Fourth Amendment to HPA — Oregon 

TAMPA/172192.3

FOURTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Fourth Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Fourth Amendment”) is entered into as of the date set forth on 

Schedule A attached hereto as the Fourth 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, as previously amended by that certain First Amendment to Commitment to 

Purchase Financial Instrument and HFA Participation Agreement (the “First Amendment”), as 

further amended by that certain Second Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement (the “Second Amendment”), and as further 

amended by that certain Third Amendment to Commitment to Purchase Financial Instrument and 

HFA Participation Agreement (the “Third Amendment”; and together with the Original HPA as 

amended thereby and by the First Amendment and Second Amendment, the “Current HPA”), 

dated as of their respective dates as 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, HFA and Eligible Entity submitted a request to Treasury to make certain revisions 

to their Service Schedules and Permitted Expenses and Treasury has agreed to the same; 

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

document all approved modifications to the Service Schedules and Permitted Expenses; 

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

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

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

Agreement 

1. Amendments

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

Current HPA, as further amended by this Fourth Amendment; and all references in the 
- 2 - 

TAMPA/172192.3

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

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

further amended by this Fourth Amendment. 

B. Schedule A. Schedule A attached to the Current HPA is hereby deleted in its entirety 

and replaced with Schedule A attached to this Fourth Amendment. 

C. Schedule B. Schedule B attached to the Current HPA is hereby deleted in its entirety 

and replaced with Schedule B attached to this Fourth Amendment. 

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

and replaced with Schedule C attached to this Fourth Amendment. 

2. Representations, Warranties and Covenants

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

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

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

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

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

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

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

Event of Default under the HPA. 

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

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

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

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

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

Entity is in breach of any such covenant. 

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

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

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

hereunder and thereunder. 

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

Fourth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous

A. The recitals set forth at the beginning of this Fourth 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. 
- 3 - 

TAMPA/172192.3

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 Fourth 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 Fourth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Fourth Amendment to HPA — Oregon] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

OREGON HOUSING AND COMMUNITY 

SERVICES 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Rick Crager By: 

Name: Rick Crager Name: Timothy G. Massad 

Title: Acting Director Title: Acting Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

OREGON AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Rick Crager 

Name: Rick Crager 

Title: President 

 

By: 

Name: Nancy Cain 

Title: Treasurer 

TAMPA/172192.3

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/172192.3

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Oregon Affordable Housing Assistance 

 Corporation

Corporate or other organizational form: Nonprofit corporation

Jurisdiction of organization: Oregon

Notice Information: 

 

 

 

 

 

 

HFA Information: 

Name of HFA: Oregon Housing and Community Services 

Organizational form: A department of the State of Oregon under 

 the laws of the State of Oregon 

Date of Application: June 1, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

 

 

 

Program Participation Cap: $220,042,786.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $88,000,000.00 
TAMPA/172192.3

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $49,294,215.00 

Permitted Expenses: $19,490,748.00

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 

Fourth Amendment Date: March 31, 2011 

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/172192.3

SCHEDULE B

SERVICE SCHEDULES

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

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

Schedule B-2, et. seq.), which collectively comprise Schedule B to the HPA. 
TAMPA/172192.3

SERVICE SCHEDULE B-1

Oregon Affordable Housing Assistance Corporation

Loan Modification Assistance Program

Summary Guidelines 

1. Program Overview The Loan Modification Assistance Program will provide funds to 

assist financially distressed borrowers who are in the process of 

modifying their home loans. 

Under the Program, a one-time contribution of funds will be made 

to a homeowner’s lender/servicer to be used to fill a financial gap 

that limits a homeowner’s eligibility for a loan modification. 

Funds may be used to reduce the outstanding principal balance, 

pay delinquent escrow, arrearages, or strategically apply 

resources to ensure a Net Present Value test is positive. 

Modification must result in a loan to value ratio of no more than 

125 percent, a total debt-to-income of up to or less than 50 

percent, and a mortgage payment of no more than 31 percent 

including principal, interest, taxes and insurance. The Program is 

designed to work with both HAMP and non-HAMP 

modifications. 

