HHF New Jersey Date: March 24, 2017 

B-1-1 

SERVICE SCHEDULE B-1 

NEW JERSEY HOMEKEEPER PROGRAM (NJHK) 

Summary Guidelines 

1. Program Overview The New Jersey Housing and Mortgage Finance Agency 

(“NJHMFA” or the “Agency”) has created the New Jersey 

HomeKeeper Program (NJHK). 

This program will provide 0% interest rate, deferred-payment 

mortgage loans to eligible homeowners who, through no fault of 

their own, are at risk of foreclosure due to recent 

unemployment, loss of/reduction in income or other 

demonstrated financial hardships including medical, divorce, 

disability or death. NJHK loan proceeds may be used to cover 

mortgage arrearages and/or an approved amount of homeowner 

monthly mortgage payments including principal and interest, 

property taxes, property insurance, mortgage insurance and, if 

applicable, homeowner association dues. 

The housing counseling agency shall recommend - and the 

NJHK staff shall review for approval – a plan of action for each 

homeowner that addresses the proposed use of NJHK mortgage 

loan proceeds for these key purposes: 

 One-time payment to settle mortgage arrearages for 

homeowners who experienced lost income due to a 

qualified hardship, and have since recovered but need 

help to bring their mortgage current; and/or 

 Payment of arrearages as needed and an approved 

amount of mortgage payment assistance. 

The maximum NJHK mortgage loan amount shall be $48,000. 

All loan proceeds shall be held in escrow by the NJHK and may 

be used to pay existing mortgage arrearages and/or an approved 

amount of the homeowner's existing mortgage payments each 

month. Existing mortgage payments include principal and 

interest, property taxes, homeowner insurance, mortgage 

insurance and homeowner association dues (if any). 

2. Program Goals The goal of the NJHK Program is to promote neighborhood 

stability in New Jersey communities by providing assistance 

with mortgage arrears and mortgage payments to eligible 

homeowners who, through no fault of their own, are in danger 

of foreclosure due to recent unemployment, loss of/reduction in 
B-1-2 

income or other demonstrated financial hardships. 

3. Target Population / 

Areas 

The program will be offered statewide. 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$336,815,202 

5. Borrower Eligibility 

Criteria 

Eligible homeowners are not subject to maximum household 

income limits. 

Homeowners must be, through no fault of their own, in danger 

of foreclosure due to recent unemployment, loss of/reduction in 

income or other demonstrated financial hardships including 

medical, divorce, disability, or death. Homeowners must have 

experienced a loss of/reduction in income of at least 15%. 

In addition to meeting other program underwriting criteria, 

eligible homeowners: 

 May be current on mortgage payments but are expected 

to become delinquent within a 90-day period due to loss 

of employment income OR may be 30 days or more 

delinquent on mortgage payments due to loss of 

employment income; 

 Must provide a financial Hardship Affidavit attesting to 

their inability to make mortgage payments. Loss of 

employment must be documented in accordance with 

program underwriting requirements, including evidence 

from the state unemployment office or, if unavailable, a 

notarized letter from the former employer indicating the 

unemployment or underemployment was not the fault of 

the borrower; 

 Must show evidence of having made payments on their 

first mortgage loans; 

 Must be paying, as a result of an income loss due to a 

qualified hardship, 25% or more the of gross household 

income each month to cover all existing mortgage 

payments (including principal and interest, property 

taxes, homeowners insurance, mortgage insurance and, if 

applicable, homeowner association fees); 

 Must participate and cooperate in sessions with an 
B-1-3 

NJHK-approved housing counseling agency, which will 

help provide advice on all available programs and 

solutions for the homeowner, including the NJHK; and 

 Homeowner must document employment status on a 

regular basis for employment related hardships in 

accordance with program requirements. 

NJHK assistance shall be provided on a first come, first served 

basis. 

6. Property / Loan 

Eligibility Criteria 

The eligible homeowner must own and occupy a home located 

in New Jersey. 

The home must contain one or two dwelling units, be an 

attached or detached house a condominium unit or a 

manufactured home on a foundation permanently affixed to real 

property owned by the homeowner. 

At the time of application, the unpaid principal balance on 

existing mortgages on the home must not exceed $429,619 for a 

one-unit dwelling or $550,005 for a two unit dwelling. 

7. Program Exclusions Homeowners owning other residential real estate at the time of 

application are ineligible. 

