B-1-1

HHF Florida Date: February 22, 2019

SERVICE SCHEDULE B-1

Florida Hardest Hit Fund 

Unemployment Mortgage Assistance Program

Summary Guidelines

1. Program Overview The Unemployment Mortgage Assistance Program 

(“UMAP” or the “Program”) focuses on the creation of a 

sustainable solution to keep Florida unemployed or 

substantially underemployed homeowners in their current 

homes by helping those who are struggling to make their 

current mortgage payments because of hardships sustained 

since purchasing the home. The Florida Housing Finance 

Corporation (“Florida Housing”) will use HHF funds to 

pay up to twelve (12) months of the mortgage payments on 

behalf of a qualified homeowner based on the criteria and 

requirements of each servicer. HHF funds will be used to 

pay, directly to the first mortgage loan servicer, the 

monthly mortgage payment (principal and interest plus any 

required escrow payments, such as taxes and insurance) 

required under the first mortgage loan. This will provide a 

reasonable period of time for homeowners to become reemployed at a salary that is sufficient for them to either 

resume making full mortgage payments or qualify for a 

mortgage modification that will lower the payments on the 

mortgage to an affordable level. Alternatively, borrowers 

who have suffered a financial hardship due to death, 

divorce or disability will have a reasonable time to mitigate 

their hardship sufficient for them to either resume making 

full mortgage payments or qualify for a mortgage 

modification that will lower the payments on the mortgage 

to an affordable level.

2. Program Goals • Preserving homeownership.

• Protecting home values.

3. Target Population/ Areas To determine geographic targeting for employment-related 

HHF funding, Florida Housing carried out an analysis of 

data, relying on data similar to that used by Treasury to 

allocate funding, to determine the hardest hit areas of the 

state. Florida Housing evaluated three measures across all 

sixty-seven Florida counties – housing price decline from 

peak prices, unemployment rate and seriously delinquent 

mortgage loans – and then combined ratios for each to 

create an allocation methodology that will guide how

funding is geographically targeted. The majority of the
B-1-2

HHF funds will be allocated to those counties that were 

determined to be hardest hit, although there will be funds 

available to all sixty- seven counties.

4. Program Funds 

(Excluding 

Administrative Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

• Borrower must be a legal U.S. citizen or lawful 

permanent resident.

• At least one borrower must be able to document that he 

or she is unemployed or substantially underemployed 

and must provide a financial hardship affidavit. A 

borrower and/or co- borrower who suffers a hardship 

that has resulted in a loss of income of at least 10% will 

be considered “substantially underemployed”. 

Alternatively, an applicant who is able to document a 

financial hardship due to a qualifying death, divorce or 

disability will be required to provide a financial hardship 

affidavit with appropriate documentation as to the cause 

of their hardship, as specified in the program guidelines.

• The maximum borrower(s) income level for 

participation will be 140% of the Area Median Income 

(AMI).

• The total housing expense (PITIA) must exceed 31% of 

the total gross income of the borrower(s).

• Borrowers who have unencumbered liquid assets or cash 

reserves (not including retirement or qualified education 

plans) equal to or exceeding three times the total 

monthly mortgage payment (including tax and insurance 

payments) or $5,000, whichever is greater, must first use 

those assets above such amount towards mortgage 

payments before being eligible for HHF funds.

6. Property/Loan Eligibility 

Criteria

• The property must be a single-family home, a 

condominium unit, a townhome, a manufactured or 

mobile home on foundation permanently affixed to real 

estate owned by the borrower, or a two-four family 

dwelling unit of which one unit is occupied by the 

mortgagor as his or her principal residence.
B-1-3

• The property must be the borrower’s principal residence, 

be located in Florida, and not be abandoned, vacant or 

condemned.

• The outstanding principal balance of the first mortgage 

must be $400,000 or less at the time of application, 

regardless of number of dwelling units.

7. Program Exclusions • Applicants who have voluntarily left work without good 

cause or have been discharged by the employing unit for 

misconduct connected with his or her work, based on a 

finding by the Department of Economic Opportunity.

• Bankruptcies that have not been discharged or 

dismissed.

• The borrower may not have an ownership interest in 

more than one property other than his or her primary 

residence.

• The servicer is not required to accept mortgage 

assistance payments if a notice of trustee/sheriff sale has 

been recorded and the trustee/sheriff sale is scheduled 

less than seven days from date the servicer is notified of 

borrower approval by the HFA.

8. Structure of Assistance HHF funds under UMAP will be made available to 

homeowners in the form of a zero-percent interest, nonrecourse, forgivable loan. This loan will be evidenced by a 

note and mortgage in favor of Florida Housing. The HHF 

loan is forgivable and will be for a period of five and a half 

(5.5) years. The first 20% of the loan will be forgiven 

eighteen (18) months after the loan closing. The remainder 

of the loan will be forgiven 20% per year annually 

thereafter.

If the homeowner sells the home during any part of the loan 

term, the remaining principal balance will be due to Florida 

Housing in the event there are sufficient equity proceeds 

from the sale. If there is not enough equity in the home to 

repay the entire amount due, Florida Housing will forgive 

the excess portion or all of the remaining principal balance 

so as to not create additional hardships on the seller at 

closing. Any loans repaid will be recycled back into the 

Program and used to provide assistance to additional
B-1-4

homeowners for the duration of the Program in accordance 

with the Agreement.

