: $415,133,962.00

Portion of Program Participation Cap 

Representing Original HHF Funds: N/A

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $112,200,637.00

 

1 References in the Agreement to the term "HFA" shall mean the New Jersey Housing and Mortgage Finance Agency 

("NJHMFA") in its capacity as an HFA as such term is used in the Agreement; references in the Agreement to the term 

"Eligible Entity" shall mean NJHMFA, in its capacity as Eligible Entity as such term is used in the Agreement.
A-2

Rounds 1-4 Funding Allocation: $300,548,144.00

Round 5 Funding Allocation: $114,585,818.00

Permitted Expenses: $45,029,990.00

Closing Date: September 23, 2010

First Amendment Date: September 29, 2010

Second Amendment Date: December 16, 2010

Third Amendment Date: August 31, 2011

Fourth Amendment Date: January 25, 2012

Fifth Amendment Date: August 24, 2012 

Sixth Amendment Date: October 30, 2013

Seventh Amendment Date: April 11, 2014 

Eighth Amendment Date: May 21, 2015

Ninth Amendment Date: June 28, 2016

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.
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.
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SERVICE SCHEDULE B-1

NEW JERSEY HOMEKEEPER PROGRAM (NJHK)

SUMMARY GUIDELINES 

1. Program Overview The New Jersey Housing and Mortgage Finance Agency 

(“NJHMFA” or the “Agency”) has created the New Jersey 

HomeKeeper Program (NJHK).

This program will provide 0% interest rate, deferred-payment 

mortgage loans to eligible homeowners who, through no fault of

their own, are at risk of foreclosure due to recent 

unemployment, loss of/reduction in income or other 

demonstrated financial hardships including medical, divorce, 

disability or death. NJHK loan proceeds may be used to cover 

mortgage arrearages and/or an approved amount of homeowner 

monthly mortgage payments including principal and interest, 

property taxes, property insurance, mortgage insurance and, if 

applicable, homeowner association dues.

The housing counseling agency shall recommend - and the 

NJHK staff shall review for approval – a plan of action for each 

homeowner that addresses the proposed use of NJHK mortgage 

loan proceeds for these key purposes:

 One-time payment to settle mortgage arrearages for 

homeowners who experienced lost income due to a 

qualified hardship, and have since recovered but need 

help to bring their mortgage current; and/or

 Payment of arrearages as needed and an approved 

amount of mortgage payment assistance . 

The maximum NJHK mortgage loan amount shall be $48,000. 

All loan proceeds shall be held in escrow by the NJHK and may 

be used to pay existing mortgage arrearages and/or an approved 

amount of the homeowner's existing mortgage payments each 

month. Existing mortgage payments include principal and 

interest, property taxes, homeowner insurance, mortgage 

insurance and homeowner association dues (if any). 
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2. Program Goals The goal of the NJHK Program is to promote neighborhood 

stability in New Jersey communities by providing assistance 

with mortgage arrears and mortgage payments to eligible 

homeowners who, through no fault of their own, are in danger 

of foreclosure due to recent unemployment, loss of/reduction in 

income or other demonstrated financial hardships. 

3. Target Population / 

Areas

The program will be offered statewide.

4. Program Allocation 

(Excluding 

Administrative Expenses)

$352,815,202 

5. Borrower Eligibility 

Criteria

Eligible homeowners are not subject to maximum household 

income limits.

Homeowners must be, through no fault of their own, in danger 

of foreclosure due to recent unemployment, loss of/reduction in 

income or other demonstrated financial hardships including 

medical, divorce, disability, or death. Underemployed 

homeowners must have experienced a loss of/reduction in

income of at least 15%.

