FIFTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Fifth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the "Fifth Amendment"^ is entered into as of the date set forth on Schedule A 

attached hereto as the Fifth Amendment Date (the "Amendment Date"), by and among the 

United States Department of the Treasury ("Treasury"), the undersigned party designated as 

HFA whose description is set forth in Schedule A attached hereto (for convenience, a "state 

housing finance agency" or "HFA") and the undersigned institution designated by HFA to 

participate in the program described below ("Eligible Entity"). 

Recitals 

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

Purchase Financial Instrument and HFA Participation Agreement (the "Original HP A") dated as 

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

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

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

Instrument and HFA Participation Agreement (the "Second Amendment"), as further amended 

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

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

Fourth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the "Fourth Amendment": and together with the Original HPA as amended thereby 

and by the First Amendment, Second Amendment and Third Amendment, the "Current HPA"), 

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

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

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

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

amended from time to time ("EESA"); 

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

to their Service Schedules and Permitted Expenses, as applicable, and Treasury has agreed to the 

same; 

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

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

applicable; 

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. 

Fifth Amendment to HPA — Michigan 

US1 8004577v3 
Agreement 

Amendments 

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

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

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

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

amended by this Fifth 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 Fifth 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 Fifth Amendment. 

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

and replaced with Schedule C attached to this Fifth Amendment. 

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 Fifth Amendment and any other closing documentation delivered to 

Treasury in connection with this Fifth 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 

Fifth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

- 2 -

USl:8004577v3 
3. Miscellaneous 

A. The recitals set forth at the beginning of this Fifth 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 Fifth 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 

Fifth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

- 3 -

USl 8004577v3 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

MICHIGAN STATE HOUSING 

DEVELOPMENT AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: I si Gary Heidel 

Name: Gary Heidel 

Title: Executive Director 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

MICHIGAN HOMEOWNER ASSISTANCE 

NONPROFIT HOUSING CORPORATION 

By: I si Christopher L. LaGrand 

Name: Christopher L. LaGrand 

Title: Corporate Secretary 

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

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

Instrument and UFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

MICHIGAN STATE HOUSING 

DEVELOPMENT AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By. By: L L**^ 

Name: 

Title: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

MICHIGAN HOMEOWNER ASSISTANCE 

NONPROFIT HOUSING CORPORATION 

By: 

Name: 

Tillc: 

[Signalun: Page U> Fifth Amcndmcm 10 Hl'A — Michigan] 
EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

USl:8004577v3 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

Michigan Homeowner Assistance Nonprofit 

Housing Corporation 

Domestic Nonprofit Corporation 

State of Michigan 

HFA Information: 

Name of HFA: Michigan State Housing Development 

Authority 

Organizational form: Public body corporate and politic of the 

State of Michigan 

Date of Application: 

Date of Action Plan: 

Notice Information: 

April 14, 2010 

September 1,2010 

Program Participation Cap: 

Portion of Program Participation Cap 

Representing Original HHF Funds: 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: 

Permitted Expenses: 

$498,605,738.00 

$154,500,000.00 

$128,461,559.00 

$52,675,243.00 

USl:8004577v3 
Closing Date: 

First Amendment Date: 

Second Amendment Date: 

Third Amendment Date: 

Fourth Amendment Date: 

Fifth Amendment Date: 

Eligible Entity Depository Account Information: 

June 23, 2010 

September 23, 2010 

September 29, 2010 

December 16, 2010 

August 3, 2011 

June 28, 2012 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

USl 8004577v3 
SCHEDULE B 

SERVICE SCHEDULES 

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

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

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

USl:8004577v3 
SERVICE SCHEDULE B-l 

Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) 

acting through 

Michigan State Housing Development Authority (MSHDA) 

PRINCIPAL CURTAILMENT PROGRAM (PC) 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

6. Property/Loan 

Eligibility Criteria 

The Principal Curtailment Program will provide a one-time 

matching fund of up to $10,000 to homeowners seeking to 

modify their loans. The Lender/Servicer must agree to provide 

matching forgiveness of principal and to modify the reduced 

loan balance. 

The Principal Curtailment will prevent avoidable foreclosures by 

helping homeowners who have a qualifying, involuntary 

hardship (for example, homeowners who currently cannot 

refinance or modify their mortgages due to negative equity 

positions). Homeowners will benefit from both a restructured 

loan payment and the reduction in principal balance, reducing 

monthly payments and increasing sustainability. 

