SEVENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Seventh Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the "Seventh Amendment") is entered into as of the date set forth on 

Schedule A attached hereto as the Seventh 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 HP A") 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"), as further amended 

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

Participation Agreement (the "Third Amendment"), as further amended by that certain Fourth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the "Fourth Amendment"), as further amended by that certain Fifth Amendment to Commitment 

to Purchase Financial Instrument and HFA Participation Agreement (the "Fifth Amendment"), 

and as further amended by that certain Sixth Amendment to Commitment to Purchase Financial 

Instrument and HFA Participation Agreement (the "Sixth Amendment"; and together with the 

Original HP A as amended thereby and by the First Amendment, Second Amendment, Third 

Amendment, Fourth Amendment and Fifth Amendment, the "Current HP A"), 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, as applicable, and Treasury has agreed to the 

same; 

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

document all approved modifications to the Service Schedules and Permitted Expenses, as 

applicable; 

Seventh Amendment to HPA — Illinois 

Doc# US1 8153706v2 
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 Seventh Amendment; and all references in the 

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

Seventh Amendment. All references herein to the "HPA" shall mean the Current HPA, as 

further amended by this Seventh 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 Seventh 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 Seventh 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 Seventh 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 Seventh Amendment and any other closing documentation delivered to 

Treasury in connection with this Seventh 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 

Seventh Amendment and any other closing documentation delivered to Treasury in 

- 2 -

Doc# US1 8153706v2 
connection with this Seventh Amendment, and to perform its obligations hereunder and 

thereunder. 

Miscellaneous 

A. The recitals set forth at the beginning of this Seventh 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 Seventh 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 Seventh Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

- 3 -

Doc#:USl:8153706v2 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Mary R. Kenney 

Name: Mary R. Kenney 

Title: Executive Director 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY. 

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

By: /s/ Mary R. Kenney 

Name: Mary R. Kenney 

Title: Executive Director 

[Signature Page to Seventh Amendment to HPA— Illinois] 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

By: 

Name; Mary R. Kenney 

Title: Executive Director 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: 

iame: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

ILLINOIS HOUSING DEVELOPMENT 

AUTHORITY 

By: 

Name: MaryR. Kenney 

Title: Executive Director 

[Signature Page to Seventh Amendment to HPA—Illinois] 
EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

Doc#:USl:8153706v2 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: Illinois Housing Development Authority 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

a body politic and corporate under the laws 

of the State of Illinois, pursuant to the 

Illinois Housing Development Act, 20 ILCS 

3805/1 et seq., as amended. 

Illinois 

HFA Information: 

Name of HFA: Illinois Housing Development Authority1 

Organizational form: a body politic and corporate under the laws 

of the State of Illinois, pursuant to the 

Illinois Housing Development Act, 20 ILCS 

3805/1 et seq., as amended. 

Date of Application: September 1, 2010 

Date of Action Plan: September 1, 2010 

1

 References in the Agreement to the term "HFA" shall mean the Illinois Housing Development Authority ("IHDA") 

in its capacity as an HFA as such term is used in the Agreement; references in the Agreement to the term "Eligible 

Entity" shall mean IHDA, in its capacity as Eligible Entity as such term is used in the Agreement. 

Notwithstanding anything to the contrary in the Agreement, (A) for purposes of Section 4(G) thereof, (i) annual 

audited financial statements shall be due no later than one hundred eighty (180) days after the end of IHDA's fiscal 

year, and (ii) quarterly financial statements shall be due no later than forty-five (45) days after the end of each 

quarter commencing with the first full quarter ending after the Effective Date; provided that for any quarter IHDA 

does not prepare unaudited financial statements for its internal use, or to be sent to a third party, such quarterly 

unaudited financial statement shall not be required and instead IHDA shall provide to Treasury, no later than fortyfive (45) days after the end of each quarter commencing with the first full quarter ending after the Effective Date, 

summary expenses by category [e.g., in-take partners, IHDA specific expenses (e.g. salaries)], and last business day 

of the quarter's Depository Account bank statement, which information will allow Treasury to review and confirm 

the funds used for the Services and Permitted Expenses; (B) for purposes of Section 7 thereof, the powers and 

authority of IHDA shall be governed by and construed in accordance with the laws of the State of Illinois. 

