TAMPA/134162.1 

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, 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; 

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

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

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

TAMPA/134162.1 

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 “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 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. 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. 
- 3 - 

TAMPA/134162.1 

(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 and any other closing documentation delivered to 

Treasury in connection with this First Amendment, 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. 

3. 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 

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 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 – South Carolina]

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: 

SOUTH CAROLINA STATE HOUSING 

FINANCE AND DEVELOPMENT 

AUTHORITY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Valerie M. Williams By: 

Name: Valerie M. Williams Name: Herbert M. Allison, Jr. 

Title: Executive Director Title: Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

SC HOUSING CORP. 

By: /s/ Valerie M. Williams 

Name: Valerie M. Williams 

Title: Executive Director 

 
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:

SOUTH CAROLINA STATE HOUSING

FINANCE AND DEVELOPMENT

AUTHORITY

By:

Name:

Title:

ELIGffiLE ENTITY:

SC HOUSING CORP.

By:

Name:

Title:

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 hlstrument and HFA Participation Agreement- South CarolinaJ
TAMPA/134162.1 

EXHIBITS AND SCHEDULES

Exhibit C Form of Capital Draw Request 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/134162.1 

EXHIBIT C

FORM OF CAPITAL DRAW REQUEST

[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”). 

 HFA and Eligible Entity, as applicable, hereby certify 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 HFA and 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/134162.1 

(c) HFA and Eligible Entity are 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, HFA or Eligible Entity, as applicable, shall notify Treasury 

immediately. 

[INSERT FULL LEGAL NAME OF HFA] 

 

[Name of Authorized Official] 

[Title of Authorized Official] 

[INSERT FULL LEGAL NAME OF ELIGIBLE ENTITY] 

 

[Name of Authorized Official] 

[Title of Authorized Official] 
TAMPA/134162.1 

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/134162.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: SC Housing Corp. (“SCHC”)

Corporate or other organizational form: Nonprofit corporation 

Jurisdiction of organization: South Carolina 

Notice Information: SC Housing Corp. 

 Attn: Tracey Easton 

 300-C Outlet Pointe Blvd. 

 Columbia, South Carolina 29210 

 Phone: (803) 896-8771 

 Fax: (803) 551-4878 

 E-mail: Tracey.Easton@schousing.com 

HFA Information: 

Name of HFA: South Carolina State Housing Finance and 

 Development Authority 

Organizational form: a public body, corporate and politic under 

 the laws of the State of South Carolina 

Date of Application: June 1, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: SC State Housing Finance & Development 

 Authority 

 Attn: Matt Rivers 

 300-C Outlet Pointe Blvd. 

 Columbia, South Carolina 29210 

 Phone: (803) 896-8774 

 Fax: (803) 551-4934 

 E-mail: Matt.Rivers@schousing.com 

Program Participation Cap: $196,772,347.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $138,000,000.00 
TAMPA/134162.1 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $58,772,347.00 

Permitted Expenses: $35,411,436.90

Closing Date: August 3, 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/134162.1 

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/134162.1 

SERVICE SCHEDULE B-1

SC State Housing Finance and Development Authority

Monthly Payment Assistance Program

Summary Guidelines 

1. Program Overview The Monthly Payment Assistance Program will assist eligible 

borrowers by making their full monthly mortgage payments for a 

period of time. The terms and length of assistance will vary 

based on the unemployment rate for the county in which the 

property is located, and will be reviewed periodically during the 

assistance period. 

Assistance under this Program will be capped at 24 months and 

$36,000 per household, depending on county unemployment. 

(See Section 3 for more information.) 

2. Program Goals To bridge eligible borrowers across a gap in employment, or 

other short-term reduction in income, and allow them to stay 

current on their mortgages. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a short-term 

affordability problem. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$113,500,000.00

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Borrower must be unemployed and receiving 

unemployment insurance (“UI”) payments as administered 

by the State of South Carolina. 

• Payment to Income ratio must exceed 38%, including UI 

payments. 

• Borrower must provide a financial hardship affidavit. 
TAMPA/134162.1 

• Mortgage can be no more than 90 days delinquent. 