Homeowner has liquid assets (excluding retirement assets and 

education savings plans) equal to or greater than the amount of 

Program assistance. 

Homeowner cannot be involved in an active or open 

bankruptcy. 

8. Structure of Assistance Program assistance will be provided to the homeowner in the 

form of a 0% interest rate, non-amortizing (no monthly 

payments), forgivable, subordinate 10-year loan. The loan will 

be non-recourse, secured by a mortgage that will be recorded 

and take a junior lien position on the home. After the fifth year 

of the closing date of the Program loan, the Program loan 

amount shall be forgiven at a rate of 20% per year, to be 

forgiven in full at the end of the tenth year. 

All or a portion of the unforgiven loan funds will be due and 

payable from net equity proceeds upon sale or transfer or 

refinance of the property (except for refinances for a lower rate 

and/or shorter term) or if the borrower ceases to occupy the 

property as their primary residence prior to the end of the tenth 

year. If the property is sold and does not generate sufficient 

proceeds to repay all or a portion of the loan, the portion of the 
B-1-4 

loan remaining unpaid after the proceeds are applied will be 

forgiven. 

Any funds repaid to NJHMFA by recipients in accordance with 

established Program guidelines will be returned to the program 

in accordance with the Agreement. 

9. Per Household 

Assistance 

The maximum amount of assistance under this program is 

$48,000 per household, of which no more than $36,000 may be 

for monthly payment assistance. The historical average NJHK 

mortgage loan amount per household is $41,000. 

10. Duration of Assistance Each borrower may receive up to 12 months of monthly 

payment assistance. Any reinstatement/arrearage assistance will 

be a one-time payment. 

11. Estimated Number of 

Participating Households 

The estimated number of participating households is 

approximately 8,215 based on the historical average assistance 

loan amounts. 

12. Program Inception / 

Duration 

It is anticipated that the program will relaunch within 90 days of 

the Ninth Amendment Date. The program will continue until 

December 31, 2020 or until funding is fully reserved, whichever 

comes first. 

13. Program Interactions 

with Other HFA 

Programs 

Homeowners shall be provided all available options for 

assistance during their sessions with participating housing 

counseling agencies. 

Eligible homeowners may benefit from other Agency Hardest 

Hit Fund programs provided the total benefit from all Hardest 

Hit Fund programs does not exceed $98,000. 

14. Program Interactions 

with HAMP 

Homeowners shall be provided all available options for 

assistance during their sessions with participating housing 

counseling agencies, including HAMP, as applicable. 

15. Program Leverage 

with Other Financial 

Resources 

None 
B-2-1 

SERVICE SCHEDULE B-2 

NEW JERSEY HOME SAVER PROGRAM 

SUMMARY GUIDELINES 

1. Program Overview The New Jersey Housing and Mortgage Finance Agency 

(“NJHMFA” or the “Agency”) has created the New Jersey 

Home Saver Program (“HSP” or the “Program”). This program 

will leverage HSP funds to facilitate a refinance, recast, or 

permanent modification of the first mortgage loan through a 

principal reduction and/or reinstatement payment to bring the 

household monthly payment to an affordable level. 

2. Program Goals The goal of the Program is to achieve long-term mortgage 

sustainability by leveraging HHF funds to facilitate a first 

mortgage loan modification, recast, and/or refinance, thus 

reducing the likelihood of mortgage delinquency and/or default. 

3. Target Population or 

Areas 

The Program aims to serve homeowners throughout New Jersey. 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$17,288,770 

5. Borrower Eligibility 

Criteria 

Eligible homeowners must be at risk of foreclosure due to recent 

unemployment, loss of/reduction in income through no fault of 

their own, or other demonstrated financial hardships as defined 

in the Program guidelines. A pre-assistance LTV ratio of 115% 

or greater is considered a financial hardship indicative of 

imminent default. Homeowners will be required to provide a 

financial hardship affidavit with appropriate documentation on 

the cause of the hardship. 

Homeowner has a pre-assistance housing debt-to-income 

(“HDTI”) ratio greater than 38% of the gross household income 

and/or a pre-assistance loan-to-value (“LTV”) ratio greater than 

115%. Homeowners with pre-assistance LTV ratios greater 

than 115% must have a pre-assistance HDTI of 28% or more. 