Doc# US1 8153706v2 
Notice Information: 

Program Participation Cap: 

Portion of Program Participation Cap 

Representing Original HHF Funds: 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: 

Permitted Expenses: 

Closing Date: 

First Amendment Date: 

Second Amendment Date: 

Third Amendment Date: 

Fourth Amendment Date: 

Fifth Amendment Date: 

Sixth Amendment Date: 

Seventh Amendment Date: 

Eligible Entity Depository Account Information: 

Same as notice information for Eligible 

Entity 

$445,603,557.00 

N/A 

$166,352,726.00 

$64,207,357.00 

September 23, 2010 

September 29, 2010 

December 16, 2010 

May 11, 2011 

August 3, 2011 

January 25, 2012 

August 24, 2012 

September 28, 2012 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

Doc# US1 8153706v2 
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-l, Service 

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

Doc#USl:8153706v2 
SERVICE SCHEDULE B-l 

Illinois Housing Development Authority 

Hardest Hit Fund Homeowner Emergency Loan Program (HHF HELP) 

Summary Guidelines 

1. Program Overview 

2. Program Goal 

3. Target Population / Areas 

Illinois' Homeowner Emergency Loan Program (HELP) will assist 

homeowners who have experienced an income reduction due to 

unemployment or underemployment in two ways: Monthly Mortgage 

Payment Assistance and Reinstatement Assistance. Monthly 

Mortgage Payment Assistance will be provided for up to 18 months. 

Reinstatement Assistance will pay a homeowner's delinquent balance 

and other associated fees and costs. Borrowers may be eligible for 

Reinstatement Assistance combined with Monthly Mortgage Payment 

Assistance or Reinstatement Assistance only as determined based on 

first mortgage DTI program parameters. 

For Monthly Mortgage Payment Assistance, IHDA will make full 

mortgage payments to the servicer on behalf of the borrower while the 

household remains eligible for assistance. While full mortgage 

payments are made on their behalf, the borrower must contribute 

partial mortgage payments to IHDA on a monthly basis, the amount of 

which is to be determined by program guidelines. Timely partial 

payments to IHDA are required for continued program assistance. 

After a maximum of 18 months of full mortgage payments, borrowers 

will resume making their mortgage payments independently. If 

borrowers regain employment and earn sufficient income to 

adequately afford their mortgage during the 18 months, borrowers will 

be transitioned from the program. If the household maximum 

assistance level available is reached, IHDA will end assistance. 

Borrowers will be referred to the program through the HHF HELP 

website and/or hotline, a housing counselor, or other entities. All 

client intakes of borrowers will be performed by IHDA approved 

intake agencies or IHDA staff. Intake agencies will screen 

applications and provide a full application package to IHDA for final 

approval. 

The goal of the Program is to assist homeowners who have 

experienced an income reduction due to unemployment or 

underemployment with Monthly Mortgage Payment Assistance and 

Reinstatement Assistance that will allow them to pursue sustainable 

income and homeownership without the immediate threat of default or 

foreclosure. 

The Program aims to serve all areas of the State and all employment 

sectors as the foreclosure crisis and unemployment crisis in Illinois is 

diverse. Funds will only be available to households at or below the 

moderate income level for the State (120% of area median, as defined 

by HUD). 

The maximum levels of assistance will be higher in the hardest hit 

Illinois counties. A "hardest hit county" exceeds the state average in 

any of the following areas: foreclosure rate, 90-day default rate, 

unemployment rate, or home price reduction. The maximum 
4. Program Allocation 

(Excluding 

Administrative Expenses) 

5. Borrower Eligibility 

Criteria 

6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of Assistance 

9. Per Household Assistance 

assistance level per household in a "hardest hit county" is $25,000. 

