B-1-1

HHF Oregon Date: October 1, 2018

SERVICE SCHEDULE B-1

Oregon Affordable Housing Assistance Corporation 

Loan Modification Assistance Program

Summary Guidelines

The program was unfunded as of June 6, 2013.
B-2-1

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 (MPA) 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 Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Unemployed Pathway:

The borrower must be receiving unemployment insurance 

benefits at the time of initial application, or their 

unemployment benefits have lapsed or expired no more than 

30 days prior to the application date and the borrower remains 

unemployed.

Underemployed Pathway:
B-2-2

The borrower must have a current household income equal to 

or less than 160 percent of state median income.

The borrower must have experienced a verifiable loss of 

income of 10 percent or more.

Unemployed/Underemployed Pathways:

The borrower must complete and sign a financial hardship 

affidavit attesting to their inability to afford their mortgage 

payment due to a prior loss of income or other eligible 

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 1-4 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 highest Federal Housing 

Administration loan limit for Oregon published for the current 

year, 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 an open 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,
B-2-3

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 from the MPA Program.

A maximum of $75,000 total assistance from the MPA 

Program, Loan Preservation Assistance Program, and Principal 

Reduction/Lien Extinguishment Program combined.

10. Duration of 

Assistance

12 months.

11. Estimated Number of

Participating 

Households

It is estimated that 13,300 homeowners will receive assistance.

12. Program Inception/ 

Duration

The Program began in December 2010 and is expected to 

continue through December 31, 2020, subject to continuing 

demand for the program and availability of funding.

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.
SERVICE SCHEDULE B-3

Oregon Affordable Housing Assistance Corporation 

Loan Preservation Assistance Program

Summary Guidelines

1. Program Overview The Loan Preservation Assistance (LPA) Program is intended 

to help homeowners remain in good standing under their 

existing mortgage, reverse mortgage or property tax account. 

Funds provided through this Program will be provided to 

lenders/servicers and county tax authorities to bring a 

delinquent account current. Eligibility will be determined by 

staff representing OAHAC.

There are four principal tiers of benefit provided under the 

Program:

(A) Reinstatement Benefit: For homeowners with a qualifying 

arrearage who receive funding under the Mortgage Payment 

Assistance program.

(B) Preservation Benefit: For homeowners with a qualifying 

arrearage who can demonstrate the ability to sustain their loan 

payments going forward.

(C) Property Tax Benefit: For homeowners who have a 

property tax arrearage, and can demonstrate the ability to 

sustain their property tax payments going forward. Payments 

will be made to county tax authorities.

(D) Reverse Mortgage Benefit: For homeowners with a HECM 

reverse mortgage that have had property taxes, homeowner’s 

insurance and/or homeowner or condo association fees and/or 

assessments (collectively, Property Charges) advanced by their 

servicer and who can demonstrate the ability to sustain their 

Property Charges going forward. Funds will be used to (i) 

repay the amounts advanced on their behalf by their mortgage 

loan servicer, including Property Charges and (ii) advance the 

estimated amount of upcoming Property Charges for up to 

twenty-four (24) months, to enable the homeowner to recover 

from their hardship.

The maximum benefit is $40,000 from any combination of 

LPA benefits: Reinstatement, Preservation, Property Tax or 

Reverse Mortgage benefit.

2. Program Goals To help homeowners remain in good standing under their 

mortgages, reverse mortgages and property tax accounts by

bringing delinquent accounts current. The program is

B-3-1
B-3-2

designed to preserve existing homeownership, reduce the risk 

of imminent foreclosure, and help stabilize the housing 

market.

3. Target Population/ 

Areas

The program will be available in all counties of Oregon for 

homeowners with a qualifying arrearage related to their 

mortgage, reverse mortgage or property taxes.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

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 have a current household income equal to 

or less than 160 percent of state median income and 

demonstrate a PITIA-to-gross monthly income ratio not to 

exceed 45 percent.

Property Tax Benefit:

The borrower must have a current household income equal to 

or less than 160 percent of the state median income and 

demonstrate a housing expense-to-gross monthly income ratio, 

as defined in program guidelines, not to exceed 45 percent.

Reverse Mortgage Benefit:

The borrower must have a current household income equal to 

or less than 160 percent of state median income and 

demonstrate a Property Charge -to-gross monthly income ratio, 

as defined in program guidelines, not to exceed 45 percent.

* * *

In addition to the foregoing, borrowers receiving a benefit 

under this program (i) must complete and sign a financial 

hardship affidavit attesting to their inability to afford their 

mortgage payment due to a prior loss of income or other 

eligible financial hardship, and (ii) cannot have been 

convicted, within the last 10 years, of any one of the following
B-3-3

in connection with a mortgage or real estate transaction: (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 1-4 unit, single-family, owneroccupied, primary residence located in Oregon.

