Seventh Amendment to HPA — Oregon 

TAMPA/198258.2

SEVENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Seventh Amendment to Commitment to Purchase Financial Instrument and HFA 

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

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

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

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

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

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

Recitals 

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

Purchase Financial Instrument and HFA Participation Agreement (the “Original 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”), and as further amended by that certain Sixth Amendment to Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the “Sixth Amendment”; and 

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

Amendment, Third Amendment, Fourth Amendment and Fifth Amendment, the “Current 

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 Treasury has agreed to the same; 

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

document all approved modifications to the Service Schedules; 

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/198258.2 

Agreement 

1. Amendments

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

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

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

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

further amended by this Seventh Amendment. 

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

and replaced with Schedule A attached to this Seventh Amendment. 

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

and replaced with Schedule B attached to this Seventh Amendment. 

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

and replaced with Schedule C attached to this Seventh Amendment. 

2. Representations, Warranties and Covenants

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

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

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

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

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

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

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

Event of Default under the HPA. 

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

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

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

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

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

Entity is in breach of any such covenant. 

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

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

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

hereunder and thereunder. 

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

Seventh Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 
- 3 - 

TAMPA/198258.2 

3. Miscellaneous

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

accurate and are incorporated herein by this reference. 

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

them in the HPA. 

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

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

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

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

jurisdiction. 

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

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

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

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

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

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

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 G. Massad 

Title: Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

OREGON AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Rick Crager 

Name: Rick Crager 

Title: President 

 

By: /s/ Nancy Cain 

Name: Nancy Cain 

Title: Treasurer 
TAMPA/198258.2 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/198258.2 

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: Oregon Affordable Housing Assistance 

 Corporation 

 Attn: Rick Crager 

 725 Summer St NE, Suite B 

 Salem, Oregon 97301-1266 

 Phone: (503) 986-2079 

 Fax: (503) 986-2020 

 E-mail: rick.crager@hcs.state.or.us 

 

 

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: Oregon Housing and Community Services 

 Attn: Rick Crager 

 725 Summer St NE, Suite B 

 Salem, Oregon 97301-1266 

 Phone: (503) 986-2076 

 Fax: (503) 986-2020 

 E-mail: rick.crager@hcs.state.or.us 

Program Participation Cap: $220,042,786.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $88,000,000.00 
TAMPA/198258.2 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $49,294,215.00 

Permitted Expenses: $35,207,199.00

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: May 25, 2011 

Sixth Amendment Date: September 28, 2011 

Seventh 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/198258.2 

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/198258.2 

SERVICE SCHEDULE B-1

Oregon Affordable Housing Assistance Corporation

Loan Modification Assistance Program

Summary Guidelines 

1. Program Overview The Loan Modification Assistance Program will provide funds to 

assist financially distressed borrowers who are in the process of 

modifying their home loans. 

Under the Program, a one-time contribution of funds will be made 

to a homeowner’s lender/servicer to be used to fill a financial gap 

that limits a homeowner’s eligibility for a loan modification. 

Funds may be used to reduce the outstanding principal balance, 

pay delinquent escrow, arrearages, or strategically apply 

resources to ensure a Net Present Value test is positive. 

Modification must result in a loan to value ratio of no more than 

125 percent, a total debt-to-income of up to or less than 50 

percent, and a mortgage payment of no more than 31 percent 

including principal, interest, taxes and insurance. The Program is 

designed to work with both HAMP and non-HAMP 

modifications. 

2. Program Goals To provide a quick infusion of funds that will allow for a 

successful loan modification. Without these additional funds, 

homeowners would be ineligible for modification. 

3. Target Population/ 

Areas 

The Program will be available in all counties in Oregon for 

households with incomes equal to or less than 120 percent of state 

median income. The substantial majority of funding (80 percent) 

will be provided to those counties identified as hardest hit (20). 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$10,500,000.00 

5. Borrower Eligibility 

Criteria 

The homeowner must have a current household income equal to 

or less than 120 percent of state median income. A homeowner 

who has a loan financed in whole or in part by bonds that are taxexempt under IRC section 143 is presumed to satisfy income 

limits. 

