Fifth Amendment to HPA — Ohio 

TAMPA/193736.2

FIFTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Fifth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Fifth Amendment”) is entered into as of the date set forth on Schedule A

attached hereto as the Fifth Amendment Date (the “Amendment Date”), by and among the 

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

HFA whose description is set forth in Schedule A attached hereto (for convenience, a “state 

housing finance agency” or “HFA”) and the undersigned institution designated by HFA to 

participate in the program described below (“Eligible Entity”). 

Recitals 

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

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

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

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

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

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

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

Participation Agreement (the “Third Amendment”), and as further amended by that certain 

Fourth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “Fourth Amendment”; and together with the Original HPA as amended thereby 

and by the First Amendment, Second Amendment and Third Amendment, the “Current HPA”), 

dated as of their respective dates as set forth on Schedule A attached hereto, in connection with 

Treasury’s federal housing program entitled the Housing Finance Agency Innovation Fund for 

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

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

amended from time to time (“EESA”); 

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

to their Service Schedules and Permitted Expenses and Treasury has agreed to the same; 

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

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

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

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

hereby acknowledged, Treasury, HFA and Eligible Entity agree as follows. 
- 2 - 

TAMPA/193736.2 

Agreement 

1. Amendments

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

Current HPA, as further amended by this Fifth 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 Fifth 

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

amended by this Fifth 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 Fifth 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 Fifth 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 Fifth 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 Fifth Amendment and any other closing documentation delivered to 

Treasury in connection with this Fifth 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 

Fifth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 
- 3 - 

TAMPA/193736.2 

3. Miscellaneous

A. The recitals set forth at the beginning of this Fifth 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 Fifth 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 

Fifth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Fifth Amendment to HPA — Ohio] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

OHIO HOUSING FINANCE AGENCY UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Douglas A. Garver By: 

Name: Douglas a. Garver Name: Timothy G. Massad 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

OHIO HOMEOWNER ASSISTANCE LLC 

By: Ohio Capital Corporation for Housing, 

It’s Sole Member 

By: /s/ Susan K. Ziegler 

Name: Susan K. Ziegler 

Title: Chief Operating Officer 

 
TAMPA/193736.2 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/193736.2 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Ohio Homeowner Assistance LLC

Corporate or other organizational form: Ohio limited liability company

Jurisdiction of organization: Ohio

Notice Information: Ohio Homeowner Assistance LLC 

 Attn: Harold D. Keller, President 

 88 East Broad Street, Suite 1800 

 Columbus, Ohio 43215 

 Phone: (614) 224-8446 

 Fax: (614) 224-8452 

 E-mail: HKeller@occh.org 

 

 

HFA Information: 

Name of HFA: Ohio Housing Finance Agency 

Organizational form: An agency under the laws of the State of 

 Ohio 

Date of Application: June 1, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Ohio Housing Finance Agency 

 Attn: Douglas A. Garver, Executive Director 

 57 East Main Street 

 Columbus, Ohio 43215 

 Phone: (614) 466-8050 

 Fax: (614) 995-0487 

 E-mail: DGarver@ohiohome.org 

Program Participation Cap: $570,395,099.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $172,000,000.00 
TAMPA/193736.2 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $148,728,864.00 

Permitted Expenses: $90,415,099.00

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 

Fourth Amendment Date: March 31, 2011 

Fifth Amendment Date: December 8, 2011 

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

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 
TAMPA/193736.2 

SCHEDULE B

SERVICE SCHEDULES

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

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

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

HPA. 
TAMPA/193736.2 

SERVICE SCHEDULE B-1

Ohio Housing Finance Agency (OHFA) 

Rescue Payment Assistance Program 

Summary Guidelines 

1. Program Overview The Rescue Payment Assistance (RPA) program is one of Ohio’s Restoring 

Stability programs under the Hardest Hit Fund. RPA will provide funds to 

lenders/servicers on behalf of homeowners who are delinquent on their mortgage 

payments due to a financial hardship by bringing them current on delinquent 

mortgage obligations. 

Allowable uses of the funds will include the following: 

• Delinquent mortgage payments; 

• Late fees; 

• Inspection fees, and attorney fees related to a successful/closed loan 

modification; 

• Delinquent property taxes or escrow shortage; and 

• Up to one year of standard homeowner’s insurance if a lender/servicer has 

previously imposed forced-placed insurance on the property. Forced-placed 

insurance is high cost insurance which serves only to protect the mortgagee’s 

interest in the property. 

To be eligible, the homeowner’s monthly mortgage payment, including principal, 

interest, taxes and insurance, must be equal to or less than 38 percent of the 

homeowner’s gross monthly income. 

