TAMPA/134097.4

FIRST AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

Agreement (the “First Amendment”) is entered into as of the date set forth on Schedule A

attached hereto as the 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 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, pursuant to the Original HPA, Treasury purchased a Financial Instrument from 

Eligible Entity (the “Original Financial Instrument”) on the Closing Date; 

WHEREAS, on August 11, 2010 the Obama Administration announced that Treasury would 

make $2 billion of additional assistance available under the HHF Program for foreclosure 

prevention programs for homeowners struggling to make their mortgage payments due to 

unemployment (the “Unemployment HHF Funds”) in certain states that had previously received 

HHF Program funding, as well as certain new states and Washington, D.C.; 

WHEREAS, Treasury requested an action plan from state housing finance agencies in states that 

have previously received HHF Program funds for the use of the Unemployment HHF Funds to 

develop and implement a program or programs that specifically target homeowners struggling 

with unemployment; 

WHEREAS, HFA and Eligible Entity are part of, or are acting on behalf of, a state that was 

targeted to receive Unemployment HHF Funds and as such, Treasury, HFA and Eligible Entity 

wish to enter into this First Amendment to document all modifications and additional provisions 

necessary to address the Unemployment HHF Funds; 

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

Financial Instrument; 
- 2 - 

TAMPA/134097.4

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

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

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

Agreement 

1. Amendments

A. Definitions. All references in the Original HPA to the “Agreement” shall mean the 

Original HPA, as amended by this First Amendment; all references in the Original HPA to 

the “Financial Instrument” shall mean the Amended and Restated Financial Instrument in the 

form attached to this First Amendment as Exhibit A; all references in the Original HPA to the 

“Capital Draw Request” shall mean the Capital Draw Request in the form attached to this 

First Amendment as Exhibit C; and all references in the Original HPA to Schedules A, B or 

C shall mean the Schedules A, B or C attached to this First Amendment. All references 

herein to the “HPA” shall mean the Original HPA, as amended by this First Amendment. 

B. Unemployment Programs. The following additional language shall be added to 

Section 3.A. of the Original HPA: 

“No Capital Draw for funds in excess of the amount indicated on Schedule A

attached hereto as Portion of Program Participation Cap Representing Original 

HHF Funds shall be permissible for (i) Services that do not Qualify as an 

Unemployment Program, as indicated in the applicable Service Schedule, 

without the approval of Treasury, or (ii) Permitted Expenses.” 

C. Schedule A. Schedule A attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule A attached to this First Amendment. 

D. Schedule B. Schedule B attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule B attached to this First Amendment. 

E. Schedule C. Schedule C attached to the Original HPA is hereby deleted in its entirety 

and replaced with Schedule C attached to this First Amendment. 

F. Exhibit A. Exhibit A attached to the Original HPA is hereby deleted in its entirety 

and replaced with Exhibit A attached to this First Amendment. 

G. Exhibit C. Exhibit C attached to the Original HPA is hereby deleted in its entirety 

and replaced with Exhibit C attached to this First Amendment. 

2. Substitution of Financial Instrument

Eligible Entity shall deliver to Treasury on the date hereof an Amended and Restated 

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

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

of New York Mellon to cancel the Original Financial Instrument against delivery of such 

Amended and Restated Financial Instrument and direct The Bank of New York Mellon to 
- 3 - 

TAMPA/134097.4

return the cancelled Original 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 covenants and agrees that no funds in excess 

of the amount indicated on Schedule A attached hereto as Portion of Program 

Participation Cap Representing Original HHF Funds shall be used (i) to fund Services 

performed by Eligible Entity that do not Qualify as an Unemployment Program, as 

indicated in the applicable Service Schedule, or (ii) for Permitted Expenses. 

(2) 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. 

(3) Eligible Entity has the full corporate power and authority to enter into, execute, 

and deliver this First Amendment, the Amended and Restated Financial Instrument and 

any other closing documentation delivered to Treasury in connection with this First 

Amendment or the Amended and Restated Financial Instrument, and to perform its 

obligations hereunder and thereunder. 

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

First Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

4. Miscellaneous

A. The recitals set forth at the beginning of this First 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 
- 4 - 

TAMPA/134097.4

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 First 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 

First Amendment and the Amended and Restated Financial Instrument shall be treated as 

originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to First Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement – Nevada]

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

NEVADA HOUSING DIVISION UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Charles L. Horsey, III By: 

Name: Charles L. Horsey, III Name: Herbert M. Allison, Jr. 

Title: Administrator Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Lon A. DeWeese 

Name: Lon A. DeWeese 

Title: Secretary/Treasurer 

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

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

Instrument and HFA Participation Agreement as ofthe Amendment Date.

HFA:

NEVADA HOUSING DIVISION

By:

Name: Charles L. Horsey, III

Title: Administrator

ELIGIBLE ENTITY:

NEVADA AFFORDABLE HOUSING

ASSISTANCE CORPORATION

By:

Name: Lon A. DeWeese

Title: Secretary/Treasurer

TREASURY:

UNITED STATES DEPARTMENT OF THE

TREASURY

By:

Name: Herbert M. Allison, Jr.