The homeowner’s current first lien mortgage must have 

originated before January 1, 2009. 

Homeowner must have either been denied for, or must be in the 

process of receiving, a loan modification. 

Homeowner must provide a financial hardship affidavit. 
TAMPA/198258.2 2 

The homeowner cannot own other residential real property. 

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. 

After modification, must have a loan-to-value ratio of no more 

than 125 percent. 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence and be located in Oregon. Manufactured homes are 

eligible only if the structure is recorded in the county’s deed 

records. 

The unpaid principal balance of the homeowner’s first lien 

mortgage cannot exceed $729,750. 

The homeowner cannot own other residential real property. 

7. Program Exclusions Owners of second homes or investment properties. 

8. Structure of 

Assistance 

Funding from the Program will be structured as a five-year nonrecourse, zero-percent forgivable, non-amortizing loan in which a 

second lien is recorded on the property. Twenty percent of the 

loan will be forgiven for each year it is outstanding. If property is 

sold or refinanced prior to the loan termination date, funds will be 

recovered should sufficient equity be available from the 

transaction. Recovered funds will be recycled 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 

Maximum is $10,000. 

10. Duration of Assistance One time payment on behalf of borrower to lender/servicer. 

11. Estimated Number of 

Participating 

Households 

An estimated 1,050 homeowners will receive assistance. 

12. Program Inception/ 

Duration 

The Program is expected to be operational by February of 2011 

and last less than 12 months. All funds still available after 

12/31/2017 will be returned to Treasury. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

None. 

14. Program Interactions 

with HAMP 

The Program will only function directly with the existing HAMP 

program or other modification programs offered by servicers 
TAMPA/198258.2 3 

and/or lenders. The Program is not anticipated to work with the 

other Hardest Hit Fund programs; however, it will work with nonHAMP modification programs offered through lenders/servicers. 

In those cases, Program funds will be used when an investment of 

$10,000 or less, will facilitate a successful loan modification. 

15. Program Leverage 

with Other Financial 

Resources 

Servicers will not charge administrative fees and waive all 

administrative fees accrued prior to modification. 

16. Qualify as an 

Unemployment 

Program 

 Yes No √
TAMPA/198258.2 

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 will provide up to 12 

months of mortgage payment assistance or $20,000, whichever is 

used first. This temporary assistance will be provided on behalf of 

homeowners who are receiving unemployment insurance benefits. 

The state’s foreclosure counseling network will serve as the 

administrative entry point for application processing. 

Oregon Affordable Housing Assistance Corporation (OAHAC) 

will, on behalf of an eligible borrower, make a full monthly 

payment to the servicer until the applicable program cap is 

reached, or until the borrower has become re-employed. Eligible 

borrowers may receive up to 12 monthly assistance payments by 

signing a quarterly affidavit, provided the program cap has not 

been met. 

OAHAC will require borrowers to provide at least quarterly 

certification of continued eligibility. 

2. Program Goals The assistance provided by the Mortgage Payment Assistance 

Program will allow qualified borrowers to search for work or 

obtain job training without fear of losing their home. The purpose 

of this program is to assist borrowers until they can obtain 

sufficient income to resume scheduled mortgage payments or 

qualify for a modified mortgage payment. 

3. Target Population/ 

Areas 

The Program will be available to homeowners receiving 

unemployment insurance benefits at the time of initial 

application. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$126,000,000.00

5. Borrower Eligibility 

Criteria 

The borrower must be receiving unemployment insurance 

benefits at time of initial application. 

The borrower must complete and sign a Financial Hardship 

Affidavit. 
TAMPA/198258.2 2 

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 

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 October 1, 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. 

8. Structure of 

Assistance 

The Program is envisioned as a revolving fund. The Program will 

make a five-year, non-recourse, zero-percent, forgivable, nonamortizing loan in which a junior lien is recorded on 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 

Maximum benefit is $20,000 per borrower. 

