Seventh Amendment to HPA — Arizona 

TAMPA/187443.1

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 HPA”) dated as 

of the Closing Date, as previously amended by that certain First Amendment to Commitment to 

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

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

Instrument and HFA Participation Agreement (the “Second Amendment”), 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 HPA as amended thereby and by the First Amendment, Second Amendment, Third 

Amendment, Fourth Amendment, Fifth Amendment and Sixth Amendment, the “Current HPA”), 

dated as of their respective dates as set forth on Schedule A attached hereto, in connection with 

Treasury’s federal housing program entitled the Housing Finance Agency Innovation Fund for 

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

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

amended from time to time (“EESA”); 

WHEREAS, HFA and Eligible Entity submitted a request to Treasury to make certain revisions 

to their existing Service Schedules 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; 

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

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

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

TAMPA/187443.1 

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 or B shall mean the Schedules A or B 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. 

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 

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

thereunder. 

3. Miscellaneous

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

accurate and are incorporated herein by this reference. 
- 3 - 

TAMPA/187443.1 

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] 
[Signature Page to Seventh Amendment to HPA — Arizona] 

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: 

STATE OF ARIZONA, ARIZONA 

DEPARTMENT OF HOUSING 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Carol Ditmore By: 

Name: Carol Ditmore Name: Mathew Pendo 

Title: Assistant Deputy 

Director/Operations 

Title: Chief Investment Officer 

 

ELIGIBLE ENTITY:

ARIZONA HOME FORECLOSURE 

PREVENTION FUNDING CORPORATION 

By: /s/ Carol Ditmore 

Name: Carol Ditmore 

Title: Treasurer 

 

TAMPA/187443.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/187443.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Arizona Home Foreclosure Prevention 

Funding Corporation

Corporate or other organizational form: Arizona Non-Profit corporation

Jurisdiction of organization: Arizona domiciliary

Notice Information: Arizona Home Foreclosure Prevention 

Funding Corporation 

c/o Carol Ditmore, Arizona Department of 

Housing 

1110 W. Washington, Ste. 310 

Phoenix, Arizona 85007 

Phone: (602) 771-1000 

Fax: (602) 771-1002 

Email: Carol.Ditmore@azhousing.gov 

 

HFA Information: 

Name of HFA: State of Arizona, Arizona Department of 

Housing 

Organizational form: Constituent Department of the State of 

Arizona 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Arizona Department of Housing 

Carol Ditmore, Assistant Deputy Director, 

Operations 

1110 W. Washington, Ste. 310 

Phoenix, AZ 85007 

Phone: (602) 771-1000 

Fax: (602) 771-1002 

Email: Carol.Ditmore@azhousing.gov 

Program Participation Cap: $267,766,006.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $125,100,000.00 
TAMPA/187443.1 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: N/A 

Permitted Expenses: $19,466,006.00

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 

Fourth Amendment Date: January 26, 2011 

Fifth Amendment Date: March 31, 2011 

Sixth Amendment Date: May 25, 2011 

Seventh Amendment Date: August 31, 2011 

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

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 
TAMPA/187443.1 

SCHEDULE B

SERVICE SCHEDULES

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

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

Schedule B-2, et. seq.), which collectively comprise Schedule B to the HPA. 
TAMPA/187443.1 

SERVICE SCHEDULE B-1

SAVEMYHOMEAZ 

Permanent Modifications Component 

Summary Guidelines 

1. Program Overview The Permanent Modification Component is being administered 

by the Arizona Department of Housing (“ADOH”). Efforts may 

include principal reduction, interest rate reduction, and/or term 

extension to achieve a monthly payment that does not exceed 31-

32% of the borrower’s monthly income, depending on the 

agreement with the servicer. Borrowers that are suffering an 

approved hardship, demonstrate personal responsibility, and 

whose principal outstanding mortgage balance exceeds 120% of 

the present market value of the borrower’s residence may be 

eligible for principal reduction assistance. 