In addition to meeting other program underwriting criteria, 

eligible homeowners:

 May be current on mortgage payments but are expected 

to become delinquent within a 90-day period due to loss 

of employment income OR may be 30 days or more

delinquent on mortgage payments due to loss of 

employment income;

 Must provide a financial Hardship Affidavit attesting to 

their inability to make mortgage payments. Loss of 

employment must be documented in accordance with 

program underwriting requirements, including evidence 

from the state unemployment office or, if unavailable, a 

notarized letter from the former employer indicating the 

unemployment or underemployment was not the fault of 

the borrower;

 Must show evidence of having made payments on their 

first mortgage loans;
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 Must be paying, as a result of an income loss due to a 

qualified hardship, 25% or more the of gross household 

income each month to cover all existing mortgage 

payments (including principal and interest, property 

taxes, homeowners insurance, mortgage insurance and, if 

applicable, homeowner association fees);

 Must participate and cooperate in sessions with an 

NJHK-approved housing counseling agency, which will 

help provide advice on all available programs and 

solutions for the homeowner, including the NJHK; and

 Homeowner must document employment status on a 

regular basis for employment related hardships in 

accordance with program requirements.

NJHK assistance shall be provided on a first come, first served 

basis.

6. Property / Loan 

Eligibility Criteria

The eligible homeowner must own and occupy a home located 

in New Jersey.

The home must contain one or two dwelling units, be an 

attached or detached house a condominium unit or a 

manufactured home on a foundation permanently affixed to real 

property owned by the homeowner.

At the time of application, the unpaid principal balance on 

existing mortgages on the home must not exceed $429,619 for a 

one-unit dwelling or $550,005 for a two unit dwelling.

7. Program Exclusions Homeowners owning other residential real estate at the time of 

application are ineligible.

Homeowner has liquid assets (excluding retirement assets and 

education savings plans) equal to or greater than the amount of 

Program assistance.

Homeowner cannot be involved in an active or open 

bankruptcy.

8. Structure of Assistance Program assistance will be provided to the homeowner in the 

form of a 0% interest rate, non-amortizing (no monthly 
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payments), forgivable, subordinate 10-year loan. The loan will 

be non-recourse, secured by a mortgage that will be recorded 

and take a junior lien position on the home. After the fifth year

of the closing date of the Program loan, the Program loan 

amount shall be forgiven at a rate of 20% per year, to be 

forgiven in full at the end of the tenth year.

All or a portion of the unforgiven loan funds will be due and 

payable from net equity proceeds upon sale or transfer or 

refinance of the property (except for refinances for a lower rate 

and/or shorter term) or if the borrower ceases to occupy the 

property as their primary residence prior to the end of the tenth 

year. If the property is sold and does not generate sufficient 

proceeds to repay all or a portion of the loan, the portion of the 

loan remaining unpaid after the proceeds are applied will be 

forgiven. 

Any funds repaid to NJHMFA by recipients in accordance with 

established Program guidelines will be returned to the program 

in accordance with the Agreement.

9. Per Household 

Assistance

The maximum amount of assistance under this program is 

$48,000 per household, of which no more than $36,000 may be 

for monthly payment assistance. The historical average NJHK 

mortgage loan amount per household is $41,000.

10. Duration of Assistance Each borrower may receive up to 12 months of monthly 

payment assistance. Any reinstatement/arrearage assistance will 

be a one-time payment.

11. Estimated Number of 

Participating Households

The estimated number of participating households is 

approximately 8,600 based on the historical average assistance 

loan amounts. 

12. Program Inception / 

Duration

It is anticipated that the program will relaunch within 90 days of 

the Ninth Amendment Date. The program will continue until 

December 31, 2020 or until funding is fully reserved, whichever 

comes first.

13. Program Interactions 

with Other HFA 

Programs

Homeowners shall be provided all available options for 

assistance during their sessions with participating housing 

counseling agencies.

Eligible homeowners may benefit from other Agency Hardest 

Hit Fund programs provided the total benefit from all Hardest 

Hit Fund programs does not exceed $98,000. 

14. Program Interactions 

with HAMP

Homeowners shall be provided all available options for 

assistance during their sessions with participating housing 
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counseling agencies, including HAMP, as applicable.