Assistance is subject to approval of the homeowner’s Restoring Stability Action 

Plan which is a plan relating solely to TARP-funded modification programs that 

will be developed by a housing counseling agency and approved by OHFA. 

Homeowners may receive assistance from one or more Restoring Stability 

Programs. The Restoring Stability Action Plan will determine the type(s) and 

amount of Restoring Stability assistance for each homeowner, up to the maximum 

total benefit amount for which the homeowner qualifies. 

2. Program Goals The goal of this program is to prevent avoidable foreclosure for homeowners who 

have experienced a temporary hardship by reinstating their past due first mortgage 

loans. 

3. Target Population/ Areas The Program will be available to eligible low- and moderate- income homeowners 

throughout Ohio, up to the maximum benefit of $25,000. 

4. Program Allocation 

(Excluding Administrative 

Expenses) 

$126,000,000.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Current gross household income must be at or below 115% of the area median. 

• First mortgage debt less than the highest FHA maximum loan amount among 

all Ohio counties; 

• Liquid assets equal to or less than six months of mortgage payments, excluding 

retirement accounts; 

• Hardship due to involuntary loss or reduction in income, divorce, disability, or 

illness resulting in a loss of income or significant medical expenses, which 

shall be verified with supporting documents and a financial hardship affidavit 

signed by the homeowner; and 
TAMPA/193736.2 

• Demonstrate ability to sustain mortgage payments for a minimum of six 

months. To demonstrate sustainability, monthly mortgage payment must be 38 

percent or less than gross monthly income. Homeowners who qualify to 

receive at least six months of assistance under the Mortgage Payment 

Assistance program may use that assistance to demonstrate sustainability. 

6. Property/Loan Eligibility 

Criteria 

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the property is titled as 

real estate. 

7. Program Exclusions • Homeowners participating in a trial HAMP modification. 

• Homeowners participating in an active Home Affordable Modification 

Program (HAMP) modification, unless they have experienced a new, eligible 

hardship after entering the HAMP agreement. 

• Homeowners in active bankruptcy. 

• Homeowners who have a sheriff’s sale scheduled in less than 21 days of the 

date of initial registration or with sales scheduled in less than 10 days of the 

date their completed application is submitted to OHFA. 

• Homeowners who require more than $25,000 to be fully reinstated are not 

eligible unless their servicer agrees to accept additional funds directly from the 

homeowner prior to when the homeowner closes on his or her Restoring 

Stability loan.

8. Structure of Assistance Assistance will take the form of a non-recourse, non-amortizing, zero-percent 

interest, five-year loan secured by the property and repayable only from equity 

proceeds of a refinance or sale. The loan will be recorded as a subordinate lien. 

Twenty percent of the loan balance will be forgiven each year on the anniversary of 

the closing, and any remaining balance will be forgiven on December 31, 2017. 

Loan repayments will be recycled back into the program and used to provide 

assistance to additional homeowners until December 31, 2017. 

9. Per Household Assistance Maximum amount available per homeowner: $25,000 

Estimated average assistance provided per homeowner: $6,000 

10. Duration of Assistance Assistance will be provided in a one-time lump sum payment to the homeowner’s 

lender/servicer. 

11. Estimated Number of 

Participating Households 

It is expected that 21,000 households will be assisted under the program. 

12. Program Inception/ 

Duration 

The program began September 27, 2010. This amendment is effective January 1, 

2012. The program is expected to continue until December 31, 2017 or when 

available funds are exhausted. 

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs) 

Homeowners may access the Mortgage Payment Assistance program, if approved 

as part of the homeowner’s Restoring Stability Action Plan. If homeowners are 

unable to sustain homeownership after receiving assistance under RPA, they may 

be approved for the Transitional Assistance Program if they have not exhausted 

their maximum benefit of $25,000. 

14. Program Interactions 

with HAMP 

Homeowners participating in an active Home Affordable Modification Program 

(HAMP) modification, unless they have experienced a new, eligible hardship after 

entering the HAMP agreement, are not eligible. Homeowners participating in a trial 

HAMP modification are not eligible.

