TAMPA/134161.1 

FIRST AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This First Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the “First Amendment”) is entered into as of the date set forth on Schedule A

attached hereto as the Amendment Date (the “Amendment Date”), by and among the United 

States Department of the Treasury (“Treasury”), the undersigned party designated as HFA whose 

description is set forth in Schedule A attached hereto (for convenience, a “state housing finance 

agency” or “HFA”) and the undersigned institution designated by HFA to participate in the 

program described below (“Eligible Entity”). 

Recitals 

WHEREAS, Treasury, HFA and Eligible Entity entered into that certain Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the “Original HPA”) dated as 

of the Closing Date set forth on Schedule A attached hereto in connection with Treasury’s 

federal housing program entitled the Housing Finance Agency Innovation Fund for the Hardest 

Hit Housing Markets (the “HHF Program”), which was established pursuant to the Emergency 

Economic Stabilization Act of 2008 (P.L. 110-343), as amended, as the same may be amended 

from time to time (“EESA”); 

WHEREAS, on August 11, 2010 the Obama Administration announced that Treasury would 

make $2 billion of additional assistance available under the HHF Program for foreclosure 

prevention programs for homeowners struggling to make their mortgage payments due to 

unemployment (the “Unemployment HHF Funds”) in certain states that had previously received 

HHF Program funding, as well as certain new states and Washington, D.C.; 

WHEREAS, Treasury requested an action plan from state housing finance agencies in states that 

have previously received HHF Program funds for the use of the Unemployment HHF Funds to 

develop and implement a program or programs that specifically target homeowners struggling 

with unemployment; 

WHEREAS, HFA and Eligible Entity are part of, or are acting on behalf of, a state that was 

targeted to receive Unemployment HHF Funds and as such, Treasury, HFA and Eligible Entity 

wish to enter into this First Amendment to document all modifications and additional provisions 

necessary to address the Unemployment HHF Funds; 

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

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

hereby acknowledged, Treasury, HFA and Eligible Entity agree as follows. 
- 2 - 

TAMPA/134161.1 

Agreement 

1. Amendments

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

Original HPA, as amended by this First Amendment; all references in the Original HPA to 

the “Capital Draw Request” shall mean the Capital Draw Request in the form attached to this 

First Amendment as Exhibit C; and all references in the Original HPA to Schedules A, B or 

C shall mean the Schedules A, B or C attached to this First Amendment. All references 

herein to the “HPA” shall mean the Original HPA, as amended by this First Amendment. 

B. Unemployment Programs. The following additional language shall be added to 

Section 3.A. of the Original HPA: 

“No Capital Draw for funds in excess of the amount indicated on Schedule A

attached hereto as Portion of Program Participation Cap Representing Original 

HHF Funds shall be permissible for (i) Services that do not Qualify as an 

Unemployment Program, as indicated in the applicable Service Schedule, 

without the approval of Treasury, or (ii) Permitted Expenses.” 

C. Schedule A. Schedule A attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule A attached to this First Amendment. 

D. Schedule B. Schedule B attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule B attached to this First Amendment. 

E. Schedule C. Schedule C attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule C attached to this First Amendment. 

F. Exhibit C. Exhibit C attached to the Original HPA is hereby deleted in its entirety 

and replaced with Exhibit C attached to this First Amendment. 

2. Representations, Warranties and Covenants

A. HFA and Eligible Entity. HFA and Eligible Entity, each for itself, make the 

following representations, warranties and covenants to Treasury and the truth and accuracy 

of such representations and warranties and compliance with and performance of such 

covenants are continuing obligations of HFA and Eligible Entity, each as to itself. In the 

event that any of the representations or warranties made herein cease to be true and correct or 

HFA or Eligible Entity breaches any of its covenants made herein, HFA or Eligible Entity, as 

the case may be, agrees to notify Treasury immediately and the same shall constitute an 

Event of Default under the HPA. 