Homeowner has a post-assistance HDTI ratio no greater than 

45% of the gross household income. On a case-by-case basis, 

NJHMFA reserves the right to review and approve homeowners 

whose investor program guidelines that utilize post-assistance 

HDTI ratios greater than 45%. In no case will a homeowner’s 

post-assistance HDTI be reduced below 25%. 

Homeowner must own and occupy a one- to three-family 

residential property that is the homeowner’s primary residence. 

Homeowner agrees to provide all necessary documentation to 
B-2-2 

satisfy the Program guidelines within the timeframes established 

by the Agency. 

6. Property / Loan 

Eligibility Criteria 

Eligible property is the homeowner’s primary residence located 

in New Jersey, and it must be a one- to three-family residential 

property. It must be attached or be a condominium unit. 

Manufactured homes are eligible if on a foundation permanently 

affixed to real property owned by the homeowner and secured 

by a real property first mortgage loan. 

At the time of application, the unpaid principal balance on 

existing mortgages on the home must not exceed $429,619 for a 

one-unit dwelling or $550,005 for a two-unit or three-unit 

dwelling. 

Homeowners must carry a first mortgage and if the 

homeowner’s first mortgage is an interest-only or negative 

amortization mortgage, the homeowner can qualify for 

assistance under the Program only if the refinance, recast and/or 

permanent modification places them in a fully amortizing 

mortgage loan product. 

If the qualifying first lien mortgage is delinquent, the loan 

servicer must utilize the Program monies to bring the first lien 

mortgage loan current before applying Program monies to the 

homeowner’s principal balance. 

The loan servicer will reduce the qualifying principal balance in 

conjunction with a loan refinance, recast or modification in the 

amount needed (up to the maximum per household assistance) 

to help the homeowner establish an appropriate level of 

affordability and/or mortgage debt. Such loan refinances, 

recasts or modifications must meet the Program guidelines. 

Loans in foreclosure may be eligible. 

7. Program Exclusions The homeowner cannot be involved in an active or open 

bankruptcy. 

The homeowner cannot own any other residential real property. 

Homeowner fails to satisfy lender underwriting guidelines. 

Homeowner has a post-assistance LTV ratio that is greater than 

160% or less than 100%. The post-assistance LTV may only be 

less than 100% if it is necessary to get the homeowner to an 

affordable monthly payment. Under no circumstance can the 

post-assistance LTV be less than 80%. 
B-2-3 

Homeowner has liquid assets (excluding retirement assets) equal 

to or greater than the amount of Program assistance. 

8. Structure of Assistance Program assistance will be provided to the homeowner in the 

form of a 0% interest rate, non-amortizing (no monthly 

payments), forgivable, subordinate 10-year loan. The loan will 

be non-recourse, secured by a mortgage that will be recorded 

and take a junior lien position on the home. After the fifth year 

of the closing date of the Program loan, the Program loan 

amount shall be forgiven at a rate of 20% per year, to be 

forgiven in full at the end of the tenth year. 

All or a portion of the unforgiven loan funds will be due and 

payable from net equity proceeds upon sale or transfer or 

refinance of the property (except for refinances for a lower rate 

and/or shorter term) or if the borrower ceases to occupy the 

property as their primary residence prior to the end of the tenth 

year. If the property is sold and does not generate sufficient 

proceeds to repay all or a portion of the loan, the portion of the 

loan remaining unpaid after the proceeds are applied will be 

forgiven. 

Any funds repaid to NJHMFA by recipients in accordance with 

established Program guidelines will be returned to the program 

in accordance with the Agreement. 

9. Per Household 

Assistance 

The maximum assistance is $50,000 per household. 

10. Duration of 

Assistance 

Assistance under HSP is intended to be a one-time payment to 

the servicer. 

11. Estimated Number of 

Participating Households 

345 households based on a maximum loan amount of $50,000. 

12. Program Inception/ 

Duration 

The launch of the Program is expected to begin on or about June 

1, 2015; the program will last until December 31, 2020 or until 

all funds are exhausted. 

13. Program Interactions 

With Other Programs 

Eligible homeowners may benefit from other Agency Hardest 

Hit Fund programs provided the total benefit from all Hardest 

Hit Fund programs does not exceed $98,000. 

