Revised final submission to the U.S. Department of Treasury | April 11, 2011
2 OHIO HOUSING FINANCE AGENCY

Contents

SECTION ONE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Ohio Hardest-Hit Fund Program Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

U.S. Department of Treasury Guidance on HH  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ineligible Uses for HFA HHF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Ohio’s Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Using HFA HHF to Address Ohio’s Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Stakeholder Feedback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Program Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Program Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

SECTION TWO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

(a) Program Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Purpose and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Problems Addressed by Restoring Stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Goals of Ohio HHF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

(b) (1) Population Served and Allocation Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Estimate of Households Served . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Timeline from Treasury Approval to Deployment of Capital . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Timeline for Deploying Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

(b) (2) Status of Conversations with Financial Institutions Regarding Leveraging Funds . . . . 15

Outreach to Servicers and Lenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Value of Housing Counseling and Financial Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Matching Principal Reduction Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Matching Other Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

(c) Demonstration of Capacity to Implement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

OHFA Internal Team Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Compliance Infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Audit and Internal Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Fraud Risk Mitigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Reporting Protocols . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Systems Infrastructure and Necessary Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Implementation Mechanisms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Similar Programs Administered by OHFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

(d) Localization to Help Areas with Concentrated Economic Distress . . . . . . . . . . . . . . . . . . . 20

(e) Staffing and Business Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3OHIO HOUSING FINANCE AGENCY

Internal Staffing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Counseling Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Special Servicer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Title Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Program Flow Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

(f) Administrative Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Expenditure Timeline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Administration – OHFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Administration – Eligible Entity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Counseling Agency Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Marketing and Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Start-Up Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Recycling of HFA HHF Program Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

SERVICE SCHEDULE B-136

Ohio Housing Finance Agency (OHFA)

Rescue Payment Assistance Program

Summary Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

SERVICE SCHEDULE B-239

Ohio Housing Finance Agency (OHFA)

Partial Mortgage Payment Assistance Program

Summary Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

SERVICE SCHEDULE B-342

Ohio Housing Finance Agency (OHFA)

Mortgage Modification with Principal Reduction Program

Summary Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

SERVICE SCHEDULE B-445

Ohio Housing Finance Agency (OHFA)

Transition Assistance Program

Summary Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

SERVICE SCHEDULE B-547

Ohio Housing Finance Agency (OHFA)

Short Refinance Program

Summary Guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
4 OHIO HOUSING FINANCE AGENCY

SECTION ONE 

Ohio Hardest-Hit Fund Program Overview 

The U.S. Department of Treasury has awarded $7.6 billion in funding for innovative measur

to help families in states hit hardest by the foreclosure crisis. The Housing Finance Agency

Innovation Fund for the Hardest-Hit Housing Markets (HFA HHF) gives the District of 

Columbia and 18 states, including Ohio via the Ohio Housing Finance Agency (OHFA), the 

opportunity to develop innovative programs to help homeowners avoid foreclosure. Other

selected states are: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, 

Michigan, Mississippi, Nevada, New Jersey, North Carolina, Oregon, Rhode Island, South 

Carolina, Tennessee, and Washington, D.

The U.S. Department of Treasury issued its funding in four rounds. The first round of funding, 

announced February 19, 2010, allocated $1.5 billion to five states that have experienced a 

significant decline in home values. The second round of funding was announced March 29, 

and allocates $600 million to Ohio and four other states that have experienced high levels of 

sustained unemployment. Ohio was allocated $172 million in the second round. On Augus

11, Treasury allocated an additional $2 billion to 17 states and the District of Columbia. Ohio

received $148.7 million in this round. Finally, on September 29, Treasury announced a fourth 

round of funding, which allocated $3.5 billion to all of the previously selected states and the 

District of Columbia, with Ohio receiving $249.7 million. Ohio’s allocations from HFA HHF 

rounds two through four totals $570.4 million. Ohio is receiving the third largest allocation 

among the 18 states and the District of Columbia

Ohio appreciates the opportunity to help homeowners avoid foreclosure using resources from 

HFA HHF. As recognized by President Obama’s Administration when it selected Ohio to receive

HFA HHF, a large portion of Ohio’s population lives in economically distressed areas where the 

combination of high unemployment and reduced home values has pushed mortgage foreclosure 

rates to unprecedented levels and continues to destabilize housing markets. Homeowners in

these areas are at high risk of mortgage delinquency and foreclosure, which is detrimental to 

individuals and local communities. Thus, Ohio proposes to use a substantial majority of HFA

HHF funds to help homeowners experiencing financial hardship avoid preventable foreclosure. 

This benefits all Ohioans by helping to stabilize neighborhoods. 

U.S. Department of Treasury Guidance on HHF 

HFA HHF is an extension of the Troubled Asset Relief Program (TARP); therefore, all 

programs must satisfy funding requirements under the Emergency Economic Stabilization Act 

of 2008 (EESA). EESA purposes are to restore liquidity and stability to the financial system 

and to use TARP funds in a manner that among other things, protects home values, preserves 

homeownership, promotes jobs and economic growth and provides public accountability

Treasury outlined transactions that would meet EESA requirements including: mortgage 

assistance for unemployed homeowners, mortgage modification and principal forbearance, 

short sales, deeds-in-lieu of foreclosure, principal reduction programs for borrowers with severe 

negative equity and second lien reductions

Treasury guidelines stipulate that to receive funds, each recipient of funding from HFA HHF 

(each Eligible Entity) must be a “financial institution,” as that term is defined in EESA. To 

fulfill this requirement, the Ohio Capital Corporation for Housing (OCCH), an Ohio non-profit 
5OHIO HOUSING FINANCE AGENCY

corporation formed Ohio Homeowner Assistance LLC (OHA), a wholly-owned subsidiary, 

which will serve as the Eligible Entity to receive funding from HFA HHF.OHFA was

instrumental in the creation of OCCH in 1989 and both OHFA and OCCH have worked closely 

on many different projects with OCCH being a major participant in the various housing programs 

that OHFA administers

Ineligible Uses for HFA HHF 

Treasury’s legal counsel informed Ohio that certain uses are not to be permitted: 

• Counseling – TARP funds may only cover the cost of counseling services necessary and 

incidental to the implementation of HFA HHF. Counseling may not cover other services

and HFAs must develop procedures to ensure TARP funds are not used to pay for other 

types of counseling

• Legal Aid – Programs may not cover the costs of legal expenses, legal aid or mediation

1

• Job Training – Programs may not support job training expenses

Ohio’s Challenges 

Ohio’s homeowners face many challenges in today’s tough economic climate. Foreclosure

filings have risen for 14 consecutive years and in 2009, filings rose above 89,000. Moreover, the 

national recession has hit Ohioans hard, with high rates of unemployment and underemployment

At the same time, the weak housing market has led to a decline in housing values leaving one in 

every five Ohio homeowners underwater on their mortgages. 

In response, state and local agencies and organizations have acted to mitigate the rise in 

foreclosures and delinquencies. In 2008, Governor Ted Strickland launched Save the Dream

Ohio, which is a multi-agency foreclosure prevention effort that connects homeowners to 37 U.

Department of Housing and Urban Development (HUD) approved housing counseling agencies, 

11 legal aid societies and pro bono attorneys through a toll-free hotline and information-rich 

website. Each participant in Save the Dream Ohio adds critical services that allow the whole to

be greater than the sum of its parts

This network of counselors and attorneys helps homeowners communicate with servicers and 

navigate the foreclosure prevention options offered by Making Home Affordable (MHA) and 

individual loan servicing companies and lenders. Unfortunately, Ohio ranks 39th among 50 states 

and the District of Columbia for percent of delinquent homeowners who have been helped by 

MHA’s modification program. Most options offered by MHA and servicers require homeowners 

to be employed to participate. In Ohio, where two-thirds of homeowners seeking help cite loss of

income as the reason for their delinquency, many homeowners are falling through the cracks

Using HFA HHF to Address Ohio’s Challenges 

To determine how best to use HFA HHF dollars to address Ohio’s challenges, OHFA formed an 

inter-agency team to analyze the state of foreclosures in Ohio, collect input from key community 

and industry stakeholders and develop an innovative program model. The inter-agency team

comprises representatives from OHFA, the Ohio Governor’s Office, Ohio Department of 

Commerce (ODOC), Ohio Department of Development (ODOD), Ohio Department of Job and 

Family Services (ODJFS) and the Ohio Department of Taxation (ODT)

1

If legal aid is later determined to be an eligible use of HFA funds, Ohio HHF reserves the right to modify its plans to include 

funding for those activities
6 OHIO HOUSING FINANCE AGENCY

Ohio’s inter-agency team developed the following list of guiding principles to inform efforts 

for developing a program that addresses federal goals and considers the state’s housing and 

economic climate: 

• Optimize the potential for sustainable results from HFA HHF

• Use existing networks and infrastructure to promote and support programs developed with 

HFA HHF

• Intervene as early as possible to increase the number of individuals who avoid unnecessary 

foreclosure

• Maximize every dollar of Ohio HFA HHF by effective and efficient programming.

• Create a program that is transparent and develop reporting and oversight that allows for 

public accountability

• Disperse funds in a meaningful way, using data to support funding and eligibility decisions

Stakeholder Feedback 

Ohio solicited feedback from community and industry stakeholders on ideas for best using HFA 

HHF dollars. Ohio received verbal and written feedback through phone calls, meetings and

letters from housing counseling agencies, community-based organizations, financial institutions, 

loan servicers, elected officials and local governments. Common themes emerged among the 

feedback, including: 

• Create a comprehensive program that connects homeowners with resources such as job 

training and financial education to improve the potential for sustainable outcomes; 

• Incorporate housing counselors and legal services into Ohio’s program to help navigate 

homeowners through the foreclosure process and improve their chances of success; 

• Provide assistance to unemployed homeowners through payment assistance; and 

• Make Ohio’s program flexible to give counselors the ability to structure a tailored plan for 

each homeowner to increase the quality of individual solutions and improve the chance 

that the homeowner obtains a positive, sustainable outcome

Overview 

Ohio’s program, Restoring Stability: A Save the Dream Ohio Initiative, is comprehensive, 

statewide and focused on unemployed and underemployed homeowners who are at risk of 

mortgage loan default or foreclosure. The structure of Restoring Stability is based on Ohio’s

experience that every homeowner’s situation is unique and they often have complex needs

Ohio’s comprehensive approach would provide flexibility by allowing homeowners to tap 

multiple program options to prevent foreclosure up to a maximum household benefit amount of 

$15,000. 

Restoring Stability’s eligibility requirements target homeowners with the greatest need. The

requirements include:

• A monthly income limit of 115 percent of area median income (AMI); 

• Liquid assets equal to or less than three months of mortgage payments, excluding 

retirement funds; 
7OHIO HOUSING FINANCE AGENCY

• Total first mortgage debt less than the highest Federal Housing Administration (FHA) 

maximum loan amount among all Ohio counties, is $432,500 for a 1-unit, single family 

home for 2011; 

• Hardship due to involuntary loss or reduction in income, divorce, disability, or illness 

resulting in a loss of income or significant medical expenses.

