Third Amendment to HPA — Ohio 

TAMPA/143472.1

THIRD AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

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

attached hereto as the Third Amendment Date (the “Amendment Date”), by and among the 

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

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

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

participate in the program described below (“Eligible Entity”). 

Recitals 

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

Purchase Financial Instrument and HFA Participation Agreement (the “Original HPA”) dated as 

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

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

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

Instrument and HFA Participation Agreement (the “Second Amendment”; and together with the 

Original HPA as amended thereby and by the First Amendment, the “Current HPA”), dated as of 

their respective dates as set forth on Schedule A attached hereto, in connection with Treasury’s 

federal housing program entitled the Housing Finance Agency Innovation Fund for the Hardest 

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

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

from time to time (“EESA”); 

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

to their Service Schedules and Permitted Expenses and Treasury has agreed to the same; 

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

document all approved modifications to the Service Schedules and Permitted Expenses; 

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 Current HPA to the “Agreement” shall mean the 

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

HPA to Schedules A, B or C shall mean the Schedules A, B or C attached to this Third 
- 2 - 

TAMPA/143472.1 

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

amended by this Third Amendment. 

B. Schedule A. Schedule A attached to the Current HPA is hereby deleted in its entirety 

and replaced with Schedule A attached to this Third Amendment. 

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

and replaced with Schedule B attached to this Third Amendment. 

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

and replaced with Schedule C attached to this Third Amendment. 

2. Representations, Warranties and Covenants

A. HFA and Eligible Entity. HFA and Eligible Entity, each for itself, make the 

following representations, warranties and covenants to Treasury and the truth and accuracy 

of such representations and warranties and compliance with and performance of such 

covenants are continuing obligations of HFA and Eligible Entity, each as to itself. In the 

event that any of the representations or warranties made herein cease to be true and correct or 

HFA or Eligible Entity breaches any of its covenants made herein, HFA or Eligible Entity, as 

the case may be, agrees to notify Treasury immediately and the same shall constitute an 

Event of Default under the HPA. 

(1) HFA and Eligible Entity each hereby certifies, represents and warrants as of the 

date hereof that each of the representations and warranties of HFA or Eligible Entity, as 

applicable, contained in the HPA are true, correct, accurate and complete in all material 

respects as of the date hereof. All covenants of HFA or Eligible Entity, as applicable, 

contained in the HPA shall remain in full force and effect and neither HFA, nor Eligible 

Entity is in breach of any such covenant. 

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

and deliver this Third Amendment and any other closing documentation delivered to 

Treasury in connection with this Third Amendment, and to perform its obligations 

hereunder and thereunder. 

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

Third Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous

A. The recitals set forth at the beginning of this Third 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. 
- 3 - 

TAMPA/143472.1 

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 Third 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 Third Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Third Amendment to HPA — Ohio] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

OHIO HOUSING FINANCE AGENCY UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Douglas A. Garver By: 

Name: Douglas A. Garver Name: Timothy G. Massad 

Title: Executive Director Title: Acting Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

OHIO HOMEOWNER ASSISTANCE LLC 

By: Ohio Capital Corporation for Housing, 

It’s Sole Member 

By: /s/ Susan K. Ziegler 

Name: Susan K. Ziegler 

Title: Chief Operating Officer 

 

TAMPA/143472.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/143472.1 

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: Ohio Homeowner Assistance LLC

Corporate or other organizational form: Ohio limited liability company

Jurisdiction of organization: Ohio

Notice Information: 

 

 

 

 

 

 

HFA Information: 

Name of HFA: Ohio Housing Finance Agency 

Organizational form: An agency under the laws of the State of 

 Ohio 

Date of Application: June 1, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

 

 

 

 

Program Participation Cap: $570,395,099.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $172,000,000.00 
TAMPA/143472.1 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $148,728,864.00 

Permitted Expenses: $73,219,099.00

Closing Date: August 3, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 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/143472.1 

SCHEDULE B

SERVICE SCHEDULES

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

entirety and replaced with the attached Service Schedules (numbered sequentially as Service 

Schedule B-1, Service Schedule B-2, et. seq.), which collectively comprise Schedule B to the 

HPA. 
TAMPA/143472.1 

SERVICE SCHEDULE B-1

Ohio Housing Finance Agency (OHFA)

Rescue Payment Assistance Program

Summary Guidelines 

1. Program Overview The Rescue Payment Assistance Program will provide funds to 

lenders/servicers on behalf of homeowners who are delinquent on 

their mortgage payments due to a delay in receiving 

unemployment benefits, insufficient income, or other unforeseen 

circumstances, by bringing them current on delinquent mortgage 

obligations. 