2. Program Goals To provide a quick infusion of funds that will allow for a 

successful loan modification. Without these additional funds, 

homeowners would be ineligible for modification. 

3. Target Population/ 

Areas 

The Program will be available in all counties in Oregon for 

households with incomes equal to or less than 120 percent of state 

median income. The substantial majority of funding (80 percent) 

will be provided to those counties identified as hardest hit (20). 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$26,000,000.00 

5. Borrower Eligibility 

Criteria 

The homeowner must have a current household income equal to 

or less than 120 percent of state median income. A homeowner 

who has a loan financed in whole or in part by bonds that are taxexempt under IRC section 143 is presumed to satisfy income 

limits. 

The homeowner’s current first lien mortgage must have 

originated before January 1, 2009. 

Homeowner must have either been denied for, or must be in the 

process of receiving, a loan modification. 

Homeowner must provide a financial hardship affidavit. 
TAMPA/172192.3 2 

The homeowner cannot own other residential real property. 

The homeowner, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion. 

After modification, must have a loan-to-value ratio of no more 

than 125 percent. 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence and be located in Oregon. Manufactured homes are 

eligible only if the structure is recorded in the county’s deed 

records. 

The unpaid principal balance of the homeowner’s first lien 

mortgage cannot exceed $729,750. 

The homeowner cannot own other residential real property. 

7. Program Exclusions Owners of second homes or investment properties. 

8. Structure of 

Assistance 

Funding from the Program will be structured as a five-year nonrecourse, zero-percent forgivable, non-amortizing loan in which a 

second lien is recorded on the property. Twenty percent of the 

loan will be forgiven for each year it is outstanding. If property is 

sold or refinanced prior to the loan termination date, funds will be 

recovered should sufficient equity be available from the 

transaction. Recovered funds will be recycled in order to provide 

additional program assistance until December 31, 2017, at which 

time any recovered funds will be returned to Treasury. 

9. Per Household 

Assistance 

Maximum is $10,000. 

10. Duration of Assistance One time payment on behalf of borrower to lender/servicer. 

11. Estimated Number of 

Participating 

Households 

An estimated 2,600 homeowners will receive assistance. 

12. Program Inception/ 

Duration 

The Program is expected to be operational by February of 2011 

and last less than 12 months. All funds still available after 

12/31/2017 will be returned to Treasury. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

None. 

14. Program Interactions 

with HAMP 

The Program will only function directly with the existing HAMP 

program or other modification programs offered by servicers 
TAMPA/172192.3 3 

and/or lenders. The Program is not anticipated to work with the 

other Hardest Hit Fund programs; however, it will work with nonHAMP modification programs offered through lenders/servicers. 

In those cases, Program funds will be used when an investment of 

$10,000 or less, will facilitate a successful loan modification. 

15. Program Leverage 

with Other Financial 

Resources 

Servicers will not charge administrative fees and waive all 

administrative fees accrued prior to modification. 

16. Qualify as an 

Unemployment 

Program 

 Yes No √
TAMPA/172192.3

SERVICE SCHEDULE B-2

Oregon Affordable Housing Assistance Corporation

Mortgage Payment Assistance Program

Summary Guidelines

1. Program Overview The Mortgage Payment Assistance Program will provide up to 12 

months of mortgage payment assistance or $20,000, whichever is 

used first. This temporary assistance will be provided on behalf of 

unemployed or substantially underemployed homeowners. 

The state’s foreclosure counseling network will serve as the 

administrative entry point for initial eligibility screening. 

Oregon Affordable Housing Assistance Corporation (OAHAC) 

will, on behalf of an eligible borrower, make a full monthly 

payment to the servicer until the applicable program cap is 

reached or the borrower becomes re-employed. 

OAHAC will be responsible for ongoing monitoring of borrowers 

to ensure continued eligibility. 

2. Program Goals The Mortgage Payment Assistance Program will provide 

assistance so a qualified borrower can search for work or obtain 

job training without fear of losing their home. The purpose of 

these programs is assist borrowers until they can obtain sufficient 

income to resume scheduled mortgage payments, or qualify for a 

modified mortgage payment. 