MHA does not anticipate targeting this assistance on a 

geographic basis, nor have we anticipated targeting specific 

income limits. 

$5,400,000. 

MHA determines homeowner eligibility. Homeowners presently 

having negative equity, greater than 100% Loan to Value (LTV) 

or greater than 100% Combined Loan to Value (CLTV), and 

needing principal curtailment in order to reach a sustainable 

mortgage payment. Homeowners are required to provide a 

hardship affidavit. If providing assistance on a 2nd lien, first lien 

must be documented as current. MHA considers a sustainable 

mortgage payment 45% or less (gross household income to 

validated mortgage payment). 

The homeowner must currently occupy the property as his/her 

primary residence and it must be located within the state of 

Michigan. Homeowners must execute all Hardest Hit Funds 

application and closing documents. Eligible structures to include 

single-family, attached or detached, or manufactured homes on a 

permanent foundation attached to real property; 1 -4 unit 

properties are eligible if one unit is primary residence of 

homeowner. Existing mortgage loan balance must be equal to 

USl 8004577v3 
or less than $729,250. 

7. Program Exclusions Second homes or investment properties. Homeowners with 

liquid cash reserves exceeding 6 months validated mortgage 

payments. Lender/Servicer is not required to accept homeowner 

to the program if a notice of trustee/sheriff sale has been 

recorded or the trustee/sheriff sale is scheduled less than seven 

days from date the Lender/Servicer is notified of borrower 

eligibility. 

8. Structure of Assistance Homeowners receiving assistance will execute a secured 

subordinate lien mortgage and note in favor of the MHA. Loan 

will be 0%, non-amortizing loan, forgivable over a 5 year term at 

20% per year, which will be due on sale, transfer of the property, 

or when the property ceases to be the principal residence of the 

homeowner. If the primary lien is paid in full due to a no cash 

out, limited-term, refinance, the MHA may subordinate lien 

position in accordance with program guidelines. Mortgage will 

be recorded through public records and ongoing monitoring, 

repayments, discharges, and subordinations will be conducted by 

MHA. Any repayment of program funds will be re-invested 

back into program allocation. All funds remaining in the 

program will be returned to Treasury after December 31, 2017. 

Hardest Hit Funds will be available on a first come, first serve 

basis. 

The Lender/Servicer will determine terms of modification 

according to their internal guidelines. The Lender/Servicer will 

transmit modification terms to the MHA for review and agree to 

match MHA's assistance dollar for dollar towards principal 

curtailment. Awarded funds will be remitted to Lender/Servicer 

to be applied towards the capitalized balance resulting in a 

reduction in existing principal on either the 1st or 2nd Mortgage. 

Lender/Servicer is required to provide timely communication of 

homeowner's loan data to the MHA and agree to place collection 

and foreclosure activity on hold upon their acceptance of the 

homeowner into the Hardest Hit Funds Program; active 

foreclosure action to be canceled upon receipt of Hardest Hit 

Funds. Lender/Servicer is required to provide evidence of 

timely application of Hardest Hit Funds inclusive of their 

required minimum 1:1 match. Lender/Servicer is required to 

waive all accumulated late charges and non-sufficient funds 

(NSF) fees. 

Per Household 

Assistance 

Maximum of $10,000 per household with a minimum 1:1 match 

from the Lender/Servicer; total of $20,000 per household. 

10. Duration of Assistance One time assistance to homeowner paid directly to 

Lender/Servicer for application towards capitalized balance. 

USl:8004577v3 
11. Estimated Number of 

Participating 

Households 

12. Program Inception/ 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

540 households could be served under this program if they all 

receive the maximum funding amount of $10,000. 

Program rolled out July 12, 2010. Based on the overwhelming 

need, funds allocated to this Program will likely be exhausted 

3rd quarter, 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are eligible 

for this program. 

Homeowners can receive HAMP assistance (including UP 

program assistance) prior to or after receiving Hardest Hit Funds 

assistance; Hardest Hit Funds cannot be used to pay HAMP trial 

period payments. Lender/Servicers to follow current guidance 

issued by their investor and/or U.S. Treasury. 