Allowable uses of the funds will include the following: 

• Delinquent mortgage payments; 

• Late fees, inspection fees, and attorney fees related to a 

successful/closed loan modification; 

• Delinquent property taxes advanced by the servicer or 

escrow shortage; and 

• Up to one year of standard homeowner’s insurance if a 

lender/servicer has previously imposed forced-placed 

insurance on the property. Forced-placed insurance is high 

cost insurance which serves only to protect the 

mortgagee’s interest in the property. 

If Rescue Payment Assistance is used to pay delinquent property 

taxes or homeowner’s insurance, lender/servicer must set up an 

escrow account for property taxes and homeowner’s insurance if 

none is in place. 

Assistance is subject to approval of the homeowner’s HHF Action 

Plan which is a plan relating solely to TARP-funded modification 

programs that will be developed by a housing counseling agency 

and approved by OHFA (the “HHF Action Plan”). Homeowners 

may receive assistance from one or more HHF Programs. The 

HHF Action Plan will determine the type(s) and amount of HHF 

assistance for each homeowner, up to the maximum total benefit 

amount for which the homeowner qualifies. 

2. Program Goals The goal of this program is to prevent avoidable foreclosure for 

homeowners who have experienced a temporary hardship by 

reinstating their past due first mortgage loans. 

3. Target Population/ 

Areas 

The Program will be available to eligible low- and moderateincome homeowners throughout Ohio, up to the maximum benefit 

of $15,000. 
4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$106,904,903.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current 

household income is defined at time of submission of the 

HHF Action Plan as the 30 day average of all wages, 

compensation and/or public benefits in the homeowner’s 

household over the prior 60 days; 

• First mortgage debt less than the highest FHA maximum 

loan amount among all Ohio counties; 

• Liquid assets equal to or less than three months of 

mortgage payments, excluding retirement accounts; 

• Hardship due to involuntary loss or reduction in income, 

divorce, disability, or illness resulting in a loss of income 

or significant medical expenses, which shall be 

documented by a financial hardship affidavit signed by the 

homeowner, and supporting documents which may 

include documents from the state unemployment 

department, a letter from the previous employer, divorce 

decree, medical bills, or disability forms; and 

• Demonstrate ability to sustain mortgage payments, if 

assistance under the Program is received, for six months 

or more. Unemployment compensation or assistance 

under the Partial Mortgage Payment Assistance Program 

will be considered in evaluating sustainability, if 

assistance is expected to continue for at least six months. 

6. Property/Loan 

Eligibility Criteria 

One to four unit owner-occupied primary residences located in 

Ohio, including condominiums. Manufactured homes are eligible 

only if the mortgage is recorded as real property and the home is 

permanently affixed to the land.

7. Program Exclusions • Homeowners who cannot demonstrate the ability to sustain 

mortgage payments for at least six months are not eligible. 

Other HHF programs may be used to demonstrate 

sustainability. Sustainable Monthly Payment is equal to 38% 

or less of current household income. 

• Homeowners participating in or eligible for HAMP. 

• Homeowners in active bankruptcy and homeowners who have 

not reaffirmed their mortgage after a bankruptcy which 

resulted in mortgage debt being discharged. 

• Homeowners who have a sheriff’s sale scheduled in 21 days 

or less. 

TAMPA/143472.1 2 
TAMPA/143472.1 3 

8. Structure of 

Assistance 

Assistance will take the form of a non-recourse, non-amortizing, 

zero-percent interest, five-year loan secured by the property and 

repayable only from equity proceeds of a refinance or sale. The 

loan will be recorded as a subordinate lien. Twenty percent of the 

loan balance will be forgiven each year on the anniversary of the 

closing, and any remaining balance will be forgiven on December 

31, 2017. Loan repayments will be recycled back into the 

program and used to provide assistance to additional homeowners 

until December 31, 2017. 

9. Per Household 

Assistance 

Maximum amount available per homeowner: $15,000 

Estimated average assistance provided per homeowner: $5,994 

10. Duration of Assistance Assistance will be provided in a one-time lump sum payment to 

the homeowner’s lender/servicer.

11. Estimated Number of 

Participating 

Households 

It is expected that 17,835 households will be assisted under the 

Program. 