15. Program Leverage with 

Other Financial Resources 

OHFA strongly encourages lenders/servicers to consider waiving late fees or any 

other expenses that are not paid to a third party. Lenders/servicers will not be 

required to match RPA funds. 
TAMPA/193736.2 

16. Qualify as an 

Unemployment Program 

 Yes 5 No 
TAMPA/193736.2 

SERVICE SCHEDULE B-2

Ohio Housing Finance Agency (OHFA) 

Mortgage Payment Assistance Program 

Summary Guidelines 

1. Program Overview The Mortgage Payment Assistance (MPA) program is part of Ohio’s Restoring 

Stability programs under the Hardest Hit Fund. MPA will support unemployed 

homeowners by assisting with their mortgage payments for up to 15 months while 

they search for a new job and/or participate in a job training program. MPA will 

also support underemployed homeowners and unemployed homeowners who are 

not receiving unemployment benefits by assisting with their mortgage payments for 

up to 15 months while they search for a new job, participate in a job training 

program or seek a mortgage modification. 

Full mortgage payments will be made to the homeowner’s lender/servicer as long 

as the homeowner remains eligible for assistance. Homeowners will resume their 

regular payments at the end of the term approved in their Restoring Stability Action 

Plan or three months after resuming employment, whichever occurs first. 

Assistance is subject to approval of the homeowner’s Restoring Stability Action 

Plan, which is a plan relating solely to TARP funded modification programs that 

will be developed by a housing counseling agency and approved by OHFA. 

Homeowners may receive assistance from one or more Restoring Stability 

programs. The Restoring Stability Action Plan will determine type(s) and amount 

of Restoring Stability assistance for each homeowner, up to the maximum total 

benefit amount. 

MPA, alone or in combination with Rescue Payment Assistance, will be available 

to eligible low- and moderate-income homeowners throughout Ohio, up to 

$20,000 at the time of closing and $25,000 overall. Should the homeowner’s 

monthly mortgage payment increase after closing, the homeowner may access 

additional assistance up to the maximum benefit

2. Program Goals The goal of MPA is to help unemployed and/or underemployed homeowners 

remain in their homes and make on-time, monthly payments on their mortgages so 

that they may avoid delinquency and foreclosure while seeking regular 

employment or applying for a mortgage modification. 

3. Target Population/ Areas The Mortgage Payment Assistance program is designed to assist unemployed and 

underemployed homeowners remain in their homes while seeking employment. 

4. Program Allocation 

(Excluding Administrative 

Expenses) 

$164,500,000.00 

5. Borrower Eligibility 

Criteria 

• Current gross household income must be at or below 115% of the area 

median. 

• First mortgage debt less than the highest FHA maximum loan limit among 

all Ohio counties. 

• Liquid assets equal to or less than six months mortgage payments, excluding 

retirement accounts. 

• Hardship due to involuntary loss or reduction in income, which shall be 

verified with supporting documents and a financial hardship affidavit signed 

by the homeowner. 

• Homeowner must be unemployed or underemployed, as defined below: 

1. Unemployed means that at least one wage earner in the household 
TAMPA/193736.2 

must be receiving unemployment compensation or exhausted 

unemployment compensation benefits, including any extensions, 

within the last twelve months. 

2. Underemployed means that at least one wage earner in the 

household must have involuntarily lost 10 percent or more of 

income due to a financial hardship that occurred during the past 36 

months which resulted in the homeowner’s monthly mortgage 

payment exceeding 31 percent of the homeowner’s gross monthly 

income.

• Homeowner must actively seek reemployment or a mortgage modification 

during the assistance period. 

• Unemployed homeowners who become reemployed may be eligible to 

continue in the MPA program if they continue to meet the guidelines defined 

for underemployment. 

6. Property/Loan Eligibility 

Criteria 

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the property is titled as 

real estate. 

7. Program Exclusions • Homeowners participating in an active Home Affordable Modification 

Program (HAMP) modification, unless they have experienced a new, 

eligible hardship after entering the HAMP agreement. 

• Homeowners participating in a trial HAMP modification. 

• Homeowners in active bankruptcy. 

• Homeowners who have a sheriff’s sale scheduled in less than 21 days of the 

date of initial registration or with sales scheduled in less than 10 days of the 

date their completed application is submitted to OHFA. 

• Underemployed homeowners with a total PITI payment of less than 31% of 

current gross income are not eligible; however unemployed homeowners 

who become reemployed through a temporary or seasonal job may remain in 

the MPA program, even if their monthly mortgage payment is less than 31% 

of income, so long as the temporary or seasonal job is three months or less. 

8. Structure of Assistance Assistance will take the form of a non-recourse, non-amortizing, zero-percent 

interest, five-year loan secured by the property and repayable only from equity 

proceeds of a refinance or sale. The loan will be recorded as a subordinate lien. 

Twenty percent of the current loan balance will be forgiven each year on the 

anniversary of the closing, and any remaining balance will be forgiven on 

December 31, 2017. Loan repayments will be recycled back into the program and 

used to provide assistance to additional homeowners until December 31, 2017. 

