HHF California Date: May 26, 2017

SCHEDULE B-1

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”)

UNEMPLOYMENT MORTGAGE ASSISTANCE PROGRAM

Summary Guidelines

1. Program Overview The Unemployment Mortgage Assistance Program (“UMA”) is one of 

CalHFA MAC’s federally-funded programs developed to provide temporary 

financial assistance to eligible California homeowners who wish to remain 

in their homes, but have suffered a loss of income due to unemployment 

or underemployment. 

CalHFA MAC is partnering with financial institutions to provide program 

funds to reinstate a delinquent first mortgage loan and subsidize an 

eligible homeowner’s mortgage payments. 

UMA provides mortgage payment assistance in an amount up to 100% of 

the PITI (principal, interest, tax, and insurance, as applicable) and any 

escrowed homeowner’s association dues or assessments, for up to 

eighteen (18) months, with the purpose of preventing avoidable 

foreclosures until such time that the homeowner retains employment 

sufficient to meet the demands of satisfying their regular mortgage 

payment. UMA will provide assistance to reinstate the first mortgage loan 

before providing monthly payment assistance, if the loan is delinquent as a 

result of an eligible hardship.

2. Program Goals UMA’s goal is to help homeowners remain in their homes and prevent 

avoidable foreclosures despite loss of income due to unemployment or 

underemployment.

UMA will reinstate a delinquent first mortgage loan before making 

monthly payments in order to prevent foreclosure and provide a 

homeowner with additional time to find alternate employment and 

replace income needed to make their mortgage payment.

UMA was designed to assist homeowners who are currently receiving 

California Employment Development Department unemployment benefits, 

and includes homeowners whose unemployment benefits lapsed or 

expired within 60 days of the request for UMA assistance. 

UMA was designed to complement other loss mitigation programs, 

including increasing a homeowner’s eligibility for an extended written 
B-1-2

forbearance plan and/or loan modification.

3. Target Population / 

Areas

UMA is designed to target low-to-moderate income homeowners and 

address the needs of a homeowner’s specific situation in lieu of targeting 

certain regions or counties.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$1,001,965,000.00

5. Borrower Eligibility 

Criteria

 Homeowner qualifies as low-to-moderate income based on perhousehold income thresholds set forth in the county in which the 

homeowner resides. Income thresholds are as posted on the Keep 

Your Home California website.

 Homeowner must complete and sign a Hardship Affidavit / 3rd Party 

Authorization to document the reason for the hardship.

 Homeowners who have recently encountered a financial hardship due 

to underemployment or unemployment, including those whose 

unemployment hardship is related to their military service. 

 Homeowner’s total monthly first-lien mortgage payment PITI 

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

homeowner’s association dues or assessments must exceed 25

percent of the homeowner’s gross monthly household income, 

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

disability benefits). 

 Homeowner must agree to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

CalHFA MAC.

 Homeowner must be currently receiving California Employment 

Development Department unemployment benefits, or their

unemployment benefits have lapsed or expired no more than 60 days 

prior to the request for UMA assistance.

 General program eligibility is determined by CalHFA MAC based on 

information received from the homeowner. Program-specific 

eligibility is determined by CalHFA MAC on a first-come, first-approved 

basis until program funds and funding reserves have been exhausted. 

Loan servicer will implement the HHF program based on participation 

agreement terms and conditions.

 If the maximum program amount is not sufficient to both reinstate a 

delinquent first mortgage loan and provide at least six (6) monthly 

mortgage payments, CalHFA MAC may, if approved by the loan 

servicer, commence monthly mortgage payment disbursements 

without reinstatement of the delinquent loan.

6. Property / Loan 

Eligibility Criteria

 Current, unpaid principal balance (“UPB”) (includes the interestbearing unpaid principal balance and any existing non-interest bearing 

forbearance balance) of the first-lien mortgage loan is not greater than 

$729,750. 
B-1-3

 The property securing the mortgage loan must not be abandoned, 

vacant or condemned.

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

(an attached or detached house or a condominium unit) located in 

California and it must be their primary residence. Mobile homes are 

eligible if they are permanently affixed to the real property that is 

secured by the first lien.

7. Program Exclusions  A Notice of Default (“NOD”) has been recorded on the subject 

property’s first mortgage loan more than 60 days prior to the date of 

request for UMA assistance. 

 Homeowner has a subordinate lien that is in foreclosure as evidenced 

by a recorded NOD or Notice of Trustee’s Sale (“NOS”).

 Homeowner is in “active” bankruptcy. Homeowners who have 

previously filed bankruptcy are eligible for consideration only with 

proof of court order “Dismissal” or “Discharge”. 

 Homeowner’s “hardship” is a result of voluntary resignation of 

employment.

 Homeowner in an active HAMP trial modification is not eligible for 

UMA consideration unless the trial is cancelled.

 Homeowner becomes fully employed at any time during the UMA 

benefit period. 

 Homeowner is actively being reviewed for a short sale, a deed in lieu 

and/or TAP benefits.

 Property is subject to a first priority lien securing a Home Equity Line of 

Credit (“HELOC”).

8. Structure of 

Assistance

CalHFA MAC will structure the assistance as a non-recourse, non-interest 

bearing subordinate loan in favor of the Eligible Entity (CalHFA MAC) 

secured by a junior lien recorded against the property in the total amount 

of HHF assistance including reduced PITI (principal, interest, tax, insurance, 

as applicable), any escrowed homeowner’s association dues or 

assessments, and any reinstatement amount necessary to bring a 

delinquent first mortgage loan current. At the conclusion of (5) five years, 

the subordinate loan will be released. There is no pro-rated forgiveness 

for this loan. Loan funds will only be repaid to Eligible Entity (CalHFA MAC) 

in the event of a sale or a refinance that includes cash out and there are 

equity proceeds available prior to forgiveness. Recovered funds will be 

recycled in order to provide additional program assistance in accordance 

with the Agreement.