• Mortgage must have been current for 12 months preceding 

unemployment with no more than two 30-day late 

occurrences. 

• Borrower must demonstrate continued efforts to become 

re-employed. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and 

the original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary 

residence located in South Carolina.

7. Program Exclusions • Borrowers already under a non-South Carolina HFA HardestHit Fund program will be ineligible to participate. 

• A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity 

from their home for non-essential purposes, or overall 

mismanagement of their personal budget. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $36,000 per 

household for targeted counties (as described in Section 3), and 

$18,000 per household for all other counties.Expected Median: 

$15,000

10. Duration of Assistance Assistance under this Program will be capped at 24 months for 

targeted counties (as described in Section 3), and 12 months for 

all other counties. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 4,200 – 8,500 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 90 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 
TAMPA/134162.1 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

• This Program will interact with: 

• Direct Loan Assistance Program - Households that are 

delinquent at the time monthly assistance begins may be 

eligible for direct assistance to help with any capitalized 

arrearage that exists. 

• HAMP Assistance Program - Households successfully 

coming out of the Program may be eligible for HAMP 

Assistance to obtain a permanent modification. 

• Property Disposition Assistance Program - Households that 

are not self-supporting after exhausting allowable funding 

under this Program may be eligible for the Property 

Disposition Assistance Program. 

14. Program Interactions 

with HAMP 

The Program will effectively “hand off” the borrower to HAMP 

once the borrower is reemployed, if required. Households 

successfully coming out of the Program may be eligible for 

HAMP assistance to obtain a permanent modification. 

The funds from this Program would be utilized prior to UP. 

Implementing the Program in this order is most beneficial to the 

borrower and the investor since payments would continue to be 

made instead of capitalized and no late charges or adverse credit 

report would occur. Should the borrower still be unemployed after 

the assistance from this Program ends, they may be eligible to roll 

into UP. 

Beneficiaries who participated in UP prior to making application 

to SC HELP would be eligible to participate in this Program. 

It is also expected that this Program may act as a front-end 

extension of existing forbearance with deed-in-lieu wrap 

programs. 

15. Program Leverage 

with Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No
TAMPA/134162.1 

SERVICE SCHEDULE B-2

SC State Housing Finance and Development Authority

Direct Loan Assistance Program

Summary Guidelines 

1. Program Overview In some cases borrowers may have fallen behind on their 

mortgage payments, but have since regained the ability to make 

the full payment. However, there may still be an accrued 

arrearage owed to the lender which, until paid, places a hardship 

on the borrower due to a continued accumulation of late fees and 

other charges. Under the Direct Loan Assistance Program, 

funding will be provided to bring such loans current. Funds may 

also be made available for principal reductions in order ensure 

long-term affordability. 

The terms of assistance will vary based on the unemployment rate 

for the county in which the property is located, and will be 

reviewed periodically during the assistance period. 

Assistance under this Program will be capped at $10,000 per 

household, depending on county unemployment (See Section 3 

for more detail.) 

Program is a one-time payment per borrower household. 

2. Program Goals To help borrowers become current on their mortgage following a 

brief interruption or reduction in income and to ensure long-term 

affordability. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$19,000,000.10 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 
TAMPA/134162.1 

Other specific criteria: 

• Must be able to demonstrate that delinquency was the 

result of circumstances beyond the borrower’s control. 

• Payment to Income ratio must not exceed 31%. 

• Borrower must provide a financial hardship affidavit. 

• Mortgage can be no more than 90 days delinquent. 

• Mortgage must have been current for 12 months preceding 

delinquency event with no more than two 30-day late 

occurrences. 

• Borrower must demonstrate that circumstances that led to 

the delinquency have been resolved. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and 

the original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary 

residence located in South Carolina. 

7. Program Exclusions A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity from 

their home for non-essential purposes, or overall mismanagement 

of their personal budget. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $10,000 per 

household for targeted counties (as described in Section 3), and 

$5,000 per household for all other counties.Expected Median: 

$7,000.

