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NINETEENTH AMENDMENT TO

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT

and

HFA PARTICIPATION AGREEMENT

This Nineteenth Amendment to Commitment to Purchase Financial Instrument and HFA

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

Schedule A attached hereto as the Nineteenth Amendment Date (the “Amendment Date”), 

by and among the United States Department of the Treasury (“Treasury”), the undersigned

party designated as HFA whose description is set forth in Schedule A attached hereto (for

convenience, a “state housing finance agency” or “HFA”) and the undersigned institution

designated by HFA to participate in the program described below (“Eligible Entity”). 

Recitals

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

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

as of the Closing Date set forth on Schedule A attached hereto, as previously amended by those

certain Amendments to Commitment to Purchase Financial Instrument and HFA Participation

Agreement dated as of their respective dates as set forth on Schedule A attached hereto (each, 

an “Amendment” and together with the Original HPA as amended thereby, the “Current

HPA”), 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 (12 U.S.C. 

5201 et seq.), as amended, and as the same may be amended from time to time (“EESA”);

WHEREAS, on February 19, 2016 Treasury announced that it would (i) extend the HHF 

Program through 2020, and (ii) make $2 billion of additional assistance available under the HHF 

Program (the “Fifth Round Funding”) to help prevent foreclosure and stabilize housing markets

in certain states that had previously received HHF Program funding for such purposes; and

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

memorialize the extension of the HHF Program, increase the amount of HHF Program funds

available to Eligible Entity hereunder, and make certain other changes to the terms of the Current 

HPA and the Exhibits and Schedules attached thereto.

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. End of Term. The definition of End of Term in Section 2(A)(14) of the Current 

HPA is hereby deleted and replaced with the following: 
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“End of Term” shall mean the last day of the calendar month in which the Eligible Entity 

makes the last disbursement of HHF Program funds in furtherance of the Services, which

shall occur no later than December 31, 2021 (or such later date as Treasury may 

determine in its sole discretion with written notice to Eligible Entity and HFA). For the 

sake of clarity, Capital Draws shall not be permitted after the End of Term other than for 

payment of Permitted Expenses.

B. Bring Down Certificate. Section 2(A)(15) of the Current HPA is hereby amended 

by (i) striking “on each anniversary of the Effective Date during the Term (as defined 

below)” and replacing it with “on each anniversary of the Effective Date through

September 30, 2016, and from and after October 1, 2016, no later than one hundred 

twenty (120) days after the end of each of their respective fiscal years”, and (ii) by adding 

to the end “A final certification shall be delivered by each of HFA and Eligible Entity on 

the Final Repayment Date (as defined in the Financial Instrument).”

C. Program Participation Cap. Section 3(D) of the Current HPA is hereby deleted in 

its entirety and replaced with the following: 

D. The value of this Agreement is limited to the amount set forth in Schedule A as the 

Program Participation Cap, as may be adjusted from time to time as set forth on Schedule 

F attached hereto (the “Program Participation Cap”). Notwithstanding anything to the 

contrary contained herein, the aggregate Purchase Price payable to Eligible Entity under 

this Agreement with respect to all Services described on the Service Schedules may not 

exceed the amount of the Program Participation Cap.

D. Performance Reports. Section 4(A) is hereby amended by (i) striking the third 

sentence and replacing it with “HFA shall submit the Performance Report to Treasury or 

its designee no later than forty-five (45) days after the end of each calendar quarter and 

otherwise as requested by Treasury. After Treasury has communicated in writing that the 

Performance Report is in a form acceptable to Treasury, HFA shall promptly post the 

Performance Report to its website”; and (ii) adding to the end “A final Performance 

Report shall be delivered no later than forty-five (45) days after the end of the calendar 

quarter in which the End of Term occurs.”

E. Financial Reporting. Section 4(G) of the Current HPA is hereby deleted in its 

entirety and replaced with the following:

G. Each of HFA and Eligible Entity shall provide annual audited financial 

statements to Treasury no later than one hundred twenty (120) days after the end of 

its respective fiscal year, commencing with the first fiscal year ending after the 

Effective Date, and concluding with the fiscal year in which the End of Term occurs. 