10. Duration of Assistance 12 months. 

11. Estimated Number of 

Participating 

Households 

At a minimum this program will help 8,250 homeowners. 

12. Program Inception/ 

Duration 

The Program was operational December 2010. The Program is 

expected to last 36 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

Some borrowers may have loans funded by Oregon Housing and 

Community Services and will also be eligible for the Loan 

Preservation Program. 

14. Program Interactions 

with HAMP 

HHF Funds will generally be utilized prior to the UP forbearance 

described in Supplemental Directive 10-04 and/or GSE 

forbearance programs, unless the borrower has already received 
TAMPA/198258.2 3 

forbearance under those programs. When appropriate however, 

servicers should provide UP or other forbearance to eligible 

borrowers who are being evaluated for Mortgage Payment 

Assistance by OAHAC. 

If borrowers are considering HAMP as a option, they must be 

evaluated for HAMP at the earlier of reemployment or expiration 

of HFA mortgage assistance benefits. 

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. If 

the loan is reinstated or modified following HFA mortgage 

assistance, servicers will waive all administrative fees accrued 

since the beginning of the delinquency. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No 
TAMPA/198258.2 

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 loan and 

eliminate immediate risk of foreclosure. Funds provided through 

this Program will be provided to lenders/servicers to pay 

arrearages, which includes principal, interest, taxes, insurance and 

association dues (PITIA), to bring a delinquent borrower current. 

Eligibility will be determined by staff representing the OAHAC. 

2. Program Goals To provide homeowners experiencing unemployment or financial 

distress the opportunity to pay arrearages and bring delinquent 

loans current. The program will preserve and/or maintain an 

existing loan and reduce risk of imminent foreclosure. 

3. Target Population/ 

Areas 

The program will be available in all counties of Oregon for 

households participating in the mortgage payment assistance 

program, or homeowners, not participating under the mortgage 

payment assistance program, who have recovered from financial 

distress. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$38,335,587.00 

5. Borrower Eligibility 

Criteria 

The homeowner must either a) be a past, present or future 

participant in the mortgage payment assistance program; or b) 

recovered from a financial hardship. 

For those homeowners that have recovered from a financial 

hardship, they must provide a financial hardship affidavit and be 

able to demonstrate the ability to pay a PITIA ratio not to exceed 

50 percent of gross monthly income. 

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.
TAMPA/198258.2 2 

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 the borrower’s first lien mortgage 

cannot exceed the Federal Housing Administration loan limit, as 

effective on October 1, 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 subject property cannot be a condominium or townhome. 

The homeowner cannot own other residential real property. 

8. Structure of 

Assistance 

The Program is envisioned as a revolving fund. The Program will 

make a five-year, non-recourse, zero-percent forgivable, nonamortizing loan in which a second lien is recorded on 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 

Maximum benefit is up to $20,000 per borrower. All borrowers 

that have participated in the mortgage payment assistance 

program will be eligible for a maximum benefit of $10,000. All 

borrowers that have recovered from a financial hardship will be 

eligible for a maximum benefit of $20,000. 

10. Duration of Assistance Lenders/servicers will receive payment on behalf of borrower to 

bring the borrower current. 

11. Estimated Number of 

Participating 

Households 

It is estimated that a minimum of 4,000 homeowners will receive 

assistance. 

12. Program Inception/ 

Duration 

The Program will be operational in December 2011. The Program 

is expected to last 24 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will operate in conjunction with the Mortgage 

Payment Assistance Program It is anticipated that many of the 

recipients of these funds will have used mortgage assistance, 

become stabilized, and can now take advantage of this Program to 

increase their chances of long-term sustainability. Recipients of 

these Program funds may enter into companion loan modification 

programs such as the FHA’s Short Refinance Program, HAMP, 

Hope for Homeowners or other existing modification programs. 
TAMPA/198258.2 3 

14. Program Interactions 

with HAMP 

This Program would incent recipients to enter loan modification 

programs such as HAMP and may interact with both new and 

existing HAMP programs. 