15. Program Leverage 

with Other Financial 

Resources

None
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SERVICE SCHEDULE B-2

NEW JERSEY HOME SAVER PROGRAM

Summary Guidelines

1. Program Overview The New Jersey Housing and Mortgage Finance Agency 

(“NJHMFA” or the “Agency”) has created the New Jersey 

Home Saver Program (“HSP” or the “Program”). This program

will leverage HSP funds to facilitate a refinance, recast, or 

permanent modification of the first mortgage loan through a 

principal reduction and/or reinstatement payment to bring the 

household monthly payment to an affordable level.

2. Program Goals The goal of the Program is to achieve long-term mortgage

sustainability by leveraging HHF funds to facilitate a first 

mortgage loan modification, recast, and/or refinance, thus 

reducing the likelihood of mortgage delinquency and/or default.

3. Target Population or

Areas

The Program aims to serve homeowners throughout New Jersey. 

4. Program Allocation 

(Excluding 

Administrative Expenses)

$17,288,770 

5. Borrower Eligibility 

Criteria

Eligible homeowners must be at risk of foreclosure due to recent 

unemployment, loss of/reduction in income through no fault of 

their own, or other demonstrated financial hardships as defined 

in the Program guidelines. A pre-assistance LTV ratio of 115% 

or greater is considered a financial hardship indicative of 

imminent default. Homeowners will be required to provide a 

financial hardship affidavit with appropriate documentation on 

the cause of the hardship.

Homeowner has a pre-assistance housing debt-to-income 

(“HDTI”) ratio greater than 38% of the gross household income 

and/or a pre-assistance loan-to-value (“LTV”) ratio greater than 

115%. Homeowners with pre-assistance LTV ratios greater 

than 115% must have a pre-assistance HDTI of 28% or more.

Homeowner has a post-assistance HDTI ratio no greater than 

45% of the gross household income. On a case-by-case basis, 

NJHMFA reserves the right to review and approve homeowners 

whose investor program guidelines that utilize post-assistance 
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B-2-2

HDTI ratios greater than 45%. In no case will a homeowner’s 

post-assistance HDTI be reduced below 25%.

Homeowner must own and occupy a one- to three-family 

residential property that is the homeowner’s primary residence.

Homeowner agrees to provide all necessary documentation to 

satisfy the Program guidelines within the timeframes established 

by the Agency. 

6. Property / Loan 

Eligibility Criteria

Eligible property is the homeowner’s primary residence located 

in New Jersey, and it must be a one- to three-family residential 

property. It must be attached or be a condominium unit. 

Manufactured homes are eligible if on a foundation permanently 

affixed to real property owned by the homeowner and secured 

by a real property first mortgage loan. 

At the time of application, the unpaid principal balance on 

existing mortgages on the home must not exceed $429,619 for a 

one-unit dwelling or $550,005 for a two-unit or three-unit 

dwelling.

Homeowners must carry a first mortgage and if the 

homeowner’s first mortgage is an interest-only or negative 

amortization mortgage, the homeowner can qualify for 

assistance under the Program only if the refinance, recast and/or 

permanent modification places them in a fully amortizing 

mortgage loan product.

If the qualifying first lien mortgage is delinquent, the loan

servicer must utilize the Program monies to bring the first lien 

mortgage loan current before applying Program monies to the 

homeowner’s principal balance.

The loan servicer will reduce the qualifying principal balance in 

conjunction with a loan refinance, recast or modification in the 

amount needed (up to the maximum per household assistance) 

to help the homeowner establish an appropriate level of 

affordability and/or mortgage debt. Such loan refinances, 

recasts or modifications must meet the Program guidelines.

Loans in foreclosure may be eligible.

7. Program Exclusions The homeowner cannot be involved in an active or open 

bankruptcy.
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B-2-3

The homeowner cannot own any other residential real property.

Homeowner fails to satisfy lender underwriting guidelines.

Homeowner has a post-assistance LTV ratio that is greater than 

160% or less than 100%. The post-assistance LTV may only be 

less than 100% if it is necessary to get the homeowner to an 

affordable monthly payment. Under no circumstance can the

post-assistance LTV be less than 80%.

Homeowner has liquid assets (excluding retirement assets) equal 

to or greater than the amount of Program assistance.