Eligible Entity shall provide quarterly unaudited financial statements to Treasury no 

later than forty-five (45) days after the end of each quarter, commencing with the 

first full quarter ending after the Effective Date and concluding with the quarter in 

which the End of Term occurs.
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F. Term. Section 5(A) of the Current HPA is hereby deleted in its entirety and 

replaced with the following:

(A) The term of this Agreement (“Term”) shall begin on the Effective Date and 

extend to the End of Term, or earlier termination of this Agreement by Treasury 

pursuant to the provisions hereof, or earlier suspension or termination of the Services 

by Treasury. Subject to the foregoing, new Services may be undertaken (e.g., 

approval of assistance actions with respect to unique homeowners or properties, 

including, where applicable, final underwriting decisions and payment schedules), 

through and including December 31, 2020 (or such later date as may be determined 

by Treasury in its sole discretion upon prior written notice to Eligible Entity). It is 

understood and agreed that certain administrative, monitoring, reporting, compliance 

and oversight obligations and requirements set forth in this Agreement and the 

Financial Instrument survive the expiration or termination of this Agreement or the 

End of Term, and that funds are to be reserved as set forth in Schedule C to pay for 

the cost of the same, through and including the Final Repayment Date.

G. Modifications. 

(a) Section 9(A) of the Current HPA is hereby amended by inserting “and except as 

expressly set forth herein,” after “Subject to Section 9.B.,”

(b) Section 9(B) of the Current HPA is hereby amended by adding the following at the 

end: 

Notwithstanding anything to the contrary contained herein, Treasury may approve 

revisions proposed by Eligible Entity and HFA to any Schedule or Exhibit attached 

hereto, by written notice to Eligible Entity and HFA, pursuant to a procedure 

established by Treasury in its sole discretion and provided to Eligible Entity and 

HFA. The applicable Schedule or Exhibit shall be deemed modified for all 

purposes hereunder as of the date such written notice is received pursuant to 

Section 8 hereof.

(c) Section 9(C) of the Current HPA is hereby amended by deleting the last sentence 

in its entirety.

H. Exhibit A. Exhibit A attached to the Current HPA is hereby deleted in its entirety 

and replaced with Exhibit A attached to this Amendment.

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

entirety and replaced with Schedule A attached to this Amendment.

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

entirety and replaced with Schedule B attached to this Amendment.

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

entirety and replaced with Schedule C attached to this Amendment.
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L. Schedule F. A new Schedule F is added to the Current HPA in the form attached 

to this Amendment as Schedule F.

M. Definitions. All references in the Current HPA to the "Agreement" shall mean the 

Current HPA, as further amended by this Amendment; all references in the Current HPA 

to the “Financial Instrument” shall mean the Second Amended and Restated Financial 

Instrument in the form attached to this Amendment as Exhibit A; and all references in the 

Current HPA to Exhibit A or Schedules A, B, C or F shall mean the Exhibit A or 

Schedules A, B, C or F attached to this Amendment. All references herein to the "HPA" 

shall mean the Current HPA, as further amended by this Amendment.

2. Substitution of Financial Instrument. 

Eligible Entity shall deliver to Treasury on the date hereof a Second Amended and 

Restated Financial Instrument in the form attached to this Amendment as Exhibit A. By 

executing this Amendment, Treasury, HFA and Eligible Entity authorize The Bank of 

New York Mellon to cancel the Financial Instrument previously delivered under the 

Current HPA against delivery of such Second Amended and Restated Financial 

Instrument and direct The Bank of New York Mellon to return the cancelled Financial 

Instrument to (or at the direction of) the Eligible Entity.

3. 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 Amendment, the Second Amended and Restated Financial 

Instrument, and any other closing documentation delivered to Treasury in connection

therewith, and to perform its obligations hereunder and thereunder.

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

this Amendment and any other closing documentation delivered to Treasury in 

connection therewith, and to perform its obligations hereunder and thereunder.
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4. Miscellaneous

A. The recitals set forth at the beginning of this 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 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 Amendment, the Second Amended and Restated Financial 

Instrument, and any other closing documentation delivered in connection therewith, shall be

treated as originals for all purposes.

[SIGNATURE PAGE FOLLOWS;REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK]
[Signature Page to Nineteenth Amendment to HPA – California]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date.