9. Per Household 

Assistance

Up to $54,000 per household in total (average funding of $17,500),

equaling 100% of PITI (principal, interest, tax, insurance, as applicable), any 

escrowed homeowner’s association dues or assessments, and any 

reinstatement amount necessary to bring a delinquent first mortgage loan 

current (and in all cases, subject to the HHF program maximum benefit cap 

of $100,000 with respect to monies previously received under other HHF 
B-1-4

programs, if any).

10. Duration of 

Assistance

Homeowner participation in UMA is limited to eighteen (18) months 

maximum.

11. Estimated Number 

of Participating 

Households

Approximately 57,300. This figure is based on loans with unpaid principal 

balances ranging from $200,000 to $400,000 with an average funding of 

$17,500.

12. Program Inception 

/Duration

The statewide launch of UMA was January 10, 2011 and it will continue 

until December 31, 2020 or until funding is fully reserved, whichever 

comes first. 

13. Program 

Interactions with 

Other 

HFA/Programs 

Other HFA program benefits may be available to the homeowner provided 

the HHF program maximum benefit cap of $100,000 has not been 

exceeded, and program funds are available. The homeowner is required to 

apply separately for each HFA program. 

14. Program 

Interactions with 

HAMP

UMA benefit may follow a loan modification under HAMP or a forbearance 

plan under HAMP UP. 

15. Program Leverage 

with Other Financial 

Resources

Upon completion of all UMA benefit assistance payments and based on 

homeowner need, the servicer agrees to consider an extension of 

unemployment forbearance plan or other foreclosure prevention program, 

as applicable and per investor guidelines.

CalHFA MAC will request that the loan servicer waive fees (e.g., NSF and 

late charges). 
B-2-1

SCHEDULE B-2

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”)

MORTGAGE REINSTATEMENT ASSISTANCE PROGRAM

Summary Guidelines

1. Program Overview The Mortgage Reinstatement Assistance Program (“MRAP”) is one of 

CalHFA MAC’s federally-funded programs developed to provide 

temporary financial assistance to eligible homeowners who wish to 

remain in their homes, but are in imminent danger of losing their home to 

foreclosure.

MRAP provides funds to assist income-qualified homeowners to help 

them cure their delinquent first mortgage loan arrearages, which may 

also include payments needed to reinstate their loans from foreclosure.

2. Program Goals The MRAP will prevent avoidable foreclosures by helping homeowners 

reinstate their past due first mortgage loans.

MRAP will also mitigate the need for large reinstatement dollars to be 

capitalized with remaining loan balance, and thus, broaden the 

population of homeowners who qualify for modification.

3. Target Population / 

Areas

MRAP is designed to target low-to-moderate income homeowners and 

address the needs of a homeowner’s specific situation in lieu of targeting 

certain regions or counties.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$204,072,500.00

5. Borrower Eligibility 

Criteria

 Homeowner qualifies as low-to-moderate income based on perhousehold income thresholds set forth in the county in which the 

homeowner resides. Income thresholds are as posted on the Keep 

Your Home California website.

 Homeowner must complete and sign a Hardship Affidavit / 3rd Party 

Authorization to document the reason for the hardship.

 Homeowners who have recently encountered a financial hardship 

due to their military service are eligible.

 Homeowner has adequate income to sustain reinstated first- lien 

mortgage loan, per CalHFA MAC approved guidelines.

 Homeowner must agree to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

CalHFA MAC.
B-2-2

 Mortgage loan is delinquent as substantiated by homeowner’s

hardship documentation. The delinquency and the total amount 

required to cure the delinquency is verified with the servicer. 

 The first lien mortgage delinquency amount must be less than the 

MRAP benefit available to the homeowner.

 Loans in foreclosure are eligible.

 The homeowner’s total monthly first-lien mortgage payment PITI 

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

escrowed homeowner’s association dues or assessments, payment 

must be a maximum of 38% of the gross household income excluding 

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

benefits) to meet the definition of an affordable payment. On a case 

by case basis, CalHFA MAC reserves the right to review and approve 

post-assistance affordable monthly first lien mortgage parameters

greater than 38%, consistent with CalHFA MAC program guidelines. 

 General program eligibility is determined by CalHFA MAC based on 

information received from the homeowner. Program-specific 

eligibility is determined by CalHFA MAC on a first-come, firstapproved basis until program funds and funding reserves have been 

exhausted. Loan servicer will implement the HHF program based on 

participation agreement terms and conditions.

6. Property / Loan 

Eligibility Criteria

 Current, unpaid principal balance (“UPB”) (includes the interestbearing unpaid principal balance and any existing non-interest 

bearing forbearance balance) of the first-lien mortgage loan is not 

greater than $729,750.

 The property securing the mortgage loan must not be abandoned, 

vacant or condemned.

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

(an attached or detached house or a condominium unit) located in 

California and it must be their primary residence. Mobile homes are 

eligible if they are permanently affixed to the real property that is 

secured by the first lien.

7. Program Exclusions  Homeowner has a subordinate lien that is in foreclosure as evidenced 

by a recorded NOD or Notice of Trustee’s Sale (“NOS”).

