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SEVENTEENTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Seventeenth Amendment to Commitment to Purchase Financial Instrument and HFA

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

Schedule A attached hereto as the Seventeenth Amendment Date (the “Amendment Date”), 

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

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

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

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

Recitals

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

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

as of the Closing Date set forth on Schedule A attached hereto, as previously amended by those

certain Amendments to Commitment to Purchase Financial Instrument and HFA Participation

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

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

HPA”), in connection with Treasury's federal housing program entitled the Housing Finance

Agency Innovation Fund for the Hardest Hit Housing Markets (the “HHF Program”), which

was established pursuant to the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 

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

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

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

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

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

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

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

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

HPA and the Exhibits and Schedules attached thereto.

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

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

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

Agreement

1. Amendments

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

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

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

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

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

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

payment of Permitted Expenses.

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

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

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

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

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

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

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

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

its entirety and replaced with the following: 

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

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

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

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

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

exceed the amount of the Program Participation Cap.

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

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

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

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

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

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

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

quarter in which the End of Term occurs.”

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

entirety and replaced with the following:

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

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

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

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

Eligible Entity shall provide quarterly unaudited financial statements to Treasury no 

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

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

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

replaced with the following:

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

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

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

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

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

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

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

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

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

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

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

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

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

G. Modifications. 

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

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

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

end: 

Notwithstanding anything to the contrary contained herein, Treasury may approve 

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

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

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

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

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

Section 8 hereof.

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

in its entirety.

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

and replaced with Exhibit A attached to this Amendment.

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

entirety and replaced with Schedule A attached to this Amendment.

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

entirety and replaced with Schedule B attached to this Amendment.

K. Reserved. 
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L. Schedule F. A new Schedule F is added to the Current HPA in the form attached 

to this Amendment as Schedule F.

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

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

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

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

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

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

Current HPA, as further amended by this Amendment.

2. Substitution of Financial Instrument. 

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

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

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

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

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

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

of) the Eligible Entity.

3. Representations, Warranties and Covenants

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

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

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

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

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

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

Eligible Entity, as the case may be, agrees to notify Treasury immediately and the same

shall constitute an Event of Default under the HPA.

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

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

Entity, as applicable, contained in the HPA are true, correct, accurate and complete in

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

as applicable, contained in the HPA shall remain in full force and effect and neither

HFA, nor Eligible Entity is in breach of any such covenant.

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

execute, and deliver this Amendment, the Amended and Restated Financial Instrument, 

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

and to perform its obligations hereunder and thereunder.

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

this Amendment and any other closing documentation delivered to Treasury in 

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

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

are incorporated herein by this reference.

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

to them in the HPA.

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

any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such

prohibition or unenforceability without invalidating the remaining provisions of the HPA,

and no such prohibition or unenforceability in any jurisdiction shall invalidate such

provision in any other jurisdiction.

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

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

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

electronic copies of this Amendment, the Amended and Restated Financial Instrument, and 

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

for all purposes.

[SIGNATURE PAGE FOLLOWS;REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK]
[Signature Page to Seventeenth Amendment to HPA – Oregon]

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

hereby execute and deliver this Seventeenth 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: Mark McArdle

Title: Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

OREGON AFFORDABLE HOUSING 

ASSISTANCE CORPORATION

By: /s/ Julie Cody

Name: Julie Cody

Title: President

By: /s/ Caleb Yant

Name: Caleb Yant

Title: Treasurer
EXHIBITS AND SCHEDULES

Exhibit A Form of Amended and Restated Financial Instrument

Schedule A Basic Information

Schedule B Service Schedules

Schedule F HHF Fifth Round Funding Reallocation Model
EXHIBIT A

FORM OF AMENDED AND RESTATED FINANCIAL INSTRUMENT

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

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

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

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

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

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

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

This Amended and Restated Financial Instrument is effective as of April 1, 2016. All of the 

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

the Agreement.

Recitals

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

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

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

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

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

Fifth Round Funding; and

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

Instrument in its entirety.

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

hereby acknowledged, Eligible Entity agrees as follows:

1. Eligible Entity Obligation; Purchase Price Consideration.

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

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

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

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

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

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

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

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

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

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

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

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

time to time (“EESA”).

2. Repayment of Purchase Price. 

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

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

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

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

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

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

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

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

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

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

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

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

funds. 

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

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

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

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

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

Draws will be permitted after the Final Repayment Date.

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

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

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

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

investments, if any, held therein.

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

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

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

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

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

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

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

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

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

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

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

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

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

OR AFFILIATES BE LIABLE TO ELIGIBLE ENTITY WITH RESPECT TO THE 

SERVICES OR THE AGREEMENT, OR FOR ANY ACT OR OMISSION 

OCCURRING IN CONNECTION WITH THE FOREGOING, FOR ANY DAMAGES 

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

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

INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF ANY 

NATURE OR UNDER ANY LEGAL THEORY WHATSOEVER, EVEN IF ADVISED 

OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER 

OR NOT THE DAMAGES WERE REASONABLY FORESEEABLE; PROVIDED, 

HOWEVER, THAT THIS PROVISION SHALL NOT LIMIT TREASURY’S 

OBLIGATION TO REMIT PURCHASE PRICE PAYMENTS TO ELIGIBLE ENTITY 

IN ACCORDANCE WITH THE AGREEMENT.