12. Program Inception/ 

Duration 

The Program will begin September 27, 2010 and is expected to 

continue until December 31, 2017 or when available funds are 

exhausted.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

Homeowners may access the Partial Mortgage Payment 

Assistance Program, the Mortgage Modification with Principal 

Reduction Assistance Program, and/or the Short Refinance 

Program, if approved as part of the homeowner’s HHF Action 

Plan. If homeowners are unable to sustain homeownership after 

receiving assistance under the Program, they may be approved for 

the Transitional Assistance Program if they have not exhausted 

their maximum benefit. 

14. Program Interactions 

with HAMP 

Homeowners will be first screened for eligibility for HAMP 

before being considered for the Program, until the expiration of 

HAMP. Homeowners participating in or eligible for HAMP are 

excluded. 

15. Program Leverage 

with Other Financial 

Resources 

The Program will strongly encourage the lenders/servicers to 

consider waiving late fees or any other expenses that are not paid 

to a third party. Lenders/servicers will not be required to match 

Program funds. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/143472.1 

SERVICE SCHEDULE B-2

Ohio Housing Finance Agency (OHFA)

Partial Mortgage Payment Assistance Program

Summary Guidelines 

1. Program Overview The Partial Mortgage Payment Assistance Program will support 

unemployed homeowners by assisting with their mortgage 

payments for up to 15 months while they search for a new job 

and/or participate in a job training program. 

Full mortgage payments will be made to the homeowner’s 

lender/servicer as long as the homeowner remains eligible for 

assistance. To remain eligible for assistance, the homeowner 

must pay their Affordable Monthly Payment, as calculated and in 

their approved HHF Action Plan (hereinafter defined), to the Ohio 

HHF servicer, a special third-party servicer selected by Ohio 

Housing Finance Agency (the “Ohio HHF Servicer”) to receive 

homeowners’ partial payments under the Ohio HHF program. 

Affordable Monthly Payment is equal to 20% of current 

household income or 25% of homeowner’s monthly mortgage 

principal, interest taxes and insurance (PITI) payment, whichever 

is greater, unless the Affordable Monthly Payment is waived 

because the homeowner has exhausted unemployment 

compensation benefits. The Affordable Monthly Payment amount 

may change if homeowner’s income increases 20% or more or 

decreases 10% or less. 

Homeowners will resume their regular payments at the end of the 

term approved in their HHF Action Plan or two months after 

resuming employment, whichever occurs first. 

Assistance is subject to approval of the homeowner’s HHF action 

plan which is a plan relating solely to TARP funded modification 

programs that will be developed by a housing counseling agency 

and approved by OHFA (the “HHF Action Plan”). Homeowners 

may receive assistance from one or more HHF Programs. The 

HHF Action Plan will determine type(s) and amount of HHF 

assistance for each homeowner, up to the maximum total benefit 

amount for which the homeowner qualifies. 

2. Program Goals The goal of the Program is to assist unemployed homeowners to 

remain in their homes and make on-time, monthly payments on 

their mortgages during unemployment so that they may avoid 

delinquency and foreclosure; and to assist homeowners with 

obtaining a sustainable loan modification after they have regained 

employment. 
TAMPA/143472.1 2 

3. Target Population/ 

Areas 

The Program will be available to eligible unemployed low- and 

moderate-income homeowners throughout Ohio, up to $15,000. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$299,540,000.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current 

household income is defined at time of submission of the 

HHF Action Plan as the 30 day average of all wages, 

compensation and/or public benefits in the homeowner’s 

household over the prior 60 days; 

• First mortgage debt less than the highest FHA maximum 

loan limit among all Ohio counties. 

• Liquid assets equal to or less than three months mortgage 

payments, excluding retirement accounts; 

• Hardship due to involuntary loss or reduction in income, 

which shall be documented by a financial hardship 

affidavit signed by the homeowner, and supporting 

documents which may include a form from the state 

unemployment department, or a letter from the previous 

employer documenting involuntary unemployment; 

• At least one wage earner in the household must be 

receiving unemployment compensation or must have 

exhausted unemployment compensation benefits within 

the last twelve months; 

• Homeowner must make the partial mortgage payment on 

time; and 

• Homeowner must actively seek reemployment during the 

assistance period. 

6. Property/Loan 

Eligibility Criteria 

One to four unit owner-occupied primary residences located in 

Ohio, including condominiums. Manufactured homes are eligible 

only if the mortgage is recorded as real property and the home is 

permanently affixed to the land.