Homeowners access Restoring Stability through HUD-approved housing counseling agencies

A statewide network of housing counseling agencies was created through a Request for 

Qualifications (RFQ) process. OHFA has provided Restoring Stability training to counselors 

at network agencies. Those housing counselors work with each homeowner to screen for

eligibility and develop an individualized Restoring Stability (RS) Action Plan to address the 

homeowner’s particular needs. The RS Action Plan is a plan related solely to TARP funded

modification programs. OHFA reviews and approves RS Action Plans and provides counselors 

with specialized training. OHFA also monitors closely Restoring Stability result

Ohio uses targeted outreach strategies, including events, informational materials and 

collaboration with local organizations and media outlets, to inform the public of Restoring 

Stability. Outreach is an important piece of Restoring Stability, as it directs Ohioans to reputable

housing counseling agencies and away from rescue scammers, which have become prevalent in 

recent years

Program Descriptions 

Ohio offers five program options to address the needs of homeowners with financial hardships 

who have been unable to qualify for existing loan modification and foreclosure prevention 

programs. Please refer to the Term Sheets in Appendix I for more detail:

• Rescue Payment Assistance – Homeowners dealing with a financial hardship who have 

already missed one or more mortgage payments are at a high risk of foreclosure. Restoring

Stability provides a payment to a participating homeowner’s servicer to help bring the 

homeowner current on his or her delinquent mortgage. The payment may cover principal,

interest, fees, delinquent taxes or escrow shortage and homeowners insurance. Participating

homeowners must demonstrate the ability to make future payments for at least six months

Rescue Payment Assistance may be combined with Partial Mortgage Payment Assistance 

and homeowners may use their participation in Partial Mortgage Payment Assistance to 

demonstrate their ability to make future payments. The amount of assistance is specified in 

the RS Action Plan and may not exceed $15,000. Rescue Payment Assistance is structured 

as a zero interest deferred payment loan forgiven over five years. 

• Partial Mortgage Payment Assistance – Unemployed homeowners are generally not 

eligible for loan modifications but they are at substantial risk of mortgage default and 

foreclosure. Restoring Stability supports unemployed homeowners by providing partial

mortgage payments while they search for a job or participate in job training. A participating

homeowner makes an affordable monthly payment equal to the lesser of 25 percent of his 

or her total monthly payment or 20 percent of gross monthly income to a special servicer, 

U.S. Bank, which was selected by OHFA. Restoring Stability would send the total payment 

to the servicer on behalf of the homeowner. The number of months of assistance would be

specified in the RS Action Plan and may not exceed $15,000. Partial Mortgage Payment 

Assistance is structured as a zero interest deferred payment loan forgiven over five years.
8 OHIO HOUSING FINANCE AGENCY

• Modification Assistance with Principal Reduction – Homeowners who cannot afford 

their current mortgage payment may request a loan modification but homeowners with 

severe negative equity often do not qualify for existing loan modification programs. 

Restoring Stability provides an incentive to servicers in the form of a payment to reduce 

a participating homeowners’ mortgage principal to the level necessary to achieve a loan 

modification with a target of a 115 percent loan-to–value ratio or less. Servicers provide 

principal forbearance or forgiveness equal to or greater than the Restoring Stability 

payment. If principal forgiveness is permitted by the investor, then it must be offered to

the homeowner before any principal forbearance could occur and qualify for Restoring 

Stability. This option should increase the number of loan modifications that are approved 

and would be available to both HAMP eligible and non-HAMP eligible borrowers

Principal reduction provided by Restoring Stability is structured as a zero interest deferred 

payment loan forgiven over five years. 

• Transitional Assistance – Through Restoring Stability, homeowners who cannot sustain 

homeownership could pursue alternatives to foreclosure to reduce the negative impact 

on their credit rating and losses to the servicer. Restoring Stability offers an incentive

to servicers to complete short sales and deed-in-lieu agreements to help homeowners 

exit their homes gracefully. This would benefit homeowners who have exhausted their 

available options to maintain homeownership and homeowners who must relocate to 

gain meaningful employment. Servicers would provide an incentive to participating

homeowners to leave the property in broom swept, saleable condition and extinguish all 

remaining debt. If necessary, an incentive payment could also be made to second lien

holders to release their lien

• Short Refinance – Homeowners who have not missed a payment on their home, but who 

are facing a financial hardship may benefit from refinancing their home to achieve a more 

affordable payment. Unfortunately, many homeowners interested in refinancing are not 

able to do so if their home has declined in value. In 2011, Restoring Stability will offer the

Short Refinance Program to provide funds to lenders/servicers on behalf of homeowners 

who wish to refinance to a new mortgage loan in order to lower their monthly payment. 

Funds will be used to reduce the principal balance of homeowner’s mortgage, which 

will incentivize lenders/servicers to match the program payment in the form of principal 

forgiveness to reduce homeowner’s principal balance to the level necessary to qualify for a 

refinance. This program will be offered initially on a pilot basis.
9OHIO HOUSING FINANCE AGENCY

Program Allocation 

To develop projections of the distribution of resources among programs, Ohio estimated that 50 

percent of homeowners served would be unemployed and 50 percent would be underemployed or 

have another financial hardship. Ohio then projected the average amount of assistance that would 

be used for each program and the percentage of borrowers in each category that would use the 

assistance. Tables 1 and 2 below summarize these assumption

Table 1. Projected Distribution of Homeowners

County Unemployed Other Hardship Total 

Total 31,900 31,585 63,485 

Table 2. Projected Allocation to Programs

Unemployed Other Hardship Avg. Ass

Target

Program 

Allocation

Homeowners 

Served

Rescue Loans (a) 15% 15% $5,994 $106,904,904 17,835 

Partial Payment 

Assistance 

80% 0% $9,390 $299,540,000 31,900

Modifications/ 

Principal 

Reduction 

5% 55% $9,667 $22,717,635 2,350

Short Sale/DIL 10% 20% $3,676 $18,013,461 4,900

Short Refinance $7,692 $50,000,000 6,500

TOTAL $497,176,000 63,485

(a) Numbers may vary slightly due to rounding.

These projections are based upon the best information and analysis available to OHFA. If the

distribution of eligible participants, the average amount of assistance per programs or demand for 

programs differs from our projections, program allocations may change
10OHIO HOUSING FINANCE AGENCY

SECTION TWO 

(a) Program Overview 

Purpose and Scope 

The purpose of HFA HHF is to help families stay in their homes or otherwise avoid preventable 

foreclosure. Consistent with the purpose EESA and TARP, Ohio’s program, Restoring Stability,

aims to protect home values, preserve homeownership, promote jobs and economic growth and 

provide public accountability. Ohio designed a program that is statewide and comprehensive in

scope and focuses on unemployed and underemployed homeowners who are at risk of mortgage 

default or foreclosure due to a temporary or permanent reduction in income. Eligibility is limited

to households with incomes below 115 percent of area median income, liquid assets equal to or 

less than three months of mortgage payments and total mortgage debt less than the maximum 

FHA loan amount for the state, which is $432,500 for a 1-unit, single family home. Restoring 

Stability serves homeowners at nearly any point on the path to foreclosure, from those who are 

current but at imminent risk of default, to those who have a sheriff sale scheduled in 21 days or 

more

As described in Section One, Restoring Stability uses a comprehensive approach to allow 

an eligible homeowner to access multiple program options to prevent foreclosure up to the 

maximum benefit amount for his or her county. The five program options are: 

• Partial Mortgage Payment Assistance 

• Rescue Payment Assistance 

• Mortgage Modification with Principal Reduction 

• Transitional Assistance

• Short Refinance

Each program is described in detail in the term sheets in Appendix I

Problems Addressed by Restoring Stability

Homeowners who have experienced an involuntary loss of income are at a high risk of 

foreclosure, particularly in an environment of declining home values. Homeowners who have

experienced a temporary loss of income may benefit from short-term assistance to help bridge 

the gap until they have restored their income. Homeowners who are experiencing a longterm reduction of income may benefit from assistance in restructuring their current mortgage

to make it more affordable. The key challenges Restoring Stability addresses are: (a) the

high rate of mortgage foreclosures; (b) loss or reduction of income due to unemployment or 

underemployment; and (c) negative home equity that prevents resolution of financial hardship 

through sale, refinance or available loan modification programs. 

Foreclosure Rate – The national subprime lending epidemic hit Ohio particularly hard over 

the last decade. According to the Federal Reserve Bank of Cleveland, Ohio’s foreclosure rate 

has nearly tripled in the last ten years. The factors contributing to increasing foreclosure rates
11OHIO HOUSING FINANCE AGENCY

included subprime lending, job loss and rising health care costs. Subprime lending and rising

foreclosure rates contributed to the near collapse of financial markets in September 2008 and 

the national recession. Save the Dream Ohio, multi-agency foreclosure prevention program,

launched in 2008 to connect homeowners with free housing counseling and legal services

Although there were over 89,000 new foreclosure filings in Ohio in 2009, more than 36,500 

homeowners have received assistance through Save the Dream Ohio since its launch. Without

Save the Dream Ohio and its network of housing counselors, legal aid and pro bono attorneys, it 

is likely Ohio’s foreclosure rate would be even higher

Unemployment and Declining Incomes – The collapse of financial markets in September 2008 

deepened a national recession that was already leading to increased unemployment. The official 

recession period was December 2007 – June 2009. During that period, Ohio lost 375,500 jobs. 

As of December 2010, Ohio has recovered 6,300 jobs since the post-recession employment low 

in February 2010

Negative Home Equity – An estimated 20 percent of homeowners in Ohio were in a negative 

equity position as of the end of the first quarter of 2010.2 When negative equity combines 

with another factor such as loss of income, the risk of foreclosure is high, even after a loan 

modification. Although home values in Ohio have not declined as steeply as some of the first 

states to be eligible for HHF, negative equity is still a serious concern in Ohio. More than 60

percent of all mortgages are estimated to be underwater in the following MSAs: Mansfield, 

Toledo, Canton-Massilon, Akron, Cleveland-Elyria-Mentor, Sandusky, Springfield, YoungstownWarren-Boardman and Dayton.3

 

Goals of Ohio HHF 

The Ohio HHF inter-agency team developed these guiding principles for Ohio HHF: 

• Optimize the potential for sustainable results from HHF

• Use existing networks and infrastructure to promote and support programs developed with 

Ohio HHF

• Intervene as early as possible to increase the number of individuals who avoid unnecessary 

foreclosure

• Maximize every dollar of HHF by effective and efficient programming. 

• Create a program that is transparent and develop reporting and oversight that allows for 

public accountability

• Disperse funds in a meaningful way, using data to support funding and eligibility decisions

The administrative structure and all Ohio HHF program options are consistent with these 

principles. Table 3 further defines Ohio HHF program goals, outcomes and measurements. 

The figures in Table 3 are estimates based on a projection of serving 53,000 homeowners by 

December 31, 2017

2

Ohio Market Trends Data by State, First American CoreLogic, January, February, March 2010

3

Karen Weaver and Ying Shen, Drowning in Debt – A Look at “Underwater” Homeowners, Duetsche Bank Market Update, 

August 2009
12OHIO HOUSING FINANCE AGENCY

Table 3. Goals and Outcomes

Goal Outcome Measurement 

Provide outreach to potential 

participants and referral to 

housing counseling agencies for 

triage and RS Action Plan 

Homeowners referred 110,000 Save the Dream Ohio call 

center and counseling 

agency tracking 

Applications submitted 79,700 OHFA loan tracking 

system and Counselor 

Direct Applications determined 

ineligible

5,500

HHF Action Plans 

proposed 

74,200

Review and approve 

homeowner eligibility and RS 

Action Plans 

Eligible homeowners 

approved 

69,300 Counselor Direct 

RS Action Plans approved 64,700 

RS Action Plans 

implemented 

63,485 

Payments to counselors $46,760,000 OHFA internal reports 

and Eligible Entity fiscal 

tracking 

Provide payments to servicers 

to bring homeowners current 

on delinquent mortgages, 

including principal, interest, 

fees, delinquent taxes or escrow 

shortage and homeowners 

insurance

Homeowners served 17,835 OHFA loan tracking 

system, Counselor Direct, 

reports from third party 

servicer and OHA fiscal 

tracking 

Average total payment 

amount 

5,994 

Default/foreclosures 

prevented 

16,052 

Support unemployed 

homeowners by providing 

partial mortgage payments 

while they search for a job or 

are in job training. Prevent

default or foreclosure for 90% 

of families

Homeowners served 31,900 OHFA loan tracking 

system, Counselor Direct, 

reports from third party 

servicer and OHA fiscal 

tracking 

Average total payment 

amount 

9,390 

Default/foreclosures 

prevented 

28,710 

Provide incentive payments 

to servicers to reduce the 

borrower’s mortgage principal 

to a 115 percent loan-to-value 

ratio or a level necessary to 

achieve approval of a loan 

modification.

