Fourteenth Amendment to HPA — Oregon

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FOURTEENTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Fourteenth Amendment to Commitment to Purchase Financial Instrument and HFA 

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

Schedule A attached hereto as the Fourteenth 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 as further amended by that certain Fifth Amendment 

to Commitment to Purchase Financial Instrument and HFA Participation Agreement (the “Fifth 

Amendment”), as further amended by that certain Sixth Amendment to Commitment to Purchase 

Financial Instrument and HFA Participation Agreement (the “Sixth Amendment”), as further 

amended by that certain Seventh Amendment to Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Seventh Amendment”), as further amended by that

certain Eighth Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Eighth Amendment”), as further amended by that certain Ninth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the “Ninth Amendment”), as further amended by that certain Tenth Amendment to Commitment 

to Purchase Financial Instrument and HFA Participation Agreement (the “Tenth Amendment”), 

as further amended by that certain Eleventh Amendment to Commitment to Purchase Financial 

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

amended by that certain Twelfth Amendment to Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Twelfth Amendment”), and as further amended by that 

certain Thirteenth Amendment to Commitment to Purchase Financial Instrument and HFA 

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

amended thereby and by the First Amendment, Second Amendment, Third Amendment, Fourth 

Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment, 

Ninth Amendment, Tenth Amendment, and Eleventh 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 
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the Hardest Hit Housing Markets (the “HHF Program”), which was established pursuant to the 

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

amended from time to time (“EESA”);

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

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

same;

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

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

applicable;

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

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

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

Agreement

1. Amendments

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

Current HPA, as further amended by this Fourteenth 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 

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

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

Treasury in connection with this Fourteenth 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 

Fourteenth Amendment and any other closing documentation delivered to Treasury in 

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

and thereunder.

3. Miscellaneous

A. The recitals set forth at the beginning of this Fourteenth 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 Fourteenth 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 Fourteenth Amendment shall be treated as originals for all purposes.

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE

INTENTIONALLY LEFT BLANK]
[Signature Page to Fourteenth Amendment to HPA — Oregon]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

OREGON HOUSING AND COMMUNITY 

SERVICES

UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Margaret S. Van Vliet By: ________________________ 

Name: Margaret S. Van Vliet Name: Timothy J. Bowler

Title: Director Title: Acting Assistant Secretary for

Financial Stability

ELIGIBLE ENTITY:

OREGON AFFORDABLE HOUSING 

ASSISTANCE CORPORATION

By: /s/ Diana Koppes 

Name: Diana Koppes

Title: President

By: /s/ Julie Cody 

Name: Julie Cody

Title: Treasurer
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EXHIBITS AND SCHEDULES

Schedule A Basic Information

Schedule B Service Schedules

Schedule C Permitted Expenses 
A

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information:

Name of the Eligible Entity: Oregon Affordable Housing Assistance 

Corporation

Corporate or other organizational form: Nonprofit corporation

Jurisdiction of organization: Oregon

Notice Information:

HFA Information:

Name of HFA: Oregon Housing and Community Services

Organizational form: A department of the State of Oregon under 

the laws of the State of Oregon

Date of Application: June 1, 2010

Date of Action Plan: September 1, 2010

Notice Information:

Program Participation Cap: $220,042,786.00

Portion of Program Participation Cap

Representing Original HHF Funds: $88,000,000.00

Portion of Program Participation Cap

Representing Unemployment HHF Funds: $49,294,215.00

Permitted Expenses: $39,206,846.00

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
A

Fifth Amendment Date: May 25, 2011

Sixth Amendment Date: September 28, 2011

Seventh Amendment Date: December 8, 2011

Eighth Amendment Date: March 29, 2012

Ninth Amendment Date: July 17, 2012

Tenth Amendment Date: February 6, 2013

Eleventh Amendment Date: April 25, 2013

Twelfth Amendment Date: June 6, 2013

Thirteenth Amendment Date: August 28, 2013

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.
B-1

SERVICE SCHEDULE B-1

Oregon Affordable Housing Assistance Corporation

Loan Modification Assistance Program

Summary Guidelines

The program was unfunded as of June 6, 2013.
B-2

SERVICE SCHEDULE B-2

Oregon Affordable Housing Assistance Corporation

Mortgage Payment Assistance Program

Summary Guidelines

1. Program Overview This schedule applies to applications initiated after the 

effective date of the Sixth Amendment to Commitment to 

Purchase Financial Instrument and HFA Participation 

Agreement. 