Existing Lender/Servicer will be required to match Hardest Hit 

Funds at a minimum of 1:1 towards capitalized debt. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees upon receipt of Hardest Hit Funds. 

• Yes 0 No 

USl 8004577v3 
SERVICE SCHEDULE B-2 

Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) 

acting through 

Michigan State Housing Development Authority (MSHDA) 

LOAN RESCUE PROGRAM (LR) 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target 

Population/Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility Criteria 

6. Property/Loan 

Eligibility Criteria 

Whether it was a divorce, a serious illness, or a recent period of 

unemployment, many Michigan families have encountered some 

significant obstacle in their lives that resulted in mortgage 

delinquency. This program will provide up to $20,000 in 

assistance to households who had a qualifying, involuntary 

hardship and can sustain homeownership, but need assistance to 

catch up on delinquent payments, escrow shortage, and/or 

delinquent property taxes to avoid foreclosure. 

This program will prevent avoidable foreclosures by putting 

homeowners, who otherwise are on the brink of foreclosure, 

back on solid footing without increasing their mortgage debt 

payments. In so doing, the program will stem the oversupply of 

foreclosed homes and short sales that dominate many markets 

and help stabilize the broader housing market in Michigan. 

MHA does not anticipate targeting this assistance on a 

geographic basis, nor have we anticipated targeting specific 

income limits. 

$110,205,000.00 

MHA determines homeowner eligibility. Homeowners who have 

had a qualifying, involuntary hardship (for example, decreased 

income or a catastrophic event). Homeowners are required to 

provide a hardship affidavit. If providing assistance on a 2nd lien, 

first lien must be documented as current. MHA considers a 

sustainable mortgage payment 45% or less (gross household 

income to validated mortgage payment). 

The homeowner must currently occupy the property as his/her 

primary residence and it must be located within the state of 

Michigan. Homeowners must execute all Hardest Hit Funds 

application and closing documents. Eligible structures to include 

single-family, attached or detached, or manufactured homes on a 

permanent foundation attached to real property; 1 -4 unit 

properties are eligible if one unit is primary residence of 

USl:8004577v3 
7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

lO.Duration of 

Assistance 

11. Estimated Number 

homeowner. Existing mortgage loan balance must be equal to 

or less than $729,250. 

Second homes or investment properties. Homeowners with 

liquid cash reserves exceeding 6 months validated mortgage 

payments. Lender/Servicer is not required to accept homeowner 

to the program if a notice of trustee/sheriff sale has been 

recorded or the trustee/sheriff sale is scheduled less than seven 

days from date the Lender/Servicer is notified of borrower 

eligibility. 

Homeowners receiving assistance will execute a secured 

subordinate lien mortgage and note in favor of the Eligible 

Entity. Loan will be 0%, non-amortizing loan, forgivable over a 

5 year term at 20% per year, which will be due on sale, transfer 

of the property, or when the property ceases to be the principal 

residence of the homeowner. If the primary lien is paid in full 

due to a no cash out, limited-term, refinance, the MHA may 

subordinate lien position in accordance with program guidelines. 

Mortgage will be recorded through public records and ongoing 

monitoring, repayments, discharges, and subordinations will be 

conducted by MHA. Any repayment of program funds will be 

re-invested back into program allocation. All funds remaining in 

the program will be returned to Treasury after December 31, 

2017. Hardest Hit Funds will be available on a first come, first 

serve basis. 

Lender/Servicer is required to provide timely communication of 

homeowner's loan data to the MHA and agree to place collection 

and foreclosure activity on hold upon their acceptance of the 

homeowner into the Hardest Hit Funds Program; active 

foreclosure action to be canceled upon receipt of Hardest Hit 

Funds. Lender/Servicer is required to provide evidence of 

timely application of Hardest Hit Funds. Lender/Servicer is 

required to waive all accumulated late charges and non-sufficient 

funds (NSF) fees. 

One time award up to $20,000 per household. 

One-time assistance to homeowner, paid directly to 

Lender/Servicer, for application towards total, accrued 

delinquent mortgage payments, escrow shortages, corporate 

advances, excluding late charges and NSF fees, on homeowners' 

mortgage account. If funds are to be paid through the 

Lender/Servicer to be applied towards delinquent property taxes, 

the Lender/Servicer must set up an escrow account to pay 

homeowners' future property taxes as part of the recovery. 