$256,396,200.00 

• Homeowners must meet the following Program criteria: 

• Present income at or below 120% of area median; 

• Experienced a substantial reduction in income due to 

unemployment or underemployment event; 

• Certification that the loss of income was involuntary (hardship 

affidavit required); 

• Fee simple title ownership on a property not exceeding four 

units; 

• Liquid assets cannot exceed program guidelines; and 

• Reinstatement assistance and monthly mortgage payment 

assistance will be made available to eligible borrowers based 

on first mortgage DTI program parameters. 

Property criteria includes: 

• Properties must be owner-occupied; 

• Properties can be one, two, three, and four units; 

• Properties must be the primary and residence of the 

borrowers; and 

• Property types can include single-family homes, detached or 

attached houses, town homes, condos, mobile homes on 

permanent foundations recorded as real property. 

Loan criteria includes: 

• Loan must be secured by a first position lien; 

• Homeowners can have a maximum present mortgage amount 

of $500,000; and 

• Homeowners must carry a fixed rate mortgage or an 

adjustable rate mortgage. 

• Homeowners with interest-only or negative amortization 

mortgages; 

• Assistance for subordinate mortgages; 

• Homeowners that own and/or are a party to mortgages on 

multiple residential properties; and 

• Applicants unable to substantiate past and current income or 

failing to provide required program documentation as 

requested. 

Assistance will be in the form of a non-recourse, non-amortizing, 

zero-percent interest, ten-year forgivable loan. The forgivable loan 

will be recorded as a subordinate lien and will only be repaid if net 

equity proceeds exist in the event of sale or refinance. Following the 

first five years, the forgivable loan will be forgiven on a monthly basis 

for the remaining five-year term. Any forgivable loan repayments will 

be returned to the program and used to provide additional assistance to 

eligible homeowners until the conclusion of the program on December 

31, 2017. After December 31, 2017, any remaining or returned fimds 

will be returned to Treasury. 

The maximum amount of assistance per homeowner is $25,000 in 

Illinois' hardest hit counties as defined in Section 3 above. The 

maximum assistance level in all other counties is $20,000. 
10. Duration of Assistance 

11. Estimated Number of 

Participating Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment Program 

Homeowners can receive assistance for a maximum of 18 months. 

Upon expending the maximum amount per household, assistance will 

terminate. If borrowers regain employment and earn sufficient 

income to adequately afford their mortgage during the 18 months, 

borrowers will be transitioned from the program. Failure to make the 

partial monthly mortgage payment or any violation of program terms 

may terminate the homeowner's assistance. 

IHDA anticipates that 12,000 households will be assisted through the 

HHF HELP Program. 

It is estimated that the Pilot/Readiness Test Program will begin 

approximately 120-150 days after approval by Treasury. 

The Statewide Program launch will begin approximately 90 - 120 

days post-Pilot/Readiness Test Program launch. 

Funds will likely be utilized within a 6-year period. 

Households served under the National Foreclosure Mitigation 

Counseling (NFMC) Program may also be reviewed for HHF HELP 

eligibility. 

Clients denied for a HAMP modification may be eligible for 

assistance through this program. Intake agencies evaluating eligibility 

for clients may also review for possible HAMP eligibility. Clients 

eligible for forbearance under the HAMP Unemployment Program 

may be eligible for assistance through HHF HELP. HHF HELP may 

precede, follow, or run concurrently with the HAMP UP forbearance. 

The Program requires no financial contribution from servicers or 

lenders, but they will be encouraged to waive fees as the HHF HELP 

Program provides direct benefit to their loan portfolio. IHDA will 

work to collaborate with servicers and lenders to effectively manage 

payments and information of the borrowers. 

0 Yes • No 
SERVICE SCHEDULE B-2 

Illinois Housing Development Authority 

Mercy Housing, Inc. 