8. Structure of Assistance Program assistance will be provided to the homeowner in the 

form of a 0% interest rate, non-amortizing (no monthly 

payments), forgivable, subordinate 10-year loan. The loan will 

be non-recourse, secured by a mortgage that will be recorded 

and take a junior lien position on the home. After the fifth year

of the closing date of the Program loan, the Program loan 

amount shall be forgiven at a rate of 20% per year, to be 

forgiven in full at the end of the tenth year.

All or a portion of the unforgiven loan funds will be due and 

payable from net equity proceeds upon sale or transfer or 

refinance of the property (except for refinances for a lower rate 

and/or shorter term) or if the borrower ceases to occupy the 

property as their primary residence prior to the end of the tenth 

year. If the property is sold and does not generate sufficient 

proceeds to repay all or a portion of the loan, the portion of the 

loan remaining unpaid after the proceeds are applied will be 

forgiven. 

Any funds repaid to NJHMFA by recipients in accordance with 

established Program guidelines will be returned to the program 

in accordance with the Agreement.

9. Per Household 

Assistance

The maximum assistance is $50,000 per household. 

10. Duration of 

Assistance

Assistance under HSP is intended to be a one-time payment to 

the servicer.

11. Estimated Number of 

Participating Households

345 households based on a maximum loan amount of $50,000. 
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B-2-4

12. Program Inception/

Duration

The launch of the Program is expected to begin on or about June 

1, 2015; the program will last until December 31, 2020 or until 

all funds are exhausted.

13. Program Interactions 

With Other Programs

Eligible homeowners may benefit from other Agency Hardest 

Hit Fund programs provided the total benefit from all Hardest 

Hit Fund programs does not exceed $98,000. 

14. Program Interactions 

With HAMP

The Program may work in conjunction with the federal Home 

Affordable Modification Program (“HAMP”) modification and 

other federal Making Home Affordable programs and servicer 

foreclosure prevention initiatives to help eligible homeowners 

achieve desired income ratios and affordability. In any of these 

programs, Program assistance may not be used to cover the 

applicable costs of investor or servicer incentive compensation.

15. Program Leverage 

With Other Financial 

Resources

The Program will require that the loan servicer waive all 

accrued and unpaid late charges and non-sufficient funds fees at 

the time the modification agreement is completed. The Program 

will require the loan servicer to waive any associated recast or 

modification fee.
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C-1

SCHEDULE C

PERMITTED EXPENSES 

New Jersey

One-time / Start-Up Expenses:

Initial Personnel $378,705.00

Building, Equipment, Technology $117,654.00

Professional Services $13,000.00

Supplies / Miscellaneous $0.00

Marketing /Communications $2,613.00

Travel $0.00

Website development /Translation $759.00

Contingency $767,259.00

Subtotal $1,279,990.00

Operating / Administrative 

Expenses:

Salaries $13,350,000.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $4,000,000.00

Travel $25,000.00

Buildings, Leases & Equipment $750,000.00

Information Technology & 

Communications $2,500,000.00

Office Supplies/Postage and 

Delivery/Subscriptions $125,000.00

Risk Management/ Insurance $.00

Training $100,000.00

Marketing/PR $300,000.00

Miscellaneous $1,000,000.00

Subtotal $22,150,000.00

Transaction Related Expenses:

Recording Fees $5,000,000.00 

Wire Transfer Fees $100,000.00 

Counseling Expenses

File Intake $15,000,000.00 

Decision Costs $0.00 

Successful File $0.00 
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Key Business Partners On-Going $1,500,000.00 

Subtotal $21,600,000

Grand Total $45,029,990

% of Total Award 10.85%

Award Amount $415,133,962.00
F-1

SCHEDULE F

HHF FIFTH ROUND FUNDING REALLOCATION MODEL

This Schedule F describes a uniform model (the “Reallocation Model”) designed to maximize 

the utilization of the $2 billion made available under the HHF Program Fifth Round Funding. In 

general, the Reallocation Model reallocates unused Fifth Round funding to states participating in 

the HHF Program that meet certain defined criteria for utilization of HHF Program funds. The 

aggregate amount obligated under the Fifth Round Funding will not increase at any time.