Title: Assistant Secretary for

Financial Stability

[Signature Page to First Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement - Nevada]
TAMPA/134097.4

EXHIBITS AND SCHEDULES

Exhibit A Form of Amended and Restated Financial Instrument 

Exhibit C Form of Capital Draw Request 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/134097.4

EXHIBIT A

FORM OF AMENDED AND RESTATED FINANCIAL INSTRUMENT

This 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 dated as of the Effective Date, as modified by that certain 

First Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement, dated as of the Amendment Date (together, the “Agreement”), by and among the 

United States Department of the Treasury (“Treasury”), the party designated as HFA in the 

Agreement (“HFA”) and Eligible Entity. This Amended and Restated Financial Instrument is 

effective as of the Amendment Date. 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 Financial Instrument dated as of 

the Effective Date to Treasury (“Original Financial Instrument”); 

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

Instrument regarding repayment of the Purchase Price, which were clarified after the Closing 

Date and to provide consistent terms for all states receiving HHF Program funds; 

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 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” (which Purchase Price includes payments made by Treasury under the 

Original Financial Instrument). This 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 (P.L. 110-343), as amended, as the same may be 

amended from time to time (“EESA”). 

2. Repayment of Purchase Price. In the event a recipient of HHF Program funds repays any 

or all of the funds received from Eligible Entity in connection with the Services, Eligible 

Entity shall use such funds as follows: 
TAMPA/134097.4

(a) First, if such funds are repaid on or prior to December 31, 2017, Eligible Entity 

may use such repaid funds to continue to provide Services to other eligible 

homeowners up to and including December 31, 2017 or retain such repaid funds 

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. 

(b) Second, if such funds are repaid on or prior to December 31, 2017 and Eligible 

Entity is no longer providing the Services to new homeowners and the Permitted 

Expenses have been fully funded, then Eligible Entity shall remit such funds to 

Treasury, monthly on the 15th day of each month or first business day thereafter. 

(c) Third, if such funds are repaid after December 31, 2017, Eligible Entity shall 

remit such funds to Treasury, monthly on the 15th day of each month or first 

business day thereafter. 

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

including, but not limited to, excess cash and amounts on deposit in the administrative 

reserve, as of December 31, 2017, such funds shall be returned to Treasury or its designee 

prior to 1:00 p.m. Eastern Standard Time on December 31, 2017. 

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 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 
TAMPA/134097.4

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 Amended and Restated Financial Instrument by reference. 

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

Instrument on the date set forth below. 

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY] 

By: 

Name: 

Title: 

Date: ____________ __, 2010 
TAMPA/134097.4

EXHIBIT C

FORM OF CAPITAL DRAW REQUEST

NEVADA

[insert date] 

The Bank of New York Mellon 

tarpcppclosing@bnymellon.com 

Attn: Matthew Sabino 

The United States Department of the Treasury 

OFSChiefCounselNotices@do.treas.gov 

HFAInnovation@do.treas.gov 

tarp.compliance@do.treas.gov 

Attention: HFA Hardest Hit Fund 

Ladies/Gentlemen: 

 Reference is made to the Commitment to Purchase Financial Instrument and HFA 

Participation Agreement dated as of the date set forth on Schedule A thereto (as amended, 

supplemented or otherwise modified and in effect from time to time, the “HPA”) by and among 

[insert HFA name] (“HFA”), [insert Eligible Entity name] (“Eligible Entity”) and the United 

States Department of the Treasury (“Treasury”). Reference is also made to the Financial 

Instrument dated the date set forth on Schedule A to the HPA delivered by Eligible Entity to 

Treasury (as amended, restated, supplemented or otherwise modified and in effect from time to 

time, the “Financial Instrument”). Capitalized terms used but not otherwise defined herein shall 

have the meaning given them in the HPA. 

 In accordance with Section 3.A. of the HPA, the undersigned Eligible Entity hereby 

requests that The Bank of New York Mellon (“BNYM”), on behalf of Treasury, disburse the 

amounts set forth on the attached Capital Draw Schedule as a Capital Draw against the Purchase 

Price as described in the HPA to Eligible Entity on [insert date] (the “Funding Date”). 

 Eligible Entity hereby certifies to Treasury and BNYM, as of the date hereof and on the 

Funding Date, that: 

(a) no default or Event of Default has occurred and is continuing as of the date hereof 

and on the Funding Date [other than ______________]; 

(b) each of the representations and warranties made by Eligible Entity in the HPA and 

Financial Instrument are true and correct on and as of such date, as if made on and as 

of the date hereof and on the Funding Date [other than ______________]; 
TAMPA/134097.4

(c) Eligible Entity is in compliance with the covenants and other agreements set forth in 

the HPA and Financial Instrument, which shall remain in full force and effect [other 

than ______________]; 

(d) No portion of any prior Capital Draw and/or this Capital Draw in excess of the 

amount set forth on Schedule A to the HPA as Portion of Program Participation Cap 

Representing Original HHF Funds, have been or will be used to fund Services that do 

not Qualify as an Unemployment Program, as indicated in the applicable Service 

Schedule, or Permitted Expenses. 

(e) all data and information set forth in this Capital Draw Request, including the Capital 

Draw Schedule, is true and correct in all respects; and 

(f) to our knowledge, there have been no Acts of Bad Faith by any HHF Recipient [other 

than ______________]. 