7. Program Exclusions • Homeowners with a total PITI payment of less than 20% of 

current income are not eligible. 

• Homeowners in active bankruptcy and homeowners who have 

not reaffirmed their mortgage after a bankruptcy which 

resulted in mortgage debt being discharged. 

• Homeowners who have a sheriff’s sale scheduled in 21 days 

or less. 
TAMPA/143472.1 3 

8. Structure of 

Assistance 

Assistance will take the form of a non-recourse, non-amortizing, 

zero-percent interest, five-year loan secured by the property and 

repayable only from equity proceeds of a refinance or sale. The 

loan will be recorded as an open-ended subordinate lien. Twenty 

percent of the current loan balance will be forgiven each year on 

the anniversary of the closing, and any remaining balance will be 

forgiven on December 31, 2017. Loan repayments will be 

recycled back into the program and used to provide assistance to 

additional homeowners until December 31, 2017. 

9. Per Household 

Assistance 

Maximum amount available per homeowner: $15,000 

Estimated average assistance provided per homeowner: $9,390 

10. Duration of Assistance Homeowners may receive assistance up to a maximum of 15 

months. Should a homeowner become reemployed within the 15 

month period, the homeowner may continue receiving assistance 

for up to an additional 2 months after reemployment. 

11. Estimated Number of 

Participating 

Households 

It is expected that 31,900 households will be assisted under the 

Program. 

12. Program Inception/ 

Duration 

The Program will begin September 27, 2010 and is expected to 

continue until December 31, 2017 or when available funds are 

exhausted.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

Homeowners who participate in the Program will work with their 

lender/servicer to enter into a modified, affordable loan payment 

when the homeowner is re-employed. Homeowners may access 

the Rescue Payment Assistance Program, the Mortgage 

Modification with Principal Reduction Assistance Program, 

and/or the Short Refinance Program, if approved as part of the 

homeowner’s HHF Action Plan. If homeowners are unable to 

sustain homeownership after receiving assistance from the 

Program, they may be approved for the Transitional Assistance 

Program if they have not exhausted their maximum benefit. 

14. Program Interactions 

with HAMP 

The Program may precede the Home Affordable Unemployment 

Program (UP) forbearance or may be used to extend it. 

15. Program Leverage 

with Other Financial 

Resources 

The Program will strongly encourage the lenders/servicers to 

consider waiving late fees or any other expenses that are not paid 

to a third party. Lenders/servicers will not be required to match 

Program funds. 

16. Qualify as an 

Unemployment 

Program 

; Yes  No
TAMPA/143472.1 

SERVICE SCHEDULE B-3

Ohio Housing Finance Agency (OHFA)

Mortgage Modification with Principal Reduction Program

Summary Guidelines 

1. Program Overview The Mortgage Modification with Principal Reduction Program 

will provide assistance to homeowners who do not qualify for 

existing loan modification programs due to severe negative 

equity. Funds will be used to incentivize lenders/servicers to 

reduce homeowners’ mortgage principal balance to the level 

necessary to achieve a loan modification with a target of 115% of 

loan to value or less, and to achieve an Affordable Payment for 

the homeowner. Affordable Monthly Payment is equal to 31% or 

less of current household income. 

Lenders/servicers will provide principal forbearance or 

forgiveness equal to or greater than the Program payment. If 

principal forgiveness is permissible by the lender/servicer, it must 

be offered to the homeowner before any principal forbearance 

could occur and qualify for the Program. This option should 

increase the number of loan modifications that are approved and 

will be available to both HAMP-eligible and non-HAMP eligible 

borrowers. 

Assistance is subject to approval of the homeowner’s HHF action 

plan which is a plan relating solely to TARP funded modification 

programs that will be developed by a housing counseling agency 

and approved by OHFA (the “HHF Action Plan”). Homeowners 

may receive assistance from one or more HHF Programs. The 

HHF Action Plan will determine type(s) and amount of HHF 

assistance for each homeowner, up to the maximum total benefit 

amount for which the homeowner qualifies. 

2. Program Goals The goals of the Program are to: 

• Help homeowners obtain mortgage loan modifications to 

achieve an affordable monthly loan payment; 

• Reduce the probability of re-default after the loan 

modification by incentivizing lenders/servicers to include 

principal reduction as part of a modification when that 

reduction is necessary to achieve an affordable monthly 

payment; and 

• Reduce the risk of re-default due to severe negative 

equity. 