The Mortgage Payment Assistance Program is intended to help 

homeowners maintain their existing mortgage and eliminate the 

immediate risk of foreclosure. The Program will provide 

monthly payments in full to lenders/servicers. Borrowers must 

certify their continued eligibility at least quarterly.

The Program offers two pathways to assistance: one for 

unemployed homeowners and one for underemployed 

homeowners.

2. Program Goals The purpose of this program is to provide temporary relief from 

mortgage payments for unemployed and underemployed 

homeowners while they work to obtain income sufficient to 

support the mortgage. The Program will maintain an existing 

mortgage and eliminate the immediate risk of foreclosure.

3. Target Population/ 

Areas

The Program will be available in all counties in Oregon for 

unemployed or underemployed homeowners.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$148,120,055.00

5. Borrower Eligibility 

Criteria

Unemployed Pathway:

The borrower must be receiving unemployment insurance 

benefits at the time of initial application.

Underemployed Pathway:

The borrower must have a current household income equal to or 

less than 120 percent of state median income.

The borrower must have experienced a verifiable loss of income 

of 10 percent or more.

Unemployed/Underemployed Pathways:
B-2

The borrower must complete and sign a financial hardship 

affidavit attesting to the prior loss of income or other applicable 

financial hardship.

The borrower, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion.

6. Property/Loan 

Eligibility Criteria

Unemployed/Underemployed Pathways:

The subject property must be a one-unit, single-family, owneroccupied, primary residence and be located in Oregon.

Unemployed Pathway:

The unpaid principal balance of the borrower’s first-lien 

mortgage cannot exceed the Federal Housing Administration 

loan limit, as effective on November 18, 2011, for the county in 

which the subject property is located.

Underemployed Pathway: 

The unpaid principal balance of the borrower’s first-lien 

mortgage cannot exceed the Federal Housing Administration 

loan limit for calendar year 2013, as effective on November 19, 

2012, for the county in which the subject property is located 

unless certain qualifying conditions are met as defined in the 

program guidelines. In no instance can the unpaid principal 

balance of the borrower’s first lien mortgage exceed $729,750. 

7. Program Exclusions Unemployed/Underemployed Pathways:

The borrower cannot be in active bankruptcy. 

The borrower’s first-lien mortgage cannot be a home equity line 

of credit, land sale contract, or otherwise privately financed 

mortgage.

The borrower cannot own other residential real property.

The subject property cannot be a condominium or townhome, 

unless certain qualifying conditions are met as defined in the 

program guidelines.
B-2

8. Structure of Assistance The Program is envisioned as a revolving fund. The Program 

will make a five-year, non-recourse, zero-percent, forgivable, 

non-amortizing loan for which a junior lien will be recorded 

against the property. Twenty percent of the loan will be forgiven 

for each year the loan is outstanding. If the property is sold or 

refinanced prior to the loan termination date, the Program will 

recover funds should sufficient equity be available from the 

transaction. The Program will recycle recovered funds in order to 

provide additional program assistance until December 31, 2017, 

at which time any recovered funds will be returned to Treasury.

9. Per Household 

Assistance 

A maximum of $20,000.

10. Duration of Assistance 12 months.

11. Estimated Number of 

Participating 

Households

It is estimated that 11,000 homeowners will receive assistance.

12. Program Inception/ 

Duration

The Program began in December 2010 and is expected to last 54 

months.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

The Program will operate in conjunction with the Reinstatement 

Benefit of the Loan Preservation Assistance Program.

