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EIGHTEENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Eighteenth 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 Eighteenth 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, HFA and Eligible Entity submitted a request to Treasury to make certain 

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

agreed to the same; 

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

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

applicable; 

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

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

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

Agreement 

1. Amendments 

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

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

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

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

amended by this Amendment. 
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B. Schedule A. Schedule A attached to the Current HPA is hereby deleted in 

its entirety and replaced with Schedule A attached to this 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 Amendment. 

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

its entirety and replaced with Schedule C attached to this 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 Amendment and any other closing documentation 

delivered to Treasury in connection with this 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 Amendment and any other closing documentation delivered to 

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

hereunder and thereunder. 

3. 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. 
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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 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 Eighteenth Amendment to HPA – Nevada] 

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

execute and deliver this Amendment as of the Amendment Date. 

HFA: TREASURY: 

NEVADA HOUSING DIVISION UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ CJ Manthe By: 

Name: CJ Manthe Name: Mark McArdle 

Title: Administrator Title: Deputy Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Michael Holliday 

Name: Michael Holliday 

Title: President & Chairperson of the 

Board 
 

EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
A-1 

SCHEDULE A

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: Nevada Affordable Housing Assistance 

Corporation 

Corporate or other organizational form: Non-profit corporation 

Jurisdiction of organization: Nevada 

Notice Information: 

HFA Information: 

Name of HFA: Nevada Housing Division1

Organizational form: A Division of the Nevada Department of 

Business and Industry of the State of 

Nevada 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

Program Participation Cap: $202,911,881.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $102,800,000.00

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $34,056,581.00 

Rounds 1-4 Funding Allocation: $194,026,240.00

Round 5 Funding Allocation: $8,885,641.00 

Permitted Expenses: $25,247,676.00 

 

1 Each Schedule A-1 attached to the First Amendment, the Second Amendment and the Sixteenth Amendment shall 

remain a part of the HPA. 
A-2 

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010

Fourth Amendment Date: April 5, 2011 

Fifth Amendment Date: May 25, 2011

Sixth Amendment Date: October 28, 2011 

Seventh Amendment Date: December 8, 2011

Eighth Amendment Date: February 28, 2012 

Ninth Amendment Date: June 28, 2012

Tenth Amendment Date: September 28, 2012 

Eleventh Amendment Date: August 28, 2013 

Twelfth Amendment Date: June 12, 2014 

Thirteenth Amendment Date: February 19, 2015 

Fourteenth Amendment Date: June 25, 2015 

Fifteenth Amendment Date: October 28, 2015 

Sixteenth Amendment Date: 

Seventeenth Amendment Date: 

May 6, 2016 

June 28, 2016 

Eighteenth Amendment Date: October 4, 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.
B-1-1 

SERVICE SCHEDULE B-1

The Nevada Affordable Housing Assistance Corporation 

PRINCIPAL REDUCTION PROGRAM

Summary Guidelines

1. Program Overview The Principal Reduction Program (“PRP”) will provide assistance to 

reduce the principal balance of primary (first priority) mortgages for 

borrowers with an eligible financial hardship and negative equity 

by: (a) principal reduction and a permanent modification or 

reamortization (recast) to achieve a lower monthly payment 

(“Modification or Reamortization”); or (b) principal reduction of a 

“non-delinquent” borrowers primary mortgage in a significant 

negative equity position to an amount as close to and not less than 

100% loan-to-value (“LTV”) ratio as the amount of per-household 

assistance will permit to reduce the risk of potential default by such 

borrowers (“Negative Equity Reduction”). 

The assistance will be provided as a one-time payment to 

lenders/servicers up to a maximum of $50,000 per household. 

A borrower’s primary mortgage lender may agree to make a 

matching reduction to the principal balance of the primary 

mortgage. 

2. Program Goals The goal of the PRP is to help homeowners avoid foreclosure by 

reducing the principal balance of their primary mortgage to either 

(a) facilitate a permanent loan modification or reamortization that 

achieves an affordable monthly mortgage payment of their primary 

mortgage or (b) reduce a borrower’s negative equity position on 

their primary mortgage to an amount as close to and not less than 

100% LTV ratio as the amount of per-household assistance will 

permit. 

3. Target Population / 

Areas

All qualified Nevada residents with negative equity who could 

achieve an affordable primary mortgage payment and appropriate 

level of debt with a principal reduction. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$105,762,843 

5. Borrower Eligibility 

Criteria

General Eligibility: 

• Legal U.S. resident or lawful permanent U.S. resident and 
B-1-2 

Nevada resident. 

• Borrower must have an eligible financial hardship as 

determined by program criteria and underwriting guidelines. 