3. Target Population/ 

Areas 

The Program will be available in all counties of Oregon for 

households with incomes equal to or less than 120 percent of state 

median income. The substantial majority of funding (80 percent) 

will be provided to those counties identified as housing distressed 

(20). 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$100,000,000.00

5. Borrower Eligibility 

Criteria 

The homeowner must have a current household income equal to 

or less than 120 percent of state median income. A homeowner 

who has a loan financed in whole or in part by bonds that are taxexempt under IRC section 143 is presumed to satisfy income 

limits. 

The homeowner must be unemployed or substantially 

underemployed (have experienced a verifiable loss of income of 

25 percent or more). 
TAMPA/172192.3 2 

The homeowner’s current first lien mortgage must have 

originated before January 1, 2009. 

The homeowner must complete and sign a Financial Hardship 

Affidavit. 

The homeowner, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion. 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence and be located in Oregon. Manufactured homes are 

eligible only if the structure is recorded in the county’s deed 

records. 

The unpaid principal balance of the homeowner’s first lien 

mortgage cannot exceed $729,750. 

7. Program Exclusions Homeowners who have received notification of trustee/sheriff sale have 

been recorded and the trustee/sheriff sale is scheduled less than seven 

days from date the Servicer is notified of borrower approval by 

OAHAC. 

Those with liquid resources sufficient to make four or more months of 

mortgage payments. 

The homeowner cannot own other residential real property. 

8. Structure of 

Assistance 

The Program is envisioned as a revolving fund. The Program will 

make a five-year, non-recourse, zero-percent forgivable, nonamortizing loan in which a second lien is recorded on the 

property. Twenty percent of the loan will be forgiven for each 

year the loan is outstanding. If the property is sold or refinanced 

prior to the loan termination date, the Program will recover funds 

should sufficient equity be available from the transaction. The 

Program will recycle recovered funds in order to provide 

additional program assistance until December 31, 2017, at which 

time any recovered funds will be returned to Treasury.

9. Per Household 

Assistance 

Maximum benefit is $20,000 per borrower. 

10. Duration of Assistance 12 months. 

11. Estimated Number of 

Participating 

Households 

At a minimum this program will help 5,000 homeowners. 

12. Program Inception/ 

Duration 

The Program will be operational December 2010. The Program is 

expected to last 24 months. 
TAMPA/172192.3 3 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

None. 

14. Program Interactions 

with HAMP 

HHF Funds will generally be utilized prior to the UP forbearance 

described in Supplemental Directive 10-04 and/or GSE 

forbearance programs, unless the borrower has already received 

forbearance under those programs. When appropriate however, 

servicers should provide UP or other forbearance to eligible 

borrowers who are being evaluated for Mortgage Payment 

Assistance by OAHAC. 

If the servicer is a HAMP participating servicer, borrowers must 

be evaluated for HAMP at the earlier of reemployment or 

expiration of HFA mortgage assistance benefits. 

The servicer will not require reinstatement before the servicer 

accepts Mortgage Payment Assistance, but OAHAC can agree to 

do so if it deems appropriate for the borrower. 

15. Program Leverage 

with Other Financial 

Resources 

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

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

the loan is reinstated or modified following HFA mortgage 

assistance servicers will waive all administrative fees accrued 

since the beginning of the delinquency. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No 
TAMPA/172192.3

SERVICE SCHEDULE B-3

Oregon Affordable Housing Assistance Corporation

Loan Preservation Assistance Program

Summary Guidelines 

1. Program Overview The Loan Preservation Assistance Program is intended to benefit 

homeowners who have regained employment or recovered from 

financial distress to ensure their loans become, or remain, 

affordable. Funds provided through this Program will be paid to 

lenders/servicers to be used to ensure successful loan 

modification, pay arrearages, bring a delinquent borrower current, 

cure delinquent escrow, or pay other fees incurred during a period 

of unemployment or financial distress. Funds may be utilized to 

bring homeowners within acceptable limits for entry into existing 

refinance, modification, or other existing foreclosure prevention 

programs. Eligibility will be determined by Foreclosure 

Counselors and staff from the Oregon Affordable Housing 

Assistance Corporation. 