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 
TAMPA/198258.2 

SERVICE SCHEDULE B-4

Oregon Affordable Housing Assistance Corporation

Transition Assistance Program

Summary Guidelines 

1. Program Overview The Transition Assistance Program will assist homeowners for 

whom foreclosure would otherwise be inevitable. This Program 

will serve as an alternative exit point for recipients of the 

Mortgage Payment Assistance Program who do not regain 

employment or recover from financial distress to the extent that 

they would benefit from loan preservation assistance. This 

Program will work in conjunction with servicer/lender short sale 

and deed-in-lieu of foreclosure programs to help homeowners 

transition to affordable housing expediently. The funds are to be 

used by borrowers to pay for relocation expenses including, but 

not limited to: housing and utility deposits, transportation and 

storage of household goods and personal effects, and temporary 

housing costs. 

OAHAC may work with lenders/servicers, real estate associations 

and agents, and community organizations to identify potential 

applicants. 

2. Program Goals To provide funds to financially distressed borrowers so they may 

be able to find affordable housing while avoiding foreclosure. 

Additionally, funds will serve as an incentive to maintain the 

home’s condition prior to turning it over to a lender/servicer. 

3. Target Population/ 

Areas 

The Program will be available in all counties in Oregon. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$0.00 

5. Borrower Eligibility 

Criteria 

The borrower must have a current household income equal to or 

less than 120 percent of state median income. A borrower who 

has a loan financed in whole or in part by bonds that are taxexempt under IRC section 143 is presumed to satisfy income 

limits. 

The borrower must complete and sign a financial hardship 

affidavit. 

The borrower, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 
TAMPA/198258.2 2 

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

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

The borrower must complete a short sale or deed- in- lieu of 

foreclosure agreement. 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence unless the borrower has relocated in the last 24 months, 

and provides documentation that the property was such 

borrower’s primary residence prior to relocation and satisfies 

certain other qualifying criteria. 

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

cannot exceed $350,000 unless certain qualifying conditions are 

met. In no instance can the unpaid principal balance of the 

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

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

(including condominiums and townhomes) located in Oregon, 

7. Program Exclusions The borrower cannot own other residential real property. 

The borrower cannot be in active bankruptcy. 

8. Structure of 

Assistance 

This Program will not be structured as a loan. 

9. Per Household 

Assistance 

Maximum benefit is $3,000 per household.

10. Duration of Assistance One-time payment to the borrower at or after closing (transfer of 

title) of the deed-in-lieu or short sale transaction. 

11. Estimated Number of 

Participating 

Households 

0 

12. Program Inception/ 

Duration 

This Program is suspended until further notice. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

It is anticipated the Program will provide additional support to 

eligible recipients above and beyond the assistance provided 

through HAFA. The Program would essentially fill gaps for the 

borrower in areas where HAFA assistance falls short of the 

resources needed for a successful transition.

14. Program Interactions 

with HAMP 

None.

15. Program Leverage 

with Other Financial 

Resources 

There is no current anticipated leverage; however this program 

will be layered on any other resources the borrower is able to 

receive for leaving their home before foreclosure. 
TAMPA/198258.2 3 

16. Qualify as an 

Unemployment 

Program 

Yes ;No 
TAMPA/198258.2 

SERVICE SCHEDULE B-5

Oregon Affordable Housing Assistance Corporation

Loan Refinancing Assistance Pilot Project 

Summary Guidelines

1. Program Overview The Loan Refinancing Assistance Pilot will target two 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 the loan holder may be 

under 

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 

by OHCS, in accordance to 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. OHCS will then originate a new, affordable loan based on 

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

appraised value. 

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

the event the holder of the loan is under restrictions, both 

operationally or legally, with respect to a loan sale transaction 

that it might otherwise be with respect to a short sale transaction. 