Homeowners served 2,350 OHFA loan tracking 

system, Counselor Direct, 

reports from third party 

servicer and OHA fiscal 

tracking 

Average total payment 

amount 

9,667 

Default/foreclosures 

prevented 

2,115 

Offer an incentive to servicers 

to complete short sales and 

deed-in-lieu agreements to help 

families to exit their homes 

without deficiency judgments.

Homeowners served 4,900 OHFA loan tracking 

system, Counselor Direct 

and OHA fiscal tracking Incentive payments to first 

mortgage holders 

13,510,097 

Incentive payments to 

second mortgage holders 

4,503,366 

Provide incentive payments 

to servicers to reduce the 

borrower’s mortgage principal 

to help the homeowner qualify 

for a refinance

Homeowners served 6,500 OHFA loan tracking 

system, Counselor Direct 

and OHA fiscal tracking Average total payment 

amount

7,692 

Default/foreclosures 

prevented

6,000 
13OHIO HOUSING FINANCE AGENCY

(b) (1) Population Served and Allocation Method

Estimate of Households Served 

Ohio estimates that 63,485 households will be assisted by Restoring Stability (see Tables 1 and 

2, Section One). A key figure in these projections is the maximum benefit amount per household. 

Ohio chose to use a household maximum benefit amount of $15,000 in all counties. Ohio’s aim 

in selecting these maximum benefit amounts is to provide meaningful assistance to as many 

homeowners as possible

Two groups of homeowners are potentially eligible for Ohio HHF programs—households 

with a primary wage earner receiving unemployment compensation and households that have 

experienced a significant reduction in income or other hardship. For the first group, Ohio’s 

inter-agency team used current unemployment claims matched against 2008 tax returns to 

estimate that 287,600 households that had a member receiving unemployment compensation as 

of April 12, 2010 also had an outstanding mortgage. Approximately 30 percent of those 287,600

unemployed homeowners may be in need of mortgage assistance, assuming that 11 percent of 

households are delinquent on their mortgage4 and 19 percent of homeowners seeking foreclosure 

prevention assistance are current on their mortgage

5

 Therefore, the inter-agency team estimated 

that 86,280 unemployed households in Ohio could be eligible for Restoring Stability if they meet 

the other eligibility criteria

To estimate the number of households that have experienced a significant reduction in income or 

other hardship, the inter-agency team referred to 2006-2008 ACS PUMS data,6 which indicates 

that Ohio has 847,135 owner-occupied housing units with mortgage holders whose total 

household income is at or below 115 percent AMI. Ohio cannot determine what percentage of 

homeowners have had a significant reduction in income or other hardship, but if we assume that, 

based on Mortgage Bankers Association and OHFA statistics, 11 percent of this group is already 

delinquent on their mortgage and 19 percent is at risk of delinquency, there could be as many as 

254,000 households in this group eligible for Restoring Stability if they meet the other eligibility 

criteria

Recognizing that there will be some overlap between these two groups of potentially eligible 

homeowners, the total number of potentially eligible households should be somewhere between 

254,000 and 340,000. Restoring Stability could serve approximately 18 to 25 percent of 

these households with HFA HHF dollars, not counting any recycled funds. To target funds to

homeowners in greatest need, Restoring Stability plans to limit eligibility based on income, 

liquid assets, mortgage amount and hardship

Timeline from Treasury Approval to Deployment of Capital 

By launching some start-up activities immediately after application submission, Restoring 

Stability began serving eligible borrowers within 60 days after approval of the program by 

Treasury on August 4.

4

Mortgage Bankers Association 2009 Fourth Quarter Statistics 

5

OHFA’s Office of Affordable Housing Research found that among borrowers already engaged in National Foreclosure Mitigation 

Counseling Program, 19 were current with their mortgage but were poised to face default in the coming months

6

ACS PUMS stands for American Community Survey Public Use Microdata Sample. ACS PUMS files show a wide range of 

population and housing unit responses collected on individual ACS questionnaires
14OHIO HOUSING FINANCE AGENCY

During the six to eight week review period by Treasury, OHFA: 

• Refined the management agreement between OHFA and the Eligible Entity, OCCH/OHA 

[see Section 2(e)]; 

• Selected housing counseling agencies to participate in the program by developing an 

RFQ, which asked agencies to describe their qualifications and capacity, specify the area 

to be served and project the numbers of homeowners they will serve with existing and if 

applicable, new staff; 

• Developed an RFP for a special loan servicer to receive the partial payments from 

homeowners enrolled in Partial Mortgage Payment Assistance and service second 

mortgages according to program guidelines; 

• Developed an RFQ to select a title agency to close and record second mortgage loans on 

behalf of OHA; 

• Developed detailed program guidelines for use by housing counselors, servicer/investors 

and the special loan servicer, including terms of assistance and repayment, procedures for 

deferring repayment in cases of continuing borrower hardship and procedures for forgiving 

debt in cases of severe negative equity; 

• Prepared a standard note and mortgage for Partial Mortgage Payment Assistance, Rescue 

Payment Assistance and Mortgage Modification with Principal Reduction program options; 

• Contracted with Counselor Direct for client management software using funds already 

approved by the OHFA Board; 

• Developed an online application module for Restoring Stability eligibility; 

• Developed position descriptions for the project specific staff that OHFA will hire for 

eligibility verification, grant administration and in-house housing counseling; and 

• Develop a detailed plan for consumer outreach

Following Treasury’s approval of Restoring Stability, OHFA: 

• Executed the HFA Participation Agreement with Treasury and OHA and executed a 

supplemental management agreement with OCCH/OHA; 

• Issued the RFP for special servicer, selected U.S. Bank and entered into contract; 

• Issued the RFP for title agency, selected Title First Agency and entered into contract; 

• Tested and refined the eligibility module and make it available to counselors and other 

outreach partners; 

• Completed and tested the application and verification modules developed by Counselor 

Direct; 

• Hired the project-specific OHFA Restoring Stability staff; 

• Trained housing counselors on program guidelines, procedures and software; and 

• Entered into agreements with lender/servicers and trained lender/servicers on Restoring 

Stability programs and procedures
15OHIO HOUSING FINANCE AGENCY

Timeline for Deploying Funds 

When Restoring Stability funds became available in Ohio, the state experienced an initial 

surge in demand due to the high number of homeowners who already were at risk of default or 

foreclosure. Therefore, Ohio anticipates approving approximately 8,000 participants in the first 

year of the program, 12,000 in the second year and 12,000 in the third year. OHA will draw

funds monthly based upon the schedule submitted by OHFA. Ohio HHF will continue using

recycled funds from borrower partial payments until 2017 when all funds must be returned to 

Treasury

In the first 90 days after Restoring Stability launched, OHFA : 

• More than 20,000 homeowners applied online and were referred to housing counseling 

agencies for eligibility, screening and development of RS Action Plans; and 

• Verified eligibility of 432 participants and reserved Restoring Stability funds their behalf;

• Developed agreements with 56 mortgage servicers;

• Hired and trained 26 staff;

• Directed OHA to make payments to servicers consistent with approved RS Action Plans

All disbursements are at the direction of OHFA and OHFA will execute contracts and/ or 

agreements with the participating organizations [see Section 2 (h)]

(b) (2) Status of Conversations with Financial Institutions Regarding Leveraging 

Funds 

Outreach to Servicers and Lenders 

Ohio took several steps to generate support from mortgage industry stakeholders and to leverage 

HFA HHF dollars by gaining commitments from lenders and servicers to participate in Restoring 

Stability. During the proposal process, the inter-agency team invited lenders and servicers to

participate in a meeting at the ODOC. Representatives from national banks, community banks,

Ohio-headquartered banks and credit unions participated in the meeting, which also included 

several mortgage servicers that signed the Compact to Help Ohioans Preserve Homeownership 

(Compact) in 2008.Additionally, representatives from the inter-agency team held follow-up calls

with several Compact signers who were unable to attend the meeting. While the nation’s four

largest loan servicers were unable to attend, numerous conference calls were held with Bank 

of America, Wells Fargo and Citi to obtain their input. Finally, the inter-agency team consulted

representatives from Fifth Third Bank and Third Federal Savings and Loan regarding program 

design. All servicers who attended a stakeholder meeting, participated in a conference call or

attended a planning session were asked to share their ideas for how HFA HHF dollars might best 

be spent to have the maximum impact in the state of Ohio

In the 120 days since the launch of Restoring Stability, OFHA has hired a servicer liaison 

who has developed a Servicer Enrollment Package, held dozens of introductory webinars 

on Restoring Stability, facilitated numerous meetings with mortgage servicers to develop 

individualized procedures for transmitting data and funds, and successfully enrolled 95 mortgage 

servicers. OHFA continues to enroll servicers and refine its procedure for transmitting funds and 

data in order to grow and maintain servicer participation
16OHIO HOUSING FINANCE AGENCY

Additionally, OHFA has been working with the nation’s largest mortgage servicers, including 

Bank of America, Chase, Citi, and Wells Fargo, to develop a “common data exchange file.” The 

common data exchange file is an electronic spreadsheet that lists key data points for approved 

customers. Mortgage servicers will use the file to receive information on approved homeowners 

from OFHA, approve or object to those homeowners’ participation in Restoring Stability, and 

flag the loans of approved homeowners in their systems. OHFA is working with Counselor Direct 

to automate the common data exchange between OHFA and participating servicers. Once in

place, this system should speed up the time it takes to get servicers’ approval on files and provide 

funding to homeowners

Value of Housing Counseling and Financial Education 

Servicers overwhelmingly agreed that homeowners who participated in housing counseling and 

additional education such as financial education, consumer credit counseling and job training 

were better candidates for programs like loan modification, principal reduction and partial 

mortgage payment assistance. This is primarily because a homeowner’s voluntary participation

shows motivation, makes the homeowner better prepared during negotiation and likely lowers 

redefault rates by increasing a homeowner’s potential for sustaining the loan payments. Many

servicers indicated a willingness to offer larger HFA HHF program matches for homeowners 

who participated in these types of programs. However, because Treasury guidelines limit the use

of funds to support such activities, Ohio will encourage counselors to use other resources to refer 

homeowners to credit counseling, financial education and job training.