9. Per Household Assistance Maximum amount available per homeowner: $20,000 at closing, $25,000 overall. 

Estimated average assistance provided per homeowner: $7,000. 

10. Duration of Assistance The maximum duration of MPA is 15 months. 

Homeowners who become reemployed after receiving approval from OHFA but 

before closing on their loan for assistance, whose mortgage payment is 31% or less 

than their new gross income, may receive up to 3 months of MPA. 

11. Estimated Number of 

Participating Households 

It is expected that 23,500 households will be assisted under the MPA program. 

12. Program Inception/ 

Duration 

This program replaces the Partial Mortgage Payment Assistance program that 

began on September 27, 2010. This amendment is effective January 1, 2012. The 

program is expected to continue until December 31, 2017 or when available funds 

are exhausted. 
TAMPA/193736.2 

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs) 

Homeowners may access the Rescue Payment Assistance program, the Mortgage 

Modification with Contribution program, and/or the Mortgage Payment Assistance 

program, if approved as part of the homeowner’s Restoring Stability Action Plan. If 

homeowners are unable to sustain homeownership after receiving assistance from 

MPA, they may be approved for the Transitional Assistance program if they have 

not exhausted their maximum benefit of $25,000.00. 

14. Program Interactions 

with HAMP 

MPA may precede the Home Affordable Unemployment Program (UP) 

forbearance or may be used to extend it. Homeowners participating in an active 

Home Affordable Modification Program (HAMP) modification, unless they have 

experienced a new, eligible hardship after entering the HAMP agreement, are not 

eligible. Homeowners participating in a trial HAMP modification are not eligible. 

15. Program Leverage with 

Other Financial Resources 

OHFA strongly encourages the lenders/servicers to consider waiving late fees or 

any other expenses that are not paid to a third party. Lenders/servicers will not be 

required to match MPA funds. 

16. Qualify as an 

Unemployment Program 

5 Yes  No 
TAMPA/193736.2 

SERVICE SCHEDULE B-3

Ohio Housing Finance Agency (OHFA) 

Modification with Contribution Assistance Program 

Summary Guidelines 

1. Program Overview The Modification with Contribution Assistance (MCA) program is one of Ohio’s 

Restoring Stability programs under the Hardest Hit Fund. MCA will provide funds 

to lenders/servicers on behalf of homeowners to help qualify for a permanent 

affordable HAMP or in-house modification. Assistance is available to 

homeowners who have suffered a qualifying hardship. 

Allowable uses of the funds will include the following: 

• Delinquent mortgage payments; 

• Late fees, inspection fees, and attorney fees related to a successful/closed loan 

modification; 

• Delinquent property taxes; 

• Principal reduction; and 

• Up to one year of standard homeowner’s insurance if a lender/servicer has 

previously imposed forced-placed insurance on the property. Forced-placed 

insurance is high cost insurance which serves only to protect the mortgagee’s 

interest in the property. 

Assistance is subject to approval of the homeowner’s Restoring Stability Action 

Plan which is a plan relating solely to TARP-funded modification programs that 

will be developed by a housing counseling agency and approved by OHFA. 

Homeowners may receive assistance from one or more Restoring Stability 

programs. The Restoring Stability Action Plan will determine the type(s) and 

amount of Restoring Stability assistance for each homeowner, up to the maximum 

total benefit amount for which the homeowner qualifies. 

2. Program Goals The goal of this program is to help stabilize the Ohio housing market by helping 

homeowners achieve affordable modifications. 

3. Target Population/ Areas The MCA program will be available to eligible low- and moderate- income 

homeowners throughout Ohio, up to the maximum benefit of $25,000. 

4. Program Allocation 

(Excluding Administrative 

Expenses) 

$124,200,000.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Current gross household income must be at or below 115% of the area median; 

• First mortgage debt less than the highest FHA maximum loan amount among all 

Ohio counties; 

• Liquid assets equal to or less than six months of mortgage payments including 

principal, interest, taxes, and insurance, excluding retirement accounts; 

• Hardship due to involuntary loss or reduction in income, divorce, disability, or 

illness resulting in a loss of income or significant medical expenses, which shall 

be verified with supporting documentation and by a financial hardship affidavit 

signed by the homeowner; and 

• Modification must result in an affordable monthly payment for the homeowner 

as defined in program guidelines. 
TAMPA/193736.2 

6. Property/Loan Eligibility 

Criteria 

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the property is titled as 

real estate. 

7. Program Exclusions • Homeowners participating in an active Home Affordable Modification 

Program (HAMP) modification, unless they have experienced a new, 

eligible hardship after entering the HAMP agreement. 