9. Per Household Assistance Estimated Median Amount Mortgage Payments - $12,000 

Maximum Amount – $24,000

Borrowers who have previously received HHF assistance 

and were not involuntarily terminated and borrowers who 

are currently receiving HHF assistance and remain in 

good standing are eligible for the additional assistance 

being offered under the changes to the UMAP and 

MLRP programs, but only to the extent that the total of 

the HHF assistance received does not exceed the 

following limits:

• UMAP – 12 months or $24,000, whichever comes first

• MLRP with UMAP – maximum of $18,000 towards 

reinstatement

• MLRP only – maximum of $25,000 towards 

reinstatement

10. Duration of Assistance The homeowner can receive up to twelve (12) months’ of 

monthly mortgage payments from Florida Housing.

11. Estimated Number of 

Participating Households

Florida Housing anticipates that this strategy will be able to 

serve approximately 20,000 homeowners in the aggregate 

between UMAP and MLRP.

12. Program Inception/ 

Duration

The Program commenced in June 2012. It is anticipated 

that assistance will be committed through December 31, 

2020.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with the Mortgage Loan 

Reinstatement Program (“MLRP”). Borrowers who qualify 

for UMAP will have arrearages on their first mortgage 

reinstated up front in an amount not to exceed $18,000. The 

maximum amount of combined UMAP and MLRP 

assistance is $42,000. Maximum combined assistance with 

all HHF programs is $92,000.

14. Program Interactions 

with HAMP

HHF funds would be utilized prior to the HAMP 

forbearance described in Supplemental Directive 10-04. 

Implementing the Program in this order is the most

beneficial to the customer and investor since payments 

would continue to be made instead of capitalized and no
B-1-5

late charges or adverse credit reporting would occur. If the 

borrower has already been through an UP forbearance 

before applying for this Program, then this Program may 

follow UP.

15. Program Leverage 

with Other Financial 

Resources

Many servicers have in-house mortgage modification 

products that can be used in conjunction with this Program. 

Florida Housing will work with servicers to determine how 

these programs may best be combined.

Servicers will not charge administrative fees (e.g., NSF, 

late charges) in any month where a full contract payment is 

made. If the loan is reinstated or modified following HFA 

mortgage assistance, servicers will waive all administrative 

fees accrued since the beginning of the delinquency.
B-2-1

SERVICE SCHEDULE B-2

Florida Hardest Hit Fund 

Mortgage Loan Reinstatement Program

Summary Guidelines

1. Program Overview The Mortgage Loan Reinstatement Program (“MLRP” or the 

“Program”) focuses on the creation of a sustainable solution to 

keep Florida homeowners in their current homes by helping 

those who have fallen behind on their mortgage payments 

because of financial hardship sustained since purchasing the 

home as a result of unemployment, substantial 

underemployment, death, divorce or disability. HHF funds will 

be used to pay, directly to the first mortgage loan servicer, 

payments which include items such as principal and interest plus 

any required escrow payments (such as taxes and insurance), late 

fees and insufficient fund fees.

2. Program Goals • Preserving homeownership.

• Protecting home values.

3. Target 

Population/Areas

To determine geographic targeting for HHF funding, the Florida 

Housing Finance Corporation (“Florida Housing”) carried out an 

analysis of data, relying on data similar to that used by Treasury 

to allocate funding, to determine the hardest hit areas of the state. 

Florida Housing evaluated three measures across all sixty-seven 

Florida counties – housing price decline from peak prices, 

unemployment rate and seriously delinquent mortgage loans –

and then combined ratios for each to create an allocation 

methodology that will guide how funding is geographically 

targeted. The majority of the HHF funds will be allocated to 

those counties that were determined to be hardest hit, although 

there will be funds available to all sixty-seven counties.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

• Borrower must be a legal U.S. citizen or lawful permanent 

resident.

• At least one borrower must be able to document that he or 

she is unemployed or substantially underemployed and must 

provide a financial hardship affidavit. A borrower and/or coborrower who suffers a hardship that has resulted in a loss of
B-2-2

income of at least 10% will be considered “substantially 

underemployed”. Alternatively, an applicant who is able to 

document a financial hardship due to a qualifying death, 

divorce or disability will be required to provide a financial 

hardship affidavit with appropriate documentation as to the 

cause of their hardship, as specified in the program 

guidelines.

• The maximum borrower(s) income level for participation will 

be 140% of the Area Median Income (AMI).

• For MLRP-only applicants, the total housing expense 

(PITIA) must be less than 31% of the total gross income of 

the borrower(s) unless the applicant can show that he or she 

has recovered from the hardship and is no longer 

“substantially underemployed”.

• Borrowers who have unencumbered liquid assets or cash 

reserves (not including retirement or qualified education 

plans) equal to or exceeding three times the total monthly 

mortgage payment (including tax and insurance payments) or

$5,000, whichever is greater, must first use those assets 

above such amount towards reinstatement before being 

eligible for HHF funds.

6. Property/Loan 

Eligibility Criteria

• The property must be a single-family home, a condominium 

unit, a townhome, a manufactured or mobile home on 

foundation permanently affixed to real estate owned by the 

borrower, or a two-four family dwelling unit of which one 

unit is occupied by the mortgagor as his or her principal 

residence.