• Borrower cannot have liquid assets, other than exempt 

retirement assets, in excess of the amount of assistance being 

provided. 

• Borrower’s post-assistance housing expenses must meet the 

definition of an “Affordable Payment.” For the purposes of 

PRP, “Affordable Payment” means the borrower’s postassistance, total monthly primary mortgage payment PITI 

(principal, interest, taxes and insurance, as applicable) 

including any escrowed homeowner’s association dues or 

assessments, plus any taxes, insurance and homeowners 

association dues and assessments which are not escrowed 

must be no greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or shortterm disability benefits). 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established 

by NAHAC, including a financial hardship affidavit. 

Additional Eligibility Criteria Applicable to Each Structure of 

Principal Reduction: 

(a) Modification or Reamortization Structure (i.e. principal 

reduction of a borrower’s primary mortgage accomplished 

exclusively through either an interest rate reduction and/or 

term extension to achieve a permanent modification, or a 

reamortization of the remaining unpaid principal balance to 

achieve a lower monthly payment): 

• Eligible financial hardship: reduced income due to 

underemployment, medical condition, divorce or death, 

as set forth in the program guidelines. 

• Borrower’s pre-assistance, total monthly primary 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments, 

is greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Borrower’s post-assistance total monthly primary 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments 

must be greater than 25% of the gross household income 

excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Primary mortgage must be delinquent or the borrower 
B-1-3 

does not have liquid assets greater than three (3) months 

of PITI and homeowner’s dues and assessments (if 

applicable). 

• Funds may be applied to cure: delinquent property 

taxes; Homeowners Association dues, fees and 

assessments; and property related insurance as set forth 

in program guidelines (collectively “Property Related 

Expenses”). 

• Pre-assistance principal balance of primary mortgage 

must be greater than 80% LTV based upon valuation 

obtained by NAHAC or the servicer. (Assistance 

provided to Borrowers with post assistance LTVs less 

than 100% will have a 10 year term and different 

payment requirements as set forth in this term sheet and 

the program guidelines.) 

(b) Negative Equity Reduction (i.e. principal reduction of a 

“non-delinquent” borrower’s primary mortgage that is in a 

severe negative equity position to an amount as close to and 

not less than 100% LTV ratio as the amount of perhousehold assistance will permit to reduce the risk of 

potential default by such borrower): 

• Eligible financial hardship: (1) a negative equity 

position in which the primary mortgage LTV is 115% or 

more. Borrower must be current on the primary 

mortgage at the time of PRP application. 

• Pre-assistance primary mortgage payment meets 

NAHAC’s definition of an Affordable Payment. 

6. Property / Loan 

Eligibility Criteria 

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. Mobile 

homes are eligible if they are permanently affixed to the real 

property that is secured by the primary mortgage. 

• For a Modification or Reamortization, the servicer must utilize 

the PRP monies to bring the primary mortgage current before 

applying PRP monies to the homeowner’s principal balance. 

• For a Modification or Reamortization PRP monies may be used 

to bring delinquent Property Related Expenses current at 

closing. 

• Mortgage balance cannot exceed the current GSE loan limit. 

7. Program Exclusions • Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the total amount of assistance provided. 

• Borrowers with an active bankruptcy. 

• Borrowers in an active Home Affordable Modification Program 
B-1-4 

(HAMP) trial period plan. 

• Borrowers who fail to satisfy underwriting guidelines of the 

lender/servicer or NAHAC. 

• Borrowers with a post-assistance LTV ratio greater than 140% 

or less than 80% based upon valuation obtained by NAHAC or 

the servicer. 

• Borrowers with a post-assistance total monthly first-lien 

mortgage payment PITI including any escrowed or nonescrowed homeowner’s association dues or assessments less 

than 25% of the homeowner’s gross monthly household income, 

excluding temporary income (e.g., unemployment and shortterm disability benefits), or greater than NAHAC’s definition of 

an Affordable Payment. 

• Property is subject to a current foreclosure proceeding (judicial 

or non-judicial) under any lien encumbering the property, 

including the lien of a Homeowners Association, unless the 

lender/servicer or Homeowners Association agrees in writing to 

suspend their foreclosure proceeding and to record a rescission 

of their notice of default and/or notice of sale at closing. 

• Property is abandoned, vacant or condemned. 

• Property has more than two mortgages. 

• Property is listed for sale. 

8. Structure of 

Assistance

The assistance will be administered as a one-time direct payment to 

the servicer. 

For Borrowers with a post-assistance LTV greater than or equal to 

100%: 

The assistance will be structured as a 0% interest forgivable loan 

with no monthly payment evidenced by a promissory note with a 

sixty (60) month term. The loan will be secured by a junior lien on 

the property. If the borrower complies with the terms of the loan, 

the loan will be considered satisfied at the end of the sixty (60) 

month period following funding and the lien released. 