Mortgage Resolution Fund Program (MRF) 

Summary Guidelines 

1. Program Overview The Illinois Housing Development Authority (IHDA) will partner 

with MRF, LLC, a non-profit partnership formed by Mercy Portfolio 

Services; Mercy Housing, Inc.; Enterprise Community Partners, Inc.; 

the Housing Partnership Network; and the National Community 

Stabilization Trust, to use HHF funds to purchase delinquent loans in 

hardest-hit markets from lending institutions and capital markets 

trading desks at deeply discounted prices, modify such loans to an 

affordable level for the homeowner and then, assuming a successful 

trial modification period, rewrite the loan and if the market is 

amenable, sell the loan. Alternatively, MRF will provide households 

not eligible for modification with support through property disposition 

and transition to new housing and in certain limited circumstances the 

loan will have to be foreclosed. 

More specifically, the Mortgage Resolution Fund is designed to: 

1) identify, source and perform loan level due diligence in order to 

purchase delinquent residential first mortgage loans from 

servicers/owners at a price consistent with the underlying property 

value and the mortgage's net present value; 

2) upon purchase of the loan, offer qualifying homeowners an 

opportunity to enter a trial modification period where the loan will be 

restructured to achieve a front end debt ratio of not greater than 31 

percent of the gross household income; 

3) work with the qualifying household during the trial period to reduce 

their debt to achieve a total debt ratio no greater than 50% of the gross 

household income to strengthen the loan asset; 

4) upon successful completion of the trial period, permanently modify 

the first mortgage by writing down the principal to an amount no less 

75 percent and no greater than 95 percent of the current appraised 

value, with a monthly payment no greater than 31 percent of gross 

monthly income and a 30-year term and amortization; 

5) attach a 0 percent, 10-year forgivable second mortgage equal to the 

difference between the current market value of the property and the 

permanently modified loan amount; 

6) offer an alternative disposition to households with loans unable to 

be permanently modified; 

7) secure title when owners, who are otherwise qualified to participate 

in the MRF program, walk away from the property or are uninterested 

in an alternative disposition; 

8) secure title when owners/loans are not qualified to participate in the 

MRF program, in which event MRF, LLC will reimburse IHDA for 

any HHF monies expended with respect to that loan; 
2. Program Goal 

3. Target Population / Areas 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

5. Borrower Eligibility 

Criteria 

6. Property / Loan 

Eligibility Criteria 

9) provide asset management of all homes owned until a final 

disposition is reached; and 

10) provide compliance and reporting functions from both a loan and 

fund level. 

The MRF Program aims to keep families in their homes or provide 

families with support for an orderly property disposition and transition 

to new housing, which will help to stabilize neighborhoods and 

housing markets. 

The Program will be available in the six County Chicago-Metro areas, 

which includes Cook, DuPage, Kane, Kendall, Lake, and Will 

Counties, to low-to-moderate income households. 

$100,000,000.00 (All fees and costs, excluding IHDA HHF 

administrative expenses, are included within this allocation.) 

Borrower circumstances will determine whether they are placed into 

one of three options: trial modification leading to permanent 

modification, alternative disposition or foreclosure. Specific 

eligibility criteria for each of the foregoing options are set forth in the 

MRF Program Guidelines. All borrowers will be required to sign a 

financial hardship affidavit. 

The following waterfall process will be used to determine those loans 

eligible for purchase: 

Filter One: Geography 

• The census tracts within each eligible county will be analyzed and 

those that score between 12 and 19, as defined by HUD NSP2-

CIS, will be eligible. 

• The selected census tracks will be evaluated and those with a 

USPS vacancy rate of 10 percent or less will be eligible. 

• The selected census tracks will be evaluated to determine market 

viability by analyzing sales data to determine (1) if the market has 

stabilized; (2) velocity and absorption rates; and, (3) purchase 

price ranges for the area. 

Filter Two: Loan Terms and Status 

• Owner-occupied, single family loans 

• Secured with an FHA/VA/USDA/Conventional/Sub-prime 

product (no exclusions will be made because of interest rate, 

amortization period, credit, documentation, mortgage insurance, 
7. Program Exclusions 

8. Structure of Assistance 

9. Per Household Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage with 

origination date, LTV) 

• First lien position 

• Payment delinquency of 3 0 days or greater but prior to judgment 

• Property value equal to or less than $500,000 

• Principal balance at or below what a borrower earning 120 percent 

of area median income can afford (assuming 30 year term, 5 

percent rate) 

Any loans to homeowners that do not meet above criteria. 

