Fourth Amendment to HPA — Alabama 

TAMPA/172193.1

FOURTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Fourth Amendment to Commitment to Purchase Financial Instrument and HFA 

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

Schedule A attached hereto as the Fourth 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”), and as further 

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

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

amended thereby and by the First Amendment and Second 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 Fourth 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. 

Agreement 

1. Amendments

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

Current HPA, as further amended by this Fourth Amendment; and all references in the 
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TAMPA/172193.1 

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

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

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

Treasury in connection with this Fourth 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 

Fourth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous

A. The recitals set forth at the beginning of this Fourth 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 
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TAMPA/172193.1 

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 Fourth 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 Fourth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Fourth Amendment to HPA — Alabama]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

ALABAMA HOUSING FINANCE 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Robert Strickland By: 

Name: Robert Strickland Name: Timothy G. Massad 

Title: Executive Director Title: Acting Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

ALABAMA HOUSING FINANCE 

AUTHORITY 

By: /s/ Robert Strickland 

Name: Robert Strickland 

Title: Executive Director 

 
::EASUR~ t4A

Name: Timothy G. Massad

Title: Acting Assistant Secretary for

Financial Stability

By:

Name:

Title:
TAMPA/172193.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/172193.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Alabama Housing Finance Authority1

Corporate or other organizational form: a public corporation and instrumentality of 

the State of Alabama, established and 

existing under the Code of Alabama 1975 

§24-1A-1 pursuant to Act No. 80-585 of the 

Alabama Legislature

Jurisdiction of organization: Alabama

Notice Information: Attn: Single Family Administrator 

 7460 Halcyon Pointe Drive, Ste. 200 

Montgomery, AL 36117 

Phone: (334) 244-9200 

Fax: (334) 244-9214 

Email: MKinge@AHFA.com 

 CJames@AHFA.com 

With copies to: Robert Strickland 

7460 Halcyon Pointe Drive, Ste. 200 

Montgomery, AL 36117 

Phone: (334) 244-9200 

Fax: (334) 244-9214 

Email: RStrickland@AHFA.com 

Neal Acker 

7460 Halcyon Pointe Drive, Ste. 200 

Montgomery, AL 36117 

Phone: (334) 244-9200 

Fax: (334) 244-9214 

Email: NAcker@AHFA.com

 

1 References in the Agreement to the term "HFA" shall mean the Alabama Housing Finance Agency ("AHFA") in 

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

Entity" shall mean AHFA, in its capacity as Eligible Entity as such term is used in the Agreement. 
TAMPA/172193.1 

HFA Information: 

Name of HFA: Alabama Housing Finance Authority 

Organizational form: a public corporation and instrumentality of 

the State of Alabama, established and 

existing under the Code of Alabama 1975 § 

24-1A-1 pursuant to Act No. 80-585 of the 

Alabama Legislature 

Date of Application: August 31, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Same as Notice Information for Eligible 

Entity. 

Program Participation Cap: $162,521,345.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: N/A 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $ 60,672,471.00 

Permitted Expenses: $ 27,024,240.00

Closing Date: September 23, 2010 

First Amendment Date: September 29, 2010 

Second Amendment Date: December 16, 2010 

Third Amendment Date: January 26, 2011 

Fourth Amendment Date: March 31, 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/172193.1 

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/172193.1 

SERVICE SCHEDULE B-1 

ALABAMA HOUSING FINANCE AUTHORITY

PROGRAM TERM SHEET

SUMMARY GUIDELINES 

 1. Program Overview AHFA will administer HHF to subsidize 100 percent of an 

eligible unemployed or underemployed homeowner’s current 

mortgage payments and all other mortgage-related expenses 

(including subordinate liens, if applicable) during their time of 

eligibility. The assistance will not exceed a total of 12 

consecutive monthly payments or $15,000 per household. 

Alabama’s HHF will provide a payment (not to exceed the 

lesser of six monthly payments plus fees and costs or $7,500) to 

a participating homeowner’s servicers to bring the homeowner 

current on his or her delinquent mortgage(s). If the maximum 

amount that AHFA will provide exceeds the total amount 

needed to bring the homeowner current on all existing 

mortgages, the homeowner must cover any shortfall. The 

AHFA payment can cover principal, interest, fees, 

escrow/impound expenses, delinquent taxes and/or escrow 

shortage for taxes and insurance. 

Interested homeowners will apply directly to AHFA via a 

secure website monitored and maintained by AHFA staff. 

Applications will be evaluated and approved by AHFA staff 

members. Approved homeowners will be expected to submit 

certain information documenting their inability to pay their 

mortgage and supporting their mortgage claims. 

Once in the program, all homeowners will be expected to recertify their continued eligibility and residence in the home on a 

monthly basis. HHF payments will be distributed to servicers 

by AHFA on a monthly basis, contingent upon homeowner 

recertification and continued eligibility for unemployment 

compensation (for both unemployed and underemployed). 

Homeowners, who receive unemployment compensation from 

agencies outside of the State of Alabama, must provide a copy 

of a current awards letter and approved documentation to reflect 

continued eligibility. 

Assistance will continue for up to 12 consecutive monthly 

payments (including two months following the termination of 

eligibility), not to exceed $15,000, or until the property ceases 

to be the homeowner’s primary residence. 