14. Program Interactions 

with HAMP

As outlined in Fannie Mae Lender Letter LL-2010-12, Freddie 

Mac Bulletin 2010-25 and the Making Home Affordable 

Program Handbook for Servicers of Non-GSE Mortgages 

(version 4.1), borrowers who receive Program assistance during 

a HAMP trial period plan will be terminated from HAMP.

15. Program Leverage with 

Other Financial 

Resources

Servicers will not charge administrative fees (e.g., NSF, late 

charges) in any month where a full contract payment is made.

16. Qualify as an 

Unemployment 

Program

 Yes  No
B-3

SERVICE SCHEDULE B-3

Oregon Affordable Housing Assistance Corporation

Loan Preservation Assistance Program

Summary Guidelines

1. Program Overview The Loan Preservation Assistance Program is intended to help 

homeowners preserve and/or maintain their existing mortgage 

and eliminate immediate risk of foreclosure. Funds provided 

through this Program will be provided to lenders/servicers to 

bring a delinquent borrower current. Eligibility will be 

determined by staff representing the OAHAC.

There are two principal tiers of benefit provided under the 

Program:

(A) Reinstatement Benefit: For homeowners who, at any time, 

receive funding under the Mortgage Payment Assistance 

program.

(B) Preservation Benefit: For homeowners who can demonstrate 

the ability to sustain their loan payments.

Homeowners may decline the Reinstatement Benefit in order to 

be considered for the Preservation Benefit, but homeowners 

cannot receive funding under both the Reinstatement and 

Preservation benefits.

2. Program Goals To bring delinquent mortgages current. The program will 

preserve and/or maintain an existing mortgage and reduce the 

risk of imminent foreclosure.

3. Target Population/ 

Areas

The program will be available in all counties of Oregon for 

homeowners with an arrearage.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$10,715,885.00

5. Borrower Eligibility

Criteria

Reinstatement Benefit:

The borrower must have been approved under the Mortgage 

Payment Assistance program, subject to certain limitations in the 

program guidelines. 

Preservation Benefit:

The borrower must demonstrate a gross monthly income-toPITIA ratio not to exceed 45 percent.

The borrower must complete and sign a financial hardship 

affidavit attesting to the prior loss of income or other applicable 
B-3

financial hardship.

The borrower, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion.

6. Property/Loan 

Eligibility Criteria

These criteria apply to the Preservation Benefit only:

The subject property must be a one-unit, single-family, owneroccupied, primary residence and be located in Oregon.

The unpaid principal balance of the borrower’s first-lien 

mortgage cannot exceed the Federal Housing Administration 

loan limit, as effective on November 18, 2011, for the county in 

which the subject property is located.

7. Program Exclusions The borrower cannot be in active bankruptcy. 

The borrower’s first-lien mortgage cannot be a home equity line 

of credit, land sale contract, or otherwise privately financed 

mortgage.

The borrower cannot own other residential real property.

The subject property cannot be a condominium or townhome, 

unless certain qualifying conditions are met as defined in the 

program guidelines.

8. Structure of 

Assistance

The Program is envisioned as a revolving fund. The Program 

will make a five-year, non-recourse, zero-percent, forgivable, 

non-amortizing loan for which a junior lien will be recorded 

against the property. Twenty percent of the loan will be forgiven 

for each year the loan is outstanding. If the property is sold or 

refinanced prior to the loan termination date, the Program will 

recover funds should sufficient equity be available from the 

transaction. The Program will recycle recovered funds in order to 

provide additional program assistance until December 31, 2017, 

at which time any recovered funds will be returned to Treasury.

9. Per Household 

Assistance 

Reinstatement Benefit:

A maximum of $10,000, subject to certain limitations in the 

program guidelines, for Mortgage Payment Assistance Program 

applications under the Unemployed Pathway.

A maximum of $15,000, subject to certain limitations in the 

program guidelines, for Mortgage Payment Assistance Program 

applications under the Underemployed Pathway.
B-3

Preservation Benefit:

A maximum of $25,000, subject to certain limitations in the 

program guidelines. 

10. Duration of Assistance Assistance is a one-time payment. 

11. Estimated Number of 

Participating 

Households

It is estimated that 3,900 homeowners will receive assistance.