• The property must be the borrower’s principal residence, be 

located in Florida, and not be abandoned, vacant or 

condemned.

• The outstanding principal balance of the first mortgage must 

be $400,000 or less at the time of application, regardless of 

number of dwelling units.

7. Program Exclusions • Applicants who have voluntarily left work without good 

cause or has been discharged by the employing unit for 

misconduct connected with his or her work, based on a 

finding by the Department of Economic Opportunity.

• Bankruptcies that have not been discharged or dismissed.
B-2-3

• The borrower may not have an ownership interest in more 

than one property other than his or her primary residence.

• The servicer is not required to accept mortgage assistance 

payments if a notice of trustee/sheriff sale has been recorded 

and the trustee/sheriff sale is scheduled less than seven days 

from date the servicer is notified of borrower approval by the 

HFA.

8. Structure of 

Assistance

HHF funds under the Mortgage Loan Reinstatement Program 

will be made available to homeowners in the form of a zeropercent interest, non-recourse, forgivable loan. This loan will be 

evidenced by a note and mortgage in favor of Florida Housing. 

The HHF loan is forgivable and will be for a period of five and a 

half (5.5) years. The first 20% of the loan will be forgiven 

eighteen (18) months after the loan closing. The remainder of the 

loan will be forgiven 20% per year annually thereafter.

If the homeowner sells the home during any part of the loan 

term, the remaining principal balance will be due to Florida 

Housing in the event there are sufficient equity proceeds from the 

sale. If there is not enough equity in the home to repay the entire 

amount due, Florida Housing will forgive the excess portion or 

all of the remaining principal balance so as to not create 

additional hardships on the seller at closing. Any loans repaid 

will be recycled back into the Program and used to provide 

assistance to additional homeowners for the duration of the 

Program in accordance with the Agreement.

9. Per Household 

Assistance

Estimated Median Amount Mortgage Payments - $9,000 

Maximum Amount – $18,000 for those using both UMAP and 

MLRP; $25,000 for those needing MLRP only.

Borrowers who have previously received HHF assistance and 

were not involuntarily terminated and borrowers who are 

currently receiving HHF assistance and remain in good standing, 

are eligible for the additional assistance being offered under the 

changes to the UMAP and MLRP programs, but only to the 

extent that the total of the HHF assistance received does not 

exceed the following limits:

• UMAP – 12 months or $24,000, whichever comes first

• MLRP with UMAP – maximum of $18,000 towards 

reinstatement
B-2-4

• MLRP only – maximum of $25,000 towards reinstatement

10. Duration of 

Assistance

Assistance is provided as a one-time payment.

11. Estimated Number of 

Participating 

Households

Florida Housing anticipates that this strategy will be able to serve 

approximately 20,000 borrowers in the aggregate between 

UMAP and MLRP.

12. Program

Inception/Duration

The Program commenced in June 2012. It is anticipated that 

assistance will be committed through December 31, 2020.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

This Program will interact with the Unemployment Mortgage 

Assistance Program (“UMAP”). Borrowers who qualify for 

UMAP will have arrearages on their first mortgage reinstated up 

front in an amount not to exceed $18,000. The maximum amount 

of combined UMAP and MLRP assistance is $42,000. Maximum 

combined assistance with all HHF programs is $92,000.

14. Program Interactions 

with HAMP

HHF funds would be utilized prior to the HAMP forbearance 

described in Supplemental Directive 10-04. Implementing the 

Program in this order is the most beneficial to the customer and 

investor since payments would continue to be made instead of 

capitalized and no late charges or adverse credit reporting would 

occur. If the borrower has already been through an UP 

forbearance before applying for this Program, then this Program 

may follow UP.

15. Program Leverage 

with Other Financial 

Resources

Many servicers have in-house mortgage modification products 

that can be used in conjunction with this Program. Florida 

Housing will work with servicers to determine how these 

programs may best be combined.

Servicers will not charge administrative fees (e.g., NSF, late 

charges) in any month where a full contract payment is made. If 

the loan is reinstated or modified following HFA mortgage 

assistance, servicers will waive all administrative fees accrued 

since the beginning of the delinquency.
B-3-1

SERVICE SCHEDULE B-3

Florida Hardest Hit Fund 

Modification Enabling Pilot Program (MEP)

Summary Guidelines

1. Program Overview This Modification Enabling Pilot Program (“MEP”) is being 

administered by the Florida Housing Finance Corporation 

(“Florida Housing”) in partnership with National Community 

Capital LLC (“NCC”) and other eligible entities (together 

“MEP Program Managers”). Funding under this Program is 

designed to provide directed assistance to eligible borrowers 

with the intent to permanently modify and reduce the 

borrower’s primary loan amount to an affordable level to 

achieve a monthly total housing payment that does not exceed 

35% of the borrower’s monthly income. Borrowers meeting the 

eligibility requirements described in Section 5 below may be 

eligible for MEP assistance.

Eligible loan pools under MEP include loans in Florida sold by 

the Department of Housing and Urban Development (“HUD”), 

Fannie Mae, and Freddie Mac. Loans are also eligible if 

serviced by a regulated financial institution that has executed a 

Servicer Participation Agreement with Florida Housing.