3. Target Population/ 

Areas 

The Program will be available to eligible low- and moderateincome homeowners throughout Ohio, up to the maximum benefit 

amount of $15,000. 
TAMPA/143472.1 2 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$22,717,635.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current 

household income is defined at time of submission of the 

HHF Action Plan as the 30 day average of all wages, 

compensation and/or public benefits in the homeowner’s 

household over the prior 60 days; 

• First mortgage debt less than the highest FHA maximum 

loan amount among all Ohio counties; 

• Liquid assets equal to or less than three months of 

mortgage payments; 

• Hardship due to involuntary loss or reduction in income, 

divorce, disability, or illness resulting in a loss of income 

or significant medical expenses, which shall be 

documented in part by a financial hardship affidavit 

signed by the homeowner; and 

• Homeowner must have been turned down for a loan 

modification due to the failure of the lender/servicer’s Net 

Present Value (NPV) calculation. 

6. Property/Loan 

Eligibility Criteria 

One to four unit owner-occupied primary residences located in 

Ohio, including condominiums. Manufactured homes are eligible 

only if the mortgage is recorded as real property and the home is 

permanently affixed to the land. 

To qualify for modification with principal reduction assistance, 

must have a loan to value ratio of 115% or more. 

7. Program Exclusions • Homeowners currently participating in HAMP are not 

eligible. 

• Homeowners in active bankruptcy and homeowners who have 

not reaffirmed their mortgage after a bankruptcy which 

resulted in mortgage debt being discharged. 

• Homeowners who have a sheriff’s sale scheduled in 21 days 

or less. 

8. Structure of 

Assistance 

Assistance will take the form of a non-recourse, non-amortizing, 

zero-percent interest, five-year loan secured by the property and 

repayable only from equity proceeds of a refinance or sale. The 

loan will be recorded as a subordinate lien. Twenty percent of the 

loan balance will be forgiven each year on the anniversary of the 

closing, and any remaining balance will be forgiven on December 

31, 2017. Loan repayments will be recycled back into the 

program and used to provide assistance to additional homeowners 

until December 31, 2017
TAMPA/143472.1 3 

9. Per Household 

Assistance 

Maximum amount available per homeowner: $15,000 

Estimated average assistance provided per homeowner: $9,667 

10. Duration of Assistance Assistance will be provided in a one-time lump sum payment to 

the homeowner’s lender/servicer. 

11. Estimated Number of 

Participating 

Households 

It is expected that 2,350 homeowners will receive assistance from 

the Program. 

12. Program Inception/ 

Duration 

The Program will begin September 27, 2010 and is expected to 

continue until December 31, 2017 or when available funds are 

exhausted. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

Homeowners may access the Rescue Payment Assistance 

Program and/or the Partial Mortgage Payment Assistance 

Program, if approved as part of the homeowner’s HHF Action 

Plan. If homeowners are unable to sustain homeownership after 

receiving assistance under the Program, they may be approved for 

the Transitional Assistance Program if they have not exhausted 

their maximum benefit.

14. Program Interactions 

with HAMP 

Homeowners will be first screened for eligibility for HAMP 

before being considered for the Program until the expiration of 

HAMP. Homeowners currently participating in HAMP are not 

eligible. 

15. Program Leverage 

with Other Financial 

Resources 

The following modification options leverage other financial 

resources: 

Principal Reduction Matched Assistance (HAMP Eligible) 

Contributions will be made to the homeowner’s principal 

reduction with the goal of reducing the LTV to at least 115%. For 

every dollar of principal forbearance or forgiveness offered by the 

lender/servicer, one dollar of Program funds will be contributed. 

All late fees and other non-out-of-pocket collections costs must 

be waived by the lender/servicer and cannot be capitalized. 

Principal Reduction Matched Assistance (Non HAMP 

Eligible) 

Contributions will be made to the homeowner’s principal 

reduction with the goal of reducing the LTV. For every dollar of 

principal forgiveness granted by the lender/servicer, one dollar of 

Program funds will be contributed. All late fees and other nonout-of-pocket collections costs must be waived by the 

lender/servicer and cannot be capitalized. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/143472.1 

SERVICE SCHEDULE B-4

Ohio Housing Finance Agency (OHFA)

Transition Assistance Program

Summary Guidelines 

1. Program Overview The Transition Assistance Program will assist homeowners whose 

current mortgage payment exceeds the Affordable Monthly 

Payment, and/or who must relocate to gain meaningful 

employment. Affordable Monthly Payment is equal to 31% or 

less of current household income. 