10. Duration of Assistance Program is a one-time payment per borrower household. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 2,400 – 2,500 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 90 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 
TAMPA/134162.1 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

• This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• HAMP Assistance Program – One of the primary goals of the 

Program is to prepare borrowers for a HAMP modification. 

Homeowners may progress to the HAMP Assistance Program 

• Monthly Payment Assistance Program – Households with a 

capitalized arrearage and a temporarily reduced level of 

income may be eligible for the Program and the Monthly 

Payment Assistance Program to cure the immediate 

delinquency and to insure that further delinquencies are not 

incurred. 

• Second Mortgage Assistance Program – The Program may be 

combined with the Second Mortgage Assistance Program in 

circumstances where the borrower has a capitalized arrearage 

and a non-participating second lien holder. 

14. Program Interactions 

with HAMP 

This Program may be used in conjunction with the HAMP 

Assistance Program to assist the borrower become eligible for 

HAMP or to cure an accrued delinquency for a borrower already 

under a HAMP modification.

15. Program Leverage 

with Other Financial 

Resources 

Servicer/Investor will be required to waive all non-expense fees 

(i.e. late fees). 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/134162.1 

SERVICE SCHEDULE B-3

SC State Housing Finance and Development Authority

HAMP Assistance Program

Summary Guidelines 

1. Program Overview The majority of lenders in South Carolina are offering troubled 

borrowers the opportunity to modify their loans under certain 

circumstances. The most notable of these programs is the Home 

Affordable Modification Program (“HAMP”). According to 

many loan servicers, there are many borrowers whose proposed 

modifications fail the net-present-value (NPV) test for eligibility 

by a relatively small amount. Under the HAMP Assistance 

Program, funding will be provided to bridge the gap so that the 

mortgage can be modified to an affordable level. 

Assistance under this Program will be capped $5,000 per 

household. 

Program is a one-time payment per borrower household. 

2. Program Goals To provide limited funding to help borrowers become eligible for 

HAMP. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$5,000,000.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Must be able to demonstrate that delinquency was the 

result of circumstances beyond the borrower’s control. 

• Borrower must provide a financial hardship affidavit. 

• Must meet all other HAMP requirements. 

• Must successfully complete HAMP trial period prior to 

final payment to investor. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 
TAMPA/134162.1 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and 

the original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary 

residence located in South Carolina. 

7. Program Exclusions A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity from 

their home for non-essential purposes, or overall mismanagement 

of their personal budget. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped $5,000 per 

household. 

Expected Median: $4,000.

10. Duration of Assistance Program is a one-time payment per borrower household. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 1,000 – 1,500 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 120 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance- Households 

successfully coming out of the Monthly Assistance 

Program may be eligible for this Program to obtain a 

permanent modification. 

• Second Mortgage Assistance – Households may need 

direct HAMP assistance to cure an NPV fail along 

with assistance to insure that a non-participating 

second lien holder will agree to the revised terms. 

14. Program Interactions 

with HAMP 

This Program is intended be used in conjunction with HAMP to 

assist with borrower eligibility. 

15. Program Leverage 

with Other Financial 

Resources 

Servicer/Investor will be required to waive all non-expense fees 

(i.e. late fees). 
TAMPA/134162.1 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/134162.1 

SERVICE SCHEDULE B-4

SC State Housing Finance and Development Authority

Second Mortgage Assistance Program

Summary Guidelines 

1. Program Overview Many borrowers find themselves ineligible for HAMP or other 

modification programs due to the presence of a second lien where 

the investor holding that lien is unwilling or unable to agree to the 

modified loan terms, or the servicer is not a HAMP participating 

entity. Under the Second Mortgage Assistance Program, funding 

will be used to either provide a financial incentive to the 

servicer/investor, or, in some cases, to acquire the second lien 

from the current servicer/investor, thus making the borrower 

eligible for first mortgage modification programs, including 

HAMP. 

The terms of assistance will vary based on the unemployment rate 

for the county in which the property is located, and will be 

reviewed periodically during the assistance period. 