I. Definitions

(a) “2016 Utilization Threshold” shall mean having Drawn at least 70% of the Rounds 1-4 

Funding Allocation.

(b) “2017 Utilization Threshold” shall mean having Drawn at least 95% of the Rounds 1-4 

Funding Allocation.

(c) “2018 Utilization Threshold” shall mean having Drawn at least 80% of the Program 

Participation Cap.

(d) “Annual Reallocation Amount” shall mean the aggregate amount, if any, by which the 

Program Participation Caps set forth in all HFA Participation Agreements are reduced 

pursuant to the Reallocation Model, as applied with respect to each Utilization Threshold.

(e) “Drawn” shall mean having made Capital Draws pursuant to Section 3(A) of the 

Agreement.

(f) “HFA Participation Agreements” shall mean, collectively, the Commitments to Purchase 

Financial Instrument and HFA Participation Agreements entered into by the States, as 

amended from time to time.

(g) “Population” shall mean the most recent Annual Estimate of the Resident Population for 

a State as determined by the United States Census Bureau from time to time.

(h) “Recipient State” shall mean each State that has achieved the Utilization Threshold for 

the applicable year, provided that such State is not then in default under its HFA 

Participation Agreement. Notwithstanding the foregoing, in the event a State declines an 

increase to its Program Participation Cap and Round 5 Funding Allocation for which it is 

eligible pursuant to this Schedule F, such State shall not be considered a Recipient State. 

(i) “Rounds 1-4 Funding Allocation” is the amount set forth on Schedule A as “Rounds 1-4 

Funding Allocation.”

(j) “Round 5 Funding Allocation” is the amount set forth on Schedule A as “Round 5 

Funding Allocation”, as adjusted from time to time in accordance with this Schedule F.
F-2

(k) “Share of Annual Reallocation Amount” shall mean a Recipient State’s share of the 

applicable Annual Reallocation Amount, as determined using the methodology described 

in Section IV below. If the Annual Reallocation Amount is zero, then the Share of 

Annual Reallocation Amount will be zero for the applicable year.

(l) “State” shall mean any or each of Alabama, Arizona, California, Florida, Georgia, 

Illinois, Indiana, Kentucky, Michigan, Mississippi, New Jersey, Nevada, North Carolina, 

Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, D.C.

(m)“Utilization Threshold” means each of the 2016 Utilization Threshold, the 2017 

Utilization Threshold and the 2018 Utilization Threshold.

II. Reduction of Program Participation Cap and Round 5 Funding Allocation:

(a) If Eligible Entity does not achieve the 2016 Utilization Threshold on or before December 

31, 2016, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to 50% of the Round 5 Funding Allocation as of such 

date.

(b) If Eligible Entity does not achieve the 2017 Utilization Threshold on or before December 

31, 2017, each of the Program Participation Cap and the Round 5 Funding Allocation 

shall be reduced by up to 100% of the Round 5 Funding Allocation as of such date.

(c) If Eligible Entity does not achieve the 2018 Utilization Threshold on or before December 

31, 2018, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to that portion of the Round 5 Funding Allocation which 

has not yet been Drawn nor obligated with respect to a unique homeowner or property as 

of such date.

III. Increase of Program Participation Cap and Round 5 Funding Allocation:

(a) If Eligible Entity achieves the 2016 Utilization Threshold on or before December 31, 

2016, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date.

(b) If Eligible Entity achieves the 2017 Utilization Threshold on or before December 31, 

2017, each of the Program Participation Cap and the Round 5 Funding Allocation shall 

be increased by the State’s Share of the Annual Reallocation Amount with respect to 

such date.

(c) If Eligible Entity achieves the 2018 Utilization Threshold on or before December 31, 

2018, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date.