The Program requires the lender/servicer to consider a Short Sale 

or Deed-In-Lieu option and waive any rights to deficiency 

judgments. 

The Program allows an incentive to the lender/servicer and a 

stipend to borrowers to relocate while leaving the property in 

saleable condition. 

Assistance is subject to approval of the homeowner’s HHF action 

plan which is a plan relating solely to TARP funded modification 

programs that will be developed by a housing counseling agency 

and approved by OHFA (the “HHF Action Plan”). Homeowners 

may receive assistance from one or more HHF Programs. The 

HHF Action Plan will determine type(s) and amount of HHF 

assistance for each homeowner, up to the maximum total benefit 

amount for which the homeowner qualifies. 

2. Program Goals To allow homeowners to achieve a “graceful exit” from their 

current situation and avoid foreclosure. 

3. Target Population/ 

Areas 

The Program will be available to eligible low- and moderateincome homeowners throughout Ohio, up to the maximum benefit 

amount of $15,000. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$18,013,462.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current 

household income is defined at time of submission of the 

HHF Action Plan as the 30 day average of all wages, 

compensation and/or public benefits in the homeowner’s 

household over the prior 60 days; 

• First mortgage debt less than the highest FHA maximum 

loan amount among all Ohio counties; 

• Liquid assets equal to or less than three months of 

mortgage payments; 
TAMPA/143472.1 2 

• Hardship due to involuntary loss or reduction in income, 

divorce, disability, or illness resulting in a loss of income 

or significant medical expenses, which shall be 

documented in part by a financial hardship affidavit 

signed by the homeowner; and 

• Homeowners who must relocate for employment should 

meet the requirements of IRS Publication 521 which states 

“the new main job is at least 50 miles farther from former 

residence than old main job.” The new residence must be 

located in the United States of America, except for active 

duty military personnel. 

6. Property/Loan 

Eligibility Criteria 

One to four unit owner-occupied primary residences located in 

Ohio, including condominiums. Both HAMP and non-HAMP 

eligible loans will be considered for the Program. Manufactured 

homes are eligible only if the mortgage is recorded as real 

property and the home is permanently affixed to the land.

7. Program Exclusions • If net sales proceeds of the sale of the home are sufficient to 

pay off the mortgage balance, the borrower is not eligible for 

assistance. 

• Homeowners in active bankruptcy and homeowners who have 

not reaffirmed their mortgage after a bankruptcy which 

resulted in mortgage debt being discharged. 

• Homeowners who have a sheriff’s sale scheduled in 21 days 

or less. 

8. Structure of 

Assistance 

Assistance will not be structured as a loan. 

9. Per Household 

Assistance 

Maximum amount available per homeowner: $15,000 

Estimated average assistance provided per homeowner: $3,676 

10. Duration of Assistance Assistance is in the form of a one-time payment, and could 

consist of: 

• A $3,000 payment to the lender/servicer, $1,500 of which 

will be passed through to the borrower, and $1,500 of 

which will be an inducement to the servicer. 

• Payments will also be made to secondary lien holders, if 

any, in the amount of 10% of the second lien balance, up 

to $2,500, if a recordable “Satisfaction of Lien” is issued 

and they agree not to pursue a deficiency judgment for any 

remaining balance. 

• Homeowners will receive relocation assistance up to 

$1,500, passed through from the lender/servicer, which 

will be paid as a reduction from net proceeds at a real 

estate closing on a short sale or as funds from the servicer 

in a deed-in-lieu situation. Relocation assistance will be 

conditional on the homeowner leaving the home in 
TAMPA/143472.1 3 

“broom swept” condition. The lender/servicer is 

responsible for inspection. 

No payments may be made to the lender/servicer until a short 

sale, or deed-in-lieu agreement is executed. 

11. Estimated Number of 

Participating 

Households 

It is expected that 4,900 households will be assisted under the 

Program. 

12. Program Inception/ 

Duration 

The Program will begin September 27, 2010 and is expected to 

continue until December 31, 2017 or when available funds are 

exhausted.

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

Homeowners may have previously received assistance from the 

Rescue Payment Assistance Program and/or the Mortgage 

Modification with Principal Reduction Program prior to using the 

Program. Homeowners may have previously received or may 

currently receive assistance from the Partial Mortgage Payment 

Assistance Program. Homeowners may be approved for 

assistance under the Program only if they have not exhausted their 

maximum benefit.