• Homeowners participating in a trial HAMP modification. 

• Homeowners in active bankruptcy. 

• Homeowners who have a sheriff’s sale scheduled in less than 21 days of the 

date of initial registration or with sales scheduled in less than 10 days of the 

date their completed application is submitted to OHFA.

• Modifications requiring a balloon payment less than 10 years from the date 

of first payment under the revised terms.

8. Structure of Assistance Unless the lender/servicer chooses to match MCA assistance dollar for dollar with 

principal reduction or forbearance, assistance will take the form of a non-recourse, 

non-amortizing, zero-percent interest, five-year loan secured by the property and 

repayable only from equity proceeds of a refinance or sale. The loan will be 

recorded as a subordinate lien. Twenty percent of the loan balance will be forgiven 

each year on the anniversary of the closing, and any remaining balance will be 

forgiven on December 31, 2017. Loan repayments will be recycled back into the 

program and used to provide assistance to additional homeowners until December 

31, 2017. 

9. Per Household Assistance Maximum amount available per homeowner: $25,000 

Estimated average assistance provided per homeowner: $23,000 

10. Duration of Assistance Assistance will be provided in a one-time lump sum payment to the homeowner’s 

lender/servicer. 

11. Estimated Number of 

Participating Households 

It is expected that 5,400 homeowners will receive assistance from the program. 

12. Program Inception/ 

Duration 

This program replaces the Mortgage Modification with Principal Reduction 

program that began on September 27, 2010. The new program will begin January 1, 

2012 and is expected to continue until December 31, 2017 or when available funds 

are exhausted. 

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs) 

Homeowners may access the Mortgage Payment Assistance program if approved as 

part of the homeowner’s Restoring Stability Action Plan. If homeowners are unable 

to sustain homeownership after receiving assistance under MCA, they may be 

approved for the Transitional Assistance program if they have not exhausted their 

maximum benefit. 

14. Program Interactions 

with HAMP 

This program may act as a gateway to a Home Affordable Modification Program 

(HAMP) modification. Homeowners participating in an active HAMP 

modification, unless they have experienced a new, eligible hardship after entering 

the HAMP agreement, are not eligible. Homeowners participating in a trial HAMP 

modification are not eligible. 

15. Program Leverage with 

Other Financial Resources 

OHFA strongly encourages the lenders/servicers to consider waiving late fees or 

any other expenses that are not paid to a third party. Lenders/servicers will not be 

required to match MCA funds; however, if a lender/servicer chooses to match 

MCA funds with principal reduction or forbearance, OHFA may grant MCA funds 

without establishing a junior lien on the property. 

16. Qualify as an 

Unemployment Program 

 Yes 5 No 
TAMPA/193736.2 

SERVICE SCHEDULE B-4

Ohio Housing Finance Agency (OHFA) 

Lien Elimination Assistance 

Summary Guidelines 

1. Program Overview The Lien Elimination Assistance (LEA) program is one of Ohio’s Restoring 

Stability programs under the Hardest Hit fund. LEA applies to cases in which 

the lien holder or lien holders agree to accept up to $25,000 in Restoring 

Stability funds in return for extinguishing a homeowner’s existing mortgage 

liens. This program will extinguish the first lien and attempt to extinguish any 

second liens on the property. This is most likely to occur in cases where the 

property is valued at $60,000 or less. To receive LEA, homeowners must 

demonstrate the ability to stay current on any remaining liens attached to the 

property, property taxes, and homeowner’s insurance. To be considered 

sustainable, the homeowner’s remaining property liens, property taxes, and 

insurance must be equal to or less than 31% of his or her current gross monthly 

income. OHFA encourages servicers/lenders to match LEA program assistance 

at least one to one. 

Assistance is subject to approval of the homeowner’s Restoring Stability 

Action Plan, which is a plan relating solely to TARP funded programs that will 

be developed by a housing counseling agency and approved by OHFA. 

Homeowners may receive assistance from one or more Restoring Stability 

programs. The Restoring Stability Action Plan will determine type(s) and 

amount of Restoring Stability assistance for each homeowner up to the 

maximum total benefit amount for which the homeowner qualifies. 

2. Program Goals The goals of LEA are to: 

• Help homeowners to achieve an affordable monthly payment; and 

• Reduce the probability of re-default after the lien elimination. 

3. Target Population/ Areas LEA program will be available to eligible low- and moderate- income 

homeowners throughout Ohio, up to the maximum benefit amount of $25,000. 