 2. Program Goals Provide mortgage payment assistance to unemployed or 
TAMPA/172193.1 

underemployed Alabama homeowners with a chance of 

sustaining homeownership. 

 3. Target Population / 

Areas 

This program will assist low- to moderate-income families in 

Alabama. AHFA does not anticipate targeting this assistance on 

a geographic basis. 

 4. Program Allocation 

(Excluding 

Administrative Expenses) 

$135,497,105.00 

 5. Borrower Eligibility 

Criteria 

Unemployed or underemployed Alabama homeowners who 

have been declared eligible to receive state unemployment 

compensation benefits may apply for assistance. Also, 

applicants must have a total annual household income of less 

than 140 percent of the state median income. Based on the 

current state median annual income of $54,100, the program’s 

maximum annual income limit, as of August 2010, will be 

$75,740. AHFA may change this income limit annually when 

new income data becomes available from the U.S. Department 

of Housing and Urban Development. 

All homeowners will be required to provide a financial 

Hardship Affidavit attesting to their inability to pay their 

mortgage. HHF will be available to qualified homeowners on a 

first-come, first-served basis. 

 6. Property / Loan 

Eligibility Criteria 

The homeowner must currently occupy the property as their 

primary residence, and the residence must be located within the 

state of Alabama. Eligible structures include single-family 

homes, attached or detached, and manufactured housing 

attached to real property. Existing mortgage loans on the 

property must have an unpaid principal balance totaling no 

more than $258,690. Alabama HHF will be available only for 

mortgages executed and recorded on or before September 1, 

2010. Mortgages originated by entities in the business of 

regularly making mortgage loans to refinance properties owned 

prior to September 1, 2010 will be eligible. 

 7. Program Exclusions Mortgage loans on second homes or investment properties will 

not be eligible for HHF assistance. 

 8. Structure of Assistance Homeowners receiving funds will execute a note and a 

subordinate mortgage lien in favor of AHFA that will be 

recorded in public records against the property. Loans will be 

zero percent and non-amortizing. 

Unless fraud is involved, loans originated between the pilot 

program commencement and December 31, 2012, will be 

forgiven over a five-year term at 20 percent per year. Loans 

originated between January 1, 2013, and December 31, 2013, 
TAMPA/172193.1 

will be forgiven over a four-year term at 24 percent per year. 

Loans originated between January 1, 2014, and December 31, 

2014, will be forgiven over a three-year term at 33.3 percent per 

year. No loans will be originated after December 31, 2014. On 

or before December 31, 2017, or such later date allowed by 

Treasury, any remaining or recaptured funds will be returned to 

Treasury. 

Unless fraud is involved, loans will be repayable only if the 

homeowner sells the property before the forgiveness period 

expires and there is sufficient equity to pay all or part of the 

unforgiven balance of the loan. Repaid HHF funds will be reinvested back into new homeowner loans until December 31, 

2014. 

Ongoing monitoring, repayments and satisfactions will be 

conducted through AHFA. 

 9. Per Household Assistance Assistance per household not to exceed 100 percent of the 

household’s monthly mortgage payments for 12 consecutive 

months (including all payments needed to bring loans current), 

with total assistance per household never to exceed $15,000. 

 10. Duration of Assistance HHF payments will be distributed to servicers by AHFA on a 

monthly basis. Assistance will continue for no more than 12 

consecutive monthly payments (including two months 

following the termination of eligibility), not to exceed $15,000, 

or until the property ceases to be the homeowner’s primary 

residence. Assistance will last only as long as the maximum 

available amount (which will be $15,000 less all total due 

payments required to bring homeowner current on eligible 

mortgage loans which are paid by AHFA) covers 100 percent of 

the household’s monthly mortgage payments. Assistance will 

cease two months after eligibility to receive unemployment 

compensation terminates, regardless of whether the maximum 

available benefits have been received. 

 11. Estimated Number of 

Participating 

Households 

Based upon maximum assistance of $15,000 per household, it is 

projected that an estimated 9,033 households may be assisted. 

If the average assistance per household is $10,000, 

approximately 13,500 households may be assisted. 

 12. Program Inception / 

Duration 

HHF will be available to homeowners after approval by 

Treasury and will last as long as funds are available. After 

successful completion of a pilot program to begin on December 

1, 2010, AHFA anticipates that funds will be available 

statewide on or about February 1, 2011. AHFA expects the 

initial funding allocation to be expended within three years, 

though funds will be recycled until December 31, 2014. 

 13. Program Interactions AHFA has access to the largest concentration of low- to 
TAMPA/172193.1 

with Other HFA 

Programs 

moderate-income homeowners in Alabama with an in-house 

servicing portfolio of 21,000 loans, we anticipate that a number 

of existing AHFA customers will use HHF. 

 14. Program Interactions 

with HAMP 

This assistance can interact with any and all loan modification 

programs, including HAMP, provided that the homeowner 

meets the qualifications established by AHFA and Treasury for 

HHF. HHF funds can be utilized before or after assistance from 

HAMP UP. 

 15. Program Leverage with 

Other Financial 

Resources 

None. 

 16. Qualify as an 

Unemployment 

Program 

; Yes      No