HFA: TREASURY:

CALIFORNIA HOUSING FINANCE 

AGENCY

UNITED STATES DEPARTMENT OF THE 

TREASURY

By: /s/ Tia Boatman Patterson By:

Name: Tia Boatman Patterson Name: Mark McArdle

Title: Executive Director Title: Deputy Assistant Secretary for 

Financial Stability

ELIGIBLE ENTITY:

CALHFA MORTGAGE ASSISTANCE 

CORPORATION

By: /s/ Diane Richardson

Name: Diane Richardson

Title: President
EXHIBITS AND SCHEDULES

Exhibit A Form of Second Amended and Restated Financial Instrument

Schedule A Basic Information

Schedule B Service Schedules

Schedule C Permitted Expenses

Schedule F HHF Fifth Round Funding Reallocation Model
EXHIBIT A

FORM OF SECOND AMENDED AND RESTATED FINANCIAL INSTRUMENT

This Second Amended and Restated Financial Instrument is delivered by the undersigned party 

(“Eligible Entity”) as provided in Section 1 of the Commitment to Purchase Financial Instrument 

and HFA Participation Agreement (the “Commitment”), entered into as of the Effective Date, as 

modified by those certain Amendments to Commitment to Purchase Financial Instrument and 

HFA Participation Agreement dated as of the dates set forth on Schedule A to the Commitment

(together, the “Agreement”), by and among the United States Department of the Treasury 

(“Treasury”), the party designated as HFA in the Commitment (“HFA”) and Eligible Entity. 

This Second Amended and Restated Financial Instrument is effective as of April 1, 2016. All of 

the capitalized terms that are used but not defined herein shall have the meanings ascribed to 

them in the Agreement.

Recitals

WHEREAS, Eligible Entity executed and delivered that certain Amended and Restated Financial 

Instrument dated as of September 23, 2010 to Treasury (“Original Financial Instrument”); and

WHEREAS, Treasury and Eligible Entity desire to amend certain terms of the Original Financial 

Instrument regarding repayment of the Purchase Price in connection with the extension of the 

HHF Program through 2020 and availability of additional assistance under the HHF Program

Fifth Round Funding; and

WHEREAS, Treasury and the Eligible Entity desire to restate and replace the Original Financial 

Instrument in its entirety.

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

hereby acknowledged, Eligible Entity agrees as follows:

1. Eligible Entity Obligation; Purchase Price Consideration.

(a) Eligible Entity shall perform all Services described in the Service Schedules in 

consideration for the Purchase Price described in subsection (b) below, in 

accordance with the terms and conditions of the Agreement, to the satisfaction of 

Treasury. The conditions precedent to the payment by Treasury of the Purchase 

Price with respect to the Services are set forth in Section 3(B) of the Agreement.

(b) This Second Amended and Restated Financial Instrument is being purchased by 

Treasury pursuant to Section 3 of the Agreement through the payment by 

Treasury of various payments referred to collectively in the Agreement as the 

“Purchase Price”. This Second Amended and Restated Financial Instrument is 

being purchased by Treasury in connection with Eligible Entity’s participation in 

the Housing Finance Agency Innovation Fund for the Hardest Hit Housing 

Markets program (the “HHF Program”) created under the Emergency Economic 
Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) as amended, as the same may 

be amended from time to time (“EESA”).

2. Repayment of Purchase Price. 

If a recipient of HHF Program funds repays any or all of the funds received from Eligible 

Entity in connection with the Services (“Repaid Funds”), and such repayment occurs on 

or before the Final Repayment Date (hereinafter defined), Eligible Entity shall deposit 

such Repaid Funds in the Depository Account and use such Repaid Funds to provide 

Services or to fund the Permitted Expenses to the extent the full amount as indicated on 

Schedule C to the Agreement has not been drawn from Treasury pursuant to Section 3(A) 

of the Agreement. Any Repaid Funds retained by Eligible Entity to fund Permitted 

Expenses shall correspondingly reduce the amount that Eligible Entity may draw from 

Treasury pursuant to Section 3(A) of the Agreement to fund Permitted Expenses.

For the sake of clarity, if a recipient of HHF Program funds repays any or all of the funds 

received from Eligible Entity in connection with the Services, and such repayment occurs 

after the Final Repayment Date, such repaid funds shall not be considered HHF Program 

funds. 