4. Program Allocation 

(Excluding Administrative 

Expenses) 

$14,000,000.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Current gross household income must be at or below 115% of the area 

median; 

• First mortgage debt less than the highest FHA maximum loan amount 

among all Ohio counties; 

• Liquid assets equal to or less than six months of mortgage payments; 

• Hardship due to involuntary loss or reduction in income, divorce, disability, 

or illness resulting in a loss of income or significant medical expenses, 

which shall be verified with supporting documentation and a financial 

hardship affidavit signed by the homeowner; and 

• Homeowner’s servicer must agree to lien elimination. 

6. Property/Loan Eligibility 

Criteria 

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the mortgage titled as 

real estate or if the land was used as collateral to purchase the home. 

7. Program Exclusions • Homeowners in active Chapter 13 bankruptcy. 

• Homeowners who have a sheriff’s sale scheduled in less than 21 days of 
TAMPA/193736.2 

the date of initial registration or with sales scheduled in less than 10 

days of the date their completed application is submitted to OHFA. 

8. Structure of Assistance Assistance will take the form of a non-recourse, non-amortizing, zero-percent 

interest, five-year loan secured by the property and repayable only from equity 

proceeds of a refinance or sale. The loan will be recorded per program 

guidelines. OHFA’s eligible entity, OHA, LLC will be listed as the beneficiary 

of the homeowner insurance policy. Twenty percent of the loan balance will be 

forgiven each year on the anniversary of the closing, and any remaining 

balance will be forgiven on December 31, 2017. Loan repayments will be 

recycled back into the program and used to provide assistance to additional 

homeowners until December 31, 2017.

9. Per Household Assistance Maximum amount available per homeowner: $25,000 

Estimated average assistance provided per homeowner: $20,000 

10. Duration of Assistance Lien Elimination Assistance will be provided in a one-time lump sum payment 

to the homeowner’s lender/servicer. 

11. Estimated Number of 

Participating Households 

It is expected that 700 homeowners will receive assistance from the Lien 

Elimination Assistance program. 

12. Program Inception/ 

Duration 

Lien Elimination Assistance will begin January 1, 2012 and is expected to 

continue until December 31, 2017 or when available funds are exhausted. 

13. Program Interactions with 

Other Programs (e.g. other 

HFA programs) 

Homeowners may access the Rescue Payment Assistance program and/or the 

Mortgage Payment Assistance program, if approved as part of the 

homeowner’s Restoring Stability Action Plan

14. Program Interactions with 

HAMP 

• Homeowners participating in an active Home Affordable Modification 

Program (HAMP) modification are not eligible unless they have 

experienced a new, eligible hardship after entering the HAMP 

agreement. 

• Homeowners participating in a trial HAMP modification are not 

eligible. 

15. Program Leverage with 

Other Financial Resources 

Lenders/servicers must agree to extinguish the lien(s). 

16. Qualify as an 

Unemployment Program 

 Yes 5 No 
TAMPA/193736.2 

SERVICE SCHEDULE B-5

Ohio Housing Finance Agency (OHFA) 

Transition Assistance Program 

Summary Guidelines 

1. Program Overview The Transition Assistance (TA) program will assist homeowners whose current 

mortgage payment exceeds 31 percent of current gross household income, and/or 

who must relocate to gain meaningful employment. 

TA requires the lender/servicer to consider a Short Sale or Deed- In-Lieu option 

and waive any rights to deficiency judgments. 

TA allows an incentive to the lender/servicer and a stipend to borrowers to relocate 

while leaving the property in saleable condition. 

Assistance is subject to approval of the homeowner’s Restoring Stability Action 

Plan which is a plan relating solely to TARP funded modification programs that 

will be developed by a housing counseling agency and approved by OHFA (the 

“Restoring Stability Action Plan”). Homeowners may receive assistance from one 

or more Restoring Stability programs. The Restoring Stability Action Plan will 

determine type(s) and amount of Restoring Stability assistance for each 

homeowner, up to the maximum total benefit amount for which the homeowner 

qualifies. 

2. Program Goals The goal of TA is to allow homeowners to achieve a graceful exit from their 

current situation and avoid foreclosure. 

3. Target Population/ Areas TA will be available to eligible low- and moderate- income homeowners 

throughout Ohio, up to the maximum benefit amount of $7,500. 

4. Program Allocation 

(Excluding Administrative 

Expenses) 

$1,280,000.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Current gross household income must be at or below 115% of the area 

median; 

• First mortgage debt less than the highest FHA maximum loan amount among 

all Ohio counties; 

• Liquid assets equal to or less than six months of mortgage payments; 

• Hardship due to involuntary loss or reduction in income, divorce, disability, 

or illness resulting in a loss of income or significant medical expenses, which 

shall be verified with documentation and a financial hardship affidavit signed 

by the homeowner; or homeowners who must relocate for employment should 

meet the requirements of IRS Publication 521 which states “the new main job 

is at least 50 miles farther from former residence than old main job.” The new 

residence must be located in the United States of America, except for active 

duty military personnel. 