 Homeowner is in “active” bankruptcy. Homeowners who have 

previously filed bankruptcy are eligible for consideration only with 

proof of court order “Dismissal” or “Discharge”. 

 MRAP benefit assistance request for reinstatement with a first-lien 

total monthly first lien mortgage payment PITI (principal, interest, 

taxes and insurance, as applicable) and any escrowed homeowner’s 

association dues or assessments, payment of greater than 38% of the 

homeowner’s gross monthly household income, excluding temporary 

income (e.g., unemployment or short-term disability benefits) will be 

considered unaffordable and is excluded from MRAP reinstatement 

benefit assistance. Such homeowners with unaffordable payments 
B-2-3

may be considered for Principal Reduction Program (“PRP”) 

assistance.

 The total past due arrearage of the first mortgage loan exceeds the 

maximum available MRAP benefit amount.

 Loan is less than two (2) payments past due as of the date of request 

for assistance.

 Property is subject to a first priority lien securing a Home Equity Line 

of Credit (“HELOC”).

8. Structure of 

Assistance

CalHFA MAC will structure the assistance as a non-recourse, non-interest 

bearing subordinate loan in favor of the Eligible Entity (CalHFA MAC) 

secured by a junior lien recorded against the property in the amount of 

the HHF assistance. At the conclusion of (5) five years, the subordinate 

loan will be released. There is no pro-rated forgiveness for this loan. 

Loan funds will only be repaid to Eligible Entity (CalHFA MAC) in the event 

of a sale or a refinance that includes cash out and there are equity 

proceeds available prior to forgiveness. Recovered funds will be recycled 

in order to provide additional program assistance in accordance with the 

Agreement.

9. Per Household 

Assistance

Up to $54,000 per household in total (average funding of $15,200) for PITI 

(principal, interest, tax, insurance, as applicable) and any escrowed 

homeowner’s association dues or assessments, arrearages (and in all 

cases, subject to the HHF program maximum benefit cap of $100,000 

with respect to monies previously received under other HHF programs, if 

any).

10. Duration of 

Assistance

Available in a single, lump-sum disbursement.

CalHFA MAC reserves the right to provide additional MRAP benefits, not 

to exceed the maximum program assistance amount per household, to 

previous MRAP recipients if the homeowner has suffered a subsequent, 

qualifying hardship.

11. Estimated Number 

of Participating 

Households

Approximately 13,400. This figure is based on loans with unpaid principal 

balances ranging from $200,000 to $400,000 with an average funding of 

$15,200. 

12. Program Inception / 

Duration

The statewide launch of MRAP was February 7, 2011 and it will continue 

until December 31, 2020 or until funding is fully reserved, whichever 

comes first.

13. Program Interactions 

with Other HFA 

Programs

Other HFA program benefits may be available to the homeowner 

provided the HHF program maximum benefit cap of $100,000 has not 

been exceeded, and program funds are available. The homeowner is 

required to apply separately for each HFA program. 
B-2-4

14. Program Interactions 

with HAMP

MRAP may follow a loan modification under HAMP. 

15. Program Leverage 

with Other Financial 

Resources

CalHFA MAC will require that the servicer waive all accrued and unpaid 

late charges and NSF fees for all payments funded with MRAP benefits.
B-3-1

SCHEDULE B-3

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”)

PRINCIPAL REDUCTION PROGRAM

Summary Guidelines

1. Program Overview The Principal Reduction Program (“PRP”) is one of CalHFA MAC’s 

federally-funded programs developed with a goal to provide capital to 

homeowners who have suffered an eligible hardship in order to reduce 

the outstanding principal balances of qualifying properties with negative 

equity and/or unaffordable first mortgage payments. 

PRP will provide monies to reduce the principal balance of the first 

mortgage in connection with a loan recast, modification or a stand-alone 

curtailment, each with the purpose of establishing an appropriate level of 

affordability and/or debt for eligible homeowners with qualifying 

properties.

2. Program Goals The PRP will reduce the principal balance of first mortgages in 

cooperation with participating servicers in connection with a loan recast, 

modification, or a stand-alone curtailment, to help qualifying 

homeowners stay in their homes. 

PRP will help homeowners stay in their homes by ensuring they have an 

affordable first mortgage payment and an appropriate level of mortgage 

debt after they receive PRP assistance in accordance with program 

guidelines.

3. Target Population / 

Areas

PRP is designed to target low-to-moderate income homeowners and 

address the needs of a homeowner’s specific situation in lieu of targeting 

certain regions or counties.

4. Program Allocation 

(Excluding 

Administrative 

Expenses)

$895,968,000.00

5. Borrower Eligibility 

Criteria

 Homeowner qualifies as low-to-moderate income based on perhousehold income thresholds set forth in the county in which the 

homeowner resides. Income thresholds are as posted on the Keep 

Your Home California website.

 Homeowner completes and signs a Hardship Affidavit / 3rd Party 

Authorization to document the reason for hardship. 

 Homeowners who have recently encountered a financial hardship 

due to their military service are eligible.

 Homeowner has adequate income to sustain post-assistance 
B-3-2

mortgage payments.

 Homeowner’s pre-assistance, total monthly first-lien mortgage 

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

including any escrowed homeowner’s association dues or 

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

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

disability benefits) and/or a homeowner’s pre-assistance LTV ratio is 

greater than 100%.