12. Program Inception/ 

Duration

The Program began in May 2012 and is expected to last 24 

months, but may extend beyond 24 months where both funding 

and need exists.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

The Program’s Reinstatement Benefit will operate in 

conjunction with the Mortgage Payment Assistance program. 

14. Program Interactions 

with HAMP

This Program would incentivize recipients to enter loan 

modification programs such as HAMP. 

15. Program Leverage 

with Other Financial 

Resources

If the loan is reinstated, servicers will waive all administrative 

fees accrued since the beginning of the delinquency.

16. Qualify as an 

Unemployment 

Program

 Yes  No
B-4

SERVICE SCHEDULE B-4

Oregon Affordable Housing Assistance Corporation

Transition Assistance Program

Summary Guidelines

The program was unfunded as of December 8, 2011.
B-5

SERVICE SCHEDULE B-5

Oregon Affordable Housing Assistance Corporation

Loan Refinancing Assistance Pilot Project

Summary Guidelines

1. Program Overview The Loan Refinancing Assistance Pilot Project will target five 

Oregon counties hit hard by the housing crisis to provide 

assistance to homeowners with negative equity mortgages, who 

have recovered from unemployment, underemployment or 

financial distress and show the capability to pay a mortgage 

payment based on a principal amount reflective of the current 

market value of the home. There are two structures that will be 

utilized to accomplish the refinance, depending on restrictions 

affecting the loan holder.

Loan Purchase Structure: Under the Loan Purchase Structure, 

OAHAC, after review and approval by Oregon Housing and 

Community Services (OHCS), will provide funding for the 

purchase of loans on behalf of homeowners. All as part of one 

concurrent and seamless transaction, the loan will be purchased 

in accordance with a funding agreement with OAHAC, for a 

price that is at or below the current appraised value and at least 

10 percent below the current unpaid principal balance of the 

loan. A new, affordable loan based on a principal amount equal 

to or lesser than the home’s current appraised value will be 

originated.

Short Sale Structure: The Short Sale Structure will be utilized in 

the event the holder of the loan is subject to certain restrictions, 

operationally and/or legally, with respect to a loan sale 

transaction. In this scenario, OAHAC will utilize its contractor, 

Further 2 Development LLC (“Further”), to facilitate a short 

sale. All as part of one concurrent and seamless transaction, the 

home will be sold to Further for a price that is at or below the 

current appraised value and at least 10% below the current 

unpaid principal balance of the loan. Title to the home will be 

transferred to Further and then back to the homeowner through a 

newly originated affordable loan for the homeowner at a 

principal amount equal to or lesser than the home’s current 

appraised value. That new loan will be assigned to OHCS, in 

accordance with a funding agreement with OAHAC.

The end result will be the same under either structure: the 

homeowner remains in the home with a new, affordable loan. 
B-5

2. Program Goals The Loan Refinancing Assistance Pilot Project’s goals are to 

assist homeowners escape negative equity situations, help to 

slow the ongoing decline in property value, and provide 

approved homeowners with reliable, affordable, sustainable 

mortgages.

3. Target Population/ 

Areas

The Program will be available in five Oregon counties (Crook, 

Deschutes, Jackson, Jefferson, and Josephine) and focus 

exclusively on homeowners who have recovered from a financial 

hardship, are saddled with negative equity mortgages, and 

demonstrate the capability to pay a loan refinanced to an amount 

that is equal to or less than the home’s current value.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$12,000,000.00

5. Borrower Eligibility 

Criteria

The borrower must have a current household income equal to or 

less than 150 percent of state median income. A borrower who 

has a loan financed in whole or in part by bonds that are tax 

exempt under IRC section 143 is presumed to satisfy income 

limits.

The borrower must demonstrate the ability to meet standard 

payment ratios for at least the home’s current appraised value.

The borrower must complete and sign a financial hardship 

affidavit attesting to the prior loss of income or other applicable 

financial hardship.

The borrower, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion.
B-5

6. Property/Loan 

Eligibility Criteria

The subject property must be an owner-occupied, primary 

residence and be located in Oregon.