6. Property/Loan Eligibility 

Criteria 

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the property is titled as 

real estate or if the land was used as collateral to purchase the home.

7. Program Exclusions • If net sales proceeds of the sale of the home are sufficient to pay off the 

mortgage balance, the borrower is not eligible for assistance. 

• Homeowners in active bankruptcy. 
TAMPA/193736.2 

• Homeowners who have a sheriff’s sale scheduled in less than 21 days of the 

date of initial registration or with sales scheduled in less than 10 days of the 

date their completed application is submitted to OHFA. 

8. Structure of Assistance Assistance will not be structured as a loan. 

9. Per Household Assistance Maximum amount available per homeowner: $7,500 for Transition Assistance 

program and a maximum benefit of $25,000 for all Restoring Stability programs. 

Estimated average assistance provided per homeowner: $6,400. 

10. Duration of Assistance Assistance is in the form of a one-time payment to the borrower and incentives to 

the first and second lien holders consisting of: 

• A $4,000 payment to the borrower by Ohio Homeowner Assistance LLC 

(OHA). 

• A $1,000 of inducement to the servicer. If the servicer waives this payment 

the borrower may receive an additional $1,000 directly from OHA. No 

payments may be made to the lender/servicer until a short sale, or deed-inlieu agreement is executed. 

• Up to $2,500 in payments to secondary lien holders, if any, not to exceed 

10% of the second lien balance. A recordable “Satisfaction of Lien” must be 

issued and the lienholder must agree not to pursue a deficiency judgment for 

any remaining balance. 

11. Estimated Number of 

Participating Households 

It is expected that 200 households will be assisted under the program. 

12. Program Inception/ 

Duration 

The program began September 27, 2010. This amendment will be effective 

January 1, 2012 and is expected to continue until December 31, 2017 or when 

available funds are exhausted. 

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs) 

Homeowners may have previously received assistance from the Rescue Payment 

Assistance program and/or the Mortgage Modification with Contribution 

Assistance program prior to using the TA. Homeowners may have previously 

received or may currently receive assistance from the Mortgage Payment 

Assistance programs Homeowners may be approved for assistance under the 

program only if they have not exhausted their maximum benefit of $25,000. 

14. Program Interactions 

with HAMP 

HAFA may be combined with any element of the TA. 

15. Program Leverage with 

Other Financial Resources 

Lenders/servicers must agree to release homeowners from future obligations or 

judgments as part of the process of approving a short sale, cash for keys, or deedin-lieu agreement. First and second mortgage holders must accept less than full 

payoff. 

16. Qualify as an 

Unemployment Program 

 Yes 5 No 
TAMPA/193736.2 

SERVICE SCHEDULE B-6

Ohio Housing Finance Agency (OHFA) 

Short Refinance Program 

Summary Guidelines 

1. Program Overview The Short Refinance program will provide funds to lenders/servicers on behalf of 

homeowners who wish to refinance to a new mortgage loan in order to lower their 

monthly payment. Funds will be used to reduce the principal balance of 

homeowner’s mortgage, which will incentivize lenders/servicers to match the 

program payment in the form of principal forgiveness to, in the aggregate, reduce 

homeowner’s mortgage principal balance to the level necessary to qualify for a 

refinance, with a target of 95 percent to 100 percent combined loan-to-value ratio. 

The resulting refinance should result in an affordable monthly payment, including 

all subordinate mortgage loans, lower than 31 percent of their gross income. The 

mortgage refinance will be originated by the homeowner’s lender, and homeowners 

must qualify under their lender’s underwriting guidelines. 

Lenders/servicers will provide principal forgiveness equal to or greater than the 

program payment. This option is available to homeowners who are current on their 

mortgage, employed, and have good credit history. 

Assistance is subject to approval of the homeowner’s Restoring Stability action 

plan, which is a plan relating solely to TARP funded modification programs that 

will be developed by a housing counseling agency and approved by OHFA (the 

“Restoring Stability Action Plan”). Homeowners may receive assistance from one 

or more Restoring Stability programs. The Restoring Stability Action Plan will 

determine type(s) and amount of Restoring Stability assistance for each 

homeowner, up to the maximum total benefit amount for which the homeowner 

qualifies.