14. Program Interactions 

With HAMP 

The Program may work in conjunction with the federal Home 

Affordable Modification Program (“HAMP”) modification and 

other federal Making Home Affordable programs and servicer 

foreclosure prevention initiatives to help eligible homeowners 

achieve desired income ratios and affordability. In any of these 
B-2-4 

programs, Program assistance may not be used to cover the 

applicable costs of investor or servicer incentive compensation. 

15. Program Leverage 

With Other Financial 

Resources 

The Program will require that the loan servicer waive all 

accrued and unpaid late charges and non-sufficient funds fees at 

the time the modification agreement is completed. The Program 

will require the loan servicer to waive any associated recast or 

modification fee. 
B-3-1 

SERVICE SCHEDULE B-3 

NEW JERSEY 

HOMESEEKER DOWN PAYMENT ASSISTANCE (DPA) PROGRAM 

SUMMARY GUIDELINES 

1. Program Overview The HomeSeeker Down Payment Assistance (“DPA”) Program 

will provide an incentive to qualified homebuyers to purchase a 

primary residence in targeted areas in New Jersey. 

HomeSeeker DPA loans are only available to eligible 

homebuyers who obtain first mortgage financing through New 

Jersey Housing and Mortgage Finance Agency’s (“NJHMFA”) 

Single Family mortgage program. 

2. Program Goals The goal of the HomeSeeker DPA Program is to provide an 

incentive to encourage homebuyers, who are already planning to 

buy a home, to choose a property within a targeted hardest hit 

neighborhood. Encouraging homeownership in housing markets 

that have been hardest hit by foreclosures will strengthen 

demand in those areas, stabilize the housing market and prevent 

future foreclosures. 

NJHMFA will identify meaningful indicators that will enable 

them to track and quantify the HomeSeeker DPA Program’s 

impact in the targeted areas. 

3. Target Population / 

Areas 

The HomeSeeker DPA Program will target six (6) counties in 

the State of New Jersey (“State”) that have been impacted by the 

State’s foreclosure crisis. NJHMFA evaluated all 21 New Jersey 

counties and identified the targeted areas based on seriously 

delinquent mortgage loans, negative equity, short sales, REO 

sales and foreclosures. 

The six (6) targeted counties exceeded the statewide average in 

at least four out of five distressed housing market indicators, and 

have a minimum threshold origination volume in the NJHMFA 

Single Family mortgage program greater than twenty for 2016. 

Each county also had at least 40% of the zip codes within the 

county exceed the statewide average in at least four out of five 

distressed housing market indicators. 

The following counties are the targeted hardest hit areas: 

Atlantic, Camden, Essex, Gloucester, Passaic, and Union (each 
B-3-2 

a “Target Area”). 

4. Program Allocation 

(Excluding 

Administrative Expenses) 

$16,000,000 

5. Borrower Eligibility 

Criteria 

Eligible borrowers must qualify for and meet all the 

requirements for a NJHMFA First Time Homebuyers mortgage 

loan originated by NJHMFA or through a participating lender. 

Allowable first mortgage loans are 30-year, fixed-rate loans 

from the Federal Housing Administration (FHA), Veterans 

Administration (VA), U.S. Department of Agriculture – Rural 

Development (USDA), Fannie Mae and Freddie Mac. Eligible 

borrowers must also meet the following criteria: 

 Borrower income must not exceed 140% of the Area 

Median Income. 

 Borrowers must be first-time homebuyers. For purposes 

of the HomeSeeker DPA Program, a first-time 

homebuyer is defined as someone who has not had an 

ownership interest in (not listed on the deed of) their 

primary residence during the previous three years, unless 

qualifying under a Veteran’s Exception or purchasing a 

home in a Federally Designated Targeted Area. 

 Homeownership counseling is required for all 

homebuyers. 

 Borrowers must be credit-worthy and meet minimum 

FICO scores and must not exceed a maximum debt-toincome (DTI) ratio as specified in the DPA Program 

Guide. 

 Borrowers must execute a Dodd-Frank Act affidavit.

6. Property / Loan 

Eligibility Criteria 

 The property must be a single-family home, a 

condominium unit, a townhome, manufactured or mobile 

home which is permanently affixed to real property 

owned by the borrower, or a two-four family dwelling 

unit of which one unit is to be occupied by the 

mortgagor as his or her principal residence. 

 Must be borrower’s primary residence. 
B-3-2 

 Property must be located in a Target Area. 

 Property must be an existing residential dwelling (new 

construction excluded). 