(1) HFA and Eligible Entity each hereby covenants and agrees that no funds in excess 

of the amount indicated on Schedule A attached hereto as Portion of Program 

Participation Cap Representing Original HHF Funds shall be used (i) to fund Services 

performed by Eligible Entity that do not Qualify as an Unemployment Program, as 

indicated in the applicable Service Schedule, or (ii) for Permitted Expenses. 
- 3 - 

TAMPA/134161.1 

(2) HFA and Eligible Entity each hereby certifies, represents and warrants as of the 

date hereof that each of the representations and warranties of HFA or Eligible Entity, as 

applicable, contained in the HPA are true, correct, accurate and complete in all material 

respects as of the date hereof. All covenants of HFA or Eligible Entity, as applicable, 

contained in the HPA shall remain in full force and effect and neither HFA, nor Eligible 

Entity is in breach of any such covenant. 

(3) Eligible Entity has the full corporate power and authority to enter into, execute, 

and deliver this First Amendment and any other closing documentation delivered to 

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

hereunder and thereunder. 

(4) HFA has the full legal power and authority to enter into, execute, and deliver this 

First Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous

A. The recitals set forth at the beginning of this First Amendment are true and accurate 

and are incorporated herein by this reference. 

B. Capitalized terms used but not defined herein shall have the meanings ascribed to 

them in the HPA. 

C. Any provision of the HPA that is determined to be prohibited or unenforceable in any 

jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or 

unenforceability without invalidating the remaining provisions of the HPA, and no such 

prohibition or unenforceability in any jurisdiction shall invalidate such provision in any other 

jurisdiction. 

D. This First Amendment may be executed in two or more counterparts (and by different 

parties on separate counterparts), each of which shall be deemed an original, but all of which 

together shall constitute one and the same instrument. Facsimile or electronic copies of this 

First Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to First Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement – Ohio]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

OHIO HOUSING FINANCE AGENCY UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Douglas A. Garver By: 

Name: Douglas A. Garver Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

OHIO HOMEOWNER ASSISTANCE LLC 

By: /s/ Harold D. Keller 

Name: Harold D. Keller 

Title: President 

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

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

Instrument and HFA Participation Agreement as ofthe Amendment Date.

BFA:

OHIO HOUSING FINANCE AGENCY

By:

Name:

Title:

ELIGIBLE ENTITY:

OHIO HOMEOWNER ASSISTANCE LLC

By:

Name:

Title:

TREASURY:

By:

{Signature Page to First Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement - Ohio]
TAMPA/134161.1 

EXHIBITS AND SCHEDULES

Exhibit C Form of Capital Draw Request 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/134161.1 

EXHIBIT C

FORM OF CAPITAL DRAW REQUEST

[insert date] 

The Bank of New York Mellon 

tarpcppclosing@bnymellon.com

Attn: Matthew Sabino 

The United States Department of the Treasury 

OFSChiefCounselNotices@do.treas.gov

HFAInnovation@do.treas.gov

tarp.compliance@do.treas.gov

Attention: HFA Hardest Hit Fund 

Ladies/Gentlemen: 

 Reference is made to the Commitment to Purchase Financial Instrument and HFA 

Participation Agreement dated as of the date set forth on Schedule A thereto (as amended, 

supplemented or otherwise modified and in effect from time to time, the “HPA”) by and among 

[insert HFA name] (“HFA”), [insert Eligible Entity name] (“Eligible Entity”) and the United 

States Department of the Treasury (“Treasury”). Reference is also made to the Financial 

Instrument dated the date set forth on Schedule A to the HPA delivered by Eligible Entity to 

Treasury (as amended, restated, supplemented or otherwise modified and in effect from time to 

time, the “Financial Instrument”). Capitalized terms used but not otherwise defined herein shall 

have the meaning given them in the HPA. 

 In accordance with Section 3.A. of the HPA, the undersigned Eligible Entity hereby 

requests that The Bank of New York Mellon (“BNYM”), on behalf of Treasury, disburse the 

amounts set forth on the attached Capital Draw Schedule as a Capital Draw against the Purchase 

Price as described in the HPA to Eligible Entity on [insert date] (the “Funding Date”). 