For Borrowers with a post-assistance LTV less than 100%: 

The assistance will be structured as a 0% interest forgivable loan 

with no monthly payment evidenced by a promissory note with a 

one hundred and twenty (120) month term. The loan will be secured 

by a junior lien on the property. If the borrower complies with the 

terms of the loan, the loan will be considered satisfied at the end of 

the one hundred and twenty (120) month period following funding 

and the lien released. 

If the borrower defaults under the terms of the loan prior to the 
B-1-5 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all net equity proceeds after payment of borrower’s closing 

costs (with the commission to real estate brokers, if applicable, by 

the borrower limited to 6 percent) and the payment to the primary 

mortgage lienholder will be due and payable to NAHAC to satisfy 

payment of all or a portion of the loan funds. 

Borrowers will not always receive the maximum assistance amount 

of $50,000. 

All funds returned to NAHAC will be used to assist additional 

homeowners in accordance with the Agreement. 

9. Per Household 

Assistance 

The maximum amount of mortgage principal reduction receivable 

by a qualified borrower is $50,000. 

10.Duration of 

Assistance 

Program funds will be distributed as a one-time payment to the 

servicer. 

11.Estimated Number of 

Participating 

Households 

Approximately 2,783 households could be assisted under this 

program assuming an average assistance amount of $38,000. 

12.Program Inception / 

Duration 

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2020, whichever occurs first. 

13.Program 

Interactions with 

Other HFA Programs 

It is possible that a homeowner may also receive assistance through 

the Second Mortgage Reduction Plan and/or other HHF Programs. 

Borrowers may receive assistance from more than one HHF 

Program as long as the total combined assistance does not exceed 

$100,000. 

14.Program 

Interactions with 

HAMP 

PRP may work in conjunction with aspects of the Making Home 

Affordable Program to help eligible borrowers achieve desired 

housing debt-to-income ratios, permanent affordability and establish 

an appropriate level of mortgage debt. 

15.Program Leverage 

with Other Financial 

Resources 

While NAHAC does not require a contribution from the servicer, it 

will be encouraged and in addition, servicers will be requested to 

waive fees. 
B-2-1 

SERVICE SCHEDULE B-2

The Nevada Affordable Housing Assistance Corporation

SECOND MORTGAGE REDUCTION PLAN

Summary Guidelines

1. Program Overview The Second Mortgage Reduction Plan (SMRP) will provide 

assistance to borrowers with an eligible financial hardship who have 

a second mortgage lien and who: (i) could achieve affordable 

monthly mortgage payments and an appropriate level of debt if their 

second mortgage (second lien) were eliminated; or (ii) could achieve 

affordable monthly mortgage payments and an appropriate level of 

debt with a principal reduction and reamortization (recast) or 

modification of their second mortgage. 

The assistance will be provided as a one-time payment to 

lenders/servicers up to a maximum of $50,000 per household. 

2. Program Goals The goals of the SMRP are to help homeowners avoid foreclosure 

by reducing or eliminating the principal balance of their second 

mortgage or to facilitate a permanent loan modification or recast 

that achieves an affordable monthly mortgage payment and reduces 

the likelihood that a borrower will default. 

3. Target Population / 

Areas 

All qualified Nevada residents who could achieve affordable 

mortgage payments and an appropriate level of debt if their second 

mortgage were eliminated or reduced. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$35,942,324 

5. Borrower Eligibility 

Criteria 

• Legal U.S. resident or lawful permanent U.S. resident and 

Nevada resident. 

• Borrower must have an eligible financial hardship as determined 

by program criteria and underwriting guidelines. Eligible 

financial hardships include (a) borrowers with a reduced income 

due to underemployment, medical condition, divorce or death, as 

set forth in the program guidelines, with a negative equity 

position in which the borrower’s combined total loan to value 

ratio (“CTLV”) is 110% or more; or (b) a negative equity 

position in which the borrower’s CLTV is 120% or more. 

• Borrowers qualifying with a hardship as described in (a), in the 

previous bullet, must also have pre-assistance, total monthly 
B-2-2 

mortgage payments for their primary and second mortgages PITI 

(principal, interest, taxes and insurance, as applicable) including 

any escrowed or non-escrowed homeowner’s association dues or 

assessments, is greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or short-term 

disability benefits). 

• Borrower cannot have liquid assets, other than exempt 

retirement assets, in excess of the amount of assistance being 

provided. 