Depending on the agreement with the servicer, one of two 

methods will be used to reduce the principal balance of a 

borrower’s primary mortgage: 

• A forgivable loan may be made to eligible borrowers for 

up to $50,000; or 

• Up to $50,000 in assistance may be provided over a 

three-year period. 

A borrower’s primary mortgage lender must agree to make a 

matching reduction to the principal balance of the primary loan. 

The structure of these two types of assistance is further discussed 

in section 8.

2. Program Goals The central goal of the Permanent Modification Component is to 

help homeowners avoid foreclosure by permanently modifying a 

borrower’s primary mortgage to achieve a monthly payment that 

does not exceed 31-32% of the borrower’s monthly income, 

depending on the agreement with the servicer. Loan 

modifications may include principal reduction (the amount of 

any principal reduction provided by HHF Program funds must be 

matched by a borrower’s lender/servicer), interest rate reduction, 

and/or term extension. The Permanent Modification Component 

aspires to achieve a ninety percent (90%) success rate in 

modifying loans with the borrowers’ lenders/servicers. 

3. Target 

Population/Areas 

The targeted populations are households whose income does not 

exceed 120% Area Median Income (“AMI”) and that exhibit a 

commitment to retaining their home and can demonstrate an 

ability to maintain a financial obligation for the home. These 
TAMPA/187443.1 

households will be analyzed based on two primary factors which 

are affordability and profitability. Each household will be 

evaluated to determine an affordable and sustainable monthly 

mortgage payment according to its gross monthly income. 

It is projected that program assistance will be provided to 

targeted areas according to the following breakdown of counties. 

These projections are based on population, delinquent loans and 

pending foreclosures in these areas. 

Maricopa County, 79% of program funds 

Pima County, 9% of program funds 

Pinal County, 9% of program funds 

All other areas, 3% of program funds 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$195,200,000.00 

5. Borrower 

Eligibility Criteria 

• Eligible financial hardship. Eligible financial hardships 

include: reduced income due to under employment, medical 

condition divorce or death. Borrower will be required to 

provide a financial hardship affidavit. 

• Property must be borrower’s primary residence. 

• 120% of AMI maximum household income. 

• Present dollar value of 31-32% of monthly gross income 

must be equal to or greater than NPV of REO, depending on 

the agreement with the servicer. 

• Depending on the agreement with the servicer, the eligibility 

will either be determined through application process and 

application evaluation by ADOH and HUD approved 

counselors or may be determined through application 

evaluation by the servicer and ADOH. 

6. Property/Loan 

Eligibility Criteria 

• Property must be owner occupied. 

• Mortgage amount must be equal to or less than GSE 

conforming limits. 

• Purchase money mortgage(s) or rate and term refinance of 

purchase money mortgage(s). 

• Mortgage must be delinquent by at least 2 payments or the 

borrower that is current or has only one payment due and 

unpaid by the end of the month in which it is due and makes 

application for program assistance will be evaluated to 

determine if he or she is at risk of imminent default. 

• Depending on the agreement with the servicer, mortgage 

may be required to be at least 60 to 7 days prior to the 

scheduled date of a trustee’s sale with respect to borrower’s 
TAMPA/187443.1 

residence. 

• Single family dwelling (1 to 4 units). 

7. Program 

Exclusions 

• Refinance cash out mortgages. 

• Cash out second mortgages and home equity lines of credit. 

• Current mortgage payment is equal to or less than 31% of 

borrower’s monthly gross income. 

• Properties that have been used for a cash-out refinance. 

8. Structure of 

Assistance 

Depending on the agreement with the servicer, the structure of 

assistance may be provided in one of two ways: 

• The Permanent Modifications Component may provide 

up-front, forgivable loan to eligible borrowers for up to 

$50,000 depending upon individual circumstances. Notes 

evidencing these loans will be for a term of five (5) years 

in favor of the Eligible Entity. A forgiveness clause will 

extinguish the loan amount at the end of five years 

provided the consumer has satisfied all terms of the loan. 