 HFA and Eligible Entity, as applicable, hereby certify to Treasury and BNYM, as of the 

date hereof and on the Funding Date, that: 

(a) no default or Event of Default has occurred and is continuing as of the date hereof 

and on the Funding Date [other than ______________]; 

(b) each of the representations and warranties made by HFA and Eligible Entity in the 

HPA and Financial Instrument are true and correct on and as of such date, as if made 

on and as of the date hereof and on the Funding Date [other than ______________]; 
TAMPA/134161.1 

(c) HFA and Eligible Entity are in compliance with the covenants and other agreements 

set forth in the HPA and Financial Instrument, which shall remain in full force and 

effect [other than ______________]; 

(d) No portion of any prior Capital Draw and/or this Capital Draw in excess of the 

amount set forth on Schedule A to the HPA as Portion of Program Participation Cap 

Representing Original HHF Funds, have been or will be used to fund Services that do 

not Qualify as an Unemployment Program, as indicated in the applicable Service 

Schedule, or Permitted Expenses. 

(e) all data and information set forth in this Capital Draw Request, including the Capital 

Draw Schedule, is true and correct in all respects; and 

(f) to our knowledge, there have been no Acts of Bad Faith by any HHF Recipient [other 

than ______________]. 

 In the event that any part of the certification made herein is discovered not to be true and 

correct after the date hereof, HFA or Eligible Entity, as applicable, shall notify Treasury 

immediately. 

[INSERT FULL LEGAL NAME OF HFA] 

 

[Name of Authorized Official] 

[Title of Authorized Official] 

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY] 

 

[Name of Authorized Official] 

[Title of Authorized Official] 
TAMPA/134161.1 

CAPITAL DRAW SCHEDULE

Capital Draw Request for: 

[______] Program $____________

[______] Program $____________

[______] Program $____________

Permitted Administrative Expenses $____________

Total Capital Draw Request $____________

Amount of Capital Draw Request for Non-Unemployment Programs and 

Permitted Expenses 

$____________

Amount of Capital Draw Request for Unemployment Programs $____________

Total Capital Draw Request as a Percentage of Program Participation Cap1: _____% 

Total Purchase Price funded to date, including current Capital Draw: $____________

Total funding to date, including current Capital Draw for Non-Unemployment 

Programs and Permitted Expenses2

$____________

Total funding to date, including current Capital Draw for Unemployment 

Programs 

$____________

Program Participation Cap: $____________

Program Funds Remaining: $____________

Amount of HHF Program funds on hand prior to this Capital Draw: $____________

HHF Program funds on hand prior to this Capital Draw as a Percentage of 

Program Participation Cap3: 

_____% 

________________________ 

1 May not be less than 2.5% nor exceed 20%. 

2 May not exceed Portion of Program Participation Cap Representing Original HHF Funds. 3

 May not exceed 5.0% on the date of submission of the Draw Request. 

Depository Account Information/Wire 

Instructions for payment of Capital Draw: 
TAMPA/134161.1 

SCHEDULE A

BASIC INFORMATION

 Name of the Eligible Entity: Ohio Homeowner Assistance LLC

 Corporate or other organizational form: Ohio limited liability company 

 Jurisdiction of organization: Ohio

Notice Information: Ohio Homeowner Assistance LLC 

 Attn: Harold D. Keller, President 

 88 East Broad Street, Suite 1800 

 Columbus, Ohio 43215 

 Phone: (614) 224-8446 

 Fax: (614) 224-8452 

 E-mail: HKeller@occh.org 

HFA Information: 

 Name of HFA: Ohio Housing Finance Agency 

Organizational form: An agency under the laws of the State of 

 Ohio 

Date of Application: June 1, 2010 

 Date of Action Plan: September 1, 2010 

 Notice Information: Ohio Housing Finance Agency 

 Attn: Douglas A. Garver, Executive Director 

 57 East Main Street 

 Columbus, Ohio 43215 

 Phone: (614) 466-8050 

 Fax: (614) 995-0487 

 E-mail: DGarver@ohiohome.org 

Program Participation Cap: $320,728,864.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $172,000,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $148,728,864.00 

Permitted Expenses: $35,556,864.11
TAMPA/134161.1 

Closing Date: August 3, 2010 

Amendment Date: September 23, 2010 

Eligible Entity Depository Account Information: See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 
TAMPA/134161.1 

SCHEDULE B

SERVICE SCHEDULES

The Service Schedules attached as Schedule B to the Original HPA are hereby deleted in their entirety 

and replaced with the attached Service Schedules (numbered sequentially as Service Schedule B-1, 

Service Schedule B-2, et. seq.), which collectively comprise Schedule B to the HPA. 
TAMPA/134161.1 

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 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. 