Reinstatement and Preservation Benefits:

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

mortgage cannot exceed the highest Federal Housing 

Administration loan limit in Oregon published for the current 

year, 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.

Property Tax, and Reverse Mortgage Benefits:

The existing property valuation may not exceed $625,000. 

Reverse Mortgage Benefit:

The property must be subject to a reverse mortgage serviced 

by a HUD-approved HECM servicer or a regulated financial 

institution.

* * *

Lender/Servicer or tax authority, as applicable, will be 

required to (i) provide timely communication of the 

homeowner’s account data to OHSI, (ii) place collection and 

foreclosure activity on hold upon the acceptance of the 

homeowner into the Hardest Hit Fund Program, and (iii) 

cancel active foreclosure action upon receipt of Hardest Hit 

Funds.

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

The borrower’s mortgage being paid through HHF funds 

cannot be an open home equity line of credit, land sale 

contract, or otherwise privately financed mortgage.

The borrower cannot own other residential real property.

8. Structure of 

Assistance

The Program will make a five-year, non-recourse, zeropercent, forgivable, non-amortizing loan for which a junior
B-3-4

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.

Assistance will be paid to the Lender/Servicer or tax authority, 

as applicable, and applied to the homeowner’s total accrued 

delinquent mortgage payments, escrow shortages, corporate 

advances, delinquent property taxes and / or delinquent 

homeowner or condo association fees or assessments on the 

homeowner’s account.

If assistance is paid directly to the tax authority, the 

homeowner will be required to execute an additional, 

simultaneous demand note in the amount of the delinquent 

taxes.

9. Per Household 

Assistance

Reverse Mortgage Benefit:

A maximum of $40,000 to (i) repay the amounts advanced on 

the borrower’s behalf by their mortgage loan servicer, 

including Property Charges and (ii) advance the estimated 

amount of upcoming Property Charges for up to twenty-four

(24) months, to enable the homeowner to recover from their 

hardship.

All LPA Program Benefits:

A maximum of $40,000, subject to certain limitations in the 

program guidelines, for any one or combination of LPA 

Program benefits (e.g., Reinstatement, Preservation, Property 

Tax or Reverse Mortgage).

A maximum of $75,000 total assistance from the Mortgage 

Payment Assistance Program, LPA Program, and Principal 

Reduction/Lien Extinguishment Program combined.

10. Duration of 

Assistance

Assistance is a one-time payment paid directly to the Lender / 

Servicer or tax authority, for application to the homeowner’s 

account as provided above.
B-3-5

11. Estimated Number of 

Participating 

Households

It is estimated that 8,850 homeowners will receive assistance.

12. Program Inception/ 

Duration

The Program began in May 2012 and is expected to continue 

through December 31, 2020, subject to demand for the 

program and availability of funding.

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

Homeowners can receive assistance under HAMP prior to or 

after receiving assistance under the Hardest Hit Fund.

However, Hardest Hit Fund assistance cannot be used to pay 

HAMP trial period payments. The foregoing is subject to 

HAMP requirements and investor guidelines in effect from 

time to time.

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

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
B-5-2

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-5-3

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 Funds 

(Excluding 

Administrative

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

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-5-4

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-5-5

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 Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

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 closed December 31, 2017.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

None.

14. Program Interactions 

with HAMP

None.

15. Program Leverage

with Other Financial 

Resources

None.
B-7-1

SERVICE SCHEDULE B-7

Oregon Affordable Housing Assistance Corporation 

Principal Reduction/Lien Extinguishment (PR/LE) Program 

Summary Guidelines

1. Program Overview The Principal Reduction/Lien Extinguishment (PR/LE) program 

is designed to help homeowners at risk of foreclosure achieve 

affordable and sustainable housing expense payments. The 

program will lower housing expense payments by providing 

eligible homeowners with a principal reduction and reamortization (recast) of the remaining principal balance or a full 

lien extinguishment.

Eligible homeowners with a delinquent first mortgage may be 

brought current, subject to the limitations described herein.

2. Program Goals To help homeowners avoid foreclosure by providing immediate 

mortgage payment relief and stable housing expense payments 

that are affordable and sustainable over the long-term.

3. Target Population/ 

Areas

This Program will be available in all Oregon counties for 

homeowners who have experienced a program eligible hardship.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

All eligible homeowners must meet the following criteria:

• The borrower must complete and sign a financial 

hardship affidavit attesting to their inability to afford 

their mortgage payment due to a prior loss of income or 

other eligible 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 current first lien mortgage PITIA-to-income ratio 

must be greater than 25%.