2. Program Goals To provide those who recover from unemployment or financial 

distress the opportunity to pay any significant penalties they have 

incurred, qualify for modification, or pay arrearages to ensure 

long term mortgage affordability. 

3. Target Population/ 

Areas 

The program will be available in all counties of Oregon for 

households with incomes equal to or less than 120 percent of state 

median income. The substantial majority of funding (80 percent) 

will be provided to those counties identified as hardest hit (20). 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$57,000,000.00 

5. Borrower Eligibility 

Criteria 

The homeowner must have a current household income equal to 

or less than 120 percent of state median income. A homeowner 

who has a loan financed in whole or in part by bonds that are taxexempt under IRC section 143 is presumed to satisfy income 

limits. 

Homeowner must provide a financial hardship affidavit. 

After anticipated assistance, recipients cannot have debt–toincome ratio greater than 50 percent. 

After modification, must have a loan-to-value ratio of not 

more than 125 percent. 
TAMPA/172192.3 2 

The homeowner, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 

years, of any one of the following: (A) felony larceny, theft, 

fraud or forgery, (B) money laundering or (C) tax evasion. 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence and be located in Oregon. Manufactured homes are 

eligible only if the structure is recorded in the county’s deed 

records. 

The unpaid principal balance of the homeowner’s first lien 

mortgage cannot exceed $350,000. 

7. Program Exclusions First lien mortgages that are home equity lines of credit. 

The homeowner cannot own other residential real property. 

8. Structure of 

Assistance 

The Program is envisioned as a revolving fund. The Program will 

make a five-year, non-recourse, zero-percent forgivable, nonamortizing loan in which a second lien is recorded on the 

property. Twenty percent of the loan will be forgiven for each 

year the loan is outstanding. If the property is sold or refinanced 

prior to the loan termination date, the Program will recover funds 

should sufficient equity be available from the transaction. The 

Program will recycle recovered funds in order to provide 

additional program assistance until December 31, 2017, at which 

time any recovered funds will be returned to Treasury. 

9. Per Household 

Assistance 

Maximum benefit is $20,000 per borrower. 

10. Duration of Assistance Lenders/servicers will receive a one-time payment on behalf of 

borrower. 

11. Estimated Number of 

Participating 

Households 

It is estimated that a minimum of 2,850 homeowners will receive 

assistance. 

12. Program Inception/ 

Duration 

The Program will be operational in April 2011. The Program is 

expected to last 30 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will operate in conjunction with the Mortgage 

Payment Assistance Program and other existing modification and 

refinance programs. It is anticipated that many of the recipients 

of these funds will have used mortgage assistance, become 

stabilized, and can now take advantage of this Program. 

Recipients of these Program funds will enter into companion loan 

modification programs such as the FHA’s Short Refinance 

Program, HAMP, Hope for Homeowners or other existing 

modification programs. 

14. Program Interactions 

with HAMP 

This Program would incent recipients to enter loan modification 

programs such as HAMP and may interact with both new and 
TAMPA/172192.3 3 

existing HAMP programs. 

15. Program Leverage 

with Other Financial 

Resources 

Servicers will waive administrative fees (e.g., NSF, late charges). 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/172192.3

SERVICE SCHEDULE B-4

Oregon Affordable Housing Assistance Corporation

Transition Assistance Program

Summary Guidelines 

1. Program Overview The Transitional Assistance Program will assist homeowners for 

whom foreclosure would otherwise be inevitable. This Program 

will serve as an alternative exit point for recipients of the 

Mortgage Payment Subsidy Program who do not regain 

employment or recover from financial distress to the extent that 

they would benefit from loan preservation assistance. This 

Program will work in conjunction with servicer/lender short sale 

and deed-in-lieu of foreclosure programs to help homeowners 

transition to affordable housing expediently. 

2. Program Goals To provide funds to financially distressed homeowners so they 

may be able to find affordable housing. Additionally, funds will 

serve as an incentive to maintain the home’s condition prior to 

turning it over to a lender/servicer. 