3. Final Repayment. In the event Eligible Entity is holding any HHF Program funds, 

including, but not limited to, amounts reserved for payment of Permitted Expenses and 

Repaid Funds, as of the date that is ninety (90) days after the End of Term (the “Final 

Repayment Date”), all such funds shall be returned to Treasury or its designee prior to

1:00pm Eastern Time on the Final Repayment Date. For the sake of clarity, no Capital 

Draws will be permitted after the Final Repayment Date.

4. Security Interest. As security for the performance of the Services and the other 

obligations of Eligible Entity under the Agreement, as such obligations are evidenced in 

this Second Amended and Restated Financial Instrument, Eligible Entity has granted to 

Treasury a first lien priority security interest in the Depository Account and in any 

moneys, or investments, if any, held therein.

5. Representations, Warranties and Covenants. Eligible Entity represents and warrants that 

the representations and warranties set forth in the Agreement, on the date hereof, are, and 

on the date of each Capital Draw hereunder, shall be, true, correct, accurate and complete 

in all material respects. The truth and accuracy of such representations and warranties 

are continuing obligations of Eligible Entity. Additionally, all covenants of Eligible 

Entity set forth in Section 2 of the Agreement are incorporated herein by reference and 

Eligible Entity, on the date hereof, is not, and on the date of each Capital Draw 

hereunder, shall not be in breach of any such covenants. In the event that any of the 

representations or warranties made herein or in the Agreement cease to be true and 

correct, or the Eligible Entity breaches any of the covenants made herein or in the 

Agreement, Eligible Entity agrees to notify Treasury immediately and the same shall 

constitute an Event of Default hereunder. 
6. Limitation of Liability 

IN NO EVENT SHALL TREASURY, OR ITS OFFICERS, EMPLOYEES, AGENTS 

OR AFFILIATES BE LIABLE TO ELIGIBLE ENTITY WITH RESPECT TO THE 

SERVICES OR THE AGREEMENT, OR FOR ANY ACT OR OMISSION 

OCCURRING IN CONNECTION WITH THE FOREGOING, FOR ANY DAMAGES 

OF ANY KIND, INCLUDING, BUT NOT LIMITED TO DIRECT DAMAGES, 

INDIRECT DAMAGES, LOST PROFITS, LOSS OF BUSINESS, OR OTHER 

INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF ANY 

NATURE OR UNDER ANY LEGAL THEORY WHATSOEVER, EVEN IF ADVISED 

OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF WHETHER 

OR NOT THE DAMAGES WERE REASONABLY FORESEEABLE; PROVIDED, 

HOWEVER, THAT THIS PROVISION SHALL NOT LIMIT TREASURY’S 

OBLIGATION TO REMIT PURCHASE PRICE PAYMENTS TO ELIGIBLE ENTITY 

IN ACCORDANCE WITH THE AGREEMENT.

7. Indemnification 

Eligible Entity agrees as set forth on Schedule E to the Agreement, which Schedule E is 

hereby incorporated into this Second Amended and Restated Financial Instrument by 

reference.

IN WITNESS WHEREOF, Eligible Entity hereby executes this Second Amended and Restated 

Financial Instrument on the date set forth below.

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY]

By:

Name: 

Title: 

Date: ____________ __, 2016
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SCHEDULE A

BASIC INFORMATION

Eligible Entity Information:

Name of the Eligible Entity: CalHFA Mortgage Assistance Corporation

Corporate or other organizational form: Nonprofit Public Benefit Corporation

Jurisdiction of organization: California

Notice Information:

With a copy to:

HFA Information:

Name of HFA: California Housing Finance Agency

Organizational form: Agency of the State of California

Date of Application: April 16, 2010

Date of Action Plan: September 1, 2010

Notice Information:

With a copy to:

Program Participation Cap: $2,188,824,073.00

Portion of Program Participation Cap

Representing Original HHF Funds: $699,600,000.00

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $476,257,070.00

Rounds 1-4 Funding Allocation: $1,975,334,096.00

Round 5 Funding Allocation: $213,489,977.00

Permitted Expenses: $229,636,593.59

Closing Date: June 23, 2010

First Amendment Date: September 23, 2010
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Second Amendment Date: September 29, 2010