 In the event that any part of the certification made herein is discovered not to be true and 

correct after the date hereof, Eligible Entity shall notify Treasury immediately. 

Nevada Affordable Housing Assistance Corporation 

 

[Name of Authorized Official] 

[Title of Authorized Official] 
TAMPA/134097.4

CAPITAL DRAW SCHEDULE

Capital Draw Request for: 

[______] Program $____________

[______] Program $____________

[______] Program $____________

Permitted Administrative Expenses $____________

Total Capital Draw Request $____________

Amount of Capital Draw Request for Non-Unemployment Programs and 

Permitted Expenses 

$____________

Amount of Capital Draw Request for Unemployment Programs $____________

Total Capital Draw Request as a Percentage of Program Participation Cap1: _____% 

Total Purchase Price funded to date, including current Capital Draw: $____________

Total funding to date, including current Capital Draw for Non-Unemployment 

Programs and Permitted Expenses2

$____________

Total funding to date, including current Capital Draw for Unemployment 

Programs 

$____________

Program Participation Cap: $____________

Program Funds Remaining: $____________

Amount of HHF Program funds on hand prior to this Capital Draw: $____________

HHF Program funds on hand prior to this Capital Draw as a Percentage of 

Program Participation Cap3: 

_____% 

________________________ 

1 May not be less than 2.5% nor exceed 20%. 

2 May not exceed Portion of Program Participation Cap Representing Original HHF Funds. 3

 May not exceed 5.0% on the date of submission of the Draw Request. 

Depository Account Information/Wire 

Instructions for payment of Capital Draw: 
TAMPA/134097.4

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Nevada Affordable Housing Assistance 

Corporation

Corporate or other organizational form: Non-profit corporation

Jurisdiction of organization: Nevada

Notice Information: Nevada Affordable Housing Assistance Corporation 

 10585 Double R Blvd., Suite B 

 Reno, NV 89521-8909 

 Phone: (775) 284-0302 

 Fax: (775) 230-0354 

 Email: nhd@housing.nv.gov 

 ssharp@RBSLLAW.com 

 

HFA Information: 

Name of HFA: Nevada Housing Division1

Organizational form: A Division of the Nevada Department of 

 Business and Industry of the State of 

 Nevada 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: Nevada Housing Division 

 1535 Old Hot Springs Rd., Ste 50 

 Carson City, NV 89706 

 Attn: Administrator 

 Phone: (775) 687-2040 

 Fax: (775) 687-4040 

 Email: Chorsey@housing.nv.gov 

 

1 See attached Schedule A-1 that is attached to, and forms a part of this First Amendment. 
TAMPA/134097.4

Program Participation Cap: $136,856,581.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $102,800,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $ 34,056,581.00 

Permitted Expenses: $ 18,359,784.00

Closing Date: June 23, 2010 

Amendment Date: September 23, 2010 

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/134097.4

SCHEDULE A-1

The following shall constitute additional and/or modified terms to the First 

Amendment and are hereby incorporated into the First Amendment. 

1. Section 3A(1) of the First Amendment is replaced with the following: 

(1) Eligible Entity hereby covenants and agrees that no funds in excess of the amount indicated 

on Schedule A attached hereto as Portion of Program Participation Cap Representing Original 

HHF Funds shall be used (i) to fund Services performed by Eligible Entity that do not Qualify as 

an Unemployment Program, as indicated in the applicable Service Schedule, or (ii) for Permitted 

Expenses. 

2. Ratification 

Except as herein modified and amended, the terms and conditions of the First Amendment, 

including the Schedules and Exhibits included as a part thereof, and all of the documents 

executed with respect to the foregoing are hereby ratified and affirmed and shall remain in full 

force and effect. All references in any of the foregoing to the “First Amendment” shall be 

deemed to refer to the First Amendment, including the Schedules and Exhibits included as a part 

thereof, as further modified and amended by this Schedule A-1. 

 
TAMPA/134097.4

SCHEDULE B

SERVICE SCHEDULES

The Service Schedules attached as Schedule B to the Original 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/134097.4

SERVICE SCHEDULE B-1

The Nevada Affordable Housing Assistance Corporation 

PRINCIPAL REDUCTION PROGRAM 

Summary Guidelines

1. Program Overview To ensure that nearly 2,500 Nevada families are able to stay in their 

homes with a permanent change to their mortgages via principal 

reductions which will provide qualified homeowners a principal reduction 

of up to $25,000, with a 1:1 match from the note holder if possible. The 

1st Mortgage Principal Reduction Program will assist the underemployed, 

income restricted homeowner candidates to keep occupancy and 

ownership of their home. 

2. Program Goals The primary goal is to reduce first mortgage principal balances with 

respect to at least 2,500 homeowners throughout the State of Nevada such 

that their loan to value ratios are reduced to 115% or less and 

correspondingly, the PITI payment reduced to 31% or less of the 

homeowner’s gross income. 

3. Target Population / 

Areas 

The funding will be distributed via a geographic formula of 1/3+1/3+1/3 

weight for unemployment + foreclosure rate + population. There will be 

target population segmentation into (a) the Clark County/Las Vegas 

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada. 