Matching Principal Reduction Assistance 

Recognizing that a significant percentage of loan modifications fail under HAMP and other 

guidelines, servicers have expressed willingness to offer principal forbearance for unemployed 

and underwater homeowners. Community banks, credit unions and Ohio Compact signers all

asserted that they already offer aggressive principal forgiveness modifications on loans they 

hold in their own portfolios. However, the strict rules governing loans held by Fannie Mae and

Freddie Mac (the GSEs) make it difficult or impossible for servicers to use similar modification 

options on the loans they service on behalf of the GSEs. Therefore, until the GSEs’ position

changes, Restoring Stability program options must allow servicers to match Restoring Stability 

principal reduction assistance with principal forbearance rather than forgiveness. For loans

held in servicers’ own portfolios, Restoring Stability will encourage servicers to offer principal 

forgiveness as the match if they deem it will improve the long-term performance of the loan

Matching Other Assistance 

Servicers recognize the value of Partial Mortgage Payment Assistance and Rescue Payment 

Assistance. OHFA and its partners have developed policies to leverage HFA HHF funds in

the form of matched dollars, waived fees or extended forbearance agreements. For example,

the Modification Assistance with Principal Reduction option is flexible and allows Restoring 

Stability funds to be used to reduce capitalized loan balances for unemployed homeowners to 

help them secure a sustainable permanent modification. 
17OHIO HOUSING FINANCE AGENCY

(c) Demonstration of Capacity to Implement 

With its extensive experience in administering state and federal housing programs, OHFA has 

proven itself as a leader in the design and implementation of innovative programs to address 

housing issues, particularly in the area of foreclosure prevention and recovery

OHFA Internal Team Leaders 

• Douglas A. Garver, Executive Director – Douglas A. Garver, Executive Director of

OHFA, oversees the lead agency for affordable housing in Ohio. OHFA offers many

opportunities to help Ohio families obtain affordable, quality housing. OHFA administers

a wide range of programs that offer assistance to first-time homebuyers, renters, senior 

citizens, single parents and other populations with special needs who otherwise might not 

be able to afford quality housing. Mr. Garver currently serves on the boards of the Nationa

Council of State Housing Agencies and the Ohio Statewide Development Corporation

He also is a member of the Board of Trustees for the National Housing Conference, the 

Governor’s Interagency Council for Homelessness and Affordable Housing and Ohio’s 

Permanent Supportive Housing Policy Steering Committee. Prior to his appointment

at OHFA in February 2004, Mr. Garver served five years as Assistant to the Director 

and Assistant Director of the ODOD. Mr. Garver received a Bachelor of Arts from 

Mount Union College in Alliance, Ohio with a dual major in economics and business 

administration. He is certified as an Economic Development Professional by the National 

Development Council and has attained a Master of City and Regional Planning from The 

Ohio State University

• Blaine Brockman, Assistant Executive Director – Blaine Brockman joined OHFA in 

April 2004 as the Chief of Staff and was later promoted to Assistant Executive Director. 

Mr. Brockman oversees OHFA’s programmatic and financial activities. Prior to joining 

OHFA, he worked at the Ohio Department of Natural Resources as a Law Enforcement 

Officer and in Labor Relations. He then worked as the Assistant Human Resources 

Administrator for ODOD. Most recently, he worked at ODOC as the Human Resources

Administrator. Mr. Brockman earned a Bachelor of Science from The Ohio State 

University and his Juris Doctor, Cum Laude, from Capital University Law School. He

is a member of the Governor’s Inter-agency Council for Homelessness and Affordable 

Housing Policy Team, the Madison County Mental Retardation/Developmental Disabilities 

(MR/DD) Board and a member of the Board of Trustees of the Ohio Association of 

County Boards of MR/DD. He is a practicing attorney and recently was recognized for 

volunteering over 400 hours with the Habitat for Humanity of Madison County.

• Marlo Tannous, Chief Legal Counsel – Marlo Tannous was named Chief Legal Counsel 

for the OHFA in June 2005.Prior to joining OHFA, Ms. Tannous was Chief Legal Counsel 

for ODOD from 1998 until 2005 and served as Deputy Chief Legal Counsel for ODOD 

for six years. Ms. Tannous was previously employed with Schottenstein Zox & Dunn

the Court of Claims and held a judicial clerkship with the Third Appellate District. M

Tannous earned a Bachelor of Arts from Bowling Green State University and her Juris 

Doctor from The Ohio State University Moritz College of Law

• Donald E. West, Jr., Chief Financial Officer – Donald E. West, Jr. began his career a

the OHFA in May 1990 and has served as the Chief Financial Officer (CFO) since July 

2004. During his more than 18 years of experience in state fiscal and bond matters, Mr. 
18OHIO HOUSING FINANCE AGENCY

West has held the positions of Finance Manager, Controller and most recently, Assistant 

Director of Finance. In the position of CFO, Mr. West oversees the management of mor

than $3 billion in combined mortgage revenue bonds payable. He also is responsible for

purchasing, fiscal operations, budget matters and accounting support for the Agency and 

its programs. Mr. West earned a Bachelor’s degree in Business Administration from Ohio 

Dominican University and both a Bachelor’s degree in Finance and a Master of Business 

Administration from Franklin University. He also is certified as a Housing Development 

Finance Professional by the National Development Council and has been a member of the 

Government Finance Officers Association for a number of years. 

• Cynthia A. Flaherty, Director of Homeownership – Cynthia A. Flaherty was promoted

to Director of Homeownership at OHFA in January 2008. She previously was OHFA’s

Director of Special Projects. Ms. Flaherty oversees the OHFA’s efforts on its First-Tim

Homebuyer and Down Payment Assistance Programs as well as a grant to help expand 

foreclosure counseling statewide. As Director of Special Projects, Ms. Flaherty coordinate

the Governor’s Foreclosure Prevention Task Force and wrote the final report. In addition, 

Ms. Flaherty helped OHFA secure its first successful HUD Housing Counseling grant. 

Prior to joining OHFA, Ms. Flaherty was employed with Fannie Mae as Director of Central

and Southern Community Ohio Business Center where she developed and implemented 

strategies for Fannie Mae investments in affordable housing. Ms. Flaherty also worked a

the Vice President of Corporate and Community Relations for OCCH, for OHFA as part 

of the ODOD and for the National Low Income Housing Coalition. Ms. Flaherty earned 

Bachelor’s degree from Beloit College and a Master’s degree in Community Planning from 

the University of Cincinnati. She is currently a Board member of the Affordable Housing 

Trust for Columbus and Franklin County

Compliance Infrastructure 

OHFA complies with all requirements under EESA and accomplishes compliance oversight, 

internal controls and fraud prevention through several means. Policies, procedures and internal

controls required to implement Restoring Stability are modeled on processes that were already 

in place and operating as intended. OHFA’s Internal Audit office has expanded its work plan to 

include the review of internal and partners’ program activities

Audit and Internal Controls 

Independent CPA auditors annually perform single audits for OHFA and its non-profit entity, 

OCCH. Additionally, the State of Ohio’s Office of Budget and Management (OBM) provided 

12 guidance documents to be used by state agencies when receiving American Recovery 

and Reinvestment Act of 2009 or related funds. OHFA’s Internal Audit office carried out the 

following steps for Restoring Stability: 

• Evaluated policies, procedures and internal controls for compliance with program 

requirements; 

• Tested processes for controls being in place and operating before program start-up and 

during its operation; 

• Evaluated program process compliance with applicable U.S. Office of Management 

and Budget (OMB) Circulars A-87, A-102, A-133 and Addendum #1 to the Compliance 

Supplement; 
19OHIO HOUSING FINANCE AGENCY

• Determined if any sub-grantee status for an entity exists within the program and planned 

internal control features for its processes; and 

• Established the financial reporting for Restoring Stability activities within the existing 

OHFA financial reporting system. 

Fraud Risk Mitigation 

OHFA’s Internal Audit office carries out the following steps for Restoring Stability: 

• Reviews for internal control prevention and detect weaknesses that could result in fraud, 

waste, abuse or loss of funds; 

• Recommends process improvements and any necessary compensating controls; 

• Determines key control points have been assigned to specific staff members who are 

accountable and responsible to a senior manager; and 

• Evaluates ethics requirements and investigates complaints of alleged fraud, abuse and 

waste in conjunction with OHFA’s Legal Office. 

Reporting Protocols 

OHFA tracks costs associated with Restoring Stability in a manner consistent with its existing 

practices for tracking administrative costs for other federally funded programs. These processes

are consistent with the cost principles outlined in OMB Circular A-87.

OHFA will comply fully with tracking and reporting requirements provided by Treasury. OHFA

will collect, track and report data using the Restoring Stability System created by Counselor 

Direct. Additionally, program participants will be expected to provide authorizations to release

information allowing OHFA to track outcomes on a file by file basis. Through the common data 

exchange process, participating lenders/servicers will provide ongoing reporting on assisted 

borrowers’ payment histories during the receipt of assistance

OHFA maintains compliance with the requirements described in the OMB Circular A-133 

that apply to its major federal programs. In this respect, OHFA is responsible for establishing

and maintaining effective internal control over compliance with the requirements of laws, 

regulations, contracts and grants applicable to federal programs (e.g. Section 8 Housin

Assistance Program, HOME Investment Partnership Program, Housing Counseling Assistance 

Program and National Foreclosure Mitigation Counseling (NFMC) Program)

Systems Infrastructure and Necessary Funding 

OHFA requires the use of a secure, web-based client management system to provide client-level 

information in real time. OHFA selected Counselor Direct to develop the online system for

eligibility of applicants by OHFA personnel and as the tracking mechanism for available funds

Counselor Direct’s online system also facilitates borrower intakes, referrals and submissions 

to servicers by counseling agencies. OHFA used its general fund to initiate the system design

by Counselor Direct and was later reimbursed for a portion of the development and ongoing 

costs. In addition to Counselor Direct, OHFA is able to use HOPE LoanPort for data exchange

with lenders/servicers. OHFA also works with lenders/servicers to use other platforms for data 

exchange, such as FTP sites and secure email
20OHIO HOUSING FINANCE AGENCY

Implementation Mechanisms 

Prior to the implementation date of the program, OHFA provided extensive training to housing 

counselors and internal staff regarding policies and procedures to be followed. OHFA developed

a detailed manual in conjunction with those trainings. OHFA provided outreach to Ohioans

prior to and during implementation to ensure homeowners receive accurate information and are 

not misdirected to foreclosure rescue scams. OHFA conducts this through outreach through its

partnership with Save the Dream Ohio

Similar Programs Administered by OHFA 

OHFA is committed to foreclosure prevention and recovery in Ohio. Over the past two years,

OHFA has administered funds under the NFMC Program and the Neighborhood Stabilization 

Program (NSP).OHFA leverages the funds received from these programs to maximize the

benefits of the Restoring Stability. 

• NFMC Program – OHFA first received funding under the NFMC Program in 2008 and 

has been awarded over $8.2 million to date. In the first two years of the program, OHFA 

served over 16,000 households and provided positive outcomes in 32 percent of the 

cases. OHFA currently administers the program for 21 sub-grantees and has an in-house

counseling department. Through the administration of this grant and OHFA’s partnership

with Save the Dream Ohio, OHFA has developed a strong network of 37 HUD-approved 

counseling agencies

• NSP – The NSP Affordable Rental Housing Initiative is a collaborative effort between 

the ODOD and OHFA to create new rental housing opportunities for very low-income 

households in Ohio. As a result of the enactment of House Resolution 3221 (HR 3221)

by Congress, HUD awarded more than $3.9 billion in funding to states and communities

across the country to address the nation’s abandoned and foreclosed homes. ODOD

received an NSP allocation of more than $116.8 million. To meet the legislativ

requirement that NSP recipients expend 25 percent of the allocation to benefit households 

with incomes at or below 50 percent of AMI, ODOD allocated approximately $29.2 

million of the NSP allocation to the Affordable Rental Housing Initiative administered by 

OHFA

(d) Localization to Help Areas with Concentrated Economic Distress 

The second round of HFA HHF specified that a substantial majority of funds must be targeted 

to homeowners living in counties of concentrated economic distress. To comply with this

requirement, the inter-agency team initially proposed a two-tiered approach that would have 

provided $12,000 to homeowners in every Ohio county, with an additional $3,000 available to 

homeowners living in counties that were in the top quartile of Ohio’s 88 counties on at least one 

of three indicators: foreclosure filings, decline in valid home sales, and unemployment rates.