 Homeowner’s post-assistance, total monthly first-lien mortgage 

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

including any escrowed homeowner’s association dues or 

assessments, must meet CalHFA MAC’s definition of an “Affordable 

Payment,” which means that the homeowner’s monthly first-lien 

mortgage payment is no greater than 38% of the gross household 

income excluding temporary income (e.g., unemployment or shortterm disability benefits). On a case by case basis, CalHFA MAC 

reserves the right to review and approve post-assistance affordable 

monthly first-lien mortgage parameters greater than 38%, consistent 

with CalHFA MAC program guidelines.

 Delinquent homeowners with a pre-assistance LTV of greater than 

100% but less than 115% that have a pre-assistance Affordable 

Payment must be able to demonstrate that an eligible hardship 

caused their loan to become delinquent (e.g., reduction of income or 

increase in unavoidable expenses as per program guidelines).

 Homeowner agrees to provide all necessary documentation to satisfy 

program guidelines within the timeframes established by CalHFA 

MAC. 

 First Lien mortgage loan must be delinquent or meet the CalHFA MAC 

definition of imminent default as substantiated by homeowner’s 

hardship documentation. 

 General program eligibility is determined by CalHFA MAC based on 

information received from the homeowner. Program-specific 

eligibility is determined by CalHFA MAC on a first-come/firstapproved basis until program funds and funding reserves have been 

exhausted. Loan servicer will implement the HHF program based on 

participation agreement terms and conditions.

6. Property / Loan 

Eligibility Criteria

 Current, unpaid principal balance (“UPB”) (includes the interestbearing unpaid principal balance and any existing non-interest 

bearing forbearance balance) of the first-lien mortgage loan is not 

greater than $729,750.

 The property securing the first-lien mortgage loan must not be 

abandoned, vacant or condemned.

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

(an attached or detached house or a condominium unit) located in 

California and it must be their primary residence. Mobile homes are 

eligible if they are permanently affixed to the real property that is 

secured by the first lien.
B-3-3

 A pre-assistance loan-to-value (“LTV”) ratio of 115% or greater is 

considered a hardship indicative of imminent default. 

 If a qualifying, first-lien mortgage loan is delinquent, the servicer 

must utilize the PRP monies to bring the first-lien mortgage loan 

current before applying PRP monies to the homeowner’s principal 

balance.

 The servicer will reduce the qualifying principal balance in 

conjunction with a loan recast or loan modification in the amount 

needed (up to the maximum per household assistance) to help the 

homeowner establish an appropriate level of affordability and 

mortgage debt per CalHFA MAC guidelines. Such loan recasts or 

modifications must meet the CalHFA MAC modification and program 

guidelines.

 Servicer may apply PRP monies as a stand-alone curtailment to 

reduce the homeowner’s UPB in order to help the homeowner 

establish an appropriate level of mortgage debt as determined by 

CalHFA MAC only when all five of the following conditions exist:

o Pre-assistance LTV ratio is 115% or greater, 

o Such homeowner must not have assets (excluding retirement 

assets) equal to or greater than the amount of PRP 

assistance, 

o First mortgage loan is current with no more than one 30-day 

late payment in the previous 12 months, 

o Post-assistance mortgage payment meets CalHFA MAC’s 

definition of an Affordable Payment, and

o Post-assistance LTV ratio is greater than 100%.

 Loans in foreclosure may be eligible.

7. Program Exclusions  Homeowner has a subordinate lien that is in foreclosure as evidenced 

by a recorded NOD or Notice of Trustee’s Sale (“NOS”).

 Homeowner is in “active” bankruptcy. Homeowners who have 

previously filed bankruptcy are eligible for consideration only with 

proof of court order “Dismissal” or “Discharge”. 

 Homeowner fails to satisfy lender underwriting guidelines.

 Homeowner’s post-assistance LTV ratio is greater than 140% or less 

than 100%. Post-assistance LTV ratio may be less than 100% only if it 

is necessary in order to provide the homeowner an Affordable 

Payment.

 Homeowner’s pre-assistance total monthly first-lien mortgage 

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

and any escrowed homeowner’s association dues or assessments, as 

applicable, calculated on the “UPB”, is less than 25% of the 

homeowner’s gross monthly household income, excluding temporary 

income (e.g., unemployment and short-term disability benefits), as 

determined by CalHFA MAC at the time of a homeowner’s application 

for assistance.

 Homeowners with a post-assistance LTV ratio of less than 100% may 
B-3-4

not have a post-assistance monthly first-lien mortgage payment PITI 

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

escrowed homeowner’s association dues or assessments, of less than 

38% of the gross monthly household income, excluding temporary 

income (e.g., unemployment or short-term disability benefits).

 Property is subject to a first priority lien securing a Home Equity Line 

of Credit (“HELOC”).

8. Structure of 

Assistance

CalHFA MAC will structure the assistance as a non-recourse, non-interest 

bearing subordinate loan in favor of the Eligible Entity (CalHFA MAC), 

secured by a junior lien recorded against the property in the amount of 

the HHF assistance. The term of that lien will be based on the following 

criteria:

 In the event that the homeowner’s post-assistance LTV is less 

than 100% but greater than 80%, CalHFA MAC will structure the 

assistance as a ten (10) year non-recourse, non-interest bearing 

subordinate loan in favor of the Eligible Entity (CalHFA MAC) 

secured by a junior lien recorded against the property in the 

amount of the HHF assistance. This loan is forgivable in two (2) 

five (5) year increments on the anniversary of the CalHFA MAC 

Note as follows: thirty-five (35) percent reduction at the 

conclusion of the five (5) year period and sixty-five (65) percent 

reduction at the conclusion of ten (10) year period. The loan will 

be fully released at the conclusion of ten (10) years. 