Where a finer breakdown is possible within each of the three geographic 

areas, zip code and census track targeting will be utilized. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$58,562,079.89 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Any cash out borrowing in past five years must be limited to: 

• Home improvement - real, not personal property classification. 

• Medical bills - documented. 

• Paying off existing revolving debt - documented. 

• Current income does not exceed 120% of Area Median Income 

(2010). 

• Borrower must be facing eminent default, if delinquent cannot be 

more than 6 months maximum - target to be 3 months maximum. 

• Delinquency based on a financial hardship due to circumstances 

beyond the homeowner’s control (no contrived defaults allowed). 

Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. Eligible 

hardships to include but not limited to the following: 

• Underemployment. 
TAMPA/134097.4

• Illness, disability or death of wage earner in family in 

possession. 

• Divorce or legal separation. 

Eligibility criteria will be analyzed either on-line by the borrower’s visit 

to the web site and using the ‘screening tool’ or directly at the intake 

portal of the contract agents (foreclosure mitigation and mediation 

agencies). If applicants meet screening criteria, application packages will 

be assembled and forwarded onto the NAHAC underwriters who will do 

the full verifications/confirmation and begin the relationship with the 

participating banks/lenders/servicers to work through the calculation of 

aid levels. 

Funding will be provided on a first come-first-served basis within each 

geographical zone. Daily monitoring of funding commitments/pipelines 

by zone will allow sufficient trend evidence to allow for sufficient lead 

time to ‘cut-off’ further funding commitments that might exceed available 

resources. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

• Must have only one existing mortgage. 

• Principal balance must not exceed 115% based upon current appraisal 

following principal balance reduction nor PITI exceed 31%. 

• Current mortgage cannot be secured by one of the following entities 

FHA/VA, Fannie Mae, Freddie Mac if the existing loan qualifies for 

one of those entities existing programs (direct lender program option 

must be exhausted first). 

• All modified mortgages will be changed to fixed rate 30 year or longer 

mortgages. 

The higher Targeted Area limit calculation will be utilized (115% of area 

median). Thus, per the HUD Procedure, the maximum mortgage limits 

would be: 

• Clark County: $427,184 

• Reno/Sparks SMSA: $431,189 

• Rural Nevada Areas: $347,087 

7. Program Exclusions • Having failed a HAMP loan temporary period by voluntary noncompliance, as determined by Eligible Entity. 

• Borrowers who took out 2nd liens for reasons other than those listed 

above under the Borrower Eligibility Criteria. 

8. Structure of 

Assistance 

Assistance will be structured as a forgivable loan in favor of the Eligible 

Entity secured by a junior lien recorded against the property. Borrowers 

who follow through and earn the loan forgiveness will not be required to 

repay their principal reduction loans. The earned forgiveness loan will 
TAMPA/134097.4

amortize on a straight-line basis of 1/36 per month. A recapture of up to 

20% of the note will be invoked in the event the home is sold in months 

37 through 60 post-closing of the recast mortgage. The recapture 

provision will self extinguish on the first day of the 61st month. 

9. Per Household 

Assistance 

The maximum amount receivable by a qualified borrower is $25,000 

assuming a $1:$1 match is occurring from the banks or GSEs. The 

median amount is expected to be close to the maximum (skewed right 

poisson distribution) amount. It is possible that there could be a bimodal 

distribution. Thus, if there are numerous HAMP fails of under $10,000 

that this level of assistance or less represents a large (disproportionate) 

share of the distribution of aid in the principal reduction program. 

Therefore, in this scenario there will be a large portion under $10,000 and 

a large portion of applicants at the full $25,000 level and very few in 

between. 

10. Duration of 

Assistance 

Borrower participation in Program is a one time payment. 

11. Estimated Number of 

Participating 

Households 

Assuming a $1 for $1 level of matching principal reduction assistance is 

achieved in conjunction with the loan servicers, approximately 2,468 

households could be assisted under this Program. Should there be the bimodel distribution (as referenced in #9 above) the number of households 

assisted could exceed 5,000. 

12. Program Inception / 

Duration 

The planned implementation will be directly impacted by the time needed 

to secure agreements/contracts for lender matching and could take up to 

75 days from the approval of the program to have agreements in place and 

begin flowing clients through the screening process. This Program could 

last up to 24 months. 

13. Program Interactions 

with Other HFA 

Programs 

The 1st mortgage principal reduction program is aimed at the 

underemployed population of income qualified/limited home owners, not 

the unemployed. Thus, it is possible that a homeowner could receive a 1st

mortgage principal reduction through this Program and then subsequently 

lose their job and eventually need a short-sale assistance program through 

another NAHAC HHF Program. 

14. Program Interactions 

with HAMP 

NAHAC expects an active interface with the HAMP program. During the 

‘in-take’ process, the applicants will be screened for HAMP eligibility 

and where it is indicated that a borrower would be eligible, they will 

channeled into a HAMP loan modification. Where there is a HAMP 

failure of <=$10,000 or less, then this program element will be accessed 

to accommodate the HAMP ‘pass’. Additionally, if someone does not 

qualify for a HAMP or has a ‘fails’ >=$10,000 then the applicant will be 

directed into the regular HAFA program. If the applicant needed added 
TAMPA/134097.4

HAFA type of assistance, then NAHAC’s Short-Sale program will be 

utilized. 