Borrowers eligible to receive a full lien extinguishment must 

meet the following additional criteria:

• Primary household income source is fixed as defined in 

the program guidelines.
B-7-2

• Gross household income is equal to or less than 125% of 

state median income.

• Post-assistance monthly housing related expenses 

including principal and interest on all mortgages on the 

property, property taxes, homeowners insurance and 

homeowners association dues does not exceed 36% of 

gross monthly household income.

Borrowers eligible to receive a principal reduction and recast 

must meet the following additional criteria:

For borrowers whose primary household income source is fixed

(as defined in the program guidelines):

• Gross household income is equal to or less than 125% of 

state median income.

• Post-assistance first lien mortgage PITIA must not 

exceed 36% of gross monthly household income.

For borrowers whose primary household income source is not

fixed (as defined in the program guidelines):

• Pre-assistance LTV > 80%.

• Post-assistance LTV > 80%.

• Post-assistance LTV may go below 80% only if no more 

than $10,000 is provided toward a principal reduction in 

order to achieve a post assistance housing debt-to-income 

ratio between 25% - 36%.

• Gross household income is equal to or less than 160% 

state median income.

• Post-assistance first lien mortgage PITIA must be at least 

25% and not greater than 36% of gross monthly 

household income.
B-7-3

6. Property/Loan 

Eligibility Criteria

The subject property must be a 1-4 unit, single-family, owneroccupied, primary residence located in Oregon.

The loan that is subject to principal reduction must be a fixedrate or an adjustable rate mortgage loan; an interest-only or 

negative amortization mortgage loan will qualify only if the 

recast results in a fully amortizing loan.

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

mortgage cannot exceed the highest Federal Housing 

Administration loan limit in Oregon published for the current 

year, 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 The borrower cannot be in active bankruptcy.

The borrower’s first-lien mortgage cannot be an open home 

equity line of credit, land sale contract, or otherwise privately 

financed mortgage.

The borrower cannot own other residential real property.

There cannot be a subordinate lien on the property that is in 

foreclosure.

8. Structure of 

Assistance

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

Eligible homeowners may receive no more than $50,000 from 

PR/LE, to be applied toward principal reduction and recast or to 

a lien extinguishment. Eligible homeowners with a delinquent 

first mortgage may also be brought current with up to $36,000 

from PR/LE, not to exceed total assistance of $75,000. The 

average amount of assistance from PR/LE is expected to be

$50,000 per household.

Eligible homeowners may receive up to a maximum of $75,000 

total assistance from the Mortgage Payment Assistance Program,
B-7-4

Loan Preservation Assistance Program, and PR/LE Programs 

combined.

10. Duration of 

Assistance

Assistance is a one-time payment paid directly to the

Lender/Servicer.

11. Estimated Number of 

Participating 

Households

It is estimated that 80 homeowners will receive assistance.

12. Program

Inception/Duration

This program will become available in July 2018 and will 

continue until December 31, 2020, subject to demand for the 

program and availability of funding.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

Borrowers who have participated in the Mortgage Payment 

Assistance programs and Loan Preservation programs may be 

eligible to participate in PR/LE.

LRAPP and RAHAPP participants are not eligible for this 

program.

14. Program Interactions 

with HAMP

N/A

15. Program Leverage 

with Other Financial 

Resources

Servicers will be required to waive any associated recast fees.
C-1

HHF Oregon Date: October 1, 2018

SCHEDULE C

PERMITTED EXPENSES

Oregon

One-time / Start-Up Expenses:

Initial Personnel $573,172.00

Building, Equipment, Technology $327,965.00

Professional Services $96,634.00

Supplies / Miscellaneous $7,652.00

Marketing /Communications $2,696.00

Travel $9,789.00

Website development /Translation $36,600.00

Contingency

Subtotal $1,054,508.00

Operating / Administrative 

Expenses:

Salaries $24,494,500.45

Professional Services (Legal, 

Compliance, Audit, Monitoring)

$6,929,840.22

Travel $98,648.09

Buildings, Leases & Equipment $2,324,366.75

Information Technology & 

Communications

$911,939.59

Office Supplies/Postage and 

Delivery/Subscriptions

$975,254.70

Risk Management/ Insurance $261,730.00

Training $64,556.89

Marketing/PR $676,716.40

Miscellaneous $40,752.23

Subtotal $36,778,305.32

Transaction Related Expenses:

Recording Fees $3,238,043.60

Wire Transfer Fees $342,764.71

Counseling Expenses

File Intake $0.00

Decision Costs $0.00

Successful File $16,267,160.01

Key Business Partners On-Going $0.00

Subtotal $19,847,968.32

Grand Total $57,680,781.64

% of Total Award 18.33%

Award Amount $314,752,280.00