 In the event the homeowner’s post-assistance LTV is less than 

80%, CalHFA MAC will structure the assistance as a thirty (30) 

year non-recourse, non-interest bearing subordinate loan in favor 

of the Eligible Entity (CalHFA MAC) secured by a junior lien 

recorded against the property in the amount of the HHF 

assistance. The loan is forgivable in the following five (5) year 

increments on the anniversary of the CalHFA MAC Note as 

follows: thirty-five (35) percent reduction at the conclusion of the 

(5) year period, thirty (30) percent reduction at the conclusion of 

the ten (10) year period, twenty (20) percent reduction at the 

conclusion of the fifteen (15) year period and five (5) percent 

reductions at the conclusion of the twenty (20), twenty-five (25) 

and thirty (30) year periods. The loan will be fully released at the 

conclusion of thirty (30) years. 

 In the event that CalHFA MAC receives less than 100% match in 

funds by the lender/servicer and the homeowner’s postassistance LTV is 100% or greater, CalHFA MAC will structure the 

assistance as a non-recourse, non-interest bearing subordinate 

loan in favor of the Eligible Entity (CalHFA MAC) secured by a 

junior lien recorded against the property in the amount of the 

HHF assistance. At the conclusion of five (5) years, the 

subordinate loan will be released. There is no prorated 

forgiveness on this loan. 

 Regardless of the lien period of the Note and Deed of Trust, loan 
B-3-5

funds will only be repaid to Eligible Entity (CalHFA MAC) in the 

event of a sale or a refinance that includes cash out and there are 

equity proceeds available prior to the prorated forgiveness, as

applicable. 

In the event that CalHFA MAC receives a 100% or greater match in funds 

by the lender/servicer and the homeowner’s post-assistance LTV is 100% 

or greater, then CalHFA MAC will not structure the assistance as a loan.

Recovered funds will be recycled in order to provide additional program 

assistance in accordance with the Agreement.

9. Per Household 

Assistance

Up to $100,000 per household (average funding has been $61,500), less 

program monies previously received under other HHF programs. 

10. Duration of 

Assistance

Available in a single, lump sum disbursement.

CalHFA MAC reserves the right to provide additional PRP benefits, not to 

exceed the maximum program assistance amount per household, to 

previous PRP recipients if the homeowner has suffered a subsequent, 

qualifying hardship.

11. Estimated Number 

of Participating 

Households

Approximately 14,600. This figure is based on loans with unpaid principal 

balances ranging from $200,000 to $400,000, with an average funding of 

$61,500.

12. Program Inception / 

Duration

The statewide launch of PRP was February 7, 2011 and it will continue 

until December 31, 2020 or until funding is fully reserved, whichever 

occurs first.

13. Program Interactions 

with Other HFA 

Programs

Other HFA program benefits may be available to the homeowner 

provided the HHF program maximum benefit cap of $100,000 has not 

been exceeded, and program funds are available. The homeowner is 

required to apply separately for each HFA program. 

14. Program Interactions 

with HAMP

PRP may follow a loan modification under HAMP. PRP may be used to 

reduce or eliminate an existing non-interest bearing forbearance balance 

from a previous loan modification, including a HAMP loan modification as 

described in the MHA Handbook, Principal Curtailments Following 

Modification section. PRP funds are not eligible in any combination to 

qualify for HAMP PRA investor incentive compensation. 

15. Program Leverage 

with Other Financial 

Resources

CalHFA MAC will require that the servicer waive all accrued and unpaid 

late charges and NSF fees at the time the modification agreement is 

completed. CalHFA MAC will require the servicer to waive any associated 

recast, curtailment or modification fee. 
B-4-1

SCHEDULE B-4

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”)

THE TRANSITION ASSISTANCE PROGRAM

Summary Guidelines

1. Program Overview The Transition Assistance Program (“TAP”) is one of CalHFA MAC’s 

federally-funded programs developed to provide eligible homeowners 

with transition assistance when it is determined that they can no longer 

afford their home.

TAP will be used in conjunction with short sale and deed-in-lieu programs 

to help homeowners make a smooth transition to housing. Homeowners 

will be required to occupy and maintain the property until the home is 

sold or returned to the lender as negotiated.

Program funds will be available on a one-time only basis up to $5,000 per 

household and can be used or layered with other CalHFA MAC HHF 

programs. Funds will be sent to the homeowner after the short sale or 

deed-in-lieu of foreclosure closing. Funds are intended to help the 

homeowner secure new housing (e.g., rent, moving expenses, and 

security deposits) and will also be available for transition assistance 

counseling services.

2. Program Goals CalHFA MAC envisions that these monies would be used to complement 

other federal or lender programs designed specifically to stabilize 

communities by providing assistance to homeowners who have suffered a 

financial hardship and as a result are no longer financially able to afford 

their first-lien mortgage loan payments or their Property Expenses when 

associated with a reverse mortgage loan.

3. Target Population / 

Areas

TAP is designed to target low-to-moderate income homeowners and 

address the needs of a homeowner’s specific situation in lieu of targeting 

certain regions or counties.

4. Program Allocation

(Excluding 

Administrative 

Expenses)

$4,180,000.00

5. Borrower Eligibility 

Criteria

 Homeowner qualifies as low-to-moderate income based on perhousehold income thresholds set forth in the county in which the 

homeowner resides. Income thresholds are as posted on the Keep 

Your Home California website.
B-4-2

 Homeowner must complete and sign a Hardship Affidavit / 3rd Party 

Authorization to document the reason for the hardship.