3. Target Population/ 

Areas 

The Program will be available in all counties of Oregon for 

households with incomes equal to or less than 120 percent of state 

median income. The substantial majority of funding (80 percent) 

will be provided to those counties identified as hardest hit (20). 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$7,552,038.00 

5. Borrower Eligibility 

Criteria 

The homeowner must have a current household income equal to 

or less than 120 percent of state median income. A homeowner 

who has a loan financed in whole or in part by bonds that are taxexempt under IRC section 143 is presumed to satisfy income 

limits. 

Homeowner must provide a financial hardship affidavit. 

The homeowner, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion. 

Complete Short Sale or Deed in Lieu of Foreclosure 
TAMPA/172192.3 2 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence and be located in Oregon. Manufactured homes are 

eligible only if the structure is recorded in the county’s deed 

records. 

7. Program Exclusions The homeowner cannot own other residential real property. 

8. Structure of 

Assistance 

This Program will not be structured as a loan. 

9. Per Household 

Assistance 

Maximum recipient eligibility is $3,000.

10. Duration of Assistance Recipients will receive a single payment. 

11. Estimated Number of 

Participating 

Households 

An estimated 2,515 homeowners will receive assistance under the 

Program. 

12. Program Inception/ 

Duration 

Transitional Assistance will be operational in January, 2011. 

Program expected to last 30 months.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

The Program will operate in conjunction with the Mortgage 

Assistance Program. Mortgage Assistance Program participants 

who have not found stable employment can take advantage of this 

Program. 

It is anticipated the Program will also provide additional support 

to eligible recipients above and beyond the assistance provided 

through HAFA. The Program would essentially fill gaps for the 

borrower in areas where HAFA assistance falls short of the 

resources needed for a successful transition.

14. Program Interactions 

with HAMP 

None.

15. Program Leverage 

with Other Financial 

Resources 

There is no current anticipated leverage; however this program 

will be layered on any other resources the homeowner is able to 

receive for leaving their home before foreclosure. 

16. Qualify as an 

Unemployment 

Program 

Yes ;No 
TAMPA/172192.3

SERVICE SCHEDULE B-5

Oregon Affordable Housing Assistance Corporation

Loan Refinancing Assistance Pilot Project

Summary Guidelines

1. Program Overview The Loan Refinancing Assistance Pilot will target two Oregon 

counties hit hard by the housing crisis. Under this program, 

Oregon Affordable Housing Assistance Corporation (OAHAC), 

after review and approval by Oregon Housing and Community 

Services (OHCS), will purchase loans on behalf of homeowners 

with negative equity mortgages, who have recovered from 

unemployment, underemployment or financial distress and show 

the capability to pay a mortgage payment based on a principal 

amount reflective of the current market value of the home. 

All loans will be purchased by OAHAC at or below the current 

appraised value of the home securing the loan and at least 10 

percent below the current unpaid principal balance. 

After the loans have been purchased, OAHAC will empower 

OHCS to oversee the immediate refinance of the OAHAC 

mortgages based on and to set the principal amount equal to the 

home’s current appraised value. 

2. Program Goals The Loan Refinancing Assistance Pilot Project’s goals are to 

assist homeowners escape acute negative equity situations, help to 

slow the ongoing decline in property value, and provide approved 

homeowners with reliable, affordable, sustainable mortgages. 

3. Target Population/ 

Areas 

The Program will be available in two Oregon counties, Deschutes 

and Jackson, and focus exclusively on homeowners who have 

recovered from a financial hardship, are saddled with negative 

equity mortgages, and demonstrate the capability to pay a loan 

refinanced at the home’s current value. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$10,000,000.00

5. Borrower Eligibility 

Criteria 

The homeowner must have a current household income equal to 

or less than 120 percent of state median income. A homeowner 

who has a loan financed in whole or in part by bonds that are taxexempt under IRC section 143 is presumed to satisfy income 

limits. 

The homeowner must have experienced a verifiable loss of 

income or other demonstrable financial hardship. 

A demonstrated ability to meet standard payment ratios at the 

home’s current appraised value. 

The homeowner must complete and sign a Financial Hardship 
TAMPA/172192.3 2 

Affidavit attesting to the prior loss of income or other applicable 

financial hardship. 