Based upon maximum program funding of $20,000 per 

USl 8004577v3 
of Participating 

Households 

12. Program 

Inception/Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other 

Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

household, 5,510 households may be assisted. 

Based on the overwhelming need, funds allocated to this 

Program will likely be exhausted 3rd quarter, 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are eligible 

for this program. 

Homeowners can receive HAMP assistance (including UP 

program assistance) prior to or after receiving Hardest Hit Funds 

assistance; Hardest Hit Funds cannot be used to pay HAMP trial 

period payments. Lender/Servicers to follow current guidance 

issued by their investor and/or U.S. Treasury. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees. No further matching is required. 

• Yes 0 No 

USl:8004577v3 
SERVICE SCHEDULE B-3 

Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) 

acting through 

Michigan State Housing Development Authority (MSHDA) 

UNEMPLOYMENT MORTGAGE SUBSIDY PROGRAM (UMS) 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Michigan, through its Unemployment Mortgage Subsidy 

Program, directly provides funds to the Lender/Servicer to 

subsidize an eligible homeowner's current or modified mortgage 

payment. 

This Program assists the homeowner who has had a qualifying, 

unemployment-related hardship in retaining homeownership by 

subsidizing up to 50% or $1,000 (whichever is less) of the 

monthly mortgage payment. The monthly subsidy will not 

exceed a total of 12 consecutive months or $12,000. 

Homeowners will be responsible for the unsubsidized portion of 

their monthly payment, which will be collected by MHA's 

special sub-servicer and sent to MHA; MHA will always remit 

the full mortgage payment directly to the Lender/Servicer. 

Lender/Servicer agrees to apply the funds towards validated 

mortgage payments and not homeowner/condominium 

association (HOA) fees unless such payments have been 

escrowed and are included in the monthly mortgage payment. 

Homeowners will also be eligible for upfront assistance to 

contribute towards a mortgage delinquency; inclusive of current 

mortgage payment due, delinquent mortgage payments, escrow 

shortages, corporate advances, excluding accrued late charges 

and non-sufficient funds (NSF) fees, on homeowners' mortgage 

account. Maximum reinstatement amount cannot exceed the 

maximum program reservation of $20,000 less the total amount 

initially reserved for 12 monthly subsidy amounts. 

Provide mortgage payment assistance to Michigan unemployed 

residents helping them remain successful in homeownership. 

MHA does not anticipate targeting this assistance on a 

geographic basis, nor have we anticipated specific hard income 

limits. 

$313,874,464.00 

MHA determines homeowner eligibility. Homeowners who 

USl:8004577v3 
Criteria 

6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of Assistance 

have lost their job and have received Michigan unemployment 

benefits within the last 30 days of application date (not 

registration date). Homeowners are required to provide a 

hardship affidavit. Qualifying ratio of 45% or less (gross 

household income, including unemployment compensation, to 

borrower's required portion of the validated mortgage payment). 

The homeowner must currently occupy the property as his/her 

primary residence and it must be located within the state of 

Michigan. Homeowners must execute all Hardest Hit Funds 

application and closing documents. Eligible structures to include 

single-family, attached or detached, or manufactured homes on a 

permanent foundation attached to real property; 1 -4 unit 

properties are eligible if one unit is primary residence of 

homeowner. Existing mortgage loan balance must be equal to 

or less than $729,250. 

Homeowners, as described above, not receiving Michigan 

unemployment benefits. Second homes or investment properties. 

Homeowners with liquid cash reserves exceeding 6 months 

validated mortgage payments. Assistance may not be provided 

on a loan in a 2n lien position. Lender/Servicer is not required 

to accept homeowner to the program if a notice of trustee/sheriff 

sale has been recorded or the trustee/sheriff sale is scheduled 

less than seven days from date the Lender/Servicer is notified of 

borrower eligibility. 

Homeowners receiving assistance will execute a secured 

subordinate lien mortgage and note in favor of the MHA. Loan 

will be 0%, non-amortizing loan, forgivable over a 5 year term 

at 20% per year, which will be due on sale, transfer of the 

property, or when the property ceases to be the principal 

residence of the homeowner. If the primary lien is paid in full 

due to a no cash out, limited-term, refinance, the MHA may 

subordinate lien position in accordance with in program 

guidelines. Mortgage will be recorded through public records 

and ongoing monitoring, repayments, discharges, and 

subordinations will be conducted by MHA. Any repayment of 

program funds will be re-invested back into program allocation. 