The terms of these loans would be zero interest, zero 

payment and the property would be required to remain 

owner occupied for the duration of the loan. The 

assistance loan would be considered satisfied upon 

expiration of 5 year term and AHFPFC would release the 

lien connected with the note. These loans would be 

utilized to reduce a portion of the principal on the first 

mortgage loan, the amount of which would be required to 

be matched by the primary lender/servicer. During the 

term of the assistance loan it would be “due on sale” if 

the home has increased in equity. If the home has not 

increased in equity to the degree necessary to repay the 

note, all or a portion of the note may be forgiven as not to 

create additional hardships on the borrower/seller at the 

time of closing. Any loan proceeds that are returned to 

the Program would be reutilized to assist additional 

homeowners. All funds recycled into the program will be 

returned to Treasury after 12/31/2017. 

• Assistance of up to $50,000 may be provided in equal 

installments over a three year period, at months 13, 25 

and 37, provided the homeowner continues to make 

current mortgage payments. This structure will not 
TAMPA/187443.1 

require a loan in favor of the Eligible Entity. 

9. Per Household 

Assistance 

• $50,000 is the Maximum Amount of Assistance. 

• $30,000 is the Estimated Median Amount of Assistance. 

10. Duration of 

Assistance 

Permanent modification assistance will be disbursed in full at the 

initial completion of the modification agreement. 

11. Estimated Number 

of Participating 

Households 

It is anticipated that the Permanent Modification Component will 

assist a minimum of 4,336 households in avoiding imminent 

foreclosures. Based upon the median or estimated average 

amount of assistance we could assist as many as 7,227 

households. 

12. Program 

Inception/Duration 

It is expected that the program will be available in a controlled 

rollout environment 3 weeks from Treasury’s approval of the 

program. The complete rollout of the program will occur 

approximately 4 weeks later, after the satisfactory assessment 

and adjustments as determined necessary in the controlled 

rollout. 

It is projected that assistance will be expended over a three year 

period of time. However, repayment of assistance may extend 

this time frame one or two additional years. 

13. Program 

Interactions with 

Other Programs 

(e.g. other HFA 

programs) 

N/A 

14. Program 

Interactions with 

HAMP 

AHFPFC’s program may interact with aspects of the Making 

Home Affordable Program (MHA) as AHFPFC tries to leverage 

the resources provided by the MHA programs to expand the pool 

of borrowers that are eligible for HAMP or other MHA options. 

In some cases, the assistance the AHFPFC provides under HHF 

can supplement and extend assistance provided through MHA. 

To maximize the effectiveness of our foreclosure mitigation 

efforts, servicers should use reasonable efforts to ensure that 

TARP funds are used efficiently and that HHF programs 

complement MHA programs. 

15. Program Leverage 

with Other 

Financial Resources 

In order to leverage the funds, ADOH requires the 

lender/servicer to match any principal reduction provided 

through the Permanent Modification Component. It is expected 

that this match will be no less than one to one. In the event the 

match is less than one to one then the structure of assistance will 

be in the form of a loan as described in the first bullet under 
TAMPA/187443.1 

section 8 above. In some instances the lender/servicer will need 

to contribute a larger amount based upon the affordability/ 

profitability assessment of the transaction and the Permanent 

Modification Component maximum assistance per household. 

Lender match amounts up to and equal to the amount of program 

funds for any homeowner shall be credited at the time of closing 

of the modification. Lender match amounts greater than the 

amount of program funds may be credited after closing 

according to a schedule satisfactory to ADOH. 