 Homeowners who have recently encountered a financial hardship 

due to their military service are eligible.

 Homeowner must agree to provide all necessary documentation to 

satisfy program guidelines established by CalHFA MAC.

 First-lien mortgage loan is delinquent or at risk of imminent default as 

substantiated by homeowner’s hardship documentation. Loans in 

foreclosure are eligible. 

 Reverse mortgage loan borrowers are eligible for consideration 

provided the Property Expenses are in default as substantiated by the 

homeowner and servicer documentation and approved by CalHFA 

MAC.

 General program eligibility is determined by CalHFA MAC based on 

information received from the homeowner. Program-specific 

eligibility is determined by CalHFA MAC on a first-come, firstapproved basis until program funds and funding reserves have been 

exhausted. Loan servicer will implement the HHF program based on 

participation agreement terms and conditions.

6. Property / Loan 

Eligibility Criteria

 Current, unpaid principal balance (“UPB”) (includes the interestbearing unpaid principal balance and any existing non-interest 

bearing forbearance balance) of the first-lien mortgage loan or 

reverse mortgage loan is not greater than $729,750. 

 The property securing the mortgage loan must not be abandoned, 

vacant or condemned.

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

(an attached or detached house or a condominium unit) located in 

California and it must be their primary residence. Mobile homes are 

eligible if they are permanently affixed to the real property that is 

secured by the first lien.

7. Program Exclusions  Homeowner is in “active” bankruptcy. Homeowners who have 

previously filed bankruptcy are eligible for consideration only with 

proof of court order “Dismissal” or “Discharge”. 

 Property is subject to a first priority lien securing a Home Equity Line 

of Credit (“HELOC”).

 Homeowner approved for HAFA on or after February 1, 2015.

8. Structure of 

Assistance

TAP assistance will not be structured as a loan.

Recovered funds will be recycled in order to provide additional program 

assistance in accordance with the Agreement.

9. Per Household 

Assistance

Up to $5,000 per household (average funding of $3,700).

10. Duration of Available on a one-time only basis, per household.
B-4-3

Assistance

11. Estimated Number 

of Participating 

Households

Approximately 1,100. This figure is based on loans with unpaid principal 

balances ranging from $200,000 to $400,000 with an average funding of 

$3,700. 

12. Program Inception 

/Duration

The statewide launch of TAP was February 7, 2011 and it will continue 

until December 31, 2020 or until funding is fully reserved, whichever 

comes first.

13. Program Leverage

with Other HFA 

Programs

Other HFA program benefits may be available to the homeowner 

provided the HHF program maximum benefit cap of $100,000 has not 

been exceeded, and program funds are available. The homeowner is 

required to apply separately for each HFA program. 

14. Program Interactions 

with HAMP

None.

15. Program Leverage 

with Other Financial 

Resources

None. 
B-5-1

SCHEDULE B-5

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”)

Community HousingWorks 

C2MPRP: Community 2nd Mortgage Principal Reduction Program

Summary Guidelines

1. Program 

Overview

The Community 2nd Mortgage Principal Reduction Program (Community 

2nd Mortgage PRP, or C2MPRP) is offered through a CalHFA federallyfunded Hardest Hit Fund program through a contract between CalHFA 

MAC and Community HousingWorks. Community HousingWorks will 

administer this program. 

C2MPRP will provide capital on 40/60 matching basis with participating 

nonprofit, credit union and lenders, to reduce the outstanding principal 

balances of subordinate second mortgages, as well as providing relief for a 

subordinate lien on a short sale on a 40/60 matching basis for qualifying 

properties with negative equity exceeding 107% CLTV. The lenders who 

will participate in this program are nonprofit lenders, credit unions and 

lenders with qualifying subordinate liens. These lenders provided 

“amortizing seconds” home buyers throughout California. Participation in 

this program is Statewide. C2MPRP will provide monies to reduce the 

principal balance on a 40/60 matching basis for the purposes of 

establishing an appropriate level of debt for eligible borrowers with 

qualifying properties. For example, if the subordinate debt to be 

extinguished is $50,000, the C2MPRP program will provide up to 40% of 

that amount or $20,000 and the participating lender/investor would 

forgive 60% or $30,000. A reduction in principal through C2MPRP can 

achieve desired income ratios and affordability for a borrower on the 

existing mortgage loans or can be used in conjunction with a loan 

modification. Lenders holding subordinate liens in the State of California 

may find that their clients’ only option to avoid foreclosure is a short sale. 

The C2MPRP program can provide subordinate lien holders a 40/60 

matching incentive for the subordinate lien holder to facilitate a short 

sale in order to avoid foreclosure. The principal reduction will be 40% of 

the principal balance and the lender will accept the 60% reduction. For 

example if the total principal balance is $50,000, the C2MPRP program can 

provide $20,000 to subordinate lien holders if they will accept the principal 

reduction of $30,000 in order to accept the short sale. The total amount 

of principal that can be paid out on all liens is $50,000.
B-5-2

2. Program Goals The goal of this program is to reduce foreclosures by reducing principal 

balances, on qualified amortizing subordinate debt, to those market levels 

needed to prevent avoidable foreclosures and promote sustainable 

homeownership. 

There are situations where a short sale is the only solution to avoiding 

foreclosure; by providing matching funds this will incent the subordinate 

lien holders, who in many cases are only able to recover a $1,000 or less in 

a short sale, to accept the transaction and allow the sale to go through.

3. Target Population 

/ Areas

This program will be offered on a statewide basis.