It is also quite possible that a homeowner may receive a 2nd lien reduction 

and subsequently qualify for either a HAMP modification in need of 

supplementation or a regular 1st mortgage principal reduction program. 

15. Program Leverage 

with Other Financial 

Resources 

Nevada will endeavor to get applicable servicer/lenders to match on a $1 

for $1 basis. This programmatic goal will form the basis of all servicer 

agreements if possible. However, if the servicer/lender is unable to agree 

to a $1 for $1 arrangement, a lesser match may be acceptable. The 

matching funds will be provided at closing. Nevada will also request that 

the loan servicer waive certain fees like late charges, delinquency fee and 

penalties and recast the principal reduced loan and participate in its 

recordation. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134097.4

SERVICE SCHEDULE B-2

The Nevada Affordable Housing Assistance Corporation 

SECOND MORTGAGE REDUCTION PLAN 

Summary Guidelines

1. Program Overview The Second Mortgage Reduction Plan is aimed at assisting borrowers who 

have a second lien interfering with either a short-sale or modification of 

the first mortgage. The expected applicant pool is believed to be both 

unemployed and underemployed families. 

2. Program Goals The expected outcome of this program is to assist up to 1,200 families 

remove the impediment of a second lien on their property such that either 

a refinancing or first mortgage modification can be carried out and thus 

prevent a foreclosure. 

3. Target Population / 

Areas 

The funding will be distributed via a geographic formula of 1/3+1/3+1/3 

weight for unemployment + foreclosure rate + population. There will be 

target population segmentation into (a) the Clark County/Las Vegas 

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada. 

Where a finer breakdown is possible within each of the three geographic 

areas, zip code and census track targeting will be utilized. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$19,702,671.81 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Any cash out borrowing in past five years must be limited to: 

• Home improvement - real, not personal property classification. 

• Medical bills - documented. 

• Paying off existing revolving debt -documented. 

• Current income does not exceed 120% of Area Median Income 

(2010). 

• Borrower must be facing eminent default, if delinquent cannot be 

more than 6 months maximum - target to be 3 months maximum. 

• Delinquency based on a financial hardship due to circumstances 

beyond the homeowner’s control (no contrived defaults allowed). 

Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. Eligible 

hardships to include but not limited to the following: 

• Underemployment. 

• Illness, disability or death of wage earner in family in 

possession. 

• Divorce or legal separation. 
TAMPA/134097.4

Eligibility criteria will be analyzed either on-line by the borrower’s visit 

to the web site and using the ‘screening tool’ or directly at the intake 

portal of the contract agents (foreclosure mitigation and mediation 

agencies). If applicants meet screening criteria, application packages will 

be assembled and forwarded onto the NAHAC underwriters who will do 

the full verifications/confirmation and begin the relationship with the 

participating banks/lenders/servicers to work through the calculation of 

aid levels. 

Funding will be provided on a first come-first-served basis within each 

geographical zone. Daily monitoring of funding commitments/pipelines 

by zone will allow sufficient trend evidence to allow for sufficient lead 

time to ‘cut-off’ further funding commitments what might exceed 

available resources. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

• Must have only one existing mortgage and a 2nd lien. 

• Principal balance must not exceed 115% based upon current appraisal 

following principal balance reduction nor PITI exceed 31%. 

• All 2nd liens obtaining relief through this program element will have 

an accompanying lien release and waiver of deficiency judgment 

rights. 

• The maximum 2nd lien size eligible for relief under this program 

element must be equal to or less than $41,250. 

• First mortgage must be per HUD Rev Procedure 2009-18. The higher 

Targeted Area limit calculation will be utilized (115% of area 

median). 

7. Program Exclusions • Borrowers who took out 2nd liens for reasons other than those listed 

above under the Borrower Eligibility Criteria. 

• If a second lien exceeds the program limit of $41,250 or program 

contribution of >$16,500 then the borrower would be ineligible. 

8. Structure of 

Assistance 

Assistance will be structured as a forgivable loan in favor of the Eligible 

Entity secured by a junior lien recorded against the property. Borrowers 

who follow through and earn the loan forgiveness will not be required to 

repay their principal reduction loans. The earned forgiveness loan will 

amortize on a straight-line basis of 1/36 per month. A recapture of up to 

20% of the note will be invoked in the event the home is sold in months 

37 through 60 post-closing of the recast mortgage. The recapture 

provision will self extinguish on the first day of the 61st month. 

9. Per Household 

Assistance 

The maximum amount of 2nd mortgage lien relief from the program will 

be $16,500 toward removal of liens whose value is <=$41,250. 
TAMPA/134097.4

10. Duration of 

Assistance 

The 2nd lien elimination program will be a one time payment program. 

11. Estimated Number of 

Participating 

Households 

It is estimated that up to 1,246 applicants/families could receive 2nd lien 

relief under this program. If the level of lender participation exceeds 60% 

versus the program’s 40% or the average program funding level averages 

less than the maximum of $16,500 in necessary funding to create the 2nd

lien relief, then there could be an increase in the number of borrowers 

assisted. 