However, subsequent funding rounds did not include this targeting requirement. Moreover,

OHFA determined that providing a substantial amount of funding to unemployed homeowners 

and using need-based formulas to allocate counseling units to counties effectively achieved the 

goal of targeting assistance to areas of concentrated economic distress, which eliminated the need 

to provide a higher maximum benefit to residents of targeted counties. Thus, OHFA changed its 

maximum benefit amount to $15,000 for all eligible homeowners, regardless of location. 
21OHIO HOUSING FINANCE AGENCY

(e) Staffing and Business Partners 

Internal Staffing 

• Director of Homeownership – The Director of Homeownership allocates 75 percent of 

her time to this project and oversees every aspect of Restoring Stability. In addition to

managing HHF staff, she is responsible to the OHFA Board and the U.S. Department of 

Treasury regarding overall program direction. The Director of Homeownership approves

all administrative rules and policies as they pertain to the program administration

• Housing Counseling Support Manager – The Housing Counseling Support Manager 

oversees the counseling and intake aspects of Restoring Stability and reports to the 

Director of Homeownership. The Housing Counseling Support Manager allocates 60

percent of her time to this project. The Housing Counseling Support Manager works with

the partner organizations to insure that all functions of the program are working efficiently 

and effectively

• HHF Grant Operations Manager – The HHF Grant Operations Manager oversees the 

review by HHF Compliance Analysts of homeowner eligibility and RS Action Plans 

submitted by housing counseling agencies. She also oversees the submissions to servicers

and closing processes for Restoring Stability assistance and prepares disbursement 

instructions for payments to counseling agencies and servicers. She evaluates the metrics

of the program and makes recommendations for continual improvement.

• Servicer Liaison – The Servicer Liaison assists with the administration of Restoring 

Stability by enrolling lenders/servicers in Restoring Stability, managing communications 

regarding program policies and procedures, and maintaining productive business 

relationships. The Servicer Liaison responds to questions from participating lenders/

servicers; resolves administrative issues; and plans, directs, and coordinates training and 

development activities for participating lenders/servicers.

• Assistant Grant Manager (new) – The Assistant Grant Manager will manage the 

processes and policies as they relate to the housing counseling aspect of the program in 

order to provide quality service to constituents. This person will also monitor changes to

federal and state programs as they relate to borrowers enrolled in Restoring Stability in 

order to set training guidelines

• Administrative Assistant (new) – The Administrative Assistant collects reports from both 

in-house and partner housing counselors and verification staff. She then assembles the 

information in a format acceptable to report to Treasury

• Counseling Coordinator – The Counseling Coordinator allocates 100 percent of his time 

to Restoring Stability and organizes the workflow and processes of the in-house counseling 

staff. The Counseling Coordinator coordinates work schedules, training on systems and

handling escalated situations

• HHF Verification Coordinator (new) – The HHF Verification Coordinator organizes 

the workflow and processes of the in-house file verification staff. The HHF Compliance 

Coordinator trains staff on systems and ensures quality control

• HHF Counseling Compliance Trainers (new) – Two HHF Counseling Compliance 

Trainers are constantly in the field educating housing counseling agencies on Restoring 

Stability along with changes to other programs, such as HAMP, to ensure consistency in 
22OHIO HOUSING FINANCE AGENCY

the delivery of services to constituents. While in the field, these employees monitor for 

compliance and attend outreach events

• HHF Consumer Program Coordinator – The HHF Program Coordinator provides 

effective information about Restoring Stability for policymakers, partners, and consumers

She develops presentations, speaks at conferences, and coordinates outreach events. She

assists in data management and reporting and prepares narrative monthly, quarterly, and 

annual reports to Treasury and other oversight organizations

• HHF Compliance Analysts (new) – Eight Assistance Compliance Analysts validate 

borrower eligibility for Restoring Stability, review HHF Action Plans and reserve HHF 

funds on behalf of homeowners

• In-House Counselors (new) – Eight Housing Counselors provide counseling services 

to constituents via telephone to handle the overflow from the partner counseling 

agencies. Counselors collect budget information, documents and other information from

homeowners to develop RS Action Plans. Once completed, the counselors submit the RS

Action Plans the HHF Compliance Analysts. These positions report to the Assistant Grant

Manager and the Counseling Coordinator

• HHF Clerk (new) – One HHF Clerk supports the in-house counselors by receiving and 

uploading files from applicants.
23OHIO HOUSING FINANCE AGENCY

Figure 2 shows an organization chart of new, existing, and proposed positions at OHFA dedicated 

to Restoring Stability

Figure 2. Organization Chart
24OHIO HOUSING FINANCE AGENCY

Eligible Entity 

OCCH, an Ohio non-profit corporation, formed OHA, a wholly-owned subsidiary that will 

serve as the Eligible Entity for Restoring Stability. OHFA was instrumental in the creation of

OCCH in 1989. OHFA and OCCH have worked together closely on many different projects, with

OCCH being a major participant in the various housing programs that OHFA administers. By an 

amendment to its Articles of Incorporation in 2001, each of the seven OCCH Board of Trustee 

members must be approved by OHFA before their respective elections. This control over the

composition of the Board of Trustees of OCCH by OHFA is sufficient to satisfy the requirements 

that the Eligible Entity be regulated by the housing finance agency in order to be a recipient of 

the funds under HFA HHF

While performing duties as Ohio’s Eligible Entity, OHA is be managed by OHFA and receives 

all direction for payment of funds from OHFA internal staff. OHFA will regularly request

reconciliations from the Eligible Entity. Copies of OHA’s governing documents and the

management agreement that will be drafted upon approval of OHFA’s proposal will be forwarded 

upon request

Figure 3 shows the relationship between OHFA, OHA, Treasury and other business partners

Figure 3. Flow of Funds with Eligible Entity

Treasury

Homeowners

OHFA

BoNY/Mellon OHA

Key Bank Mortgage

Servicers

HHF

Servicer

Counseling

Agencies

Capital Draws 

Based Request 

from OHA

Disbursements 

to Counseling 

Agencies

Disbursements 

for OHFA 

Adminstration 

Expenses

OHFA 

Disbursement 

Instructions to OHA

HHF Funds Applied 

to Homeowners 

Mortgage Loans (No 

Funds to Homeowner)

Execution of Treasury Agreement, 

“Financial Agreement” and 

Delivery of Services Schedule 

 and Admin Budget

Disbursements for Partial 

Mortgage Payment 

Assistance, Rescue Loans, 

Loan Modifications

For Partial Mortgage 

Payment Assistance, Full 

Loan Payment Made to 

Mortgage Servicers Upon 

Confirmation by HHF 

Servicer/OHFA of 

Homeowners Partial 

Payments 

Information on Partial 

Payments by Homeowners 

Provided to OHFA; Actual 

Funds are Deposited in 

OHA Selected Bank and 

Used in Accordance with 

Treasury Rules on Program 

Income or Returned to 

Treasury after 2017

HHF FUNDS

HOMEOWNER PAYMENTS/RECYCLED FUNDS

Partial Loan 

Payment by 

Homeowners Sent 

to HHF Servicer 

PLUS Any 

Repayments on 

HHF Funds

Fund Transfer 

Request by OHA 

based upon OHFA 

Disbursement 

Instructions

OHA Wiring Instructions 

to Bank for Actual 

Dispursements

HARDEST-HIT FUND

AGREEMENTS/INSTRUCTIONS/REPORTS
25OHIO HOUSING FINANCE AGENCY

Counseling Agencies 

OHFA issued an RFQ for HUD-approved counseling agencies located in the state of Ohio to 

provide intake and triage services for homeowners. Factors considered in selection included

capacity of the agency, relationships with servicers, percentage of positive outcomes achieved 

for prior clients and ability to report measurable outcomes. Counseling agencies handle the

initial intake for all homeowners, assemble documentation, prepare a RS Action Plan for each 

borrower and submit recommendations to OHFA for verification. Compensation is $700 per 

household for all Restoring Stability services including eligibility screening and developing and 

implementing RS Action Plans, which is be paid in increments. Counseling agencies may receive

payments of $200 for each successful intake, $500 for each RS Action Plan approved by OHFA, 

and $100 for each intake that is not approved after the homeowner submits a full application 

with documentation. Prior to the launch of Restoring Stability, participating counseling agencies

had the option to request an advance of $100 for up to 50 percent of the total number of units 

allocated. OHFA may add new HUD-approved counseling agencies to Restoring Stability to

continue to expand capacity as needed

Special Servicer 

OHFA issued an RFP for a Special Servicer to collect partial payments from homeowners who 

are participating in the Partial Mortgage Payment Assistance program option. The selected

Special Servicer, U.S. Bank, is responsible for applying guidelines provided by OHFA in all 

transactions with constituents and reconciling with OHFA on a frequent basis. U.S. Bank is 

compensated from Administrative Funds

Title Companies 

OHFA issued an RFQ to title underwriters with agencies located in the state of Ohio and 

individual title agencies to provide closing and documentation recordation services in the cases 

where a mortgage must be filed to complete the transaction. OHFA selected Title First Agency 

through this process. Compensation is $150 per closed file plus recording fees. 

Program Flow Charts 

Flow charts showing the roles of the homeowner, housing counselor, OHFA, Special Servicer, 

Mortgage Servicer and OHA are shown on the following pages
26OHIO HOUSING FINANCE AGENCY
27OHIO HOUSING FINANCE AGENCY
28OHIO HOUSING FINANCE AGENCY
29OHIO HOUSING FINANCE AGENCY
30OHIO HOUSING FINANCE AGENCY
31OHIO HOUSING FINANCE AGENCY

(f) Administrative Expenses 

OHFA anticipates using approximately 12.8 percent of the $570.4 million award towards 

administrative related expenses of the Eligible Entity, OHFA and counseling agencies. Of the __

percent, approximately 4.9 percent will be used for operational costs of the Eligible Entity and 

OHFA, 7.4 percent will be paid to housing counseling agencies and 0.5 percent will be used for 

outreach

Table 5. Administrative Expenses - Operational Costs

Year 1 Year 2 Year 3 Year 4+ Total % 

OHFA $4,210,772 $3,777,022 $3,142,615 $2,692,858 $13,823,267 2.4%

Eligible Entity $5,448,908 $5,043,624 $2,202,459 $2,183,979 $14,878,970 2.6%

Total 

Administrative 

Expenses:

$9,659,680 $8,770,646 $5,295,074 $4,676,839 $28,152,239 4.9%

% of award: 4.9%

Table 6. Administrative Expenses – Counseling and Outreach

Year 1 Year 2 Year 3 Years 4 - 7 Total 

Counseling/

Triage 

$6,751,887 $9,532,075 $9,532,075 $16,283,962 $46,760,000 

Outreach Efforts $475,817 $671,742 $671,742 $1,147,559 $2,966,860 

Total 

Counseling/ 

Outreach Efforts: 

$45,066,860 

% of award: 7.9%

Expenditure Timeline 

OHFA anticipates drawing down the $570.4 million incrementally over five years. Based on the 

assumptions provided in the proposal the anticipated draws in six-month increments would be as 

follows: 

Table 7. Draw Schedule

Amount 

Month 6 $ 15,603,483 

Month 12 $ 41,697,207 

Month 18 $ 60,106,219 

Month 24 $ 65,739,770 

Month 30 $ 65,428,421 

Month 36 $ 65,428,421 

Month 42 $ 63,334,720 

Month 48 $ 63,242,412 

Year 5 + $ 129,814,445 

Total: $ 570,395,099 
32OHIO HOUSING FINANCE AGENCY

Included below is the projected impact of the programming funds. This chart shows the impact

of Ohio HHF assisting an estimated 63,485 households over the 5-year period. It is possible for 

a household to use more than one program up to the maximum Restoring Stability household 

benefit amount.