Third Amendment Date: December 16, 2010

Fourth Amendment Date: March 31, 2011

Fifth Amendment Date: August 3, 2011

Sixth Amendment Date: October 28, 2011

Seventh Amendment Date: May 3, 2012

Eighth Amendment Date: July 17, 2012

Ninth Amendment Date: December 14, 2012

Tenth Amendment Date: June 6, 2013

Eleventh Amendment Date: September 20, 2013

Twelfth Amendment Date: February 27, 2014

Thirteenth Amendment Date: April 11, 2014

Fourteenth Amendment Date: September 3, 2014

Fifteenth Amendment Date: November 13, 2014

Sixteenth Amendment Date: March 6, 2015

Seventeenth Amendment Date: September 29, 2015

Eighteenth Amendment Date: December 18, 2015

Nineteenth Amendment Date: April 1, 2016

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.
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.
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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 directly provide 

program funds to subsidize an eligible homeowner’s mortgage payments.

UMA provides mortgage payment assistance equal to the lesser of $3,000 

per month or 100% of the PITI (principal, interest, tax, 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. 

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.

The UMA will minimize past due payments, 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 30 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 

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 

$930,787,945.00
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Administrative 

Expenses)

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 31 

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, and includes 

homeowners whose unemployment benefits lapsed or expired within 

30 days of 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.

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 • 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 
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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 amount of the 

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

escrowed homeowner’s association dues or assessments, and equal to the 

total amount of HHF unemployment 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 $16,900), 

equaling the lesser of $3,000 per month or 100% of PITI (principal, 

interest, tax, insurance, as applicable) and any escrowed homeowner’s 

association dues or assessments (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

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

maximum.

11. Estimated Number 

of Participating 

Households

Approximately 55,000. This figure is based on loans with unpaid principal 

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

$16,900.

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 program benefits may be available to the homeowner provided 

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

HFA/Programs 

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

apply separately for each HFA program. 

14. Program 

Interactions with 

HAMP

This benefit may precede or extend HAMP, including HAMP UP, for 

temporary unemployment assistance which when combined may provide 

assistance for more than one year. HAMP UP currently offers a minimum 

of twelve months’ forbearance for some homeowners.

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 (such as HAMP UP or other proprietary 

program) 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). 
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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)

$198,375,000.00

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 their military service are eligible.

• Homeowner has adequate income to sustain reinstated first- lien 

mortgage loan, per CalHFA MAC approved investor guidelines.

• Homeowner must agree to provide all necessary documentation to 

satisfy program guidelines within the timeframes established by 

CalHFA MAC.
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• 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 investor program guidelines that utilize affordable mortgage 

definitions greater than 38%. 

• 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 
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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 $14,800) 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 on a one-time only basis, per household.

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 

$14,800. 

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. 

14. Program Interactions 

with HAMP

MRAP will serve as a gateway to HAMP which may include principal 

reduction of homeowner’s mortgage. 
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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.
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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)

$816,810,324.00

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.
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• Homeowner has adequate income to sustain post-assistance 

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 investor program guidelines 

that utilize post-assistance affordable monthly first-lien mortgage 

definitions greater than 38%.

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

100% but less than 120% that have a pre-assistance Affordable 

Payment must be able to demonstrate that an eligible hardship 

caused their payment to be temporarily unaffordable (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 firstcome/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

• 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 
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Doc#: US1:10548800v6

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

secured by the first lien.

• A pre-assistance loan-to-value (“LTV”) ratio of 120% 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 Loan restricts a loan recast or modification,

o Pre-assistance LTV ratio is 120% or greater, 

o Such homeowner must not have assets (excluding retirement 

assets) equal to or greater than the amount of PRP 

assistance, 

o Pre-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.
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• Homeowner’s post-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, is less than 25% of the homeowner’s gross monthly 

household income, excluding temporary income (e.g., unemployment 

and short-term disability benefits), or greater than CalHFA MAC’s 

definition of an Affordable Payment.

• 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%, CalHFA MAC will structure the assistance as a thirty 

year (30) 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 increments of 20.0% of the 

original loan balance for each five (5) year anniversary beginning 

at the conclusion of the first ten (10) year anniversary of the 

CalHFA MAC Note (i.e., at ten (10), fifteen (15), twenty (20), 

twenty-five (25) and thirty (30) year anniversaries, only). The 

loan will be fully released at the conclusion of thirty (30) years. 

The loan will not be prorated prior to the first ten (10) year 

anniversary or for any years between subsequent five (5) year 

anniversaries. 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.