A portion of the assistance representing the difference between the 

current market value of the property and the permanently modified 

loan amount will be structured as a 0 percent, 10-year forgivable 

second mortgage loan to the borrower in which a second lien is 

recorded against the property. 

Borrower payments made through the trial and permanent 

modification periods as well as any funds generated through the sale 

of the permanently modified loans, or sale or rental of properties, will 

be used to pay program costs, program fees and repay HHF. HHF 

monies returned to IHDA will undergo a close out review and, subject 

to IHDA's approval, will be re-distributed to MRF, LLC for the 

purchase of additional delinquent loans. After December 31, 2017 all 

repayments and profits, if any, will be returned to Treasury. 

The maximum refinance amount will be equal to or less than 

$500,000. The median refinance amount is expected to be 

approximately $130,000. 

Duration of assistance will vary from borrower to borrower based on 

circumstances surrounding each and market conditions. However, all 

borrowers will be refinanced or transitioned to another managed 

option prior to the expiration of the program in 2017 with exceptions 

permitted upon approval by MRF, LLC. 

Current models indicate that as many as 600 loans (60 percent of total 

loans purchased) will be permanently modified. Another 350 loans 

(35 percent of total loans purchased) will result in an alternative 

disposition (short sale or deed-in-lieu) and 50 loans (five percent of 

total loans purchased) will end in foreclosure. The total number of 

loans purchased is estimated at 1,000. However, if market conditions 

allow for the sale of the loans and the recycling of the HHF 

investment, approximately 2,000 loans will be purchased and as many 

as 1,200 loans (60 percent) will be permanently modified. 

It is expected that the program will begin approximately 120 days 

from the date of Treasury approval and the first loans will be 

purchased within approximately 60 days thereafter. The Program will 

terminate in 2017. 

It is expected that certain MRF Trial Modification Program (TMP) 

ineligible loans (those with inadequate income to support the required 

minimum mortgage loan amount) will be eligible for IHDA's standard 

HHF program and will be referred to IHDA to submit an application 

and have eligibility determined. 

It is expected that some of the delinquent mortgages purchased under 

this Program may have been unsuccessful under HAMP. No currently 

performing loans under the HAMP program will be eligible. 

Loans will be purchased at a discount. 
Other Financial 

Resources 

16. Qualify as an 

Unemployment Program 

• Yes 0 No 
SERVICE SCHEDULE B-3 

Illinois Housing Development Authority 

Hardest Hit Fund Home Preservation Program (HHF HPP) 

Summary Guidelines 

1. Program Overview 

2. Program Goal 

3. Target Population / Areas 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

5. Borrower Eligibility 

Criteria 

6. Property / Loan 

Eligibility Criteria 

Illinois' Home Preservation Program (HPP) will leverage HHF dollars to 

facilitate a refinance, recast (for recast initial LTV must be 95% or 

higher), or permanent modification of the first mortgage through an 

escrow arrearage (including related fees and costs), principal reduction, 

and/or reinstatement payment to bring the household monthly payment to 

an affordable level (maximum housing DTI of 38%). A second lien 

payoff payment may also be provided to facilitate a first mortgage 

modification/recast/refinance. HPP will assist homeowners who are 

financially unable to make their mortgage payments due to a programeligible hardship causing a decrease in income or an increase in expenses. 

The goal of this program is to facilitate long-term mortgage sustainability 

by leveraging HPP funds with a servicer-specific loan reinstatement, 

modification, recast, and/or refinance. This will reduce the likelihood of 

continued mortgage delinquency, re-default, or long-term unaffordability 

due to negative equity. 

The program aims to serve all areas of Illinois. Funds will only be 

available to households at or below the moderate income level for the 

State (120% of area median, as defined by HUD). 