16. Qualify as an 

Unemployment 

Program 

N/A 
TAMPA/187443.1 

SERVICE SCHEDULE B-2

SAVEMYHOMEAZ 

Second Mortgage Assistance Component 

Summary Guidelines 

1. Program Overview Under the Second Mortgage Assistance Component, assistance 

of up to $5,000 will be provided to remove second mortgages if 

necessary to modify the terms of primary loans. This amount 

may also be available to borrowers where the second mortgage 

itself is burdensome. 

2. Program Goals The goals of the Second Mortgage Assistance Component is to 

help homeowners avoid foreclosure by eliminating a second 

mortgage if necessary to modify the terms of the primary loan, 

and to reduce the likelihood that a borrower will re-default under 

its primary loan as a result of the burden of a second mortgage. 

3. Target 

Population/Areas 

The targeted populations are households whose income does not 

exceed 120% AMI and that exhibit a commitment to retaining 

their home and can demonstrate an ability to maintain a financial 

obligation for the home. 

It is projected that program assistance will be provided to 

targeted areas according to the following breakdown of counties. 

These projections are based on population, delinquent loans and 

pending foreclosures in these areas. 

Maricopa County, 75% of program funds 

Pima County, 8% of program funds 

Pinal County, 9% of program funds 

All other areas, 8% of program funds 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$7,500,000.00 

5. Borrower 

Eligibility Criteria 

• Eligible financial hardship. Eligible financial hardships 

include: reduced income due to under employment, medical 

condition divorce or death. Borrower will be required to 

provide a financial hardship affidavit. 

• Property must be borrower’s primary residence (single 

family unit). 

• 120% of AMI maximum household income. 

• Present dollar value of 31% of monthly gross income must 

be equal to or greater than NPV of REO. 
TAMPA/187443.1 

6. Property/Loan 

Eligibility Criteria 

• Property must be owner occupied. 

• Mortgage amount must be equal to or less than GSE 

conforming limits. 

• Purchase money mortgage(s) or rate and term refinances. 

• Mortgage must be delinquent by at least 2 payments or the 

borrower that is current or has only one payment due and 

unpaid by the end of the month in which it is due and makes 

application for program assistance will be evaluated to 

determine if he or she is at risk of imminent default. 

• At least 60 days prior to the scheduled date of a trustee’s sale 

with respect to borrower’s residence. 

• Single family dwelling (1 to 4 units) 

7. Program 

Exclusions 

• Refinance cash out mortgages. 

• Cash out second mortgages and home equity lines of credit 

• Current mortgage payment is equal to or less than 31% of 

borrower’s monthly gross income. 

8. Structure of 

Assistance 

The Second Mortgage Assistance Component will provide upfront, forgivable, second position loans to eligible borrowers 

depending upon individual circumstances. Notes on the 

forgivable second loans will be for a term of five (5) years in 

favor of the Eligible Entity. A forgiveness clause will extinguish 

the loan amount at the end of five years provided the consumer 

has satisfied all terms of the loan. The terms of the loan are zero 

interest, zero payment and the property must remain owner 

occupied for the duration of the loan. The assistance loan will be 

considered satisfied upon expiration of 5 year term and ADOH 

will release the second lien connected with the note. These loans 

will be utilized to reduce a portion of the principal on the 

existing second mortgage and the remaining balance will be 

extinguished by the lender/servicer. During the term of the 

assistance loan it will be “due on sale” if the home has increased 

in equity. If the home has not increased in equity to the degree 

necessary to repay the note, all or a portion of the note may be 

forgiven as not to create additional hardships on the 

borrower/seller at the time of closing. Any loan proceeds that are 

returned to the Program would be reutilized to assist additional 

homeowners. All funds recycled into the program will be 

returned to Treasury after 12/31/2017. 

9. Per Household 

Assistance 

• $5,000 Maximum of Second Mortgage Settlement 

Assistance. 

• $4,000 is the Estimated Median Amount of Assistance. 