7. Indemnification 

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

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

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

Instrument on the date set forth below.

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY]

By:

Name: 

Title: 

Date: ____________ __, 2016
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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: $256,468,242.00

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

Rounds 1-4 Funding Allocation: $220,042,786.00

Round 5 Funding Allocation: $36,425,456.00

Permitted Expenses: Amount on file with Treasury

Closing Date: August 3, 2010

First Amendment Date: September 23, 2010
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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

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

Fourteenth Amendment Date: February 27, 2014

Fifteenth Amendment Date: June 11, 2014

Sixteenth Amendment Date: November 24, 2015

Seventeenth Amendment Date: April 1, 2016

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

Depository Account Control Agreement between 

Treasury and Eligible Entity regarding the HHF 

Program.
SCHEDULE B

SERVICE SCHEDULES

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

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

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

HPA.
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SERVICE SCHEDULE B-1

Oregon Affordable Housing Assistance Corporation

Loan Modification Assistance Program

Summary Guidelines

The program was unfunded as of June 6, 2013.
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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 Seventeenth 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)

Program allocation amount on file with Treasury.

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.
B-2-2

Unemployed/Underemployed Pathways:

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 
B-2-3

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 shall recycle recovered funds in order 

to provide additional program assistance in accordance with the 

Agreement.

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 11,900 homeowners will receive assistance.

12. Program Inception/ 

Duration

The Program began in December 2010 and is expected to last 90 

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.
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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 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)

Program allocation amount on file with Treasury.

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-to-
B-3-2

PITIA 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 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:

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

2012, 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 shall recycle recovered funds in order 

to provide additional program assistance in accordance with the 

Agreement.

9. Per Household 

Assistance 

Reinstatement Benefit:
B-3-3

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.

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 7,700 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.
B-4-1

Doc#: US1:10553109v3

SERVICE SCHEDULE B-4

Oregon Affordable Housing Assistance Corporation

Transition Assistance Program

Summary Guidelines

The program was unfunded as of December 8, 2011.
B-5-1

SERVICE SCHEDULE B-5

Oregon Affordable Housing Assistance Corporation

Loan Refinancing Assistance Pilot Project

Summary Guidelines

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

date of the Seventeenth Amendment to Commitment to Purchase 

Financial Instrument and HFA Participation Agreement.

The Loan Refinancing Assistance Pilot Project will target 

Oregon 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

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 select Oregon counties 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)

Program allocation amount on file with Treasury.

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. The borrower 

must meet criteria as defined in program guidelines.
B-5-3

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 

that is not a condominium. 

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.

The loan must meet criteria as defined in the program guidelines.

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 Program is setup as a revolving fund generating revenue in 

excess of the original allocation to fund additional loans. It is 

expected that OHCS will sell or refinance these loans at some 

point before December 31, 2020. The Program shall recycle 

recovered funds in order to provide additional program 

assistance, or cover costs associated with the management of the 

portfolio, in accordance with the Agreement.
B-5-4

9. Per Household 

Assistance 

The initial average household assistance amount is estimated to 

be $135,000. Following repayment, refinance, or sale of the 

portfolio including interest received and gains realized, estimated 

household assistance amount could range from $20,000 to 

$40,000. 

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

It is estimated that 200 homeowners will receive assistance. If 

market conditions support continued program viability and the 

portfolio can be revolved at a favorable price before December 

31, 2020, program funds could be revolved to help additional 

homeowners.

12. Program Inception/ 

Duration

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

December 2019.

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 $30 million

in permanent mortgages. Additionally, any 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 throughout the program period.
B-6-1

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)

Program allocation amount on file with Treasury.

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-6-2

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 all of the borrower’s mortgage 

liens cannot exceed 80 percent of the Federal Housing 

Administration loan limit for calendar year 2016, as effective on 

November 17, 2015, 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. 

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-6-3

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

at some point before December 31, 2020. OHCS will work with 

Treasury to determine the appropriate disposition for these loans 

before that date. The Program shall recycle recovered funds in 

order to provide additional program assistance or cover costs 

associated with the management of the portfolio in accordance 

with the Agreement.

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.

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 

31, 2020, 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 

December 31, 2019.

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. 
F-1

SCHEDULE F

HHF FIFTH ROUND FUNDING REALLOCATION MODEL

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

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

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

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

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

I. Definitions

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

Funding Allocation.

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

Funding Allocation.

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

Participation Cap.

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

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

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

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

Agreement.

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

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

amended from time to time.

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

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

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

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

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

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

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

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

Funding Allocation.”

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

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

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

applicable Annual Reallocation Amount, as determined using the methodology described 

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

Annual Reallocation Amount will be zero for the applicable year.

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

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

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

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

Utilization Threshold and the 2018 Utilization Threshold.

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

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

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

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

date.

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

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

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

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

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

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

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

of such date.

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

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

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

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

date.

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

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

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

such date.

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

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

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

date.

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

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

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

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

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

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

of all Recipient States.

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

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

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

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

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

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

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

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

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

Participation Cap as of such date.

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

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

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

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

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

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

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

Average, the Utilization Score will be negative.

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

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

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

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

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

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

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

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

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

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

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

Per Capita Amount.

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

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

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

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

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

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

States, and (y) the Annual Reallocation Amount.

V. Notices; Modifications

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

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

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

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

written notice.

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

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

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

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

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

 

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

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