Table 8. Program Expenses

Year 1 Year 2 Year 3

# Amount # Amount # Amount Total 

Rescue Loans (a) 2,344 $14,415,669 4,002 $24,606,275 11,039 $67,882,960 $106,904,904 

Partial Payment 

Assistance 

4,302 $16,909,069 7,342 $60,827,851 20,256 $221,803,080 $299,540,000

Modifications/ 

Principal 

Reductions 

317 $3,063,376 541 $5,228,912 1,492 $14,425,347 $22,717,635 

Short Sales / 

Deed In-Lieu 

661 $2,429,038 1,128 $4,146,154 3,111 $11,438,269 $18,013,461 

Short Refinance 500 $3,846,154 1,568 $12,062,334 4,431 $34,091,513 $50,000,000 

Totals: 8,124 $40,663,306 14,581 $106,871,526 40,330 $349,641,169 $497,176,000 

Total Program 

Expenses: 

 $497,176,000 

(a) Numbers may vary slightly due to rounding.

Table 9. Total Restoring Stability Breakdown

Year 1 Year 2 Year 3 Year 4+ TOTAL % 

Administrative 

Expense OHFA 

$3,960,772 $3,727,022 $3,092,615 $2,492,860 $13,273,269 2.3%

Administrative 

Expense OCCH/

OHA 

$5,448,908 $5,043,624 $2,202,459 $2,183,979 $14,878,970 2.6%

Housing 

Counseling/ 

Triage 

$6,751,887 $9,532,075 $9,532,075 $16,283,962 $42,100,000 7.4%

Outreach Efforts $475,817 $671,742 $671,742 $1,147,559 $2,966,860 0.5%

Total 

Administrative 

Expense: 

$16,637,384 $18,974,463 $15,498,891 $22,108,360 $73,219,099 12.8%

Total Program 

Expense: 

$40,663,306 $106,871,526 $115,357,951 $234,283,218 $497,176,000 87.2%

Total Restoring 

Stability: 

$57,300,690 $125,845,989 $130,856,842 $256,391,578 $570,395,099 100%

Administration – OHFA 

OHFA will only seek reimbursement for costs directly incurred by the Agency for the 

administration of the Restoring Stability. Below is the expected summary budget. Any unused 

portion will be included into the program budget to assist additional households
33OHIO HOUSING FINANCE AGENCY

Table 10. OHFA Administrative Expenses

# of Staff Year 1 Year 2 Year 3 Years 4 - 7 Total 

Existing Staff 10 $359,480 $360,142 $355,080 $850,074 $1,924,776 

New Staff (b) 50 $1,658,468 $2,694,470 $2,209,789 $1,250,212 $7,812,939 

New Employee 

Overhead (b) 

$65,420 $63,700 $45,500 $4,368 $178,988 

Contracts (Temps 

and Audit) 

$1,233,904 $528,710 $407,246 $368,206 $2,538,066 

Travel (Outreach 

and Training) 

$100,000 $80,000 $75,000 $20,000 $275,000 

Total 

Administrative 

Expenses OHFA 

$12,729,769 

% of award: 2.2%

(b) New Staff decreases over the first three years of the program (24 in Year 1), (17 in Year 2), (6 in Year 3) and (0 in 

Year 4-7). Sample costs include supplies, telecommunications, transportation expenses, etc.

Administration – Eligible Entity 

The following administrative and supporting costs will be paid directly by the Eligible Entity

Table 11. Eligible Entity

# of Staff Year 1 Year 2 Year 3 Years 4 - 7 Total 

New Staff (c) 4 $252,720 $260,302 $268,111 $835,393 $1,616,526 

Employee 

Overhead 

$35,460 $36,524 $37,620 $122,556 $ 232,160 

Recording and 

Title Fees 

$4,941,728 $4,499,348 $1,645,492 $50,000 $11,136,568 

Legal and 

Audit Fees 

$67,500 $229,829 $233,306 $1,084,158 $1,614,793 

Consolidation 

Fees 

$10,000 $10,300 $10,609 $58,014 $88,923 

Bank Fees $1,500 $7,321 $7,321 $33,858 $50,000 

Total 

Administrative 

Expenses 

OCCH/OHA 

$5,308,908 $5,043,624 $2,202,459 $2,183,979 $14,738,970 

% of award: 2.6%

(c) New staff decreases after the first three years of the program.
34OHIO HOUSING FINANCE AGENCY

Counseling Agency Fees 

Counseling fees support the work non-profit agencies throughout the state will provide for intake, 

triage, preparation of Homeowner Action Plans and facilitating Restoring Stability assistance and 

workouts with servicers. Counseling agencies will be compensated a total of $700 per household

for providing eligibility screening and developing and implementing the Homeowner Action 

Plans. Counseling agencies may receive payments of $200 for each successful intake, $500 for 

each RS Action Plan approved by OHFA, and $100 for each intake that is not approved. The

counseling agency fee structure may be adjusted to reflect actual costs and workflow. Prior to 

the launch of Restoring Stability, participating counseling agencies had the option to request 

an advance of up to 50 percent of the total number of units allocated. Training for counselors is 

provided by OHFA and is included in the OHFA administrative budget

Marketing and Outreach 

Restoring Stability uses a portion of HFA HHF dollars to pay for marketing and outreach to 

homeowners to inform them of new foreclosure prevention options available through Restoring 

Stability. Outreach is conducted via events, direct mailing and print materials distributed by

Restoring Stability and partner organizations to encourage homeowners to seek foreclosure 

prevention help early and to combat mortgage rescue scammers, who continue to target 

homeowners and are likely to use the infusion of HFA HHF dollars in the state as an opportunity 

to misdirect homeowners seeking assistance. Marketing efforts have involved targeted ads on

billboards, radio, television, online media, and newspapers

Start-Up Costs 

One-time start-up costs will be incurred by both OHFA and the Eligible Entity to prepare both 

entities to administer the program

Table 12. Start-Up Costs

OHFA Eligible Entity 

Computers (PC, Monitor, Basic Software) $54,500 $25,000 

Office Furniture / Equipment $14,000 $20,000 

IT Consulting/Programming $320,000 $25,000 

Legal / Accounting Advisory $ - $55,000 

Start-Up Contingency (a) $155,000 $15,000 

Subtotal Start-Up Costs: $543,500 $140,000 

Total Start-Up Costs: $683,500 

% of award: 0.1%

(a) Start-Up Contingency were be used for unforeseen costs. Any unused portion after year one will be transferred to 

program funds.
35OHIO HOUSING FINANCE AGENCY

Recycling of HFA HHF Program Funds 

To serve more eligible households, Restoring Stability will direct payments from HFA HHF 

participants back into the program. It is anticipated that the largest source of payments will be

from participants in the Partial Mortgage Payment Assistance program option. This program

option is structured so that the mortgage servicers receive a full mortgage payment from OHA 

drawn from Restoring Stability, while homeowners will make their affordable portion of the 

mortgage payment to the Special Servicer. Homeowner payments will be recycled for use by

future Restoring Stability program participants. Restoring Stability anticipates that homeowners’

average affordable payment will be $300 per homeowner per month during the Partial Mortgage 

Payment Assistance period and approximately $86 million could be collected and recycled

A second source of recycled funds will be repayments on the second mortgages filed on behalf of 

the Eligible Entity under the Rescue Loan Assistance, Modification with Principal Reduction and 

Partial Mortgage Payment Assistance program options. Because repayments would only occur if 

a homeowner sold or refinanced a home before the loan was entirely forgiven and if there were 

sufficient net proceeds very few repayments are expected to occur.
36OHIO HOUSING FINANCE AGENCY

SERVICE SCHEDULE B-1

Ohio Housing Finance Agency (OHFA)

Rescue Payment Assistance Program

Summary Guidelines

1.Program Overview The Rescue Payment Assistance Program will provide funds to lenders/servicers

on behalf of homeowners who are delinquent on their mortgage payments due to a 

delay in receiving unemployment benefits, insufficient income, or other unforeseen 

circumstances, by bringing them current on delinquent mortgage obligations.

Allowable uses of the funds will include the following:

• Delinquent mortgage payments;

• Late fees, inspection fees, and attorney fees related to a successful/closed loan 

modification; 

• Delinquent property taxes advanced by the servicer or escrow shortage; and

• Up to one year of standard homeowner’s insurance if a lender/servicer has 

previously imposed forced-placed insurance on the property. Forced-placed

insurance is high cost insurance which serves only to protect the mortgagee’s 

interest in the property

If Rescue Payment Assistance is used to pay delinquent property taxes or 

homeowner’s insurance, the homeowner must request that the lender/servicer set 

up an escrow account for property taxes and homeowner’s insurance if none is 

in place. If the homeowner’s lender/servicer will not agree to set up an escrow 

account, the homeowner’s taxes and insurance must be considered in calculating 

the Sustainable Monthly Payment

Assistance is subject to approval of the homeowner’s HHF Action Plan which is a 

plan relating solely to TARP-funded modification programs that will be developed 

by a housing counseling agency and approved by OHFA (the “HHF Action Plan”). 

Homeowners may receive assistance from one or more HHF Programs. The HHF

Action Plan will determine the type(s) and amount of HHF assistance for each 

homeowner, up to the maximum total benefit amount for which the homeowner 

qualifies.

2.Program Goals The goal of this program is to prevent avoidable foreclosure for homeowners who

have experienced a temporary hardship by reinstating their past due first mortgage 

loans.

3.Target Population/ Areas The Program will be available to eligible low- and moderate- income homeowners 

throughout Ohio, up to the maximum benefit of $15,000. 

4.Program Allocation 

(Excluding Administrative 

Expenses)

$106,904,903.00
37OHIO HOUSING FINANCE AGENCY

5.Borrower Eligibility 

Criteria

Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current household income is defined 

at time of submission of the HHF Action Plan as the 30 day average of all 

wages, compensation and/or public benefits in the homeowner’s household over 

the prior 60 days;

• First mortgage debt less than the highest FHA maximum loan amount among 

all Ohio counties;

• Liquid assets equal to or less than three months of mortgage payments, 

excluding retirement accounts;

• Hardship due to involuntary loss or reduction in income, divorce, disability, 

or illness resulting in a loss of income or significant medical expenses, which 

shall be documented by a financial hardship affidavit signed by the homeowner, 

and supporting documents which may include documents from the state 

unemployment department, a letter from the previous employer, divorce decree, 

medical bills, or disability forms; and

• Demonstrate ability to sustain mortgage payments, if assistance under the 

Program is received, for six months or more. Unemployment compensation

or assistance under the Partial Mortgage Payment Assistance Program will be 

considered in evaluating sustainability, if assistance is expected to continue for 

at least six months

6.Property/Loan Eligibility 

Criteria

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the mortgage is recorded

as real property and the home is permanently affixed to the land.

7.Program Exclusions • Homeowners who cannot demonstrate the ability to sustain mortgage payments

for at least six months are not eligible. Other HHF programs may be used to

demonstrate sustainability. Sustainable Monthly Payment is equal to 38% or 

less of current household income, and the payment must include taxes and 

insurance in cases where taxes and insurance are not escrowed by the lender/

servicer

• Homeowners participating in or eligible for HAMP

• Homeowners in active bankruptcy and homeowners who have not reaffirmed 

their mortgage after a bankruptcy which resulted in mortgage debt being 

discharged

• Homeowners who have a sheriff’s sale scheduled in 21 days or less

8.Structure of Assistance Assistance will take the form of a non-recourse, non-amortizing, zero-percent

interest, five-year loan secured by the property and repayable only from equity 

proceeds of a refinance or sale. The loan will be recorded as a subordinate lien. 

Twenty percent of the loan balance will be forgiven each year on the anniversary 

of the closing, and any remaining balance will be forgiven on December 31, 2017.

Loan repayments will be recycled back into the program and used to provide 

assistance to additional homeowners until December 31, 2017.

9.Per Household Assistance Maximum amount available per homeowner: $15,00

Estimated average assistance provided per homeowner: $5,994

10.Duration of Assistance Assistance will be provided in a one-time lump sum payment to the homeowner’s

lender/servicer.
38OHIO HOUSING FINANCE AGENCY

11.Estimated Number of

Participating Households

It is expected that 17,835 households will be assisted under the Program.