The subject property must be a one-unit, single-family residence 

or a condominium which is warrantable or on the FHA eligibility 

list. 

The unpaid principal balance of the borrower’s first-lien 

mortgage cannot exceed $499,000.

Loans must be purchased at or below appraised market value of 

the home.

The new loan cannot have a debt-to-income ratio in which PITIA 

is greater than 35 percent of total income and total household 

debt is greater than 45 percent of total income. Exceptions to the 

maximum debt-to-income ratio may be considered based on the 

borrower’s creditworthiness. 

Loans can only be purchased if the lender/servicer has 

discounted the price of the loan by at least 10 percent of the 

current unpaid principal balance.

7. Program Exclusions The borrower cannot be in active bankruptcy.

The borrower’s first-lien mortgage cannot be a home equity line 

of credit, third party contract, or other private party loan.

The borrower cannot own other residential real property.

Employees of contractor Further.

8. Structure of Assistance The new mortgage will be for a term of 30 years, carry a fixed 

interest rate (to be set by OAHAC and applied uniformly for all 

borrowers) and the loan amount will be set at an amount equal to 

or less than the current appraised value of the home.

The Pilot is envisioned as a revolving fund and OHCS, OAHAC, 

Further or another approved entity may arrange for take-out 

financing or sell the loan and revolve the funding directly back 

to OAHAC until December 31, 2017, for the purpose of funding 

other Loan Refinance Assistance Pilot Project transactions. All 

repayments and profits after December 31, 2017, if any, will be 

returned to Treasury. 

9. Per Household 

Assistance 

We anticipate revolving funds in order to achieve an average per 

household assistance amount of approximately $30,000 by 

December 2017. The per transaction cost will be higher as it 

does not account for the revolving of the program funds.
B-5

10. Duration of Assistance Assistance will be provided in a one-time transaction to close the 

new affordable loan with high touch servicing.

Any required counseling will be provided by HUD-approved

agencies using non-HHF resources.

11. Estimated Number of 

Participating 

Households

OAHAC anticipates helping approximately 330 homeowners.

12. Program Inception/ 

Duration

The program began in October 2011 and is expected to last until 

December 2017.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

None. 

14. Program Interactions 

with HAMP

None.

15. Program Leverage with 

Other Financial 

Resources

It is expected that this HHF investment will leverage $50 million

in permanent mortgages. Additionally, gains realized through 

third-party mortgage refinancing or secondary mortgage market 

loan sales due to discounts received at the time of transaction 

will be reinvested to grow the size of the revolving fund 

throughout the program period.

16. Qualify as an 

Unemployment 

Program

 Yes  No
B-6

SERVICE SCHEDULE B-6

Oregon Affordable Housing Assistance Corporation

Rebuilding American Homeownership Assistance Pilot Project

Summary Guidelines

1. Program Overview The Program will provide funds to assist homeowners who have 

minimal or negative equity and are seeking to refinance their 

existing loans.

Under the Program, funds will be provided at closing to be used 

to fund a new mortgage. 

2. Program Goals To allow homeowners to refinance into a new loan that will 

permit the homeowner to rebuild equity in their home faster than 

their existing mortgage loan(s) currently allow, or to lower their 

monthly payment amount.

3. Target Population/ 

Areas

The Program will be available in selected pilot counties per 

program guidelines.

4. Program Allocation 

(Including 

Administrative 

Expenses)

$10,000,000

5. Borrower Eligibility 

Criteria

The borrower must demonstrate a gross monthly income-toPITIA ratio not to exceed 45 percent.

The borrower must complete and sign a financial hardship 

affidavit attesting to the prior loss of income or other applicable 

financial hardship.

The homeowner, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion.

The borrower must meet certain creditworthiness standards as 

defined in program guidelines.
B-6

6. Property/Loan 

Eligibility Criteria

The subject property must be a one-unit, single-family, owneroccupied, primary residence and be located in Oregon.