• Borrower’s post-assistance housing expenses must meet the 

definition of an “Affordable Payment.” For the purposes of 

SMRP, “Affordable Payment” means the borrower’s postassistance, total monthly mortgage payments for the primary and 

second mortgages PITI including any escrowed homeowner’s 

association dues or assessments, plus any taxes, insurance and 

homeowner’s association dues or assessments which are not 

escrowed must be no greater than 38% of the gross household 

income excluding temporary income (e.g., unemployment or 

short-term disability benefits). 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

NAHAC, including a financial hardship affidavit. 

• Second mortgage must be delinquent or the borrower must have 

a negative equity position in which the CLTV is 120% or more. 

6. Property / Loan 

Eligibility Criteria

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. 

Mobile homes are eligible if they are permanently affixed to the 

real property that is secured by the first and second mortgages. 

• The servicer must utilize the SMRP monies to bring the second 

mortgage current before applying SMRP monies to the 

homeowner’s principal balance. 

• SMRP monies may be used to bring delinquent property taxes; 

Homeowners Association dues, fees and assessments; and 

property related insurance as set forth in program guidelines 

(collectively “Property Related Expenses”) current at closing. 

• If the amount of SMRP monies is not sufficient to extinguish the 

second mortgage, the servicer/lender must agree to reamortize or 

modify the second mortgage. 

• Combined mortgage balances cannot exceed the current GSE 

loan limit. 

• Post-assistance combined principal balance of the primary and 

second mortgages must not be less than 100% CLTV based 

upon valuation obtained by NAHAC or the servicer. 
B-2-3 

7. Program Exclusions • Borrowers with an active bankruptcy. 

• Borrowers in an active Home Affordable Modification Program 

(HAMP) or a Second Lien Modification Program (“2MP”) trial 

period plan. 

• Property is listed for sale. 

• Property is currently subject to a current foreclosure proceeding 

(judicial or non-judicial) under any lien encumbering the 

property, including the lien of a Homeowners Association, 

unless the lender/servicer or Homeowners Association agrees in 

writing to suspend their foreclosure proceeding and to record a 

rescission of their notice of default and/or notice of sale at 

closing. 

• Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the total amount of assistance provided. 

• Property is abandoned, vacant or condemned. 

• Property has more than two mortgages. 

• Property is subject to a first priority lien securing a Home Equity 

Line of Credit. 

8. Structure of 

Assistance 

The assistance will be administered as a one-time direct payment to 

the servicer. The assistance will be structured as a 0% interest 

forgivable loan with no monthly payment evidenced by a 

promissory note with a sixty (60) month term. The loan will be 

secured by a junior lien on the property. If the borrower complies 

with the terms of the loan, the loan will be considered satisfied at 

the end of the sixty (60) month period following funding and the 

lien released. 

Borrowers will not always receive the maximum assistance amount 

of $50,000. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all net equity proceeds after payment of borrower’s closing 

costs (with the commission to real estate brokers, if applicable, by 

the borrower limited to 6 percent) and the payment to the holders of 

the senior deeds of trust, will be due and payable to NAHAC to 

satisfy payment of all or a portion of the loan funds. 

All funds returned to NAHAC will be used to assist additional 

homeowners in accordance with the Agreement. 

9. Per Household The maximum amount of second mortgage principal reduction 
B-2-4 

Assistance receivable by a qualified borrower is $50,000. 

10.Duration of 

Assistance 

Program funds will be disbursed as a onetime payment to the 

servicer. 

11.Estimated Number of 

Participating 

Households 

Approximately 1,300 households could be assisted under this 

program assuming an average assistance amount of $27,500. 

12.Program Inception / 

Duration 

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2020, whichever occurs first. 

13.Program 

Interactions with 

Other HFA Programs 

This program could interact with the Principal Reduction Program 

and other HHF Programs pre- and post-assistance. Borrowers may 

receive assistance from more than one HHF Program as long as the 

total combined assistance does not exceed $100,000. 

14.Program 

Interactions with 

HAMP 

Borrowers not eligible for 2MP may be considered for the SMRP. 

15.Program Leverage 

with Other Financial 

Resources 

While NAHAC does not require a contribution from the servicer, it 

will be encouraged and in addition, servicers will be requested to 

waive fees. 
B-3-1 

SERVICE SCHEDULE B-3

The Nevada Affordable Housing Assistance Corporation

SHORT-SALE ACCELERATION PROGRAM

Summary Guidelines

1. Program Overview The Short-Sale Acceleration Program is aimed at assisting 

borrowers who are beginning or need to initiate the short-sale 

process, deed in lieu of foreclosure or a similar foreclosure 

mitigation measure to relieve themselves of the mortgage burdens 

that they cannot sustain—even with a material loan principal 

reduction. 

2. Program Goals It is expected that at a $5,000 level of average funding per family 

approximately 100 families facing imminent foreclosure threat will 

have the burden of their home mortgage eliminated. 