All funds remaining in the program will be returned to Treasury 

after December 31, 2017. 

Lender/Servicer is required to provide timely communication of 

homeowner's loan data to the MHA and agree to place 

collection and foreclosure activity on hold upon their acceptance 

of the homeowner into the Hardest Hit Funds Program; active 

foreclosure action to be canceled upon receipt of Hardest Hit 

Funds. Lender/Servicer is required to provide evidence of 

timely application of Hardest Hit Funds. Lender/Servicer is 

required to waive all accumulated late charges and NSF fees. 

USl 8004577v3 
9. Per Household 

Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

$ 20,000 maximum per household. 

Monthly subsidy ceases after 12 months consecutive monthly 

payments OR if homeowner fails to pay their portion of the 

payment in accordance with terms of the Note. 

Based upon maximum program funding of $20,000 per 

household, 15,695 households may be assisted. 

Based on the overwhelming need, funds allocated to this 

program will likely be exhausted 3rd quarter, 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are eligible 

for this program. 

Homeowners can receive HAMP assistance (including UP 

program assistance) prior to or after receiving Hardest Hit Funds 

assistance; Hardest Hit Funds cannot be used to pay HAMP trial 

period payments. Lender/Servicers to follow current guidance 

issued by their investor and/or U.S. Treasury. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees. No further matching is required. 

0 Yes • No 

USl:8004577v3 
SERVICE SCHEDULE B-4 

Michigan Homeowner Assistance Nonprofit Housing Corporation (MHA) 

acting through 

Michigan State Housing Development Authority (MSHDA) 

MODIFICATION PLAN PROGRAM (MP) 

Summary Guidelines 

1. Program 

Overview 

2. Program Goals 

3. Target 

Population/Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility 

Criteria 

6. Property/Loan 

Eligibility 

Criteria 

Michigan's Modification Plan Program provides a permanent 

solution to many homeowners who have fallen behind due to a 

qualifying, involuntary hardship, for example loss of income, 

but have the ability to sustain homeownership if their mortgage 

payment is modified. Up to $20,000 in assistance may be 

provided to the Lender/Servicer to pay the capitalized balance 

in order to contribute towards reaching a lower, sustainable 

monthly payment. 

This program will prevent avoidable foreclosures by putting 

homeowners, who otherwise are on the brink of foreclosure, 

into a permanent, affordable loan modification allowing them to 

maintain homeownership, curb vacancies and stabilize local 

communities. 

MHA does not anticipate targeting this assistance on a 

geographic basis, nor have we anticipated targeting specific 

income limits. 

$16,451,031 

MHA determines homeowner eligibility. Homeowners who 

have had a qualifying, involuntary hardship (for example, 

decreased income or a catastrophic event) are a minimum of 

two months delinquent, and present housing payment is greater 

than 45%o. MHA considers a sustainable mortgage payment 

45%) or less (gross household income to validated mortgage 

payment). Homeowners are required to provide a hardship 

affidavit. 

The homeowner must currently occupy the property as his/her 

primary residence and it must be located within the state of 

Michigan. Homeowners must execute all Hardest Hit Funds 

application and closing documents. Eligible structures to 

include single-family, attached or detached, or manufactured 

USl 8004577v3 
homes on a permanent foundation attached to real property; 1-4 

unit properties are eligible if one unit is primary residence of 

homeowner. Existing mortgage loan balance must be equal to 

or less than $729,250. 

7. Program 

Exclusions 

Homeowners whose Lender/Servicer is unable to permanently 

modify their existing lien. Assistance may not be provided on a 

loan in a 2" lien position. Second homes or investment 

properties. Homeowners with liquid cash reserves exceeding 6 

months validated mortgage payments. Lender/Servicer is not 

required to accept homeowner to the program if a notice of 

trustee/sheriff sale has been recorded or the trustee/sheriff sale 

is scheduled less than seven days from date the Lender/Servicer 

is notified of borrower eligibility. 