10. Duration of 

Assistance 

Second mortgage settlement will be disbursed in full at the initial 

completion of the modification agreement. 
TAMPA/187443.1 

11. Estimated Number 

of Participating 

Households 

It is anticipated that the Second Mortgage Assistance Component 

will assist a minimum of 1,500 households in avoiding imminent 

foreclosures. Based upon median or estimated average amount 

of assistance ADOH could assist as many as 1,875 households. 

12. Program 

Inception/Duration 

It is expected that the program will be available in a controlled 

rollout environment 3 weeks from Treasury’s approval of the 

program. The complete rollout of the program will occur 

approximately 4 weeks later, after the satisfactory assessment 

and adjustments as determined necessary in the controlled 

rollout. 

It is projected that assistance will be expended over a three year 

period of time. However, repayment of assistance may extend 

this time frame one or two additional years. 

13. Program 

Interactions with 

Other Programs 

(e.g. other HFA 

programs) 

N/A 

14. Program 

Interactions with 

HAMP 

AHFPFC’s program may interact with aspects of the Making 

Home Affordable Program (MHA) as AHFPFC tries to leverage 

the resources provided by the MHA programs to expand the pool 

of borrowers that are eligible for HAMP or other MHA options. 

In some cases, the assistance the AHFPFC provides under HHF 

can supplement and extend assistance provided through MHA. 

To maximize the effectiveness of our foreclosure mitigation 

efforts, servicers should use reasonable efforts to ensure that 

TARP funds are used efficiently and that HHF programs 

complement MHA programs. 

15. Program Leverage 

with Other 

Financial Resources 

In order to leverage the funds, ADOH requires the 

lender/servicer to match any principal reduction provided 

through the Second Mortgage Assistance Component. It is 

expected that this match will be no less than seven to one. 

Lender match amounts up to and equal to the amount of program 

funds for any homeowner shall be credited at the time of closing 

of the modification. Lender match amounts greater than the 

amount of program funds may be credited after closing 

according to a schedule satisfactory to ADOH. 

16. Qualify as an 

Unemployment 

Program 

N/A 
TAMPA/187443.1 

SERVICE SCHEDULE B-3

SAVEMYHOMEAZ 

Unemployment/Underemployment Mortgage Assistance Component 

Summary Guidelines 

1. Program Overview The unemployment/underemployment mortgage assistance 

component will provide mortgage relief for qualified 

unemployed and underemployed borrowers. 

AHFPFC is responsible for screening borrowers to determine 

program eligibility and notifying servicers that it intends to 

provide assistance to a borrower. 

Servicers may refer potentially eligible borrowers to AHFPFC 

with prior written approval. 

If determined by AHFPFC that an eligible borrower has or had 

a hardship of unemployment or underemployment that has 

caused delinquency in the mortgage AHFPFC may, on behalf 

of that eligible borrower, bring the first mortgage current by 

curing all past due payments, accrued interest and legal fees. 

AHFPFC will also request that late fees and NSF fees be 

waived, but that will not be a requirement. Additional benefits 

may consist of making a full monthly 1st mortgage payment to 

the servicer until the applicable program cap is reached or the 

borrower becomes sufficiently employed and is able to sustain 

the payment at 31% of gross monthly income. The borrower 

will be required to pay a portion of the mortgage payment to 

AFHPFC in the amount of 31% of household monthly gross 

income, excluding unemployment benefits. 

AHFPFC may, on behalf of an eligible borrower, attempt to 

extinguish the 2nd mortgage through our Second Mortgage 

Settlement component. 

AHFPFC will be responsible for ongoing monitoring of 

borrowers to ensure continued eligibility if receiving monthly 

assistance. 