The Florida Housing MEP Program Manager agreement will be 

used to enable and facilitate permanent modifications by 

advancing a forgivable loan to eligible borrowers in an amount 

not to exceed $50,000.00 to enable a loan modification to occur 

immediately. MEP funding may not be used to reduce the 

principal balance of an eligible borrower’s primary mortgage 

loan below 100% of the current market value of the property.

However, the MEP Program may reduce the principal amount 

of an eligible borrower’s mortgage loan below 100% of the 

property’s current market value to achieve a permanently 

modified mortgage loan as long as the MEP Program Managers 

fund this reduction with private capital and not MEP funding. 

As the funding formula for the maximum amount MEP 

assistance expressly states, a floor of 100% of the property’s 

current market value assures that MEP’s assistance is limited to 

funding principal reduction for eligible borrowers only down to 

100% of the property’s current market value.

The MEP Program may be used to permanently modify and 

reduce the principal balance of the existing first mortgage loan 

to the lesser of:
B-3-2

• A loan amount not greater than 115% but not less than 

100% of the current market value of the property (as long as 

the reduced loan amount results in a monthly total housing 

payment that does not exceed 35% of the borrower’s 

adjusted gross monthly income); or

• A loan amount which results in a monthly total housing 

payment that does not exceed 35% of the borrower’s 

adjusted gross monthly income.

In order to make the mortgage payments affordable to the 

borrower, a MEP forgivable subordinate mortgage loan of up to

$50,000.00 will be made to eligible borrowers to fund a 

modification of the primary mortgage loan.

2. Program Goals The central goal of MEP is to help homeowners avoid 

foreclosure by permanently modifying a borrower’s primary 

mortgage to achieve a monthly total housing payment that does 

not exceed 35% of the borrower’s adjusted gross monthly 

income.

3. Target 

Population/Areas

The targeted populations are borrowers with distressed loans 

that the MEP Program Manager is able to demonstrate it has the 

delegated authority to modify consistent with the terms of MEP.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Eligible borrowers under MEP must meet the following criteria:

• Must be a legal U.S. Citizen or lawful permanent resident.

• Must document adjusted borrower(s) income that does not 

exceed 140% Area Median Income (AMI).

• Must demonstrate an ability to maintain a financial 

obligation for the home based upon an affordable mortgage 

with a total monthly housing payment equal to or less than 

35% of their gross monthly income.

• Must meet the LTV requirements described in this Section.

Borrowers with current total primary mortgage debt (which 

includes customary: corporate advances such as principal and 

interest, costs related to an initiated foreclosure, escrow 

advances such as property taxes and insurance payments, and
B-3-3

excluding late fees and servicing fees, together “Total Primary 

Mortgage Debt” as further defined in the program guidelines) 

equal to or greater than 100% of the property’s current market 

value are eligible for MEP assistance if they meet one of the 

following financial hardships and provide a financial hardship 

affidavit.

Eligible financial hardships include:

• Reduced income due to changes in employment

• Medical condition(s)

• Divorce

• Death

Borrowers that are unable to document any of these financial 

hardships may be eligible for MEP assistance if their current 

UPB is equal to or greater than 115% of the property’s current 

market value.

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s principal residence, located 

in Florida and may not be abandoned, vacant or condemned.

• The property must be a single family home, a 

condominium, a townhome, a manufactured or mobile 

home on foundation permanently affixed to real estate 

owned by the mortgagor, or a two-four family dwelling unit 

of which one unit is occupied by the mortgagor as their 

principal residence that is owner- occupied with a UPB 

equal to or less than $400,000.00.

• Mortgage must a distressed loan with a Total Primary 

Mortgage Debt that equals or exceeds the required 

percentages described in Section 5 above. Market value will 

be established by a FIRREA-compliant appraisal completed 

by an appraiser licensed and in good standing under Chapter 

475 of the Florida statutes at the time the appraisal is 

performed or by an interior/exterior Broker’s Price Opinion 

(BPO).

7. Program Exclusions • Borrowers whose Total Primary Mortgage Debt is lessthan 

100% of the property’s current market value.

• Borrowers who are in an active Chapter 7 bankruptcy.

• Dodd-Frank exclusion for having been convicted of a
B-3-4

mortgage-related felony in the past ten years.

8. Structure of Assistance The structure of assistance will be provided as an up-front, 

forgivable loan to eligible borrowers for up to $50,000.00 

depending upon individual circumstances. The note evidencing 

the mortgage loan will carry the following terms:

• Zero-percent (0%) interest, zero-payment loan

• Five-year term in favor of Florida Housing with a pro rata 

20% forgiveness of the original second mortgage loan 

amount on each annual anniversary date. The note will be 

extinguished on the fifth (5th) anniversary date providing 

the borrower has satisfied all terms of the loan.

If a property is sold on or before the end of the five-year term, 

the loan is “due on sale” and any net proceeds due to Florida 

Housing after reducing the sales price by:

• usual and customary costs of sale and attorney’s fees;

• taxes and any other payments due to federal, state and local 

governmental entities; and

• satisfaction of the first mortgage loan amount due MEP 

Program Managers and their successors and assigns.