The homeowner, in connection with a mortgage or real estate 

transaction, cannot have been convicted, within the last 10 years, 

of any one of the following: (A) felony larceny, theft, fraud or 

forgery, (B) money laundering or (C) tax evasion. 

6. Property/Loan 

Eligibility Criteria 

The subject property must be an owner-occupied, primary 

residence and be located in Oregon. 

The mortgage has substantial negative equity. 

The unpaid principal balance of the homeowner’s first lien 

mortgage cannot exceed $499,000. 

Loans must be purchased at or below appraised market value of 

the home. 

Loans can only be purchased if the lender/servicer has discounted 

the price of the loan by at least 10 percent of the current unpaid 

principal balance. 

7. Program Exclusions First lien mortgages that are home equity lines of credit. 

Third party contracts and other private party loans. 

The homeowner cannot own other residential real property. 

Employees of Oregon Housing and Community Services, partner 

agencies, or contractors. 

8. Structure of 

Assistance 

The refinanced mortgage will be for a term of 30 years, carry a 

fixed interest rate (to be set by OAHAC and apply uniformly for 

all borrowers) and the loan amount will be set at the current 

appraised value of the home. 

The Pilot is envisioned as a revolving fund. OAHAC will buy 

distressed mortgages on a homeowner’s behalf, and then 

empower OHCS to refinance with the homeowner at current 

appraised value and service the loan. When the loan 

demonstrates healthy, reliable performance, OHCS may arrange 

for take out financing or sell the loan and revolve the funding 

directly back to OAHAC until December 31, 2017. After 

December 31, 2017 all repayments and profits, if any, will be 

returned to Treasury. 

9. Per Household 

Assistance 

Anticipated per household assistance is $125,000-$150,000. 

10. Duration of 

Assistance 

Assistance will be a one time payment with high touch servicing. 

Any required counseling will be provided by HUD approved 

agencies using outside (non-HHF) resources. 

11. Estimated Number of 

Participating 

Households 

OAHAC anticipates helping approximately 330 homeowners. 

12. Program Inception/ 

Duration 

OAHAC expects to purchase its first loan within three to four 

months of US Treasury approval. The program is estimated to 

last for three to four years. 

13. Program Interactions None. 
TAMPA/172192.3 3 

with Other Programs 

(e.g. other HFA 

programs) 

14. Program Interactions 

with HAMP 

None. 

15. Program Leverage 

with Other Financial 

Resources 

It is expected that this HHF investment will leverage $40 million 

in permanent mortgages. State bond financing may be utilized for 

take out financing to achieve this goal. Additionally, gains 

realized through third party mortgage refinancing or secondary 

mortgage market loan sales due to discounts received at the time 

of OAHAC’s purchase will be reinvested to grow the size of the 

revolving fund throughout the program period. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/172192.3

SCHEDULE C

PERMITTED EXPENSES

Oregon 

One-time / Start-Up Expenses: 

Initial Personnel $201,240.35

Building, Equipment, Technology $718,814.09

Professional Services $220,969.00

Supplies / Miscellaneous $27,550.86

Marketing /Communications $105,268.00

Travel $20,000.00

Website development /Translation $25,000.00

Contingency $25,000.00

 Subtotal $1,343,842.30

Operating /Administrative Expenses:

Salaries $4,267,679.87

Professional Services (Legal, 

Compliance, Audit, Monitoring) $1,382,084.84

Travel $110,062.00

Buildings, Leases & Equipment $198,864.00

Information Technology & 

Communications $600,000.00

Office Supplies/Postage and 

Delivery/Subscriptions $237,766.99

Risk Management/ Insurance $150,000.00

Training $50,000.00

Marketing/PR $333,448.00

Miscellaneous $200,000.00

Subtotal $7,529,905.70

Transaction Related Expenses: 

Recording Fees $1,400,000.00

Wire Transfer Fees $217,000.00

Counseling Expenses $0.00

File Intake $2,000,000.00

Decision Costs $0.00

Successful File $7,000,000.00

Key Business Partners On-Going $0.00

 Subtotal $10,617,000.00

 Grand Total $19,490,748.00

% of Total Award 8.86%

Award Amount $220,042,786.00