2. Program Goals The goals of the program are to: 

• Help homeowners obtain mortgage loan refinances to lower their monthly 

loan payment; 

• Provide assistance to homeowners who may not be eligible for a 

traditional modification but cannot refinance due to a decline in their 

home’s value; and 

• Reduce the number of homeowners with negative equity.

3. Target Population/ 

Areas

The program will be available to eligible low- and moderate- income homeowners 

throughout Ohio, up to the maximum benefit amount of $25,000. 

4. Program Allocation 

(Excluding Administrative 

Expenses)

$50,000,000.00

5. Borrower Eligibility 

Criteria

Homeowner must meet the following criteria: 

• Income at or below 115% of area median; 

• First mortgage debt less than the highest FHA maximum loan amount 

among all Ohio counties; 

• Liquid assets equal to or less than six months of mortgage payments; 

• Hardship due to involuntary loss or reduction in income, divorce, 

disability, or illness resulting in a loss of income or significant medical 

expenses, which shall be documented in part by a financial hardship 
TAMPA/193736.2 

affidavit signed by the homeowner; and 

• Homeowners must qualify for refinance under their lender’s underwriting 

guidelines.

6. Property/Loan 

Eligibility Criteria

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the mortgage is recorded 

as real property and the home is permanently affixed to the land. 

To qualify for short refinance assistance, must have a loan to value ratio of 100% 

or more.

7. Program Exclusions • Homeowners in active bankruptcy 

• Homeowners who have a sheriff’s sale scheduled in 21 days or less. 

• Homeowners who do not qualify under their lender’s underwriting 

guidelines.

8. Structure of Assistance Assistance will not be structured as a loan.

9. Per Household 

Assistance

Maximum amount available per homeowner: $25,000 

Estimated average assistance provided per homeowner: $7,692

10. Duration of Assistance Assistance will be provided in a one-time lump sum payment to the homeowner’s 

lender/servicer. 

11. Estimated Number of 

Participating Households

It is expected that 6,500 homeowners will receive assistance from the program.

12. Program Inception/ 

Duration

The program will begin January 1, 2012 and is expected to continue until 

December 31, 2017 or when available funds are exhausted. 

13. Program Interactions 

with Other Programs (e.g. 

other HFA programs)

Homeowners may access the Mortgage Payment Assistance program prior to 

receiving a Short Refinance, if approved by the homeowner’s Restoring Stability 

Action Plan. Homeowners may access any Restoring Stability program if the 

homeowner qualifies and needs assistance after receiving Short Refinance 

assistance, if they have not exhausted their maximum benefit.

14. Program Interactions 

with HAMP

Homeowners participating in HAMP may be eligible for Short Refinance 

assistance if they qualify for a refinance under their lender’s underwriting 

guidelines. 

15. Program Leverage with 

Other Financial Resources

To leverage other financial resources, contributions will be made to the 

homeowner’s lender/servicer to reduce the mortgage principal balance to at least 

100 percent loan-to-value. For every dollar of principal reduction offered by the 

lender/servicer, one dollar of program funds will be contributed. All late fees and 

other non-out-of-pocket collections costs must be waived by the lender/servicer and 

cannot be capitalized.

16. Qualify as an 

Unemployment Program

 Yes 5 No 
TAMPA/193736.2 

SCHEDULE C

PERMITTED EXPENSES 

Ohio 

 

 

 One-time / Start-Up Expenses: 

Initial Personnel $56,873.00 

Building, Equipment, Technology $413,500.00 

Professional Services $55,000.00 

Supplies / Miscellaneous $0.00 

Marketing /Communications $206,400.00 

Travel $3,000.00 

Website development /Translation $0.00 

Contingency $215,000.00 

 Subtotal $949,773.00 

 

Operating / Administrative 

Expenses: 

Salaries $19,582,364.90 

Professional Services (Legal, 

Compliance, Audit, Monitoring) $3,251,401.49 

Travel $152,000.00 

Buildings, Leases & Equipment $332,818.20 

Information Technology & 

Communications $1,022,416.00 

Office Supplies/Postage and 

Delivery/Subscriptions $46,700.00 

Risk Management/ Insurance $20,000.00 

Training $100,000.00 

Marketing/PR $2,760,461.41 

Miscellaneous $0.00 

 Subtotal $27,268,162.00 

 

 Transaction Related Expenses: 

Recording Fees $2,853,864.00 

Wire Transfer Fees $50,000.00 

 Counseling Expenses 

File Intake $18,028,200.00 

Decision Costs $0.00 

Successful File $30,032,800.00 

Key Business Partners On-Going $11,232,300.00 

 Subtotal $62,197,164.00 

 

Grand Total $90,415,099.00 

 

% of Total Award 15.9% 

Award Amount $570,395,099.00