8. Structure of 

Assistance 

Homeowners receiving assistance will execute a secured 

subordinate lien mortgage and note in favor of the MHA. Loan 

will be 0%, non-amortizing loan, forgivable over a 5 year term 

at 20%) per year, which will be due on sale, transfer of the 

property, or when the property ceases to be the principal 

residence of the homeowner. If the primary lien is paid in full 

due to a no cash out, limited-term, refinance, the MHA may be 

willing to subordinate lien position. Mortgage will be recorded 

through public records and ongoing monitoring, repayments, 

discharges, and subordinations will be conducted by MHA. 

Any repayment of program funds will be re-invested back into 

program allocation. All funds remaining in the program will be 

returned to Treasury after December 31, 2017. Hardest Hit 

Funds will be available on a first come, first serve basis. 

The Lender/Servicer will determine terms of modification 

according to their internal guidelines. The Lender/Servicer will 

transmit modification terms to the MHA for review. MHA will 

determine amount of assistance up to program maximum based 

on delinquency amount; must be a minimum of two months 

delinquent. Awarded funds will be remitted to Lender/Servicer 

to be applied towards the capitalized balance. 

Lender/Servicer is required to provide timely communication of 

homeowner's loan data to the MHA and agree to place 

collection and foreclosure activity on hold upon their 

acceptance of the homeowner into the Hardest Hit Funds 

Program; active foreclosure action to be canceled upon receipt 

of Hardest Hit Funds. Lender/Servicer is required to provide 

evidence of timely application of Hardest Hit Funds. 

Lender/Servicer is required to waive all accumulated late 

charges and non-sufficient funds (NSF) fees. 

9. Per Household One time award up to $20,000 per household. 

USl 8004577v3 
Assistance 

10. Duration of 

Assistance 

11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception/Duratio 

n 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program 

Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

One-time assistance to homeowner, paid directly to 

Lender/Servicer, for application towards capitalized balance, 

excluding late fees and NSF fees, on homeowners' mortgage 

account. 

Based upon maximum program funding of $20,000 per 

household, 825 households may be assisted. 

Proposed program will roll out July 2012. Based on the 

overwhelming need, funds allocated to this Program will likely 

be exhausted 3rd quarter 2014. 

Homeowners will only be eligible for one MHA Hardest Hit 

Funds Program. MSHDA owned and serviced loans are 

eligible for this program. 

Homeowners can receive HAMP assistance (including UP 

program assistance) prior to or after receiving Hardest Hit 

Funds assistance; Hardest Hit Funds cannot be used to pay 

HAMP trial period payments. Lender/Servicers to follow 

current guidance issued by their investor and/or U.S. Treasury. 

Lender/Servicer agrees to waive all accumulated late fees and 

NSF fees. No further matching is required. 

• Yes 0 No 

USl 8004577v3 
SCHEDULE C 

PERMITTED EXPENSES 

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One-time / Start-Up Expenses: 

Initial Personnel 

Building, Equipment, Technology 

Professional Services 

Supplies / Miscellaneous 

Marketing /Communications 

Travel 

Website development /Translation 

Contingency 

Subtotal 

/^'.iAlft-4 

$0.00 

$0.00 

$325,000.00 

$0.00 

$262,500.00 

$0.00 

$0.00 

$0.00 

$587,500.00 

Operating I Administrative 

Expenses: 

Salaries 

Professional Services (Legal, 

Compliance, Audit, Monitoring) 

K^S?^*^* 

$30,290,300.00 

$2,040,000.00 

Travel $35,000.00 

Buildings, Leases & Equipment $390,000.00 

Information Technology & 

Communications $225,000.00 

Office Supplies/Postage and 

Delivery/Subscriptions $478,000.00 

Risk Management/ Insurance $0.00 

Training $50,000.00 

Marketing/PR $7,860,003.00 

Miscellaneous $4,800,000.00 

Subtotal $46,168,303.00 

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Transaction Related Expenses: 

Recording Fees $2,454,440 

Wire Transfer Fees $225,000 

Counseling Expenses 

File Intake $0.00 

Decision Costs $0.00 

Successful File $0.00 

Key Business Partners On-Going $3,240,000 

Subtotal $5,919,440.00 

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Grand Total $52,675,243.00 

USl-.8004577v3 
'•- 'wJ •-

% of Total Award 10.56% 

Award Amount $498,605,738.00 

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USl 8004577v3