3. Target Population / 

Areas 

Those Nevadans that are facing imminent threat of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$289,179 

5. Borrower Eligibility 

Criteria 

• Legal U.S. resident or lawful permanent U.S. resident. 

• Borrower must have short-sale approval in place with lender if 

pursuing a short-sale. 

• Borrower must provide verification of short-sale approval or 

deed in lieu of foreclosure agreement. 

• Borrower will be required to sign a financial hardship affidavit 

attesting to their inability to make mortgage payments. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 

circumstances beyond the homeowner’s control (no contrived 

defaults allowed). 

• Borrowers who chose to leave the state of Nevada will not 

receive the rental assistance component of benefits under this 

program, but will be entitled to all others. 

6. Property / Loan 

Eligibility Criteria 

Home is currently owner-occupied and serves as the borrower’s 

primary residence. If vacant, homeowner must be able to prove that 

they moved due to extenuating circumstances and that the home was 

most recently used as a primary residence – not an investment 
B-3-2 

property. 

Borrowers with a second lien will also be considered for the Second 

Mortgage Reduction Plan program. 

7. Program Exclusions None. 

8. Structure of 

Assistance 

This program is direct assistance through direct payment to vendors 

at closing of the escrow, or immediately post-short-sale closing. 

The payments will not be structured as a loan. 

9. Per Household 

Assistance 

The maximum program benefit per household is $8,025. Assistance 

can be used to cover the cost of up to three (3) months of rent (not to 

exceed $4,500), fees incurred by a storage facility (not to exceed 

$1,000) and/or certain fees which are interfering with the short-sale 

closing – specifically HOA liens and utility liens. 

10.Duration of 

Assistance 

Assistance will be a one-time set of payments. 

11.Estimated Number of 

Participating 

Households 

The Business Plan calls for this program element to assist up to 100 

families complete their home abandonment/ownership through a 

short-sale and matriculate to a rental property somewhere else in 

Nevada. 

12.Program Inception / 

Duration 

The Short-Sale Acceleration Program began on March 1, 2010 and 

terminated on December 31, 2012. 

13.Program 

Interactions with 

Other HFA Programs 

This program cannot be used when HAFA is also being utilized. 

14.Program 

Interactions with 

HAMP 

None 

15.Program Leverage 

with Other Financial 

Resources 

In the event the short-sale program recipient has incurred a lien as a 

result of earlier participation in NAHAC’s Principal Reduction, 

Second Mortgage Reduction Plan or Mortgage Assistance Program, 

then the lien may be extinguished for the purpose of helping to 

facilitate the short-sale request. 
B-4-1 

SERVICE SCHEDULE B-4 

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM (MAP) 

Summary Guidelines 

1. Program Overview The Mortgage Assistance Program (MAP) will provide 

reinstatement assistance to borrowers in default who either: 

(a) Were unemployed and are now employed or underemployed. 

(The current employment may or may not be at the same 

income level as the borrower’s prior employment) 

or 

(b) Are underemployed and their underemployment was caused 

by a substantial reduction of hours or salary reduction. 

The assistance will be provided to eligible borrowers to bring their 

primary (first-lien) mortgage current by curing all past due 

principal, interest, taxes, homeowner’s association dues and 

assessments and property related insurance, as applicable (together 

“Property Related Expenses”) as set forth in the program guidelines. 

The assistance will be provided as a one-time payment to 

lender/servicer up to a maximum of $35,000 per household. 

2. Program Goals The goal of MAP is to help re-employed and underemployed 

homeowners avoid foreclosure and keep their homes by reinstating 

their primary mortgages and by curing their delinquent Property 

Related Expenses. 

3. Target Population / 

Areas 

All qualified Nevada residents with an employment-related financial 

hardship who can demonstrate that they now have the ability to 

afford their monthly mortgage payments. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$34,056,581 

5. Borrower Eligibility 

Criteria 

General Requirements: 

• Legal U.S. resident or lawful permanent U.S. resident and 

Nevada resident. 

• Borrower cannot have liquid assets, other than exempt 

retirement assets, in excess of the amount of assistance being 

provided. 
B-4-2 

• Borrower agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established 

by NAHAC, including a financial hardship affidavit. 

• Eligible Financial Hardships: (i) past unemployment with 

current employment; (ii) past unemployment with current 

underemployment; or (iii) current underemployment due to a 

substantial hour or salary reduction. The unemployment or 

underemployment must have been caused by circumstances 

outside the control of the borrower. 

• If the eligible borrower is underemployed, the borrower must 

provide documentation of an income reduction of at least 

15%, based on a highest income tax year comparison of the 

past five (5) tax years prior to the date of application. 

• Borrower must demonstrate satisfactory mortgage payment 

history prior eligible financial hardship. 