In this scenario, OAHAC will utilize its consultant, Further 

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 purchased by OHCS, in accordance to a funding 

agreement with OAHAC, from Further at an amount equal to the 

agreed short-sale price. 

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

homeowner remains in the home with a new, affordable loan. 
TAMPA/198258.2 2 

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

assist homeowners escape acute 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 two Oregon counties, Deschutes 

and Jackson, 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 thane home’s 

current value. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$10,000,000.00

5. Borrower Eligibility 

Criteria 

The homeowner must have a current household income equal to 

or less than 150 percent of state median income and a minimum 

income above 70 percent of state median income. A homeowner 

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 homeowner must have experienced a verifiable loss of 

income or other demonstrable financial hardship. 

The borrower must demonstrate the ability to meet standard 

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

The homeowner 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. 
TAMPA/198258.2 3 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence and be located in Oregon. 

The mortgage has substantial negative equity. 

The unpaid principal balance of the homeowner’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 31 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 

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 First lien mortgages that are home equity lines of credit. 

Third party contracts and other private party loans. 

The homeowner cannot own other residential real property. 

Employees of Oregon Housing and Community Services, partner 

agencies, or contractors. 

8. Structure of 

Assistance 

The refinanced mortgage will be for a term of 30 years, carry a 

fixed interest rate (to be set by OAHAC and apply 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. OHCS, per a funding 

agreement with OAHAC, will purchase distressed mortgages on a 

homeowner’s behalf, and then refinance with the homeowner at 

current appraised value (or less) and service the loan; or utilize 

the Short Sale Structure to achieve the same result. When the loan 

demonstrates healthy, reliable performance, OHCS may arrange 

for take-out financing or sell the loan and revolve the funding 

directly back to OAHAC until December 31, 2017. All 

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

returned to Treasury.

9. Per Household 

Assistance 

Anticipated per household assistance is $125,000-$150,000. 

Based on the goal of recycling the program allocation of 

$10,000,000 five times, the total amount of initial funding benefit 

for the estimated number of borrowers (330) is approximately 

$30,000. 
TAMPA/198258.2 4 

10. Duration of Assistance Assistance will be a one time payment with high touch servicing. 

Any required counseling will be provided by HUD approved 

agencies using outside (non-HHF) resources. 

11. Estimated Number of 

Participating 

Households 

OAHAC anticipates helping approximately 330 homeowners. 

12. Program Inception/ 

Duration 

OAHAC expects to purchase its first loan within three to four 

months of US Treasury approval. The program is estimated to 

last for three to four years. 

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 $40 million 

in permanent mortgages. State bond financing may be utilized for 

take out financing to achieve this goal. Additionally, gains 

realized through third party mortgage refinancing or secondary 

mortgage market loan sales due to discounts received at the time 

of OAHAC’s purchase will be reinvested to grow the size of the 

revolving fund throughout the program period. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/198258.2 

SCHEDULE C

PERMITTED EXPENSES

Oregon 

 

 One-time / Start-Up Expenses: 

Initial Personnel $201,240.00

Building, Equipment, Technology $92,706.00

Professional Services $220,969.00

Supplies / Miscellaneous $27,551.00

Marketing /Communications $105,268.00

Travel $20,000.00

Website development /Translation $25,000.00

Contingency $25,000.00

 Subtotal $717,734.00 

 

Operating / Administrative 

Expenses: 

Salaries $9,930,786.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $6,340,751.00

Travel $68,981.00

Buildings, Leases & Equipment $367,315.00

Information Technology & 

Communications $1,040,945.00

Office Supplies/Postage and 

Delivery/Subscriptions $175,467.00

Risk Management/ Insurance $148,133.00

Training $117,346.00

Marketing/PR $327,672.00

Miscellaneous $125,803.00

 Subtotal $18,643,199.00 

 

 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 $35,207,199.00 

% of Total Award 16.00% 

Award Amount $220,042,786.00