12.Program Inception/ 

Duration

The Program will begin September 27, 2010 and is expected to continue until 

December 31, 2017 or when available funds are exhausted

13.Program Interactions with

Other Programs (e.g. othe

HFA programs)

Homeowners may access the Partial Mortgage Payment Assistance Program, 

the Mortgage Modification with Principal Reduction Assistance Program, and/

or the Short Refinance Program, if approved as part of the homeowner’s HHF 

Action Plan. If homeowners are unable to sustain homeownership after receiving

assistance under the Program, they may be approved for the Transitional Assistance 

Program if they have not exhausted their maximum benefit. 

14.Program Interactions with 

HAMP

Homeowners will be first screened for eligibility for HAMP before being 

considered for the Program, until the expiration of HAMP. Homeowners

participating in or eligible for HAMP are excluded

15.Program Leverage with 

Other Financial Resources

The Program will strongly encourage the lenders/servicers to consider waiving late 

fees or any other expenses that are not paid to a third party. Lenders/servicers will 

not be required to match Program funds

16.Qualify as an

Unemployment Program

 Yes  No
39OHIO HOUSING FINANCE AGENCY

SERVICE SCHEDULE B-2

Ohio Housing Finance Agency (OHFA)

Partial Mortgage Payment Assistance Program

Summary Guidelines

1.Program Overview The Partial Mortgage Payment Assistance Program will support unemployed

homeowners by assisting with their mortgage payments for up to 15 months 

while they search for a new job and/or participate in a job training program. 

Full mortgage payments will be made to the homeowner’s lender/servicer as 

long as the homeowner remains eligible for assistance. To remain eligible for

assistance, the homeowner must pay their Affordable Monthly Payment, as 

calculated and in their approved HHF Action Plan (hereinafter defined), to the 

Ohio HHF servicer, a special third-party servicer selected by Ohio Housing 

Finance Agency (the “Ohio HHF Servicer”) to receive homeowners’ partial 

payments under the Ohio HHF program. Affordable Monthly Payment is

equal to 20% of current household income or 25% of homeowner’s monthly 

mortgage principal, interest taxes and insurance (PITI) payment, whichever 

is greater, unless the Affordable Monthly Payment is waived because the 

homeowner has exhausted unemployment compensation benefits. The 

Affordable Monthly Payment amount may change if homeowner’s income 

increases 20% or more or decreases 10% or less.

Homeowners will resume their regular payments at the end of the 

term approved in their HHF Action Plan or two months after resuming 

employment, whichever occurs first.

Assistance is subject to approval of the homeowner’s HHF action plan which 

is a plan relating solely to TARP funded modification programs that will be 

developed by a housing counseling agency and approved by OHFA (the “HHF 

Action Plan”). Homeowners may receive assistance from one or more HHF 

Programs. The HHF Action Plan will determine type(s) and amount of HHF

assistance for each homeowner, up to the maximum total benefit amount for 

which the homeowner qualifies.

2.Program Goals The goal of the Program is to assist unemployed homeowners to remain in

their homes and make on-time, monthly payments on their mortgages during 

unemployment so that they may avoid delinquency and foreclosure; and to 

assist homeowners with obtaining a sustainable loan modification after they 

have regained employment

3.Target Population/ Areas The Program will be available to eligible unemployed low- and moderateincome homeowners throughout Ohio, up to $15,000. 

4.Program Allocation (Excluding 

Administrative Expenses)

$299,540,000.00
40OHIO HOUSING FINANCE AGENCY

5.Borrower Eligibility Criteria Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current household income 

is defined at time of submission of the HHF Action Plan as the 30 

day average of all wages, compensation and/or public benefits in the 

homeowner’s household over the prior 60 days;

• First mortgage debt less than the highest FHA maximum loan limit among 

all Ohio counties

• Liquid assets equal to or less than three months mortgage payments, 

excluding retirement accounts;

• Hardship due to involuntary loss or reduction in income, which shall be 

documented by a financial hardship affidavit signed by the homeowner, 

and supporting documents which may include a form from the state 

unemployment department, or a letter from the previous employer 

documenting involuntary unemployment; 

• At least one wage earner in the household must be receiving 

unemployment compensation or must have exhausted unemployment 

compensation benefits within the last twelve months; 

• Homeowner must make the partial mortgage payment on time; and

• Homeowner must actively seek reemployment during the assistance 

period

6.Property/Loan Eligibility 

Criteria

One to four unit owner-occupied primary residences located in Ohio, 

including condominiums. Manufactured homes are eligible only if the

mortgage is recorded as real property and the home is permanently affixed to 

the land

7.Program Exclusions • Homeowners with a total PITI payment of less than 20% of current income

are not eligible

• Homeowners in active bankruptcy and homeowners who have not 

reaffirmed their mortgage after a bankruptcy which resulted in mortgage 

debt being discharged

• Homeowners who have a sheriff’s sale scheduled in 21 days or less

8.Structure of Assistance Assistance will take the form of a non-recourse, non-amortizing, zero-percent

interest, five-year loan secured by the property and repayable only from equity 

proceeds of a refinance or sale. The loan will be recorded as an open-ended 

subordinate lien. Twenty percent of the current loan balance will be forgiven

each year on the anniversary of the closing, and any remaining balance will be 

forgiven on December 31, 2017. Loan repayments will be recycled back into

the program and used to provide assistance to additional homeowners until 

December 31, 2017

9.Per Household Assistance Maximum amount available per homeowner: $15,00

Estimated average assistance provided per homeowner: $9,390

10.Duration of Assistance Homeowners may receive assistance up to a maximum of 15 months.

Should a homeowner become reemployed within the 15 month period, the 

homeowner may continue receiving assistance for up to an additional 2 

months after reemployment
41OHIO HOUSING FINANCE AGENCY

11.Estimated Number of

Participating Households

It is expected that 31,900 households will be assisted under the Program.

12.Program Inception/ Duration The Program will begin September 27, 2010 and is expected to continue until 

December 31, 2017 or when available funds are exhausted

13.Program Interactions with

Other Programs (e.g. other HF

programs)

Homeowners who participate in the Program will work with their lender/

servicer to enter into a modified, affordable loan payment when the 

homeowner is re-employed. Homeowners may access the Rescue Payment

Assistance Program, the Mortgage Modification with Principal Reduction 

Assistance Program, and/or the Short Refinance Program, if approved as part 

of the homeowner’s HHF Action Plan. If homeowners are unable to sustain

homeownership after receiving assistance from the Program, they may be 

approved for the Transitional Assistance Program if they have not exhausted 

their maximum benefit. 

14.Program Interactions with 

HAMP

The Program may precede the Home Affordable Unemployment Program 

(UP) forbearance or may be used to extend it

15.Program Leverage with Other 

Financial Resources

The Program will strongly encourage the lenders/servicers to consider 

waiving late fees or any other expenses that are not paid to a third party

Lenders/servicers will not be required to match Program funds.

16.Qualify as an Unemployment

Program

Yes No
42OHIO HOUSING FINANCE AGENCY

SERVICE SCHEDULE B-3

Ohio Housing Finance Agency (OHFA)

Mortgage Modification with Principal Reduction Program

Summary Guidelines

1.Program Overview The Mortgage Modification with Principal Reduction Program will provide

assistance to homeowners who do not qualify for existing loan modification 

programs due to severe negative equity. Funds will be used to incentivize

lenders/servicers to reduce homeowners’ mortgage principal balance to the 

level necessary to achieve a loan modification with a target of 115% of loan 

to value or less, and to achieve an Affordable Payment for the homeowner

Affordable Monthly Payment is equal to 31% or less of current household 

income.

Lenders/servicers will provide principal forbearance or forgiveness equal to or 

greater than the Program payment. If principal forgiveness is permissible by

the lender/servicer, it must be offered to the homeowner before any principal 

forbearance could occur and qualify for the Program. This option should

increase the number of loan modifications that are approved and will be 

available to both HAMP-eligible and non-HAMP eligible borrowers

This program also offers the option of Lien Elimination Assistance to 

substitute for a loan modification. Lien Elimination Assistance applies in 

cases where the lien holder agrees to accept up to $15,000 in HHF funds in 

return for extinguishing the existing lien. This is most likely to occur in cases

where the property is valued at $60,000 or less. To receive Lien Elimination

Assistance, homeowners must demonstrate the ability to stay current on their 

property taxes and homeowner’s insurance. To be considered sustainable, the

homeowner’s property taxes and insurance must be equal to 31% or less of 

current household income

Assistance is subject to approval of the homeowner’s HHF action plan which 

is a plan relating solely to TARP funded modification programs that will be 

developed by a housing counseling agency and approved by OHFA (the “HHF 

Action Plan”). Homeowners may receive assistance from one or more HHF 

Programs. The HHF Action Plan will determine type(s) and amount of HHF

assistance for each homeowner, up to the maximum total benefit amount for 

which the homeowner qualifies.

2.Program Goals The goals of the Program are to

• Help homeowners obtain mortgage loan modifications to achieve an 

affordable monthly loan payment;

• Reduce the probability of re-default after the loan modification by 

incentivizing lenders/servicers to include principal reduction as part of 

a modification when that reduction is necessary to achieve an affordable 

monthly payment; and

• Reduce the risk of re-default due to severe negative equity

3.Target Population/ Areas The Program will be available to eligible low- and moderate- income 

homeowners throughout Ohio, up to the maximum benefit amount of $15,000. 

4.Program Allocation (Excluding 

Administrative Expenses)

$22,717,635.00
43OHIO HOUSING FINANCE AGENCY

5.Borrower Eligibility Criteria Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current household income is 

defined at time of submission of the HHF Action Plan as the 30 day average 

of all wages, compensation and/or public benefits in the homeowner’s 

household over the prior 60 days;

• First mortgage debt less than the highest FHA maximum loan amount 

among all Ohio counties;

• Liquid assets equal to or less than three months of mortgage payments;

• Hardship due to involuntary loss or reduction in income, divorce, disability, 

or illness resulting in a loss of income or significant medical expenses, 

which shall be documented in part by a financial hardship affidavit signed 

by the homeowner; and

• Homeowner must have been turned down for a loan modification due to the 

failure of the lender/servicer’s Net Present Value (NPV) calculation. 

6.Property/Loan Eligibility 

Criteria

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the mortgage is

recorded as real property and the home is permanently affixed to the land.

To qualify for modification with principal reduction assistance, must have a 

loan to value ratio of 115% or more. 

7.Program Exclusions • Homeowners currently participating in HAMP are not eligibl

• Homeowners in active bankruptcy and homeowners who have not 

reaffirmed their mortgage after a bankruptcy which resulted in mortgage 

debt being discharged

• Homeowners who have a sheriff’s sale scheduled in 21 days or less

8.Structure of Assistance Assistance will take the form of a non-recourse, non-amortizing, zero-percent

interest, five-year loan secured by the property and repayable only from equity 

proceeds of a refinance or sale. The loan will be recorded as a subordinate 

lien. Twenty percent of the loan balance will be forgiven each year on the

anniversary of the closing, and any remaining balance will be forgiven on 

December 31, 2017. Loan repayments will be recycled back into the program

and used to provide assistance to additional homeowners until December 31, 

2017

9.Per Household Assistance Maximum amount available per homeowner: $15,00

Estimated average assistance provided per homeowner: $9,667

10.Duration of Assistance Assistance will be provided in a one-time lump sum payment to the

homeowner’s lender/servicer. 

11.Estimated Number of

Participating Households

It is expected that 2,350 homeowners will receive assistance from the Program.

12.Program Inception/ Duration The Program will begin September 27, 2010 and is expected to continue until 

December 31, 2017 or when available funds are exhausted.