2. Program Goals This program will provide assistance for a set period of time 

and/or maximum dollar amount so a qualified borrower can 

search for adequate work or obtain job training without fear of 

losing their home. The purpose of the program is to assist 

borrowers until they can obtain sufficient income to resume 

scheduled mortgage payments, or qualify for a modified 

mortgage payment. 
TAMPA/187443.1 

• Sustain the unemployed/underemployed borrower’s 

monthly mortgage payment until they can or the 

maximum assistance has been provided 

• Maintain the borrower’s contribution towards their 

monthly mortgage payment at 31% of their current 

gross monthly income for the duration of the assistance 

excluding unemployment benefits. 

3. Target 

Population/Area 

The target population includes eligible homeowners whose 

hardship is caused by unemployment or underemployment. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$36,000,000.00 

5. Borrower Eligibility 

Criteria 

• If the eligible borrower is unemployed, the borrower 

must provide proof they applied for unemployment 

benefits and was approved or denied (UB107, UB100, 

Claim status report). 

• If the eligible borrower is underemployed, the 

borrower must provide documentation of a significant 

reduction of income due to circumstances outside of 

their control resulting in a housing payment greater 

than 31% of their monthly gross income 

• One or more of the responsible borrowers must be 

unemployed/underemployed. 

• Borrowers must participate in quarterly face-to-face 

continued eligibility validation. 

• Eligibility requirements for stand alone reinstatement 

assistance, without continuing monthly assistance, is as 

follows: 

1. Borrower must demonstrate the hardship caused by 

unemployment or underemployment has passed. 

For example, one of the borrowers was 

unemployed and now the same borrower is 

employed eliminating the hardship. 

2. There must be a correlation between the qualified 

hardship and the delinquency in the mortgage 

payments. 

3. Borrowers must demonstrate that they now have 
TAMPA/187443.1 

the ability to afford the contractual payments. 

Affordability is defined as the payment being at or 

under 31% of documented gross income. 

4. Borrowers must have a satisfactory payment 

history prior to the qualified hardship with no more 

than 2 payments 30 days or more late in the 

preceding 12 months of the qualified hardship. 

• Borrower must occupy the subject property as their 

primary residence. 

• All borrowers must sign a hardship affidavit and felony 

certification. 

• 120% of AMI maximum household income. 

6. Property/Loan 

Eligibility Criteria 

• Unpaid principal balance equal to or less than GSE 

loan limits 

• Property must be owner-occupied 

• Mortgage(s) must be delinquent 2 payments or the 

borrower that is current or has only one payment due 

and unpaid by the end of the month in which it is due 

and makes application for program assistance will be 

evaluated to determine if he or she is at risk of 

imminent default. 

• Program payments must go toward a first mortgage 

• Mortgage(s) must be purchase money or refinanced (no 

cash out mortgage) 

• Single family dwelling (1 to 4 units) 

7. Program Exclusions • The Servicer is not required to accept mortgage 

assistance payment if a notice of trustee/sheriff sale has 

been recorded depending on the agreement with the 

servicer. 

• Mortgages that are in foreclosure depending on the 

agreement with the servicer 

• Eligible Unemployed/Underemployed Borrower(s) 

whose current 1st mortgage PITI payment is greater 

than the program maximum of $2,000 or the program 

maximum plus the Borrower(s) 31% contribution of 

monthly gross income excluding unemployment 

benefits 

• Properties with a filed Notice of Trustee’s Sale 

depending on the agreement with the servicer 

• Properties that have been used for a cash-out refinance 

8. Structure of AHFPFC will execute and record a non-recourse, non-interest 

bearing forgivable note of no more than 5 years in duration, 
TAMPA/187443.1 

Assistance secured by a junior lien on the property. The note amount will 

be forgiven at the completion of the loan term. If the borrower 

refinances or sells the property within the forgivable period, 

payment will be required if there is sufficient equity to repay. 

All funds recycled into the program will be returned to the 

Treasury after 12/31/2017. 

9. Per Household 

Assistance 

Servicers have no responsibility for monitoring individual 

program participation and are not required to refund payments 

received that exceed individual program caps. 