IV. Methodology for Determining Recipient State’s Share of Annual Reallocation Amount
F-3

If Eligible Entity has achieved the Utilization Threshold and the Annual Reallocation Amount 

is greater than zero for the applicable year, the Program Participation Cap and Round 5 

Funding Allocation will be increased by an amount calculated as follows: 

First, calculate the “Per Capita Amount” for each Recipient State. The Per Capita Amount

shall be calculated as the Annual Reallocation Amount divided by the sum of the Population 

of all Recipient States.

Second, calculate the “Utilization Percentage” for each Recipient State. 

The Utilization Percentage with respect to the 2016 Utilization Threshold and the 2017 

Utilization Threshold shall be calculated as the lesser of (I) the ratio of (x) aggregate Capital 

Draws made by the Recipient State under its HFA Participation Agreement as of December 

31, 2016 and December 31, 2017, respectively, to (y) the Recipient State’s Rounds 1-4 

Funding Allocation as of such dates, or (II) 100%. 

The Utilization Percentage with respect to the 2018 Utilization Threshold shall be calculated 

as the ratio of (x) aggregate Capital Draws made by the Recipient State under its HFA 

Participation Agreement as of December 31, 2018, to (y) such Recipient State’s Program 

Participation Cap as of such date.

Third, calculate a “Utilization Score” for each Recipient State by standardizing the Utilization 

Percentages using the z-score methodology, a standard statistical standardization procedure. 

The Utilization Score for each Recipient State is calculated as (I)(x) the Utilization Percentage 

for such Recipient State, less (y) the mean Utilization Percentage for all Recipient States 

(“Average”), divided by (II) the standard deviation of the Utilization Percentages for all 

Recipient States. If a Recipient State’s Utilization Percentage is greater than the Average, the 

Utilization Score will be positive. If a Recipient State’s Utilization Percentage is less than 

Average, the Utilization Score will be negative.

Fourth, calculate a “Need Factor” for each Recipient State. The Need Factor is a fixed dollar 

amount which will be multiplied by each Utilization Score to determine the dollar amount by 

which each Recipient State’s Per Capita Amount will be adjusted. The Need Factor is

calculated as the dollar amount that would result in the highest adjusted Per Capita Amount 

for a Recipient State being no more than three (3) times that of the lowest adjusted Per Capita 

Amount for a Recipient State (i.e., a Min/Max Factor of 3).

Fifth, calculate an “Adjusted Per Capita Amount” for each Recipient State by adding to or 

subtracting from the Recipient State’s Per Capita Amount the product of (x) the Need Factor 

and (y) the Recipient State’s Utilization Score. Recipient States with positive Utilization 

Scores will have dollars added to the Recipient State’s Per Capita Amount, and Recipient 

States with negative Utilization Scores will have dollars subtracted from the Recipient State’s

Per Capita Amount.

Sixth, calculate the “Share of the Annual Reallocation Amount” for each Recipient State by 

first multiplying the Recipient State’s Adjusted Per Capita Amount by the Recipient State’s
F-4

Population to arrive at a “Preliminary Share”. The Preliminary Share for each Recipient 

State is then normalized to arrive at the Share of the Annual Reallocation Amount by 

multiplying (x) a ratio, the numerator of which is the Preliminary Share for such Recipient 

State and the denominator of which is the sum of the Preliminary Shares for all Recipient 

States, and (y) the Annual Reallocation Amount.

V. Notices; Modifications

(a) Treasury will notify Eligible Entity in writing of any adjustment to the Program 

Participation Cap and Round 5 Funding Allocation pursuant to this Schedule F. Related 

adjustments to program allocations and other amounts set forth in the Service Schedules, 

and Permitted Expenses set forth on Schedule C, shall be made as set forth in such 

written notice.

(b) For the avoidance of doubt, a written amendment to the Agreement shall not be required 

to effectuate an adjustment of the Program Participation Cap or Round 5 Funding 

Allocation pursuant to this Schedule F. The Program Participation Cap and Round 5 

Funding Allocation set forth on Schedule A to the Agreement shall be deemed to be 

modified upon receipt of the written notice sent pursuant to Section V(a) above. 

 

(c) Treasury reserves the right to unilaterally modify or supplement the terms and provisions 

of this Schedule F, at any time with prior written notice to the Eligible Entity.