12. Program Inception / 

Duration 

The Principal Reduction Program will be available to borrowers within 3

months after approval by Treasury and could last up to 2 years, with an 

outside date of July 30th 2012. 

13. Program Interactions 

with Other HFA 

Programs 

None. 

14. Program Interactions 

with HAMP 

The program will have an active interface with the HAMP program. 

During the ‘in-take’ process with the foreclosure mitigation/mediation 

agencies, the applicants will be screened for HAMP eligibility and where 

it is indicated that a borrower would be eligible, they will channeled into a 

HAMP loan modification. If the applicant needs 2nd lien relief in order to 

effectuate a HAMP or 1st mortgage principal reduction program process 

then the 2nd lien relief element will be utilized. NAHAC wishes to 

supplement and complement the federal programs and where needed to 

create added funds flow to ensure long term solutions to the borrower’s 

need. 

15. Program Leverage 

with Other Financial 

Resources 

The basis of the 2nd lien relief program is to ‘free up’ the first mortgage 

note holder to complete the necessary modification to keep the borrower 

current and in their home. In order to leverage the 2nd lien relief funds, 

the program requires participating lenders to contribute $0.60 for each 

$0.40 contributed by this program. Additionally, if the lending institution 

whose 2nd lien is being relieved also holds the 1st mortgage, they (note 

holder) would have to contribute $0.50 to each dollar of 1st mortgage 

principal relief from NAHAC’s other HHF programs. The matching 

funds will be provided at closing. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134097.4

SERVICE SCHEDULE B-3

The Nevada Affordable Housing Assistance Corporation 

SHORT-SALE ACCELERATION PROGRAM 

Summary Guidelines

1. Program Overview The Short-Sale Acceleration Program is aimed at assisting borrowers who 

are beginning or need to initiate the short-sale process to relieve 

themselves of the mortgage burdens that they cannot sustain—even with a 

material loan principal reduction. 

2. Program Goals It is expected that at a $8,025 level of average funding per family assisted 

up to 1,371 families facing immanent foreclosure threat due to 

unemployment, will have the burden of their home mortgage eliminated 

and the threats of a default judgment removed. 

3. Target Population / 

Areas 

Unemployed population of Nevada (189,000 in February or 13.9% level) 

who are facing eminent threat of foreclosure. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$6,175,464.30 

5. Borrower Eligibility 

Criteria 

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Any cash out borrowing in past five years must be limited to: 

• Home improvement - real, not personal property 

classification. 

• Medical bills - documented. 

• Paying off existing revolving debt - documented. 

• Borrower must have short-sale agreement in place with lender. 

• Borrower must have been enrolled in Unemployment Insurance 

Program (UIP) with State of Nevada. 

• Borrower must have home listed for sale and listing agreement. 

• Borrower will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

• Must have only one existing mortgage. 

• Borrower/family must be committed to living in a rental property 

from the eligible list of participating properties provided and execute 

a 6 month or longer lease at the close of the home sale transaction. 

7. Program Exclusions • Borrowers completing a short-sale but unwilling/unable to stay in 

Nevada due to job opportunities elsewhere. 

• Borrowers who took out 2nd liens for reasons other than those listed 
TAMPA/134097.4

above under the Borrower Eligibility Criteria. 

8. Structure of 

Assistance 

This program is direct assistance through direct payment to vendors at 

closing of the escrow. The payments will not be structured as a loan. 

9. Per Household 

Assistance 

The maximum is $8,025 paid out to a qualified family in this short sale 

program. 

10. Duration of 

Assistance 

The Short-Sale Acceleration program element in the NAHAC Business 

Plan is expected to last up to 24 months. Due to current economic 

projections showing double digit unemployment rates in Nevada through 

the 3rd quarter of 2013, it is expected that this program will simply 

exhaust its funding or be unable to accept more applicants by the end of 

the 24th month. 

11. Estimated Number of 

Participating 

Households 

The Business Plan calls for this program element to assist up to 1,371 

families complete their home abandonment/ownership through a short 

sale and matriculate to a rental property somewhere else in Nevada. 

12. Program Inception / 

Duration 

The Short Sale Acceleration Program will be available to borrowers 

within 3 months after approval by Treasury and will last up to 2 years. 

13. Program Interactions 

with Other HFA 

Programs 

To the fullest extent possible, absent specific federal program 

prohibitions/limitations, the Short-Sale Acceleration Program element 

will build on or utilize the H.A.F.A. program in parallel. If it is possible 

to utilize both the federal H.A.F.A. program funds underneath the ShortSale Acceleration Program funds, then the number of possible candidates 

assisted through the painful short-sale process would increase beyond the 

projected 1,371. 

14. Program Interactions 

with HAMP 

The candidates for the Short-Sale Acceleration program will have been 

through a HAMP or similar private bank or GSE loan modification 

process and ‘failed’ by a sufficiently material level to not even qualify for 

NAHAC’s 1st mortgage Principal Reduction Program. Thus, the 

data/processes will show factually that the only realistic result for the 

borrower is the short-sale. 