• Maximum monthly assistance of $2,000.00 

• Maximum number of past due mortgage payments to 

be rescued is 12 which allows for a minimum of 12 

months of monthly mortgage payment assistance 

• $50,000.00 per household when combined with other 

program components 

10. Duration of 

Assistance 

Servicers have no responsibility for monitoring payment 

duration. 

• Up to 24 months of mortgage payment assistance 

• Benefits may be provided up to two months posts reemployment provided the 24 months maximum of 

mortgage payment assistance has not been met 

11. Estimated Number of 

Participating 

Households 

Based on AHFPFC eligibility criteria and available funding 

we expect to provide assistance to the following number of 

households. 

• 1,440 

12. Program 

Inception/Duration 

The program began in June of 2011. 

The program is expected to last approximately one to three 

years or until AHFPFC funds are fully utilized. All funds still 

available after 12/31/2017 will be returned to Treasury. 

13. Program Interactions 

with Other Programs 

(e.g.other HFA 

Programs) 

N/A 

14. Program Interactions AHFPFC’s program may interact with aspects of the Making 

Home Affordable Program (MHA) as AHFPFC tries to 
TAMPA/187443.1 

with HAMP leverage the resources provided by the MHA programs to 

expand the pool of borrowers that are eligible for HAMP or 

other MHA options. In some cases, the assistance the 

AHFPFC provides under HHF can supplement and extend 

assistance provided through MHA. To maximize the 

effectiveness of our foreclosure mitigation efforts, servicers 

should use reasonable efforts to ensure that TARP funds are 

used efficiently and that HHF programs complement MHA 

programs. 

15. Program Leverage 

with Other Financial 

Resources 

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

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

If the loan is reinstated or modified following AHFPFC 

mortgage assistance servicers will waive all administrative 

fees accrued since the beginning of the delinquency.

16. Qualify as an 

Unemployment 

Program 

N/A 
TAMPA/187443.1 

SERVICE SCHEDULE B-4

SAVEMYHOMEAZ 

Short Sale Assistance Component 

Summary Guidelines 

1. Program Overview Short sale assistance will provide the eligible seller the funds 

needed to relocate when a short sale has been approved by the 

homeowner’s servicer. Assistance is for sellers who can no 

longer afford their home due to hardship such as 

unemployment, underemployment, death, disability or divorce 

of a homeowner or co-homeowner. Additionally, it will 

provide much needed enhancements to the short sale process 

for qualified sellers that are approved for a short sale by their 

lender. 

AHFPFC is responsible for screening sellers to determine 

program eligibility and providing notification for the seller 

and servicer/lender that it intends to provide assistance to the 

seller. 

Servicers may refer potentially eligible sellers to AHFPFC 

with prior written approval. 

AHFPFC will, on behalf of an approved seller, provide 

$4,500.00 per household receiving no other short sale 

assistance plus 3% of the subject property purchase price in 

the form of a seller paid closing cost on a short sale 

transaction. 

Borrowers will be required to maintain the property until the 

home is sold. 

AHFPFC will, on behalf of an approved seller, attempt to 

extinguish the 2nd mortgage through our Second Mortgage 

Settlement Component. 

AHFPFC will, provide funds directly to the homeowner as a 

part of the short sale closing/funding process but not prior to 

closing. 

2. Program Goals Short sale assistance was designed to help stabilize 

communities by providing assistance to consumers in 

unrecoverable situations to transition from homeownership to 

renting as well as enhance the marketability of short sale 

properties and accelerate the stabilization of property value. 

3. Target The targeted populations are households whose income does 
TAMPA/187443.1 

Population/Area not exceed 120% Area Median Income (“AMI”) and that 

exhibit an inability to retaining their home. 

4. Program Allocation

(Excluding 

Administrative 

Expenses) 

$9,600,000.00 

5. Borrower Eligibility 

Criteria 

• The household must have gross income of no more than 

120 percent of the area median income for the County in 

which the property is located. 