$25,000,000.00 

Homeowners must meet the following Program criteria: 

• Present income at or below 120% of area median; 

• Current housing debt-to-income ratio of 25% or higher; 

• Loan is delinquent or in imminent default; 

• At least one person in the household must have consistent 

employment and/or income sources; 

• Hardship reason must be affirmed through a signed affidavit and 

conform to program guidelines; and 

• Liquid assets cannot exceed program guidelines. 

• Owner-occupied and primary residence; 

• Properties can be up to four units; 

• Property types can include single-family homes, detached or 

attached houses, town homes, condos, mobile homes on 

permanent foundations recorded as real property; 

• Homeowners must carry a fixed rate mortgage or an adjustable 

rate mortgage; 

• Homeowners with interest-only or negative amortization 

mortgages can qualify if the modification/refinance places them 

in a fully amortizing product; and 

• Unpaid principal balance at application cannot exceed $500,000. 
7. Program Exclusions 

8. Structure of Assistance 

9. Per Household Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment Program 

Applicants unable to substantiate current income or failing to provide 

required program documentation as requested. 

Assistance will be in the form of a non-amortizing, zero-percent interest, 

five-year forgivable loan. The forgivable loan will be recorded as a 

subordinate lien and will only be repaid if net equity proceeds exist in the 

event of sale or refinance. The loan will be forgiven on a monthly prorata basis for the five-year term. Any program repayments will be 

returned to the program and used to provide additional assistance to 

eligible homeowners until the conclusion of the program. 

Eligible borrowers may receive up to $50,000.00, not including leveraged 

servicer dollars. If an applicant also receives or received assistance 

through Illinois' Hardest Hit Fund Program Homeowner Emergency 

Loan Program (HHF HELP), their maximum total assistance amount 

from HHF HELP and HPP cannot exceed $50,000.00. 

Assistance under HPP is intended to be a one-time payment to the 

servicer. 

Approximately 500 households. Program will be piloted with IHDA and 

expanded to other lenders if successful and funds are available. 

It is estimated that HPP will begin approximately 120 days after 

approval. 

Households served under the National Foreclosure Mitigation Counseling 

(NFMC) Program may also be reviewed for HPP. Notes purchased 

through the Mortgage Resolution Fund (MRF) program are ineligible for 

HPP assistance. 

Clients denied for HHF HELP or Making Home Affordable (MHA) 

programs may be eligible for assistance through this program. Clients 

approved for any HAMP or HARP with or without investor match may 

be eligible. Intake agencies evaluating eligibility for clients may also 

review for possible eligibility in other programs. 

The program will disburse funds up to $50,000.00 if the lien holder 

agrees to a loan modification, refinance, recast, or principal reduction that 

shows direct benefit to the borrower. 

DYes 0N o 
SCHEDULE C 

Permitted Administrative Expenses 

One-time / Start-Up Expenses: 

Initial Personnel 

Building, Equipment, Technology 

Professional Services 

Supplies / Miscellaneous 

Marketing /Communications 

Travel 

Website development /Translation 

Contingency 

Subtotal 

1 xp.iiuk'il Itmlmi 

$224,724 

$1,840,040 

$84,250 

$75,000 

$300,000 

$25,000 

$24,000 

$257,301 

$2,830,315 

Operating /Administrative Expenses: 

Salaries 

Professional Services 

Travel 

Buildings, Leases & Equipment 

Information Technology & 

Communications 

Office Supplies/Postage and 

Delivery/Subscriptions/Storage 

Risk Management/ Insurance 

Training 

Marketing/PR 

Miscellaneous 

Subtotal 

$20,363,400 

$643,000 

$247,068 

$7,940,712 

$2,203,440 

$161,400 

$0 

$179,200 

$700,000 

$3,243,822 

$35,682,042 

Transaction Related Expenses: 

Recording / Closing Fees 

Wire Transfer Fees 

Counseling Expenses 

File Intake 

Decision Costs 

Successful File 

Key Business Partners On-Going 

Subtotal 

$8,100,000 

$45,000 

$0 

$0 

$17,550,000 

$0 

$25,695,000 

Grand Total 364.207,357 

% of Total Award 

Award Amount 

14.41% 

$ 445,603,557