If there are insufficient or no net proceeds available after 

reducing the sale amount by the above items, all or a portion of 

the note will be forgiven as not to create additional hardships on 

the borrower/seller at the time of closing. Any loan proceeds 

that are returned to the Program will be recycled back into the 

Program and used to provide assistance to additional 

homeowners for the duration of the Program in accordance with 

the Agreement.

9. Per Household 

Assistance

$50,000.00 is the maximum amount of assistance. $40,000 is 

the estimated median amount of assistance.

10. Duration of Assistance MEP assistance will be disbursed in full upon the loan closing 

for qualified applicants.

11. Estimated Number of 

Participating 

Households

It is anticipated that the MEP will assist a minimum of 400 

borrowers in avoiding imminent foreclosures.
B-3-5

12. Program

Inception/Duration

This Program component will begin in May 2013 and it is 

projected that assistance will be committed through December 

31, 2020.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

MEP will interact with Florida Housing’s Mortgage Loan 

Reinstatement Program (“MLRP”) and Unemployment 

Mortgage Assistance Program (“UMAP”). Borrowers may 

receive assistance from more than one of these programs as 

long as the total combined assistance does not exceed $92,000.

14. Program Interactions 

with HAMP

MEP may also be combined or used in conjunction with the 

HAMP. MEP may be available (in addition to the reduction or 

elimination of the non-interest bearing forbearance) for a 

HAMP loan only when the loan has lost its good standing 

status.

15. Program Leverage with 

Other Financial 

Resources

Private capital mortgage debt forgiveness will be used to 

permanently modify and reduce the borrower’s loan amount to 

an affordable level.
B-4-1

SERVICE SCHEDULE B-4

Florida Hardest Hit Fund 

Principal Reduction (PR) Program 

Summary Guidelines

1. Program Overview The Principal Reduction (“PR”) Program is designed to assist 

severely underwater, low-to-moderate income homeowners who 

have been consistently “current” on their mortgage payments by 

providing Hardest Hit Funds to reduce the amount of their 

outstanding principal loan balance to an amount as close to 

100% LTV as possible and reduce their monthly mortgage 

payment. By bringing such a program online in 2013, we will be 

assisting the homeowners who have stayed in their homes, 

remained committed to their neighborhoods and honored their 

obligation to make their mortgage payments. Most strategic 

defaulters have already abandoned their homes and, as home 

prices have now mostly stabilized throughout the state, there is 

less of a danger that home values will decline further after 

Hardest Hit Funds are made available to the homeowners.

2. Program Goals The goal of PR is to assist severely underwater homeowners 

who have been honoring their promise to make their mortgage 

payments by reducing the amount of the unpaid principal 

balance on their first mortgage to an amount that is in line with 

the current value of the property, subject to program limits.

In addition, the program will also further assist these 

homeowners by recasting or refinancing their loan and thus 

reducing their monthly mortgage payment.

3. Target 

Population/Areas

Low-to-moderate income borrowers who are severely 

underwater (>115% LTV) and who have been “current” on their 

first mortgage payments for the past two years.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Eligible borrowers under PR must meet the following criteria:

• Must be a legal U.S. Citizen or lawful permanent resident.

• Must document adjusted borrower(s) income that does not 

exceed 140% Area Median Income (“AMI”).
B-4-2

• Must have an Unpaid Principal Balance (“UPB”) on their 

first mortgage loan that does not exceed $350,000.

• Must have a pre-assistance Loan-to-Value (“LTV”) ratio of 

115% or greater.

• Must show that they have remained “current” on their 

payments on their first mortgage loan, meaning that they 

cannot have been 60 days or more late on their payments 

within the last two years.

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s principal residence, located 

in Florida and may not be abandoned, vacant or condemned.

• The property must be a single family home, a condominium, 

a townhome, a manufactured or mobile home on foundation 

permanently affixed to real estate owned by the mortgagor, 

or a two-four family dwelling unit of which one unit is 

occupied by the mortgagor as their principal residence.

• The homeowner must have acquired the property prior to 

January 1, 2010.

• The servicer must agree to recast the borrower’s first 

mortgage loan unless such loan is in a GNMA security (i.e. 

is an FHA, VA or USDA-RD loan). For GNMA-secured 

loans, the borrower is required to refinance the loan within 

180 days from the date that the principal reduction payment 

is made on their behalf.

• The borrower’s first mortgage loan must be with a regulated 

financial institution.

7. Program Exclusions • Borrowers who have a subordinate lien that is in foreclosure.

• Borrowers with bankruptcies that have not been discharged 

or dismissed.

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years.

8. Structure of Assistance The structure of assistance will be provided as an up-front, 

forgivable loan to eligible borrowers for up to $50,000.00. The 

note evidencing this mortgage loan will carry the following 

terms:

• Zero-percent (0%) interest, zero-payment loan;
B-4-3

• Five-year term with a pro rata 20% forgiveness of the 

original mortgage loan amount on each annual anniversary 

date. The note will be forgiven on the fifth (5th) anniversary 

date providing the borrower has satisfied all terms of the 

loan. Exception: for GNMA-secured loans, if the borrower 

fails to refinance the loan within 180 days from the date that 

the principal reduction payment is made on their behalf, then 

the loan will only be forgiven 100% at the end of the fifth 

year (no incremental forgiveness).