• Borrower’s mortgage payment must meet the definition of 

an “Affordable Payment.” For the purposes of MAP, 

“Affordable Payment” means the borrower’s total monthly 

primary mortgage payment PITI (principal, interest, taxes 

and insurance, as applicable) including any escrowed or nonescrowed homeowner’s association dues or assessments, 

must be no greater than 38% of the gross household income 

excluding temporary income (e.g., unemployment or shortterm disability benefits). 

6. Property / Loan 

Eligibility Criteria

• Primary mortgage must be delinquent or must have been 

delinquent within the 60 days prior to the date of application and 

the Borrower has delinquent Property Related Expenses. 

• The applicant must own and occupy the single family, 1-4 unit 

home (an attached or detached house or a condominium unit) 

located in Nevada and it must be their primary residence. Mobile 

homes are eligible if they are permanently affixed to the real 

property that is secured by the primary mortgage. 

• Mortgage balance does not exceed the current GSE loan limit. 

• Properties with second mortgages are only eligible if the 

borrower qualifies for and receives assistance under the Second 

Mortgage Reduction Plan. 

7. Program Exclusions • Property is subject to a current foreclosure proceeding (judicial 

or non-judicial) under any lien encumbering the property, 

including the lien of a Homeowners Association, unless the 

lender/servicer or Homeowners Association agrees in writing to 

suspend their foreclosure proceeding and to record a rescission 

of their notice of default and/or notice of sale at closing. 

• Borrowers in an active Home Affordable Modification Program 

(“HAMP”) trial period plan. 
B-4-3 

• Borrowers under review for a short sale or a deed in lieu. 

• Property has more than two mortgages. 

• Borrowers with an active bankruptcy. 

• Property listed for sale. 

• Property is abandoned, vacant or condemned. 

• Borrowers who are not currently working and collecting a fixed 

income such as that associated with one of the following: 

o Retirement 

o Disability 

o Social Security 

• Borrowers with liquid assets, other than exempt retirement 

assets, in excess of the amount of assistance being provided.. 

8. Structure of 

Assistance

The assistance will be administered as a one-time direct payment to 

the servicer. The assistance will be structured as a 0% interest 

forgivable loan with no monthly payment evidenced by a 

promissory note with a sixty (60) month term. The loan will be 

secured by a junior lien on the property. If the borrower complies 

with the terms of the loan, the loan will be considered satisfied at 

the end of the sixty (60) month period following funding and the 

lien released. 

Borrowers will not always receive the maximum assistance amount 

of $35,000. 

If the borrower defaults under the terms of the loan prior to the 

maturity date of the note evidencing the assistance loan, the loan 

will be due and payable to NAHAC. If the borrower sells the 

property or obtains a refinancing where the borrower is eligible to 

receive cash out of the transaction before the maturity date of the 

note, all proceeds after payment of borrower’s closing costs (with 

the commission to real estate brokers, if applicable, by the borrower 

limited to 6 percent) and the payment to the holders of the senior 

deeds of trust, will be due and payable to NAHAC to satisfy 

payment of all or a portion of the loan funds. 

All funds returned to NAHAC will be used to assist additional 

homeowners in accordance with the Agreement. 

9. Per Household 

Assistance 

The maximum amount of assistance receivable by a qualified 

borrower is $35,000. 

10. Duration of 

Assistance 

Program funds will be distributed as a one-time payment to the 

servicer, Homeowner’s Association or County Treasurer as 

applicable. 

11. Estimated Number Approximately 3,900 households could be assisted under this 
B-4-4 

of Participating 

Households 

program assuming an average assistance amount of $8,700 

12. Program Inception / 

Duration 

This program began on March 1, 2010 and will continue until all 

funds are committed or December 31, 2020, whichever occurs first. 

13. Program 

Interactions with 

Other HFA 

Programs 

The MAP program could have some form of interactions with other 

HHF programs both pre- and post-assistance. 

Borrowers may receive assistance from more than one HHF 

program as long as the total combined assistance does not exceed 

$100,000. 

14. Program 

Interactions with 

HAMP 

MAP funds may be applied prior to HAMP on a case-by-case basis. 

15. Program Leverage 

with Other Financial 

Resources

NAHAC will request that the loan servicer waive fees (e.g., NSF 

and late charges). 
B-5-1 

SERVICE SCHEDULE B-5 

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM 

ALTERNATIVE (MAPA) 

Summary Guidelines 

1. Program Overview The Nevada Mortgage Assistance Program Alternative (MAPA) is 

designed to help keep first mortgages current for approximately 415 

individuals who are not currently working and collecting a fixed 

income such as that associated with one of the following: 

• Retirement 

• Disability 

• Social Security 

The program will assist those qualified families by paying the lesser 

of: 

(a) $1,000 of the principal, interest, property taxes and property 

insurance (PITI) (when impounded) toward the monthly first 

mortgage payment or 

(b) Total first mortgage payment due for the aforementioned 

components. 