4. Program 

Allocation

(Excluding Admin 

Expenses)

$589,210.41

5. Borrower 

Eligibility Criteria

 Borrower earns 120% AMI or less, as defined by the county they reside 

in.

 Borrower must complete and sign a Hardship Affidavit and document 

the reason for the hardship.

 Hardship is defined as economic hardship, which occurs when a 

household is unable to pay reasonable basic living expenses. The 

determination of a reasonable amount for basic living expenses will be 

made by the Underwriter and will vary according to the unique 

circumstances of every individual household.

 Borrower has adequate income to sustain modified mortgage 

payments defined as a housing debt-to-income ratio of no more than 

38% (first lien only), excluding temporary income such as 

unemployment or temporary disability payments.

 In the case of a short sale request, homeowner must be able to verify 

that they have a hardship that does not permit them to make their 

monthly mortgage payments or they meet the GSE standard short sale 

requirements.

 Borrower has completed level 2 counseling with a HUD-approved 

agency. Payment for counseling services will not be paid out of 

Hardest Hit funds

 Borrower is able to satisfy program guidelines.

 The first or second subordinate mortgage loan is delinquent or the 

servicer receives documentation from the borrower that substantiates 

an imminent default that meets hardship qualifications.

6. Property/Loan 

Eligibility Criteria

 The property is encumbered by a first lien conventional loan

 Property must be single family residential 1-4 units, condominium, or 

cooperative.

 The total mortgage indebtedness cannot exceed the GSE conforming 

limit of $729,750.
B-5-3

 The property securing the mortgage loan must not be abandoned, 

vacant, condemned or in a serious state of disrepair.

 The subject property is the borrower’s principal residence and the 

property is located in California.

 HELOCs with required monthly payments (amortized or interest only) 

may be considered. Documentation that these loans have been closed 

and reconveyed if C2MPRP assistance is provided will be required. 

7. Program 

Exclusions

 Borrower’s property is subject to a foreclosure trustee sale (does not 

apply to short sale requests).

 Hardship caused by voluntary resignation of employment. 

 Second mortgages eligible for 2MP or 2LP.

 Borrower fails to satisfy underwriting guidelines. 

 Homeowner in an “active” bankruptcy is ineligible for assistance 

consideration. Homeowners who have previously filed bankruptcy are 

eligible for consideration with proof of court order “Dismissal” or 

“Discharge.”

8. Structure of 

Assistance

The assistance will not be structured as a loan since there will always be at 

least a 40/60 match from the lender.

9. Per Household 

Assistance

The lower of 2 limiting guidelines:

Maximum of $50,000; or amount which, with the match, lowers CLTV to 

107%.

It is expected that the average assistance will be approximately $25,000.

10. Duration of 

Assistance

The assistance will be a onetime payment.

11. Estimated 

Number of 

Participating 

Households

Approximately 370.

12. Program 

Inception/

Duration

C2MPRP was launched September 2011 and was terminated on January 

15, 2015.

13. Program 

Interactions with 

Other HFA

Programs 

C2MPRP cannot be utilized with other Keep Your Home California 

programs except for the Unemployment Mortgage Assistance program. 

Recipients of the C2MPRP program shall be notified in writing that their 

participation in that program will disqualify them from participating in any 

other Keep Your Home California program except the Unemployment 

Mortgage Assistance Program. 

14. Program 

Interactions with 

C2MPRP complements and leverages HAMP 1st mortgage modifications 

since reduction or elimination of the 2nd liens will enable many borrowers 
B-5-4

HAMP to qualify for a HAMP modification.

15. Program Leverage 

with Other 

Financial 

Resources

Participating lenders will be required to write down 60% of the overall 

principal reduction (in the case of a short sale, lender will forgive debt up 

to 60%) calculated and approved by C2MPRP Underwriting, and C2MPRP 

shall pay the lender the remaining 40% as a subsidy. The lender will 

provide modification of the Note to reflect 100% of the overall principal 

reduction. 
B-6-1

SCHEDULE B-6

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”)

Los Angeles Housing Department (“LAHD”)

Principal Reduction Program

Program was unfunded as of February 27, 2014.
B-7-1

SCHEDULE B-7

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”)

NeighborWorks® Sacramento

Short Sale Gateway Program

Program was unfunded as of September 20, 2013.
SCHEDULE B-8

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”) 

Reverse Mortgage Assistance Pilot Program

Summary Guidelines 

1. Program Overview The Reverse Mortgage Assistance Pilot Program (“RevMAP”) is one of 

CalHFA MAC’s federally-funded programs developed to provide 

assistance to senior homeowners who are in danger of losing their 

homes to foreclosure due to their inability to pay the required property 

expenses associated with their reverse mortgage loans. 

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

to eligible homeowners to be used to (i) reimburse servicers for 

amounts advanced on behalf of homeowners to pay property taxes, 

homeowner’s insurance, homeowner’s association dues or 

assessments, and other CalHFA MAC-approved property-related 

expenses (collectively referred to as “Property Expenses”) that were 

past due, or in recognition that the homeowner was at risk of imminent 

default, and (ii) provide an advance of Property Expenses for up to an 

additional twelve (12) months to enable the homeowner to recover 

from their hardship.

2. Program Goals The goal of RevMAP is to prevent avoidable foreclosures by helping 

senior homeowners remain in their homes by helping them pay their 

required Property Expenses associated with their reverse mortgage 

loans. 

3. Target 

Population/Areas

RevMAP is designed to target low-to-moderate income senior 

homeowners with reverse mortgage loans who have suffered an 

involuntary financial hardship that has resulted in their inability to pay 

the required Property Expenses associated with their loan. 