• 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 (5) five years, the 

subordinate loan will be released. There is no prorated 

forgiveness on 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. 

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.
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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 $74,900), less 

program monies previously received under other HHF programs. 

10. Duration of 

Assistance

In most cases, assistance will be available to households on a one- time 

only basis; provided, however, that CalHFA MAC reserves the right to 

provide additional PRP benefits (not 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 10,900. This figure is based on loans with unpaid principal 

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

$74,900.

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 work in conjunction with a HAMP modification to help eligible 

homeowners achieve desired income ratios, payment affordability and 

establish an appropriate level of mortgage debt. PRP may be used to 

reduce or eliminate an existing non-interest bearing forbearance balance 

from a previous HAMP loan modification as described in the MHA 

Handbook, Principal Curtailments Following Modification section. PRP 

may also be combined or used in conjunction with the HAMP Principal 

Reduction Alternative (PRA). 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 or modification fee. 
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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 Federal Housing Administration (“FHA”) Home Equity 

Conversion Mortgages (“HECM”) loan, only.

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)

$3,965,000.00

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 
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Doc#: US1:10548800v6

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. 

• FHA HECM 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 is not 

greater than $729,750. 

• For FHA HECM loans, the mortgage balance may not be greater than 

$625,500.

• 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.
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Assistance

11. Estimated Number 

of Participating 

Households

Approximately 1,050. 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. 
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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.
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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.
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• 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 
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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. 
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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.
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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.
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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 

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

expenses associated with their Federal Housing Administration (“FHA”) 

Home Equity Conversion Mortgage (“HECM”) loan. 

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

to eligible homeowners to be used to (i) reinstate past due amounts 

(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 

paid on their behalf by their mortgage loan servicer for the payment of 

Property Expenses, 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 FHA HECM. 

3. Target 

Population/Areas

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

homeowners with HECM’s 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)

$8,660,000.00

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 

as described in the program guidelines must show a reasonable 

likelihood of recovering from the hardship sufficient to sustain the 

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

substantiated by homeowner’s hardship documentation. The 

delinquent Property Expenses, including the total amount required 

to advance 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 HUD-approved HECM foreclosure 

prevention counseling agency, 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 an FHA HECM reverse 

mortgage. Mobile homes are eligible if they are permanently affixed 

to the real property that is secured by the first lien.

• Homeowner’s reverse mortgage must be serviced by a HUDapproved HECM servicer or a regulated financial institution. 

• Current, mortgage balance of the HECM reverse mortgage is not 

greater than $625,500.

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 $12,000) to (i) 
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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 720. This figure is based on an average funding of 

$12,000. 

12. Program 

Inception/Duration

The statewide launch of RevMAP will launch no later than October 2014 

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 the Fannie Mae, the National Council on 

Aging, loan servicers and HUD-approved HECM foreclosure prevention 

counseling agencies to coordinate reinstatement of the homeowner’s 

loan. Specifically, senior homeowners will be screened for eligibility for 

other forms of assistance that free up income that can be used to pay 

future Property Expenses. This “benefits check-up” will show whether 

there is a reasonable likelihood that the senior homeowners will be able 

to afford their Property Expenses on an ongoing basis.
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SCHEDULE C

Permitted Administrative 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 $88,725,889.95

Professional Services (Legal, Compliance, Audit, Monitoring) $28,605,712.12

Travel $1,140,327.94

Buildings, Leases & Equipment $4,312,709.40

Information Technology & Communications $9,269,937.59

Office Supplies/Postage and Delivery/Subscriptions $2,516,550.09

Risk Management/ Insurance $351,752.46

Training $0.00

Marketing/PR $47,508,965.73

Miscellaneous $3,288,694.79

Subtotal $185,720,540.07

Transaction Related Expenses:

Recording Fees $9,357,081.10

Wire Transfer Fees $436,598.30

Counseling Expenses $26,430,481.75

File Intake $14,435,568.23

Decision Costs $11,994,913.52

Successful File $0.00

Key Business Partners On-Going $0.00

Subtotal $36,224,161.15

Grand Total $229,636,593.59

% of Total Award 10.49%

Award Amount $2,188,824,073.00
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SCHEDULE F

HHF FIFTH ROUND FUNDING REALLOCATION MODEL

This Schedule F describes a uniform model (the “Reallocation Model”) designed to maximize 

the utilization of the $2 billion made available under the HHF Program Fifth Round Funding. In 

general, the Reallocation Model reallocates unused Fifth Round funding to states participating in 

the HHF Program that meet certain defined criteria for utilization of HHF Program funds. The 

aggregate amount obligated under the Fifth Round Funding will not increase at any time.