Further, the borrower will be responsible for contributing a 

minimum of $75 per month toward completing the full payment 

due. MAPA payments may be extended for qualified families for 

up to nine (9) months (MAPA Participation Period). 

MAPA payments are aimed at providing a financial bridge to 

income restricted, unemployed homeowners that are in pursuit of a 

homeownership sustainment program. 

For the purpose of this program, the target population will include 

individuals which cannot return to the workforce through no fault of 

their own and are in default or in a situation of imminent threat of 

going into default due to limited income – subject to satisfaction of 

all other borrower eligibility criteria. 

Borrowers will submit their partial payment to NAHAC where it 

will be combined with the HHF funds and a full remittance made to 
B-5-2 

the loan servicer. Borrowers can apply directly through the 

NAHAC offices after first completing an appropriate screening tool 

and being given an appointment with the NAHAC loan underwriter. 

MAPA payments will invoke a non-recourse lien which will have an 

earned forgiveness embedded in the Note. Borrowers who are able 

to sustain their homeownership for thirty-six (36) successive months 

following closing will have their lien extinguished. 

If, during or after the MAPA Participation Period, the borrower can 

demonstrate that he/she can sustain mortgage payments with a debtto-income ratio (DTI) below 43%, the borrower may become 

eligible for additional reinstatement assistance (Reinstatement). In 

order to achieve a DTI below 43%, the borrower may, but is not 

required to enroll in a homeownership sustainment program. 

Reinstatement assists qualified borrowers by providing up to 

$12,500 to eliminate arrearages and bring the loan current. 

Reinstatement is only applicable when the entire amount of 

arrearages can be eliminated. 

2. Program Goals The MAPA goal is to assist fixed-income borrowers in keeping their 

homes during a period of temporary financial hardship and, thereby, 

prevent avoidable defaults and foreclosures. MAPA in conjunction 

with subsequent homeownership sustainment programs and 

Reinstatement aims to decrease both the number and probability of 

future foreclosures in Nevada. 

3. Target Population / 

Areas 

Funding will be distributed on a first-come, first-served basis with 

target populations spanning (a) the Clark County/Las Vegas valley 

area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$1,613,278 

5. Borrower Eligibility 

Criteria 

To ensure both consistencies with previously approved Participation 

Agreement programs and to lessen the burdens of administering the 

MAPA program, adherence to the same underwriting qualification 

standards will be generally utilized. 

Thus, borrower eligibility criteria will consist of: 

• Legal U.S. resident or lawful permanent U.S. resident. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 
B-5-3 

circumstances beyond the homeowner’s control (no contrived 

defaults allowed). 

• Borrower will be required to sign a financial hardship 

affidavit attesting to their inability to make mortgage payments. 

Reinstatement candidates must demonstrate sustainability of 

current payments. By definition that would mean that their 

mortgage payment is less than 43% of their household income. 

The borrower must also demonstrate they still have little or no 

ability to extinguish past missed payments, penalties or fees. 

Reinstatement will only be allocated in those instances where 

the entire past due balance and/or accrued penalties can be 

eliminated such that the borrower is in good standing post 

assistance. 

Basic eligibility criteria will be analyzed either on-line (through the 

borrower’s visit to the website and use of the ‘screening tool’), 

directly at the NAHAC offices or by the designated call center. If 

borrowers meet screening criteria, application packages will be 

assembled by the NAHAC underwriters who will do the full 

verifications/confirmation, enter the borrower’s data into the 

NAHAC database and accounts payable systems and begin the 

relationship with the borrower’s participating banks/lenders/ 

servicers to ensure aid is acceptable to them. 

6. Property / Loan 

Eligibility Criteria 

• Home is currently owner occupied and serves as the 

borrower’s primary residence. 

• Mortgage balance is less than the current GSE loan limit. 

7. Program Exclusions Borrowers that have received nine (9) months of assistance through 

MAP will be ineligible for assistance through MAPA. In the event a 

borrower has received less than nine (9) months of assistance 

through MAP or MAPA, the borrower can reapply to receive 

assistance through either program on a pro-rata basis where any 

borrower will receive a maximum of nine (9) months of combined 

assistance. 

8. Structure of 

Assistance 

Borrower must proactively pursue homeownership sustainment 

program which must be verified with forty-five (45) days of closing 

on MAPA or borrower will be disenrolled from program. 