 Property must not exceed the maximum purchase price 

limits of $437,349 for existing one family dwellings or 

$559,854 for existing two – four family dwellings. 

 Meet all applicable HomeSeeker DPA Program, Ginnie 

Mae, Agency (FHA, VA, USDA-RD) or GSE (Fannie 

Mae & Freddie Mac) underwriting guidelines. 

7. Program Exclusions Borrowers, properties and loans not meeting HomeSeeker DPA 

Program eligibility requirements as specified in the HomeSeeker 

DPA underwriting guidelines or Agency/GSE underwriting 

criteria. 

Dodd-Frank Act exclusion for having been convicted of a 

mortgage-related felony in the past ten years. 

8. Structure of Assistance Down payment assistance, including reasonable and customary 

closing costs, will be in the form of a zero-percent interest rate, 

five (5) year forgivable loan. The loan will be evidenced by a 

note and a second mortgage in favor of NJHMFA. 

If the Borrower continuously resides in the premises, as his/her 

principal residence for five (5) years from the date of the closing 

of the loan, the loan will have been deemed satisfied and a 

cancellation of mortgage or release of lien will be issued to the 

Borrower. 

If the Borrower conveys, refinances or ceases to occupy the 

premises as his/her principal residence, all or a portion of the 

unforgiven loan funds will be due and payable from net equity 

proceeds. Any funds repaid to NJHMFA will be reutilized to 

assist additional Borrowers in accordance with the Agreement. 

9. Per Household 

Assistance 

 $16,000 

10. Duration of Assistance HomeSeeker DPA Program funds will be used to reimburse 

NJHMFA or the participating lenders who prefunds the loan at 

closing once it is determined that all HomeSeeker DPA Program 

requirements have been met. 
B-3-3 

11. Estimated Number of 

Participating Households 

It is anticipated that the HomeSeeker DPA Program will assist 

approximately 1,000 households. 

12. Program Inception / 

Duration 

It is anticipated that the program will launch within 90 days of 

approval from Treasury. The program will continue until 

December 31, 2020 or until funding is fully reserved, whichever 

comes first. 

13. Program Interactions 

with Other HFA 

Programs 

The HomeSeeker DPA program will utilize existing 

infrastructure of participating lenders who are already actively 

originating both NJHMFA’s first mortgage and down payment 

assistance loans. If the borrower has received HHF assistance 

under any other HHF program, they will be excluded from 

receiving assistance under the HomeSeeker DPA Program. 

Any borrower receiving funds from the HomeSeeker DPA 

program will not be eligible for other down payment assistance 

programs offered or administered by the NJHMFA. 

14. Program Interactions 

with HAMP 

None.

15. Program Leverage 

with Other Financial 

Resources 

NJHMFA often uses tax-exempt bonds as a source of funding 

for the accompanying first mortgage loans. In addition, funds 

may be leveraged by lenders using additional subsidy programs 

available. 
C-1 

SCHEDULE C 

PERMITTED EXPENSES 

New Jersey

 

 

 One-time / Start-Up Expenses: 

Initial Personnel $378,705.00

Building, Equipment, Technology $117,654.00

Professional Services $13,000.00

Supplies / Miscellaneous $0.00

Marketing /Communications $2,613.00

Travel $0.00

Website development /Translation $759.00

Contingency $767,259.00

 Subtotal $1,279,990.00

 

Operating / Administrative 

Expenses: 

Salaries $13,350,000.00

Professional Services (Legal, 

Compliance, Audit, Monitoring) $4,000,000.00

Travel $25,000.00

Buildings, Leases & Equipment $750,000.00

Information Technology & 

Communications $2,500,000.00

Office Supplies/Postage and 

Delivery/Subscriptions $125,000.00

Risk Management/ Insurance $.00
C-2 

Training $100,000.00

Marketing/PR $300,000.00

Miscellaneous $1,000,000.00

 Subtotal $22,150,000.00

 

 Transaction Related Expenses: 

Recording Fees $5,000,000.00

Wire Transfer Fees $100,000.00

 Counseling Expenses 

File Intake $15,000,000.00

Decision Costs $0.00

Successful File $0.00

Key Business Partners On-Going $1,500,000.00

 Subtotal $21,600,000

 

 Grand Total $45,029,990

 

% of Total Award 10.85%

Award Amount $415,133,962.00