The unpaid principal balance of all of the borrower’s mortgage 

liens cannot exceed 80 percent of the Federal Housing 

Administration loan limit for calendar year 2014, as effective on 

January 1, 2014, for the county in which the subject property is 

located.

The borrower must not have any payment 30 days late or more 

within the past 6 months on each existing mortgage lien.

The borrower must not have more than one payment 30–59 days 

late within the past 12 months on each existing mortgage lien.

The borrower must have a combined loan-to-value ratio between 

95% and 140%.

The borrower must not have any payment 60 days or more late 

within the past 12 months on each existing mortgage lien.

The interest rate of the borrower’s first-lien mortgage must meet 

certain standards as defined in program guidelines.

7. Program Exclusions The borrower cannot be in active bankruptcy.

The borrower cannot have any home equity line of credit except 

for a home equity line of credit originated as a second-lien 

mortgage concurrent with the borrower’s first-lien mortgage.

The borrower cannot own other residential real property.

The borrower’s first-lien mortgage cannot be owned or 

guaranteed by Freddie Mac or Fannie Mae.

The borrower cannot have received assistance under any other 

Oregon HHF program.

8. Structure of 

Assistance

The Program is envisioned to fund a new loan to the homeowner 

without providing any principal reduction or principal 

forgiveness. The loans would be securitized or sold no later than 

December 2017.

Funding from the Program will be structured in one of two ways:

• a new 15-year loan at 4% 

• a new 30-year loan at 5% 
B-6

It is the expectation that OHCS will sell or refinance these loans 

at some point before December, 2017. OHCS will work with 

Treasury to determine the appropriate disposition for these loans 

before that date. The Program may recycle recovered funds in 

order to provide additional program assistance until December 

31, 2017, at which time any recovered funds will be returned to 

Treasury. Recovered funds may also be used to cover costs 

associated with the management of the portfolio until 

December 31, 2017. 

9. Per Household 

Assistance 

The initial average household assistance amount is estimated to 

be $200,000. Following repayment, refinance; or sale of the 

portfolio, including interest received on the portfolio; estimated 

household assistance amount could be as low as $5,000 to 

$15,000. Revolving the portfolio at a favorable price before 

December 2017 will provide program funds that may be 

revolved to help additional homeowners. 

10. Duration of Assistance Assistance will be provided in a one-time transaction to close the 

new affordable loan.

11. Estimated Number of 

Participating 

Households

It is estimated that 50 homeowners will receive assistance. If the 

portfolio could be revolved at a favorable price before December 

2017, program funds could be revolved to help additional 

homeowners

12. Program Inception/ 

Duration

The Program began in June 2013 and is expected to last until 

June 2015.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

None. 

14. Program Interactions 

with HAMP

None.

15. Program Leverage 

with Other Financial 

Resources

None. 

16. Qualify as an 

Unemployment 

Program

 Yes No √
C-1

SCHEDULE C

PERMITTED EXPENSES

Oregon

One-time / Start-Up Expenses:

Initial Personnel $573,172.00

Building, Equipment, Technology $327,965.00

Professional Services $96,634.00

Supplies / Miscellaneous $7,652.00

Marketing /Communications $2,696.00

Travel $9,789.00

Website development /Translation $36,600.00

Contingency

Subtotal $1,054,508.00

Operating / Administrative 

Expenses:

Salaries $12,802,568.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $6,792,117.00

Travel $59,192.00

Buildings, Leases & Equipment $889,580.00

Information Technology & 

Communications $1,004,345.00

Office Supplies/Postage and 

Delivery/Subscriptions $167,815.00

Risk Management/ Insurance $148,133.00

Training $117,346.00

Marketing/PR $324,976.00

Miscellaneous

Subtotal $22,306,072.00

Transaction Related Expenses:

Recording Fees $2,163,134.00 

Wire Transfer Fees $46,613.00 

Counseling Expenses

File Intake $0.00 

Decision Costs $0.00 

Successful File $13,636,519.00 

Key Business Partners On-Going $0.00 

Subtotal $15,846,266.00

Grand Total $39,206,846.00

% of Total Award 17.82%

Award Amount $220,042,786.00