4. Program 

Allocation (Excluding 

Administrative 

Expenses)

$10,000,000.00

5. Borrower 

Eligibility Criteria

 Homeowner qualifies as low-to-moderate income based on perhousehold income thresholds set forth in the county in which the 

homeowner resides. Income thresholds are as posted on the Keep 

Your Home California website.

 Homeowner must complete and sign a Hardship Affidavit/3rd Party 

Authorization to document the reason for the hardship. 

 Homeowners who have suffered a financial hardship as described in 

the program guidelines must show a reasonable likelihood of 

recovering from the hardship sufficient to sustain the Property 
B-8-2

Expenses on a go-forward basis, as described in the program 

guidelines.

 Homeowner agrees to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

CalHFA MAC. 

 Reverse mortgage Property Expenses are delinquent or a 

delinquency is imminent, as substantiated by the servicer and the 

homeowner’s hardship documentation. The advanced Property 

Expenses, including the total amount required to pay such expenses 

for one 12-month period, will be verified with the servicer. 

 General program eligibility is determined by CalHFA MAC based on 

information received from the homeowner and servicer. Programspecific eligibility is determined by CalHFA MAC on a first-come, 

first-approved basis until program funds and funding reserves have 

been exhausted. Loan servicer will implement the HHF program 

based on participation agreement terms and conditions.

6. Property/Loan 

Eligibility Criteria

 Property must be the homeowner’s principal residence, located in 

California.

 Property securing the loan must not be abandoned, vacant or 

condemned. 

 The property must be currently subject to a reverse mortgage loan.

Mobile homes are eligible if they are permanently affixed to the real 

property that is secured by the first lien.

 Homeowner’s reverse mortgage loan must be serviced by a 

regulated financial institution. 

 Current, mortgage balance of the reverse mortgage loan is not 

greater than $729,750.

7. Program 

Exclusions

 Homeowner has a subordinate lien that is in foreclosure as 

evidenced by a recorded NOD or Notice of Trustee’s Sale (“NOS”).

 Homeowner is in an active bankruptcy. Homeowners who have 

previously filed bankruptcy are eligible for consideration only with 

proof of “Dismissal” or “Discharge”. 

8. Structure of 

Assistance

CalHFA MAC will structure the assistance as a non-recourse, noninterest bearing subordinate loan in favor of the Eligible Entity (CalHFA 

MAC) secured by a junior lien recorded against the property in the 

amount of the assistance. 

At the conclusion of (2) two years, the subordinate loan will be released. 

Loan funds will only be repaid to Eligible Entity (CalHFA MAC) in the 

event of a sale or a refinance that includes cash out and there are equity 

proceeds available prior to forgiveness. Recovered funds will be 

recycled in order to provide additional program assistance in 

accordance with the Agreement.

9. Per Household Up to $25,000 per household in total (average funding of $12,800) to (i) 
B-8-3

Assistance repay the delinquent amounts advanced on the borrower’s behalf by 

their mortgage loan servicer for the payment of Property Expenses and 

(ii) pay estimated Property Expenses for up to twelve (12) months in 

advance. In all cases, subject to the HHF program household maximum 

benefit cap of $100,000 with respect to monies previously received 

under other HHF programs, if any. 

10. Duration of 

Assistance

Available on a one-time only basis, per household.

11. Estimated 

Number of 

Participating 

Households

Approximately 800. This figure is based on an average funding of 

$12,800.

12. Program 

Inception/Duration

The statewide launch of RevMAP was January 2015 and it will continue 

until December 31, 2020 or until funding is fully reserved. 

13. Program 

Interactions with 

Other Programs (e.g. 

other HFA programs)

Homeowners who are found ineligible for the RevMAP are eligible for 

consideration for TAP benefit assistance. 

14. Program 

Interactions with 

HAMP

None.

15. Program 

Leverage with Other 

Financial Resources

CalHFA MAC is partnering with Fannie Mae and reverse mortgage loan 

servicers to coordinate reinstatement of the homeowner’s loan and 

payment of future Property Expenses for up to 12 months following 

reinstatement. 
C-1

SCHEDULE C

Permitted Expenses

California

One-time / Start-Up Expenses:

Initial Personnel

$534,394.39

Building, Equipment, Technology

$131,240.82

Professional Services $4,565,316.00

Supplies / Miscellaneous

$33,650.00

Marketing /Communications

$213,217.36

Travel $85,000.00

Website development /Translation

Contingency $2,129,073.80

Subtotal $7,691,892.37

Operating / Administrative Expenses:

Salaries $95,387,529.22

Professional Services (Legal, Compliance, Audit, Monitoring) $29,612,094.04

Travel $1,137,327.94

Buildings, Leases & Equipment $4,324,710.40

Information Technology & Communications $10,177,380.79

Office Supplies/Postage and Delivery/Subscriptions $2,641,432.59

Risk Management/ Insurance $446,492.46

Training

$0.00

Marketing/PR $47,508,965.73

Miscellaneous $2,989,984.79

Subtotal $194,225,917.96

Transaction Related Expenses:

Recording Fees $9,745,180.10

Wire Transfer Fees $395,798.30

Counseling Expenses $29,759,820.86

File Intake $17,027,110.34

Decision Costs $12,732,710.52

Successful File $0.00

Key Business Partners On-Going $0.00

Subtotal $39,900,799.26

Grand Total $241,818,609.59

% of Total Award 10.25%

Award Amount $2,358,593,320.00