15. Program Leverage 

with Other Financial 

Resources 

See 13 above. No additional leverage. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/134097.4

SERVICE SCHEDULE B-4

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM (MAP) 

Summary Guidelines 

1. Program Overview The Nevada Mortgage Assistance Program (MAP) is designed to help 

keep first mortgages current for up to 11,352 families who have an 

unemployed wage earner. The program will assist those qualified 

families by making up to the lesser of 1/3 of the principal and interest 

portion or a $500 payment supplement to the family’s monthly principal 

and interest portion of the first mortgage payment only. The property 

taxes and insurance amounts due and owing will remain fully a 

borrower’s responsibility and are not part of the MAP supplement. 

MAP payments may be extended for qualified families for up to 6 

months. The MAP payments are aimed at providing a financial bridge to 

those unemployed persons who are attempting to upgrade their work 

skills. The payments/mortgage supplements are aimed directly at 

unemployed persons who are enrolled in either a special skills training 

program, an institution of higher education or other professional 

retraining program aimed at increasing the marketability of the 

unemployed person’s job skills. Applicants will be assessed for their 

ability and likelihood for being able to find timely re-employment soon 

after the payment supplements end. 

Borrowers will submit their partial payment to the Nevada Affordable 

Housing Assistance Corporation (NAHAC) where it will be combined 

with the HHF funds and a full remittance made to the loan servicer for 

the loan. Borrowers can be enrolled either through participating 

lenders/servicers who have received special training or directly through 

the NAHAC offices after first completing an appropriate screening tool 

and being given an appointment with the NAHAC loan underwriter. 

MAP payments will invoke a non-recourse lien which will have an 

earned forgiveness embedded in the Note. Borrowers who are able to 

sustain their homeownership for 60 successive months following the end 

of the MAP payments will have their lien extinguished. 

NAHAC intends to retain/set aside 1% of the total direct support funds 

for contingency situations, wherein certain recipients may be in need of 

one-two months (maximum) of added support payment while their 

training programs are completed. These exceptional cases must be 

approved by the NAHAC Board of Directors after evidence of eminent 

re-employment contingent upon completion of a training program 

documented. If the contingency is not needed as program capacity is 

reached, the contingency funds will be put into the normal available 
TAMPA/134097.4

funds for the MAP program. Further, the contingency will be reduced 

pro rata to total MAP program capacity over time so that as the program 

reaches 60% of capacity without use of any contingency funds, then 

60% of the contingency will be released back into the main MAP fund. 

2. Program Goals The MAP program’s goal is to increase the probability that a borrower 

and/or recipient’s family has a stronger chance of sustaining 

homeownership with the assistance from the HHF program. This 

outcome would be due to the increased chances of being rehired with 

newly enhanced skills which are obtained during mortgage payment 

bridging period. It is hoped that qualified recipients will have assessed 

their current job skills and the chances of rapid re-employment and 

determined to take affirmative steps to upgrade their job skills in such a 

way that their re-employment chances are enhanced. Thus, their ability 

to keep and sustain current homeownership will be greatly improved in 

the long run. The enhanced home ownership through re-employment 

and job maintenance should decrease both the numbers and probability 

of foreclosures. 

3. Target Population / 

Areas 

The State of Nevada is currently enduring the USA’s highest 

unemployment rate in its workforce. However, the highest levels of 

unemployed persons in Nevada are primarily centered in the two urban 

areas (Clark County/Las Vegas area and Reno/Sparks MSA) versus the 

rural agricultural and mining areas. With the assistance of the Nevada 

Department of Employment, Training and Rehabilitation’s (“DETR”) 

published data, MAP funds will be allocated on a pro-rata basis to 

jurisdictions based on a ratio of actual number of unemployed to total 

State-wide unemployed as a general allocation matter. However, a 

quarterly assessment will be undertaken to ensure allocations of 

remaining funds are representative of changes to the unemployed 

populations in all jurisdictions. Nevada’s MAP program will be 

targeting the unemployed population that is working to upgrade their 

job-market skills in ways that most likely will lead to re-employment 

shortly after the end of the MAP assistance. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$34,056,581.00 

5. Borrower Eligibility 

Criteria 

To ensure both consistencies with previously approved Participation 

Agreement programs and to lessen the burdens of administering the 

MAP program, adherence to the same underwriting qualification 

standards will be generally utilized. Thus, Applicant Eligibility Criteria 

will consist of: 
TAMPA/134097.4

• Legal US Resident. 

• Resident in Nevada 5 years in same dwelling. 

• Current income does not exceed 120% of Area Median Income 

(2010). 

• Applicant must be facing eminent default. 

• Applicant must be experiencing financial hardship due specifically 

to unemployed status which must be verified via the Nevada 

Department of Employment, Training and Rehabilitation. 

• Applicant will be required to provide a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. 

• Applicant must be currently enrolled or will be enrolled during the 

period of assistance, in a viable retraining, new skills training or 

academic program that creates new or upgraded job skills. New 

training must relate specifically to making applicant able to be 

employed in a short-period of time following assistance and 

therefore sustain homeownership going forward. 

Basic eligibility criteria will be analyzed either on-line by the applicant’s 

visit to the web site and using the ‘screening tool’ or directly at the 

NAHAC offices. If applicants meet screening criteria, application 

packages will be assembled by the NAHAC underwriters who will do 

the full verifications/confirmation, enter the applicant’s data into the 

NAHAC database and accounts payable systems and begin the 

relationship with the borrower’s participating banks/lenders/servicers to 

ensure aid is acceptable to them. 