If a property is sold on or before the end of the five-year term, 

the loan is “due on sale” and any net proceeds are due to satisfy 

the amount of the loan that has not been forgiven.

If there are insufficient or no net proceeds available, all or a 

portion of the note will be forgiven as not to create additional 

hardships on the borrower/seller at the time of closing. Any loan 

proceeds that are returned to the Program would be recycled 

back into the Program and used to provide assistance to 

additional homeowners for the duration of the Program in 

accordance with the Agreement.

9. Per Household 

Assistance

Up to $50,000.00 or the amount necessary to reduce the UPB on 

the first mortgage loan to 100% LTV, whichever is less. If the 

borrower has received HHF assistance under any other HHF 

program, the maximum amount of all assistance may not exceed

$92,000. The minimum amount of assistance needed must equal 

or exceed $5,000.

10. Duration of Assistance PR assistance will be disbursed in full to the borrower’s servicer 

upon loan closing and agreement of the servicer to accept the PR 

funds.

11. Estimated Number of 

Participating 

Households

It is anticipated that the PR Program will assist approximately 

6,600 borrowers.

12. Program

Inception/Duration

The PR Program will begin in August 2013 and it is projected 

that assistance will be committed through December 31, 2020.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

The PR Program will most likely not interact with Florida’s 

other current HHF programs. If the borrower has received HHF 

assistance under any other HHF Program, the maximum amount 

of all assistance may not exceed $92,000.
B-4-4

14. Program Interactions 

with HAMP

None.

15. Program Leverage 

with Other Financial 

Resources

Servicers will be required to recast a borrower’s first mortgage 

loan, except if the loan is in a GNMA security (i.e. FHA, VA or 

USDA-RD loans). Borrowers with GNMA-secured loans will be 

required to execute a streamline (or equivalent) refinance to 

receive the benefit of incremental forgiveness of the HHF loan. 

Both the recast and the refinance will result in a lower monthly 

mortgage payment for the borrower.
B-5-1

SERVICE SCHEDULE B-5

Florida Hardest Hit Fund

Elderly Mortgage Assistance Program (Elmore) 

Summary Guidelines

1. Program Overview The Elderly Mortgage Assistance Program (“Elmore”) is 

designed to assist senior homeowners in Florida who are 

facing foreclosure due to the inability to pay their property 

taxes, homeowners’ insurance and homeowners’ and/or condo 

association dues (“Property Charges”) now that the senior 

homeowners have been paid all the equity that they were due 

under the terms of their Home Equity Conversion Mortgage 

(HECM), as well as other types of “Reverse Mortgages”.

The Florida Housing Finance Corporation (“Florida Housing”) 

will use HHF funds to provide an up-front, forgivable loan to 

eligible borrowers to be used to (i) repay the amounts 

advanced on their behalf by their mortgage loan servicer, 

including Property Charges and (ii) pay the anticipated amount 

of upcoming Property Charges for a set period of time or until 

they recover from the hardship.

2. Program Goals The goal of the Elmore Program is to help senior homeowners 

remain in their homes.

3. Target 

Population/Areas

Low-to-moderate income senior Reverse Mortgage borrowers 

who have suffered a hardship that has resulted in the inability 

to repay the amounts advanced on their behalf by their 

mortgage loan servicer for the payment of Property Charges.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Eligible borrowers under Elmore must meet the following 

criteria:

• Must be a legal U.S. Citizen or lawful permanent resident.

• Must document adjusted borrower(s) income that does not 

exceed 140% Area Median Income (“AMI”).

• Must have suffered a hardship that has resulted in the 

inability to repay the amounts advanced on their behalf by 

their mortgage loan servicer for the payment of Property
B-5-2

Charges. Such hardships may include:

○ Medical expenses;

○ Home repairs for systems or appliances or due to a 

natural disaster (fire, hurricane, etc.);

○ Reduction in household income;

○ Unemployment or underemployment;

○ Divorce;

○ Disability and the resulting expenses forspecialized 

equipment, care or retrofitting for the home; and

○ Victimization by burglary, fraud or financial 

exploitation.

• Must show a reasonable likelihood of recovering from the 

hardship so as to afford the Property Charges on an 

ongoing basis using methods of analysis specified in the 

program guidelines.

6. Property/Loan 

Eligibility Criteria

• Property must be the borrower’s principal residence, 

located in Florida and may not be abandoned, vacant or 

condemned.

• The property must be currently subject to a reverse 

mortgage.

• The borrower’s Reverse Mortgage must be serviced by a 

HUD-approved HECM servicer or a regulated financial 

institution.

7. Program Exclusions • Borrowers who have a subordinate lien that is in 

foreclosure.

• Borrowers with bankruptcies that have not been discharged 

or dismissed.

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years.

8. Structure of Assistance The structure of assistance will be provided as an up-front, 

forgivable loan to eligible borrowers for up to $50,000 

depending upon individual circumstances. The note

evidencing the subordinate mortgage loan will carry the
B-5-3

following terms:

• Zero-percent (0%) interest, zero-payment loan;

• Two-year term with a pro rata 50% forgiveness of the 

original mortgage loan amount on each annual anniversary 

date. The note will be forgiven on the second (2nd) 

anniversary date providing the borrower has satisfied all 

terms of the loan.