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 moderateincome homeowners throughout Ohio, up to the maximum benefit 

amount listed on Exhibit 1. The Program also will be available to 

eligible unemployed low- and moderate- income homeowners 

throughout Ohio, up to $15,000. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$59,650,902.89 
TAMPA/134161.1 

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 FHA maximum loan 

amount; 

• 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. 

• Homeowners participating in or eligible for HAMP are 

excluded. 

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. 
TAMPA/134161.1 

9. Per Household 

Assistance 

Maximum amount available per homeowner: 

Unemployed homeowner: $15,000 

Other Hardship: 

Standard benefit counties: $12,000 

Targeted counties: $15,000 

Estimated average assistance provided per homeowner: $6,856 

10. Duration of Assistance • Assistance will be provided in a one-time lump sum payment 

to the homeowner’s lender/servicer. 

• The expected duration of the program is three years. 

11. Estimated Number of 

Participating 

Households 

It is expected that 8,700 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 

programs) 

Homeowners may access the Partial Mortgage Payment 

Assistance Program and/or the Mortgage Modification with 

Principal Reduction 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. 

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 
TAMPA/134161.1 

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 31% of current 

household income. The Affordable Monthly Payment must be at 

least 25% of homeowner’s monthly mortgage principal, interest 

taxes and insurance (PITI) payment, to qualify for this Program. 

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 

moderate- income homeowners throughout Ohio, up to $15,000. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$189,540,000.00 
TAMPA/134161.1 

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 FHA loan limit. 

• 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 31% of 

current income are not eligible. Homeowners whose Affordable 

Monthly Payment is less than 25% of PITI are not eligible. 

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: $15,000 

Estimated average assistance provided per homeowner: $11,700 
TAMPA/134161.1 

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. 

• The expected duration of the program is three years. 

11. Estimated Number of 

Participating 

Households 

It is expected that 16,200 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 

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 and/or the Mortgage 

Modification with Principal Reduction Assistance 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 
TAMPA/134161.1 

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. 

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 moderateincome homeowners throughout Ohio, up to the maximum benefit 

amount listed on Exhibit 1. 
TAMPA/134161.1 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$22,717,635.00. 

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 FHA maximum loan 

amount; 

• 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 eligible. 

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: 

Unemployed homeowner: $15,000 

Other Hardship: 

Standard benefit counties: $12,000 

Targeted counties: $15,000 

Estimated average assistance provided per homeowner: $9,667 
TAMPA/134161.1 

10. Duration of Assistance • Assistance will be provided in a one-time lump sum payment 

to the homeowner’s lender/servicer. 

• The expected duration of the program is three years. 

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 HFA 

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. 

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 nonout-of-pocket collections costs must be waived by the 

lender/servicer and cannot be capitalized. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134161.1 

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 allows an incentive to the lender/servicer to agree to 

a short sale or deed-in-lieu option. The Program also allows a 

stipend to borrowers to relocate while leaving the property in 

saleable condition. 

The Program requires lenders/servicers that participate in the 

Program to waive any rights to deficiency judgments. 

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 moderateincome homeowners throughout Ohio, up to the maximum benefit 

amount listed on Exhibit 1. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$13,263,462.00. 

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 FHA maximum loan 

amount; 

• Liquid assets equal to or less than three months of 

mortgage payments; 

• Hardship due to involuntary loss or reduction in income, 
TAMPA/134161.1 

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. 

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. 

8. Structure of 

Assistance 

Assistance will not be structured as a loan. 

9. Per Household 

Assistance 

Maximum amount available per homeowner: 

Unemployed homeowner: $15,000 

Other Hardship: 

Standard benefit counties: $12,000 

Targeted counties: $15,000 

Estimated average assistance provided per homeowner: $4,000 

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, 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, 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 

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. 
TAMPA/134161.1 

• No payments may be made to lender/servicer until a short sale 

or deed-in-lieu agreement is executed. 