This program is administered through direct payments to the 

servicer. All MAPA assistance will be structured as a 0% interest, 

forgivable loan secured by a lien recorded against the subject 

property. The lien has a term of three (3) years and is forgiven 

following final funding at a rate of thirty-three percent (33%) per 
B-5-4 

year with full forgiveness at the end of year three (3) provided the 

borrower complies with the terms of the loan. The loan will be 

repayable if the borrower defaults under the terms of the loan or if 

the borrower sells the property before the three (3) year time period 

expires and there is equity in the property after payment of the 1st

priority lien holder. All funds returned to NAHAC will be recycled 

until December 31, 2017; thereafter any remaining funds must be 

returned to Treasury. 

MAPA recipients who qualify for reinstatement will have up to 

$12,500 in reinstatement funds made on a ‘one-time basis’ directly 

to the mortgage servicer. 

9. Per Household 

Assistance 

The maximum MAPA assistance should not exceed $1,000/month 

per recipient for up to nine (9) months for a total aggregate 

mortgage payment assistance of $9,000. 

Reinstatement candidates will be eligible to receive a limited, onetime payment of up to $12,500. 

The combined maximum amount of MAPA assistance available to a 

qualified borrower is $21,500. 

10. Duration of 

Assistance 

MAPA will last up to nine (9) months. 

11. Estimated Number of 

Participating 

Households 

Based upon average assistance of $9,000 per household, it is 

anticipated that 75% of the program funds be exhausted by monthly 

mortgage payment expenditures – for a total of approximately 176 

households. 

The average Reinstatement payout is expected to be $12,500 per 

eligible borrower with a portion of MAPA eligible borrowers also 

qualifying and receiving Reinstatement benefits. The remaining 

25% of program funds are anticipated to be used for Reinstatement 

candidates, a total of approximately forty-two (42) households. 

12. Program Inception / 

Duration 

This program began February 2012 and terminated on October 1, 

2012. 

13. Program 

Interactions with 

Other HFA 

Programs 

The MAPA program could have some form of interactions with the 

other HHF programs both pre- and post-assistance. Borrowers may 

receive assistance from more than one HHF program as long as the 

total combined assistance does not exceed $100,000. 

14. Program 

Interactions with 

MAPA recipients that become employed or have an improvement in 

their economic situation during the period of assistance may also 
B-5-5 

HAMP benefit from HAMP. 

MAPA funds may be applied prior to HAMP since it is most 

beneficial to both the homeowner and mortgage servicer as 

payments would be made instead of capitalized and no additional 

late charges accrued. 

15. Program Leverage 

with Other Financial 

Resources 

NAHAC will work directly with a loan servicer in conjunction with 

each MAPA borrower to ensure that MAPA funds are strictly used 

for MAPA-eligible purposes. NAHAC accounting staff will 

communicate with the servicer to ensure that the MAPA payments 

are credited only toward current amounts of PITI due on the 

borrower’s first mortgage. Funds will not be applied toward past 

due penalties except in those instances where the borrower qualifies 

for Reinstatement. 
B-6-1 

SERVICE SCHEDULE B-6

The Nevada Affordable Housing Assistance Corporation

HOME RETENTION PROGRAM

PROGRAM DEFUNDED ON JUNE 25, 2015 
B-7-1 

SERVICE SCHEDULE B-7 

The Nevada Affordable Housing Assistance Corporation 

NEVADA RECAST REFINANCE AND MODIFICATION PROGRAM (NRRM) 

PROGRAM DEFUNDED ON JUNE 25, 2015 
C-1 

SCHEDULE C 

PERMITTED EXPENSES 

Nevada

 

One-Time / Start-Up Expenses: 

Initial Personnel $361,409

Building, Equipment, Technology $114,868

Professional Services $302,034

Supplies / Miscellaneous $11,836

Marketing / Communications $23,333

Travel $7,404

Website Development /Translation $14,400

Contingency $0

 Subtotal $835,284

 

Operating / Administrative Expenses: 

Salaries $13,067,190

Professional Services (Legal, Compliance, Audit, Monitoring) $2,114,657

Travel $251,148

Buildings, Leases & Equipment $1,330,119

Information Technology & Communications $2,788,718

Office Supplies / Postage and Delivery / Subscriptions $345,380

Risk Management/ Insurance $339,358

Training $40,150

Marketing/PR $531,805

Miscellaneous $20,000

 Subtotal $20,828,525

 

 Transaction Related Expenses: 

Recording Fees $453,806

Wire Transfer Fees $267,275

 Counseling Expenses 

File Intake $2,230,804

Decision Costs $67,661

Successful File $50,500

Key Business Partners On-Going $513,821

 Subtotal $2,862,786

 

 Grand Total $25,247,676

% of Total Award 12.44%

Award Amount $202,911,881