If a property is sold on or before the end of the two-year term, 

the loan is “due on sale” and any net proceeds are due to 

satisfy the amount of the loan that has not been forgiven.

If there are insufficient or no net proceeds available, all or a 

portion of the note will be forgiven so as not to create 

additional hardships on the borrower/seller at the time of 

closing. Any loan proceeds that are returned to the Program 

would be recycled back into the Program and used to provide 

assistance to additional homeowners for the duration of the 

Program in accordance with the Agreement.

9. Per Household 

Assistance

The lesser of $50,000 or the amount necessary to (i) repay the 

amounts advanced on the borrower’s behalf by its mortgage 

loan servicer, including Property Charges and (ii) pay 

anticipated Property Charges for up to twelve (12) months or 

until recovery from the hardship. If the borrower has received 

HHF assistance under any other HHF program, the maximum 

amount of all assistance may not exceed $92,000.

10. Duration of Assistance Assistance will be disbursed in full to the borrower’s servicer 

upon loan closing and agreement of the servicer to accept the 

HHF funds.

11. Estimated Number of 

Participating 

Households

It is anticipated that the Elmore Program will assist 

Approximately 2,300 senior borrowers in Florida who are 

delinquent under the terms of their reverse mortgage.

12. Program

Inception/Duration

The Elmore Program will begin in October 2013 and it is 

projected that assistance will be committed through December 

31, 2020.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

The Elmore Program will most likely not interact with 

Florida’s other current HHF programs. Elmore does interact 

with the U.S. Department of Housing and Urban 

Development’s (HUD) Home Equity Conversion Mortgage

(HECM) Program and will provide funding to eligible Non-
B-5-4

Borrowing Spouses as detailed in HUD Mortgagee Letter 

2014-07 and any subsequent Mortgagee Letters or 

amendments

14. Program Interactions 

with HAMP

None.

15. Program Leverage 

with Other Financial 

Resources

FHFC is partnering with the Florida Department of Elder 

Affairs, local Area Agencies on Aging, Fannie Mae, the 

National Council on Aging, and others to coordinate the 

reinstatement that is being done through the Elmore Program 

with other available resources. Specifically, senior 

homeowners will be screened for eligibility for other 

assistance, such as assistance with the costs of food and 

medicine, to free up income that may be used towards future 

property tax and homeowners’ insurance bills. This “benefits 

check-up” will show whether there is a reasonable likelihood 

that the senior homeowners will be able to afford their 

Property Charges on an ongoing basis.
B-6-1

SERVICE SCHEDULE B-6

Florida Hardest Hit Fund 

Down Payment Assistance Program

Summary Guidelines

1. Program Overview The Down Payment Assistance (“DPA”) Program will provide 

an incentive to qualified homebuyers to purchase a primary 

residence in targeted areas in Florida. Providing incentives to 

qualified homebuyers in housing markets that have been 

hardest hit by serious delinquency, negative equity, distressed 

sales, and foreclosures will strengthen demand in those areas, 

stabilize housing prices and prevent future foreclosures. This 

Program will initially be offered as a pilot that includes five 

Florida counties.

2. Program Goals The goal of the DPA Program is to help homeowners avoid 

foreclosure by assisting in the stabilization of housing prices 

in targeted areas.

Florida will identify meaningful indicators that will enable 

them to track and quantify the DPA Program’s impact in the 

targeted areas.

3. Target Population/Areas Targeted areas will be identified in the DPA Program Guide 

and consist of the following counties: Duval, Hillsborough, 

Orange, Brevard, Volusia, Clay, Osceola, Pinellas, Polk, St. 

Lucie and Pasco (“Targeted Area”). For the Targeted Area, 

Florida Housing evaluated five housing market distress 

indicators across all sixty-seven Florida counties— seriously 

delinquent mortgage loans, negative equity, short sales, REO 

sales, and foreclosures—as well as loan origination volume. 

Targeted counties exceed the statewide rate in at least four out 

of the five distressed housing market indicators, and a 

minimum threshold origination volume was achieved in these 

counties.

4. Program Funds 

(Excluding 

Administrative 

Expenses)

Not applicable. Program Funds may be disbursed under any 

program included in Schedule B.

5. Borrower Eligibility 

Criteria

Eligible borrowers must qualify for and meet all requirements 

of a Florida HFA Homebuyer Loan Program first mortgage 

loan originated through a participating lender. Allowable first 

mortgage loans are 30-year, fixed-rate loans from the Federal

Housing Administration (FHA), Veterans Administration
B-6-2

(VA), U.S. Department of Agriculture – Rural Development 

(RD), Fannie Mae and Freddie Mac. Eligible borrowers must 

also meet the following criteria:

• Must meet income limits that do not exceed 140% of the 

Area Median Income (“AMI”), as specified in the DPA 

Program Guide.

• Borrowers must be First-Time Homebuyers. For purposes 

of the DPA Program, a First-Time Homebuyer is someone 

who has not had an ownership interest in their primary 

residence in the past three years, unless qualifying under a 

Veteran’s Exception or purchasing a home in a Federally 

Designated Targeted Area as specified in the DPA 

Program Guide.