• The expected duration of the program is three years. 

11. Estimated Number of 

Participating 

Households 

It is expected that 3,300 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 

programs) 

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
TAMPA/134161.1 

Exhibit 1. 

County Maximum Benefit 

Amount County Maximum Benefit Amount 

Adams County $15,000 Licking County $15,000 

Allen County $12,000 Logan County $12,000 

Ashland County $12,000 Lorain County $15,000 

Ashtabula County $15,000 Lucas County $15,000 

Athens County $12,000 Madison County $15,000 

Auglaize County $12,000 Mahoning County $15,000 

Belmont County $12,000 Marion County $15,000 

Brown County $15,000 Medina County $15,000 

Butler County $15,000 Meigs County $15,000 

Carroll County $15,000 Mercer County $12,000 

Champaign County $12,000 Miami County $12,000 

Clark County $15,000 Monroe County $12,000 

Clermont County $15,000 Montgomery County $15,000 

Clinton County $15,000 Morgan County $15,000 

Columbiana County $12,000 Morrow County $15,000 

Coshocton County $15,000 Muskingum County $12,000 

Crawford County $15,000 Noble County $15,000 

Cuyahoga County $15,000 Ottawa County $15,000 

Darke County $15,000 Paulding County $12,000 

Defiance County $15,000 Perry County $15,000 

Delaware County $15,000 Pickaway County $12,000 

Erie County $15,000 Pike County $15,000 

Fairfield County $15,000 Portage County $15,000 

Fayette County $15,000 Preble County $12,000 

Franklin County $15,000 Putnam County $12,000 

Fulton County $15,000 Richland County $15,000 

Gallia County $12,000 Ross County $12,000 

Geauga County $12,000 Sandusky County $12,000 

Greene County $15,000 Scioto County $12,000 

Guernsey County $12,000 Seneca County $12,000 

Hamilton County $15,000 Shelby County $15,000 

Hancock County $12,000 Stark County $15,000 

Hardin County $15,000 Summit County $15,000 

Harrison County $12,000 Trumbull County $15,000 

Henry County $15,000 Tuscarawas County $12,000 

Highland County $15,000 Union County $12,000 

Hocking County $12,000 Van Wert County $15,000 

Holmes County $12,000 Vinton County $12,000 

Huron County $15,000 Warren County $15,000 

Jackson County $12,000 Washington County $12,000 

Jefferson County $12,000 Wayne County $12,000 

Knox County $12,000 Williams County $15,000 

Lake County $15,000 Wood County $12,000 

Lawrence County $12,000 Wyandot County $15,000 
TAMPA/134161.1 

SCHEDULE C

PERMITTED EXPENSES

Total Ohio 

 One-time / Start-Up Expenses: 

Initial Personnel $56,873.00 

Building, Equipment, Technology $193,500.00 

Professional Services $55,000.00 

Supplies / Miscellaneous $0.00 

Marketing /Communications $206,400.00 

Travel $3,000.00 

Website development /Translation $0.00 

Contingency $115,000.00 

 Subtotal $629,773.00 

Operating / Administrative 

Expenses: 

Salaries $6,360,363.09 

Professional Services (Legal, 

Compliance, Audit, Monitoring) $1,824,315.82 

Travel $102,000.00 

Buildings, Leases & Equipment $282,706.20 

Information Technology & 

Telecommunications $101,280.00 

Office Supplies/Postage and 

Delivery/Subscriptions $23,500.00 

Risk Management/ Insurance $0.00 

Training $0.00 

Marketing/PR $2,442,464.00 

Miscellaneous $0.00 

 Subtotal $11,136,629.11 

 Transaction Related Expenses: 

Recording Fees $1,475,812.00 

Wire Transfer Fees $7,500.00 

 Counseling Expenses 

File Intake $4,800,000.00 

Decision Costs $0.00 

Successful File $13,250,000.00 

Business Partners On-Going (Title 

Fees) $4,257,150.00 

 Subtotal $23,790,462.00 

Grand Total $35,556,864.11 

% of Total Award 11.09% 

Award Amount $320,728,864.00