I. Definitions

(a) “2016 Utilization Threshold” shall mean having Drawn at least 70% of the Rounds 1-4 

Funding Allocation.

(b) “2017 Utilization Threshold” shall mean having Drawn at least 95% of the Rounds 1-4 

Funding Allocation.

(c) “2018 Utilization Threshold” shall mean having Drawn at least 80% of the Program 

Participation Cap.

(d) “Annual Reallocation Amount” shall mean the aggregate amount, if any, by which the 

Program Participation Caps set forth in all HFA Participation Agreements are reduced 

pursuant to the Reallocation Model, as applied with respect to each Utilization Threshold.

(e) “Drawn” shall mean having made Capital Draws pursuant to Section 3(A) of the 

Agreement.

(f) “HFA Participation Agreements” shall mean, collectively, the Commitments to Purchase 

Financial Instrument and HFA Participation Agreements entered into by the States, as 

amended from time to time.

(g) “Population” shall mean the most recent Annual Estimate of the Resident Population for 

a State as determined by the United States Census Bureau from time to time.

(h) “Recipient State” shall mean each State that has achieved the Utilization Threshold for 

the applicable year, provided that such State is not then in default under its HFA 

Participation Agreement. Notwithstanding the foregoing, in the event a State declines an 

increase to its Program Participation Cap and Round 5 Funding Allocation for which it is 

eligible pursuant to this Schedule F, such State shall not be considered a Recipient State. 

(i) “Rounds 1-4 Funding Allocation” is the amount set forth on Schedule A as “Rounds 1-4 

Funding Allocation.”

(j) “Round 5 Funding Allocation” is the amount set forth on Schedule A as “Round 5 

Funding Allocation”, as adjusted from time to time in accordance with this Schedule F.

(k) “Share of Annual Reallocation Amount” shall mean a Recipient State’s share of the 

applicable Annual Reallocation Amount, as determined using the methodology described 
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in Section IV below. If the Annual Reallocation Amount is zero, then the Share of 

Annual Reallocation Amount will be zero for the applicable year.

(l) “State” shall mean any or each of Alabama, Arizona, California, Florida, Georgia, 

Illinois, Indiana, Kentucky, Michigan, Mississippi, New Jersey, Nevada, North Carolina, 

Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, D.C.

(m)“Utilization Threshold” means each of the 2016 Utilization Threshold, the 2017 

Utilization Threshold and the 2018 Utilization Threshold.

II. Reduction of Program Participation Cap and Round 5 Funding Allocation:

(a) If Eligible Entity does not achieve the 2016 Utilization Threshold on or before December 

31, 2016, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to 50% of the Round 5 Funding Allocation as of such 

date.

(b) If Eligible Entity does not achieve the 2017 Utilization Threshold on or before December 

31, 2017, each of the Program Participation Cap and the Round 5 Funding Allocation 

shall be reduced by up to 100% of the Round 5 Funding Allocation as of such date.

(c) If Eligible Entity does not achieve the 2018 Utilization Threshold on or before December 

31, 2018, each of the Program Participation Cap and Round 5 Funding Allocation shall 

be reduced by an amount equal to that portion of the Round 5 Funding Allocation which 

has not yet been Drawn nor obligated with respect to a unique homeowner or property as 

of such date.

III. Increase of Program Participation Cap and Round 5 Funding Allocation:

(a) If Eligible Entity achieves the 2016 Utilization Threshold on or before December 31, 

2016, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date.

(b) If Eligible Entity achieves the 2017 Utilization Threshold on or before December 31, 

2017, each of the Program Participation Cap and the Round 5 Funding Allocation shall 

be increased by the State’s Share of the Annual Reallocation Amount with respect to 

such date.

(c) If Eligible Entity achieves the 2018 Utilization Threshold on or before December 31, 

2018, each of the Program Participation Cap and Round 5 Funding Allocation shall be 

increased by the State’s Share of the Annual Reallocation Amount with respect to such 

date.