• First-Time Homebuyers, unless qualifying under a 

Veteran's Exception or those who are exempt by 

purchasing a home in a Federally Designated Targeted 

Area as specified in the DPA Program Guide, must 

complete a DPA Program-approved pre-purchase 

homebuyer education course.

• Borrowers must be a legal U.S. citizen or lawful 

permanent resident or otherwise meet the applicable 

Agency (FHA, VA, USDA-RD) or GSE (Fannie Mae or 

Freddie Mac) requirements.

• Borrowers must be able to provide a Dodd-Frank affidavit 

as specified in the DPA Program Guide.

• Borrowers must be credit-worthy and meet minimum 

FICO scores and maximum debt-to-income (DTI) ratios as 

specified in the DPA Program Guide.

6. Property/Loan Eligibility 

Criteria

• The property must be a single-family home, a 

condominium unit, a townhome, a manufactured or mobile 

home on foundation permanently affixed to real estate 

owned by the borrower, or a two-four family dwelling unit 

of which one unit is to be occupied by the mortgagor as 

his or her principal residence.

• Must be the borrower’s primary residence.

• Property must be located in a Targeted Area.

• Property must meet Florida HFA Homebuyer Loan 

Program purchase price limits as specified in the DPA
B-6-3

Program Guide.

• Meet all applicable Agency (FHA, VA, USDA-RD) or 

GSE (Fannie Mae & Freddie Mac) underwriting 

guidelines.

7. Program Exclusions • Borrowers, properties and loans not meeting DPA 

Program eligibility requirements as specified in the DPA 

Program Guide or Agency/GSE underwriting criteria.

• Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years.

8. Structure of Assistance Down payment assistance, including reasonable and 

customary closing costs, will be made available to 

homeowners in the form of a zero-percent (0%) interest, nonrecourse, forgivable second mortgage loan with a five-year 

term. This loan will be evidenced by a note and mortgage in 

favor of Florida Housing. The second mortgage will be 

forgivable at the rate of 20% per year over the five year term 

of the loan. Florida Housing reserves the right to 

resubordinate the second mortgage as further detailed in the 

DPA Program Guide.

If the borrower sells the home during any part of the loan 

term, the remaining principal balance will be due to Florida 

Housing in the event there are sufficient equity proceeds from 

the sale. If there is not enough equity in the home to repay the 

entire amount due, Florida Housing will forgive the excess 

portion or all of the remaining principal balance. Any loans 

repaid will be recycled back into the Program and used to 

provide assistance to additional homeowners for the duration 

of the Program in accordance with the Agreement.

9. Per Household 

Assistance

$15,000

10. Duration of Assistance DPA Program funds will be used to reimburse participating 

lenders who table fund the loan at closing once it is 

determined that all DPA Program requirements have been 

met.

11. Estimated Number of 

Participating Households

It is anticipated that the DPA Program will assist 

approximately 19,500 borrowers.

12. Program The DPA Program will begin in 2015 and it is projected that
B-6-4

Inception/Duration assistance will be committed through 2020.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs)

The DPA Program will take advantage of an existing 

infrastructure of participating lenders who are already actively 

originating both first mortgage and down payment assistance 

loans as part of Florida’s current HFA Homebuyer Loan 

Programs. If the borrower has received HHF assistance under 

any other HHF program, the maximum amount of all 

assistance may not exceed $92,000.

14. Program Interactions 

with HAMP

None.

15. Program Leverage with 

Other Financial 

Resources

Florida HFA Homebuyer Loan Programs often use tax-exempt 

bonds as a source of funding for the accompanying first 

mortgage loans. In addition, funds may be leveraged by our 

lenders using additional subsidy programs such as State 

Housing Initiative Partnership (SHIP) Funds, Federal Home 

Loan Bank down payment assistance, Neighborhood 

Stabilization Program (NSP) Funds or HOME funds.
C-1

HHF Florida Date: February 22, 2019

SCHEDULE C

PERMITTED EXPENSES

Florida

One-time / Start-Up Expenses:

Initial Personnel $0.00

Building, Equipment, Technology $1,600.35

Professional Services $19,782.00

Supplies / Miscellaneous $211.77

Marketing /Communications $15,364.88

Travel $18,074.66

Website development /Translation $141,369.65

Contingency $0.00

Subtotal $196,403.31

Operating / Administrative Expenses:

Salaries $23,100,000.00

Professional Services (Legal, Compliance, Audit, Monitoring) $3,200,000.00

Travel $400,000.00

Buildings, Leases & Equipment $1,590,000.00

Information Technology & Communications $10,800,000.00

Office Supplies/Postage and Delivery/Subscriptions $550,000.00

Risk Management/ Insurance $250,000.00

Training $1,100,000.00

Marketing/PR $350,000.00

Miscellaneous $1,482,000.00

Subtotal $42,822,000.00

Transaction Related Expenses:

Recording Fees $1,920,000.00

Wire Transfer Fees $235,000.00

Counseling Expenses

File Intake $0.00

Decision Costs $31,400,000.00

Successful File $3,900,000.00

Key Business Partners On-Going $12,200,000.00

Subtotal $49,655,000.00

Grand Total $92,673,403.31

% of Total Award 8.15%

Award Amount $1,136,616,680