13.Program Interactions with

Other Programs (e.g. other HF

programs)

Homeowners may access the Rescue Payment Assistance Program and/or 

the Partial Mortgage Payment Assistance Program, if approved as part of 

the homeowner’s HHF Action Plan. If homeowners are unable to sustain

homeownership after receiving assistance under the Program, they may be 

approved for the Transitional Assistance Program if they have not exhausted 

their maximum benefit.
44OHIO HOUSING FINANCE AGENCY

14.Program Interactions with 

HAMP

Homeowners will be first screened for eligibility for HAMP before being 

considered for the Program until the expiration of HAMP. Homeowners

currently participating in HAMP are not eligible

15.Program Leverage with Other 

Financial Resources

The following modification options leverage other financial resources:

Principal Reduction Matched Assistance (HAMP Eligible)

Contributions will be made to the homeowner’s principal reduction with 

the goal of reducing the LTV to at least 115%. For every dollar of principal 

forbearance or forgiveness offered by the lender/servicer, one dollar of 

Program funds will be contributed. All late fees and other non-out-of-pocket

collections costs must be waived by the lender/servicer and cannot be 

capitalized

Principal Reduction Matched Assistance (Non HAMP Eligible)

Contributions will be made to the homeowner’s principal reduction with the 

goal of reducing the LTV. For every dollar of principal forgiveness granted

by the lender/servicer, one dollar of Program funds will be contributed. All 

late fees and other non-out-of-pocket collections costs must be waived by the 

lender/servicer and cannot be capitalized. 

16.Qualify as an Unemployment

Program

 Yes  No
45OHIO HOUSING FINANCE AGENCY

SERVICE SCHEDULE B-4

Ohio Housing Finance Agency (OHFA)

Transition Assistance Program

Summary Guidelines

1.Program Overview The Transition Assistance Program will assist homeowners whose current

mortgage payment exceeds the Affordable Monthly Payment, and/or 

who must relocate to gain meaningful employment. Affordable Monthly

Payment is equal to 31% or less of current household income. 

The Program requires the lender/servicer to consider a Short Sale or DeedIn-Lieu option and waive any rights to deficiency judgments. 

The Program allows an incentive to the lender/servicer and a stipend to 

borrowers to relocate while leaving the property in saleable condition

Assistance is subject to approval of the homeowner’s HHF action plan 

which is a plan relating solely to TARP funded modification programs that 

will be developed by a housing counseling agency and approved by OHFA 

(the “HHF Action Plan”). Homeowners may receive assistance from one 

or more HHF Programs. The HHF Action Plan will determine type(s) and

amount of HHF assistance for each homeowner, up to the maximum total 

benefit amount for which the homeowner qualifies.

2.Program Goals To allow homeowners to achieve a “graceful exit” from their current

situation and avoid foreclosure

3.Target Population/ Areas The Program will be available to eligible low- and moderate- income 

homeowners throughout Ohio, up to the maximum benefit amount of 

$15,000. 

4.Program Allocation (Excluding 

Administrative Expenses)

$18,013,462.00

5.Borrower Eligibility Criteria Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current household income 

is defined at time of submission of the HHF Action Plan as the 30 

day average of all wages, compensation and/or public benefits in the 

homeowner’s household over the prior 60 days;

• First mortgage debt less than the highest FHA maximum loan amount 

among all Ohio counties;

• Liquid assets equal to or less than three months of mortgage payments;

• Hardship due to involuntary loss or reduction in income, divorce, 

disability, or illness resulting in a loss of income or significant medical 

expenses, which shall be documented in part by a financial hardship 

affidavit signed by the homeowner; and

• Homeowners who must relocate for employment should meet the 

requirements of IRS Publication 521 which states “the new main job is 

at least 50 miles farther from former residence than old main job.” The 

new residence must be located in the United States of America, except 

for active duty military personnel

6.Property/Loan Eligibility Criteria One to four unit owner-occupied primary residences located in Ohio, 

including condominiums. Both HAMP and non-HAMP eligible loans will 

be considered for the Program. Manufactured homes are eligible only if

the mortgage is recorded as real property and the home is permanently 

affixed to the land.
46OHIO HOUSING FINANCE AGENCY

7.Program Exclusions • If net sales proceeds of the sale of the home are sufficient to pay off the

mortgage balance, the borrower is not eligible for assistance

• Homeowners in active bankruptcy and homeowners who have not 

reaffirmed their mortgage after a bankruptcy which resulted in mortgage 

debt being discharged

• Homeowners who have a sheriff’s sale scheduled in 21 days or less

8.Structure of Assistance Assistance will not be structured as a loa

9.Per Household Assistance Maximum amount available per homeowner: $15,00

Estimated average assistance provided per homeowner: $3,676

10.Duration of Assistance Assistance is in the form of a one-time payment, and could consist of

• A $3,000 payment to the lender/servicer, $1,500 of which will be 

passed through to the borrower or provided to the borrower by Ohio 

Homeowner Assistance LLC (OHA) and $1,500 of which will be an 

inducement to the servicer

• Payments will also be made to secondary lien holders, if any, in the 

amount of 10% of the second lien balance, up to $2,500, if a recordable 

“Satisfaction of Lien” is issued and they agree not to pursue a 

deficiency judgment for any remaining balance.

• Homeowners will receive relocation assistance up to $1,500, passed 

through from the lender/servicer or OHA, which will be paid as a 

reduction from net proceeds at a real estate closing on a short sale or as 

funds from the servicer or OHA in a deed-in-lieu situation. Relocation

assistance will be conditional on the homeowner leaving the home 

in “broom swept” condition. The lender/servicer is responsible for 

inspection

No payments may be made to the lender/servicer until a short sale, or deedin-lieu agreement is executed

11.Estimated Number of

Participating Households

It is expected that 4,900 households will be assisted under the Program.

12.Program Inception/ Duration The Program will begin September 27, 2010 and is expected to continue 

until December 31, 2017 or when available funds are exhausted

13.Program Interactions with Other

Programs (e.g. other HFA program

Homeowners may have previously received assistance from the Rescue 

Payment Assistance Program and/or the Mortgage Modification with 

Principal Reduction Program prior to using the Program. Homeowners

may have previously received or may currently receive assistance from 

the Partial Mortgage Payment Assistance Program. Homeowners may be

approved for assistance under the Program only if they have not exhausted 

their maximum benefit.

14.Program Interactions with HAMP HAFA may not be combined with any element of the Program. The

homeowner must first apply for HAFA and either be denied or have no 

response from the lender/servicer within 30 days to be eligible for the 

Program

15.Program Leverage with Other 

Financial Resources

Lenders/servicers must agree to release homeowners from future 

obligations or judgments as part of the process of approving a short sale, 

cash for keys, or deed-in-lieu agreement. First and second mortgage

holders must accept less than full payoff

16.Qualify as an Unemployment

Program

 Yes  No
47OHIO HOUSING FINANCE AGENCY

SERVICE SCHEDULE B-5

Ohio Housing Finance Agency (OHFA)

Short Refinance Program

Summary Guidelines

1.Program Overview The Short Refinance Program will provide funds to lenders/servicers on behalf

of homeowners who wish to refinance to a new mortgage loan in order to lower 

their monthly payment. Funds will be used to reduce the principal balance of

homeowner’s mortgage, which will incentivize lenders/servicers to match the 

Program payment in the form of principal forgiveness to, in the aggregate, reduce 

homeowner’s mortgage principal balance to the level necessary to qualify for a 

refinance, with a target of 95 percent to 100 percent combined loan-to-value ratio. 

The resulting refinance should result in an affordable monthly payment, including 

all subordinate mortgage loans, lower than 31 percent of their gross income. The

mortgage refinance will be originated by the homeowner’s lender, and homeowners 

must qualify under their lender’s underwriting guidelines

Lenders/servicers will provide principal forgiveness equal to or greater than the 

Program payment. This option is available to homeowners who are current on their

mortgage, employed, and have good credit history

Assistance is subject to approval of the homeowner’s HHF action plan which is a 

plan relating solely to TARP funded modification programs that will be developed 

by a housing counseling agency and approved by OHFA (the “HHF Action Plan”). 

Homeowners may receive assistance from one or more HHF Programs. The

HHF Action Plan will determine type(s) and amount of HHF assistance for each 

homeowner, up to the maximum total benefit amount for which the homeowner 

qualifies.

2.Program Goals The goals of the Program are to

• Help homeowners obtain mortgage loan refinances to lower their monthly loan 

payment;

• Provide assistance to homeowners who may not be eligible for a traditional 

modification but cannot refinance due to a decline in their home’s value; and

• Reduce the number of homeowners with negative equity

3.Target Population/ Areas The Program will be available to eligible low- and moderate- income homeowners 

throughout Ohio, up to the maximum benefit amount of $15,000. 

4.Program Allocation 

(Excluding Administrative 

Expenses)

$50,000,000.00

5.Borrower Eligibility 

Criteria

Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current household income is defined 

at time of submission of the HHF Action Plan as the 30 day average of all 

wages, compensation and/or public benefits in the homeowner’s household over 

the prior 60 days;

• First mortgage debt less than the highest FHA maximum loan amount among all 

Ohio counties;

• Liquid assets equal to or less than three months of mortgage payments; 

• Hardship due to involuntary loss or reduction in income, divorce, disability, 

or illness resulting in a loss of income or significant medical expenses, which 

shall be documented in part by a financial hardship affidavit signed by the 

homeowner; and

• Homeowners must qualify for refinance under their lender’s underwriting 

guidelines
48OHIO HOUSING FINANCE AGENCY

6.Property/Loan Eligibility 

Criteria

One to four unit owner-occupied primary residences located in Ohio, including 

condominiums. Manufactured homes are eligible only if the mortgage is recorded

as real property and the home is permanently affixed to the land.

To qualify for short refinance assistance, must have a loan to value ratio of 100% or 

more

7.Program Exclusions • Homeowners in active bankruptcy and homeowners who have not reaffirmed

their mortgage after a bankruptcy which resulted in mortgage debt being 

discharged

• Homeowners who have a sheriff’s sale scheduled in 21 days or less

• Homeowners who do not qualify under their lender’s underwriting guidelines

8.Structure of Assistance Assistance will not be structured as a loa

9.Per Household Assistance Maximum amount available per homeowner: $15,00

Estimated average assistance provided per homeowner: $7,692

10.Duration of Assistance Assistance will be provided in a one-time lump sum payment to the homeowner’s

lender/servicer. 

11.Estimated Number of

Participating Households

It is expected that 6,500 homeowners will receive assistance from the Program.

12.Program Inception/ 

Duration

The Program will begin January 1, 2011 and is expected to continue until 

December 31, 2017 or when available funds are exhausted.

13.Program Interactions

with Other Programs (e.

other HFA programs)

Homeowners may access the Partial Mortgage Payment Assistance Program prior 

to receiving a Short Refinance, if approved by the homeowner’s HHF Action Plan. 

Homeowners may access any HHF Program if the homeowner qualifies and needs 

assistance after receiving Short Refinance assistance, if they have not exhausted 

their maximum benefit.

14.Program Interactions 

with HAMP

Homeowners participating in HAMP may be eligible for Short Refinance assistance 

if they qualify for a refinance under their lender’s underwriting guidelines. 

15.Program Leverage with 

Other Financial Resources

To leverage other financial resources, contributions will be made to the 

homeowner’s lender/servicer to reduce the mortgage principal balance to at least 

100 percent loan-to-value. For every dollar of principal reduction offered by the

lender/servicer, one dollar of Program funds will be contributed. All late fees and 

other non-out-of-pocket collections costs must be waived by the lender/servicer and 

cannot be capitalized

16.Qualify as an

Unemployment Program

 Yes  No