Assistance under this Program will be capped at $10,000 per 

household, depending on county unemployment. (See Section 3 

for more detail.) 

Program is a one-time payment per borrower household.

2. Program Goals To provide a financial incentive to the services/investor, or, in 

some cases, to acquire the second lien from the current 

servicer/investor, thus making the borrower eligible for first 

mortgage modification. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a short-term 

affordability problem. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$11,860,910.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 
TAMPA/134162.1 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Must be able to demonstrate that delinquency was the 

result of circumstances beyond the borrower’s control. 

• Borrower must provide a financial hardship affidavit. 

• Must meet all HAMP requirements. 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible (first mortgage) loans must be fixed term, fully 

amortizing, and the original loan amount must be within GSE 

limits. 

• Eligible properties must be owner-occupied primary residence 

located in South Carolina. 

7. Program Exclusions • Subordinate mortgages where the proceeds were used for 

something other than acquiring, improving, or preserving the 

subject property will be ineligible. 

• A borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity 

from their home for non-essential purposes, or overall 

mismanagement of their personal budget. 

• Borrower is HAMP eligible and the second mortgage is held 

by a 2MP servicer. 

8. Structure of 

Assistance 

Assistance under this Program will be provided in the form of a 

nonrecourse zero-percent interest, non-amortizing, forgivable 

loan secured by a subordinate lien on the subject property. The 

loan will be forgiven over a five (5) year period at a rate of 20% 

per year. If property is sold or refinanced prior to the loan 

termination date, funds will be recovered should sufficient equity 

be available from the transaction. 

Any loan payoff proceeds will be recycled for use within the 

Program and used to provide assistance to additional homeowners 

until December 31, 2017, at which time any proceeds shall be 

returned to Treasury. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $10,000 per 

household for targeted counties (as described in Section 3), and 

$7,500 per household for all other counties.Expected Median: 

$8,000.

10. Duration of Assistance Program is a one-time payment per borrower household. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 1,600 – 2,600 families will be assisted 

under this Program. 
TAMPA/134162.1 

12. Program Inception/ 

Duration 

This Program will be available statewide within 120 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• HAMP Assistance Program - Households may need 

direct assistance to cure an NPV fail along with 

assistance to insure that a non-participating second 

lien holder will agree to the revised terms. 

• Direct Loan Assistance Program - May be combined 

with the Second Mortgage Assistance Program in 

circumstances where the borrower has a capitalized 

arrearage and a non-participating second lien holder.

14. Program Interactions 

with HAMP 

This Program may be used in conjunction with HAMP to assist 

with borrower eligibility. 

15. Program Leverage 

with Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/134162.1 

SERVICE SCHEDULE B-5

SC State Housing Finance and Development Authority

Property Disposition Assistance Program

Summary Guidelines 

1. Program Overview There may be a segment of borrowers whose position is 

unrecoverable, and who need assistance in gracefully exiting 

homeownership. The Property Disposition Assistance Program 

will be used to facilitate short sales and deeds in lieu of 

foreclosure, as well as to help provide deposits and other funds 

needed to transition families from homeownership to renting. 

The terms of assistance will vary based on the unemployment rate 

for the county in which the property is located, and will be 

reviewed periodically during the assistance period. 

Assistance under this Program will be capped at $5,000 per 

household. (See Section 3 for more detail.) 

Program is a one-time payment per borrower household. 

2. Program Goals To assist borrowers in unrecoverable situations in transitioning 

from homeownership to rental housing. 

3. Target Population/ 

Areas 

This Program will be available in all 46 counties in South 

Carolina, and is intended to assist borrowers with a long-term or 

permanent affordability problem with little expectation for 

financial recovery. 

Additional assistance will be available to eligible homeowners 

living in targeted or "hardest hit" counties, those with 

unemployment rates greater than or equal to 12%. Such 

employment rate will be evaluated from time to time and may be 

adjusted due to changing economic conditions. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$12,000,000.00 

5. Borrower Eligibility 

Criteria 

An eligible borrower must be a “Responsible Borrower.” A 

“Responsible Borrower” is a borrower who is facing possible 

foreclosure due to circumstances beyond his/her control, i.e. 

underemployment, unemployment, death of a spouse, catastrophic 

medical expenses, and/or divorce, in addition to satisfying certain 

criteria. 