IV. Methodology for Determining Recipient State’s Share of Annual Reallocation Amount
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If Eligible Entity has achieved the Utilization Threshold and the Annual Reallocation Amount 

is greater than zero for the applicable year, the Program Participation Cap and Round 5 

Funding Allocation will be increased by an amount calculated as follows: 

First, calculate the “Per Capita Amount” for each Recipient State. The Per Capita Amount

shall be calculated as the Annual Reallocation Amount divided by the sum of the Population 

of all Recipient States.

Second, calculate the “Utilization Percentage” for each Recipient State. 

The Utilization Percentage with respect to the 2016 Utilization Threshold and the 2017 

Utilization Threshold shall be calculated as the lesser of (I) the ratio of (x) aggregate Capital 

Draws made by the Recipient State under its HFA Participation Agreement as of December 

31, 2016 and December 31, 2017, respectively, to (y) the Recipient State’s Rounds 1-4 

Funding Allocation as of such dates, or (II) 100%. 

The Utilization Percentage with respect to the 2018 Utilization Threshold shall be calculated 

as the ratio of (x) aggregate Capital Draws made by the Recipient State under its HFA 

Participation Agreement as of December 31, 2018, to (y) such Recipient State’s Program 

Participation Cap as of such date.

Third, calculate a “Utilization Score” for each Recipient State by standardizing the Utilization 

Percentages using the z-score methodology, a standard statistical standardization procedure. 

The Utilization Score for each Recipient State is calculated as (I)(x) the Utilization Percentage 

for such Recipient State, less (y) the mean Utilization Percentage for all Recipient States 

(“Average”), divided by (II) the standard deviation of the Utilization Percentages for all 

Recipient States. If a Recipient State’s Utilization Percentage is greater than the Average, the 

Utilization Score will be positive. If a Recipient State’s Utilization Percentage is less than 

Average, the Utilization Score will be negative.

Fourth, calculate a “Need Factor” for each Recipient State. The Need Factor is a fixed dollar 

amount which will be multiplied by each Utilization Score to determine the dollar amount by 

which each Recipient State’s Per Capita Amount will be adjusted. The Need Factor is

calculated as the dollar amount that would result in the highest adjusted Per Capita Amount 

for a Recipient State being no more than three (3) times that of the lowest adjusted Per Capita 

Amount for a Recipient State (i.e., a Min/Max Factor of 3).

Fifth, calculate an “Adjusted Per Capita Amount” for each Recipient State by adding to or 

subtracting from the Recipient State’s Per Capita Amount the product of (x) the Need Factor 

and (y) the Recipient State’s Utilization Score. Recipient States with positive Utilization 

Scores will have dollars added to the Recipient State’s Per Capita Amount, and Recipient 

States with negative Utilization Scores will have dollars subtracted from the Recipient State’s 

Per Capita Amount.

Sixth, calculate the “Share of the Annual Reallocation Amount” for each Recipient State by 

first multiplying the Recipient State’s Adjusted Per Capita Amount by the Recipient State’s

Population to arrive at a “Preliminary Share”. The Preliminary Share for each Recipient State 

is then normalized to arrive at the Share of the Annual Reallocation Amount by multiplying 
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(x) a ratio, the numerator of which is the Preliminary Share for such Recipient State and the 

denominator of which is the sum of the Preliminary Shares for all Recipient States, and (y) the 

Annual Reallocation Amount.

V. Notices; Modifications

(a) Treasury will notify Eligible Entity in writing of any adjustment to the Program 

Participation Cap and Round 5 Funding Allocation pursuant to this Schedule F. Related 

adjustments to program allocations and other amounts set forth in the Service Schedules, 

and Permitted Expenses set forth on Schedule C, shall be made as set forth in such 

written notice.

(b) For the avoidance of doubt, a written amendment to the Agreement shall not be required 

to effectuate an adjustment of the Program Participation Cap or Round 5 Funding 

Allocation pursuant to this Schedule F. The Program Participation Cap and Round 5 

Funding Allocation set forth on Schedule A to the Agreement shall be deemed to be 

modified upon receipt of the written notice sent pursuant to Section V (a) above. 

 

(c) Treasury reserves the right to unilaterally modify or supplement the terms and provisions 

of this Schedule F, at any time with prior written notice to the Eligible Entity.