• Eligible financial hardship. Eligible financial hardships 

include: reduced income due to unemployment, 

underemployment, death, disability or divorce of a 

homeowner or co-homeowner. Borrower will be required 

to provide a financial hardship affidavit. 

• Borrower (s) must provide proof of short sale approval 

from Servicer and Final HUD-1 as a part of the closing 

process. 

• All sellers must sign a hardship affidavit and felony 

certification. 

• The seller must provide a copy of the fully executed 

purchase and sale agreement. 

6. Property/Loan 

Eligibility Criteria 

The property must be the borrower’s principal residence; 

additional property criteria must be met as well which include: 

• Unpaid principal balance equal to or less than GSE 

loan limits 

• Property must be owner-occupied 

• Mortgage(s) must be a minimum of 2 monthly 

payments delinquent or the borrower that is current or 

has only one payment due and unpaid by the end of the 

month in which it is due and makes application for 

program assistance will be evaluated to determine if he 

or she is at risk of imminent default. 

• Single family dwelling (1 to 4 units) 

7. Program Exclusions • Property located outside of Arizona 

• Properties refinanced for cash out mortgages 

• Sellers who apply for assistance after the short sale has 

been completed are ineligible to participate 

• Sellers who are executing a “strategic default” are 

ineligible (determination made through program 

underwriting guidelines) 

• Sellers whose current mortgage(s) PITI payment is 

equal to or less than 31.99% of monthly gross income 
TAMPA/187443.1 

excluding unemployment benefits. 

• Properties that are under contract that has been 

approved by the lender/servicer at the time of the 

assistance application. 

8. Structure of 

Assistance 

Assistance under this component will be structured as a 

onetime grant. 

9. Per Household 

Assistance 

• $4,500.00 per household receiving no other short sale 

assistance plus 3% of the purchase price. 

• Sellers participating in Home Affordable Foreclosure 

Alternative (HAFA) Assistance may be compensated 

up to $1,500 (which with the $3,000 HAFA assistance 

brings total assistance to seller to $4,500) plus 3% of 

the purchase price. 

• Sellers participating in a comparable proprietary 

program offered by a Servicer may be provided with 

assistance up to an amount that when coupled with the 

Servicer’s assistance does not exceed $4,500 plus 3% 

of the purchase. 

• $25,000.00 per household when combined with other 

program components. 

10. Duration of 

Assistance 

Program is a one-time payment per seller household, made 

upon close of escrow on the short sale. 

11. Estimated Number of 

Participating 

Households 

Based on AHFPFC eligibility criteria and available funding 

we expect to provide assistance to a minimum of 1,000 

households. 

12. Program 

Inception/Duration 

It is expected that the program will be available in a controlled 

rollout environment 3 weeks from Treasury’s approval of the 

program. The complete rollout of the program will occur 

approximately 4 weeks later, after the satisfactory assessment 

and adjustments as determined necessary in the controlled 

rollout.

It is projected that assistance will be expended over a three 

year period of time. All funds still available after 12/31/2017 

will be returned to Treasury. 

13. Program Interactions 

with Other Programs 

(e.g.other HFA 

Programs) 

N/A 
TAMPA/187443.1 

14. Program Interactions 

with HAMP 

AHFPFC’s program may interact with aspects of the Making 

Home Affordable Program (MHA) as AHFPFC tries to 

leverage the resources provided by the MHA programs to 

expand the pool of borrowers that are eligible for HAMP or 

other MHA options. In some cases, the assistance the 

AHFPFC provides under HHF can supplement and extend 

assistance provided through MHA. To maximize the 

effectiveness of our foreclosure mitigation efforts, servicers 

should use reasonable efforts to ensure that TARP funds are 

used efficiently and that HHF programs complement MHA 

programs. 

15. Program Leverage 

with Other Financial 

Resources 

N/A 

16. Qualify as an 

Unemployment 

Program 

N/A