Other specific criteria: 

• Circumstances leading to delinquency and foreclosure 

event must be beyond the borrower’s control, and must be 
TAMPA/134162.1 

properly documented. 

• Payment to Income ratio must exceed 45%, including UI 

payments from South Carolina. 

• Borrower must provide a financial hardship affidavit. 

• Delinquency event must be ongoing with little or no 

expectation for financial recovery (i.e. prolonged underemployment, divorce, death of a spouse, etc.). 

• All final eligibility determinations will be made by SCHC. 

• Funds will be available on a first-come first served basis. 

6. Property/Loan 

Eligibility Criteria 

• Eligible loans must be fixed term, fully amortizing, and the 

original loan amount must be within GSE limits. 

• Eligible properties must be owner-occupied primary residence 

located in South Carolina. 

7. Program Exclusions • Borrower facing foreclosure due self-inflicted financial 

hardship and/or poor debt management, stripping the equity 

from their home for non-essential purposes, or overall 

mismanagement of their personal budget. 

• Borrower receiving assistance under the Home Affordable 

Foreclosure Alternative (HAFA) Program. 

8. Structure of 

Assistance 

Assistance under this Program will be provided directly to the 

homeowner, and will not be structured as a loan, nor will it be 

secured by the subject property. No payments may be made 

directly to homeowners until a short sale, cash for keys or deedin-lieu agreement is executed. 

9. Per Household 

Assistance 

Assistance under this Program will be capped at $5,000 per 

household for targeted counties (as described in Section 3), and 

$3,000 per household for all other counties.Expected Median: 

$4,000

10. Duration of Assistance Program is a one-time payment to borrowers. 

11. Estimated Number of 

Participating 

Households 

It is expected that that 2,200 – 3,700 families will be assisted 

under this Program. 

12. Program Inception/ 

Duration 

This Program will be available statewide within 120 days of 

execution of the Participation Agreement. It is expected that it 

will run for 60 months. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

This Program will interact with the following South Carolina 

HFA Hardest-Hit Fund Programs: 

• Monthly Payment Assistance Program - Households that are 

not self-supporting after exhausting allowable funding under 

the Monthly Payment Assistance Program may be eligible for 

this Program. 

14. Program Interactions 

with HAMP 

None. 
TAMPA/134162.1 

15. Program Leverage 

with Other Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/134162.1 

SCHEDULE C

PERMITTED EXPENSES

South Carolina 

 

 One-time / Start-Up Expenses: 

Initial Personnel $169,280.00 

Building, Equipment, Technology $82,000.00 

Professional Services $125,000.00 

Supplies / Miscellaneous $55,000.00 

Marketing /Communications $10,000.00 

Travel $10,000.00 

Website development /Translation $25,000.00 

Contingency $50,000.00 

 Subtotal $526,280.00 

 

Operating / Administrative 

Expenses: 

Salaries $4,316,200.00 

Professional Services (Legal, 

Compliance, Audit, Monitoring) $330,000.00 

Travel $235,000.00 

Buildings, Leases & Equipment $1,128,000.00 

Information Technology & 

Communications $775,000.00 

Office Supplies/Postage and 

Delivery/Subscriptions $160,000.00 

Risk Management/ Insurance $220,000.00 

Training $240,000.00 

Marketing/PR $340,000.00 

Miscellaneous $175,690.00 

 Subtotal $7,919,890.00 

 4.02% 

 Transaction Related Expenses: 

Recording Fees $14,300.00 

Wire Transfer Fees $915,200.00 

 Counseling Expenses 

File Intake $1,439,766.90 

Decision Costs $1,090,732.50 

Successful File $10,416,477.50 

Key Business Partners On-Going $13,088,790.00 

 Subtotal $26,965,266.90 

 

Grand Total $35,411,436.90 

 

% of Total Award 18.00% 

Award Amount $196,772,347.00