6. Property / Loan 

Eligibility Criteria 

• Owner occupied. 

The higher Targeted Area limit calculation will be utilized (115% of area 

median). Thus, per the HUD Procedure, the maximum mortgage limits 

would be: 

a. Clark County: $427,184 

b. Reno/Sparks SMSA: $431,189 

c. Rural Nevada Areas: $347,087 

7. Program Exclusions • Having failed a HAMP loan temporary period by voluntary noncompliance, as determined by Eligible Entity. 

8. Structure of 

Assistance 

All MAP program assistance will be structured as a 0% interest, 

forgivable nonrecourse loan, secured by a junior lien recorded against 

the property, which will be forgiven over a period of time not to exceed 

5 years. The loans will only be repayable if the borrower sells the 

property before the 60 month time period expires and there is sufficient 

equity to pay the loan. All MAP provided funds returned to program 

may be recycled until U.S. Treasury imposed deadline of December 31, 

2017. Thereafter they will be returned to Treasury. The MAP assistance 
TAMPA/134097.4

will be as an ‘earned forgiveness’ loan that is forgiven 20% each year. 

9. Per Household 

Assistance 

The planned MAP program level of assistance should average 

approximately $500/month per recipient for up to 6 months or an 

expected average mortgage payment assistance of $3,000. 

10. Duration of Assistance The MAP assistance will last the lesser of 6 months or up to 2 months 

after reemployment.

11. Estimated Number of 

Participating 

Households 

Based upon average assistance of $3,000 then the expected number of 

potential recipients should be approximately 11,352. However, this 

number may be decreased slightly if the contingency funds described in 

Section 1 are utilized for such purpose. 

12. Program Inception / 

Duration 

Approximately 45 days after final U.S. Treasury approval. Given the 

program limit of six months worth of assistance, this means that the full 

utilization of MAP program funds should run down in approximately 15-

18 months.

13. Program Interactions 

with Other HFA 

Programs 

The MAP program could have some forms of interaction with the other 

HHF programs. Specifically, if a MAP program recipient does achieve 

re-employment status and would possibly be a candidate for a HHF 

principal reduction program, then NAHAC will advise the borrower of 

such. However, if the recipient drops out of the MAP program due to 

failing to complete their retraining program, and it appears evident that 

the borrower may lose their home due to lack of means to sustain the 

mortgage, then the borrower will be advised about the HHF short-sale 

program. 

14. Program Interactions 

with HAMP 

The MAP program could have some form of interaction with HAMP. 

HHF Funds (MAP) would be utilized prior to HAMP UP. Implementing 

the program in this order is the most beneficial to the borrower and 

investor since payments would continue to be made instead of 

capitalized, and no late charges or adverse credit reporting would occur. 

If a MAP program recipient does achieve re-employment status and the 

borrower would possibly be a candidate for either a HAMP modification 

and/or a HAMP principal reduction program, then NAHAC will advise 

the borrower of such. 

15. Program Leverage 

with Other Financial 

Resources 

NAHAC will work with loan servicers for each qualified recipient to 

ensure that the funds from the MAP program payments are utilized 

strictly for the borrower’s ‘current P&I payments and not to ‘make up’ 

any past due penalties or payments. NAHAC underwriting staff will 

communicate with the servicer to ensure that the MAP payments are 

credited only toward current amounts of P&I due by the borrower. If 

this means that the borrower and servicer have to execute some form of 
TAMPA/134097.4

forbearance or forgiveness on past due amounts, NAHAC will be 

prepared to assist the borrower with the servicer on this. It is hoped that 

the servicers will cooperate on these matters. But until NAHAC actually 

begins distributing Servicer Participation Agreements for the MAP 

program, actual servicer participation cannot be accurately determined. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No 
TAMPA/134097.4

SCHEDULE C

PERMITTED EXPENSES

Nevada 

 One-time / Start-Up Expenses: 

Initial Personnel $377,800.00

Building, Equipment, Technology $575,198.00

Professional Services $42,000.00

Supplies / Miscellaneous $115,600.00

Marketing /Communications $0.00

Travel $1,200.00

Website development /Translation $15,700.00

Contingency $1,170,000.00

 Subtotal $2,297,498.00

Operating / Administrative Expenses: 

Salaries $2,753,167.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $2,506,051.00

Travel $29,500.00

Buildings, Leases & Equipment $156,800.00

Information Technology & 

Communications $112,400.00

Office Supplies/Postage and 

Delivery/Subscriptions $328,572.00

Risk Management/ Insurance $193,426.00

Training $9,674.00

Marketing/PR $357,000.00

Miscellaneous $0.00

 Subtotal $6,446,590.00

 Transaction Related Expenses: 

Recording Fees $5,756,241.00

Wire Transfer Fees $16,200.00

 Counseling Expenses 

File Intake $3,843,255.00

Decision Costs $0.00

Successful File $0.00

Key Business Partners On-Going $0.00

 Subtotal $9,615,696.00

 

Grand Total $18,359,784.00

 

% of Total Award 13.42%

Award Amount $136,856,581.00