14. Program Interactions 

with HAMP 

HAFA may not be combined with any element of the Program. 

The homeowner must first apply for HAFA and either be denied 

or have no response from the lender/servicer within 30 days to be 

eligible for the Program. 

15. Program Leverage 

with Other Financial 

Resources 

Lenders/servicers must agree to release homeowners from future 

obligations or judgments as part of the process of approving a 

short sale, cash for keys, or deed-in-lieu agreement. First and 

second mortgage holders must accept less than full payoff. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/143472.1 

SERVICE SCHEDULE B-5

Ohio Housing Finance Agency (OHFA)

Short Refinance Program

Summary Guidelines 

1. Program Overview The Short Refinance Program will provide funds to 

lenders/servicers on behalf of homeowners who wish to refinance 

to a new mortgage loan in order to lower their monthly payment. 

Funds will be used to reduce the principal balance of 

homeowner’s mortgage, which will incentivize lenders/servicers 

to match the Program payment in the form of principal 

forgiveness to, in the aggregate, reduce homeowner’s mortgage 

principal balance to the level necessary to qualify for a refinance, 

with a target of 95 percent to 100 percent combined loan-to-value 

ratio. The resulting refinance should result in an affordable 

monthly payment, including all subordinate mortgage loans, 

lower than 31 percent of their gross income. The mortgage 

refinance will be originated by the homeowner’s lender, and 

homeowners must qualify under their lender’s underwriting 

guidelines. 

Lenders/servicers will provide principal forgiveness equal to or 

greater than the Program payment. This option is available to 

homeowners who are current on their mortgage, employed, and 

have good credit history. 

Assistance is subject to approval of the homeowner’s HHF action 

plan which is a plan relating solely to TARP funded modification 

programs that will be developed by a housing counseling agency 

and approved by OHFA (the “HHF Action Plan”). Homeowners 

may receive assistance from one or more HHF Programs. The 

HHF Action Plan will determine type(s) and amount of HHF 

assistance for each homeowner, up to the maximum total benefit 

amount for which the homeowner qualifies. 

2. Program Goals The goals of the Program are to: 

• Help homeowners obtain mortgage loan refinances to 

lower their monthly loan payment; 

• Provide assistance to homeowners who may not be 

eligible for a traditional modification but cannot refinance 

due to a decline in their home’s value; and 

• Reduce the number of homeowners with negative equity. 

3. Target Population/ 

Areas 

The Program will be available to eligible low- and moderateincome homeowners throughout Ohio, up to the maximum benefit 

amount of $15,000. 
TAMPA/143472.1 2 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$50,000,000.00 

5. Borrower Eligibility 

Criteria 

Homeowner must meet the following criteria: 

• Income at or below 115% of area median. Current 

household income is defined at time of submission of the 

HHF Action Plan as the 30 day average of all wages, 

compensation and/or public benefits in the homeowner’s 

household over the prior 60 days; 

• First mortgage debt less than the highest FHA maximum 

loan amount among all Ohio counties; 

• Liquid assets equal to or less than three months of 

mortgage payments; 

• Hardship due to involuntary loss or reduction in income, 

divorce, disability, or illness resulting in a loss of income 

or significant medical expenses, which shall be 

documented in part by a financial hardship affidavit 

signed by the homeowner; and 

• Homeowners must qualify for refinance under their 

lender’s underwriting guidelines. 

6. Property/Loan 

Eligibility Criteria 

One to four unit owner-occupied primary residences located in 

Ohio, including condominiums. Manufactured homes are eligible 

only if the mortgage is recorded as real property and the home is 

permanently affixed to the land. 

To qualify for short refinance assistance, must have a loan to 

value ratio of 100% or more. 

7. Program Exclusions • Homeowners in active bankruptcy and homeowners who have 

not reaffirmed their mortgage after a bankruptcy which 

resulted in mortgage debt being discharged. 

• Homeowners who have a sheriff’s sale scheduled in 21 days 

or less. 

• Homeowners who do not qualify under their lender’s 

underwriting guidelines. 

8. Structure of 

Assistance 

Assistance will not be structured as a loan.

9. Per Household 

Assistance 

Maximum amount available per homeowner: $15,000 

Estimated average assistance provided per homeowner: $7,692 

10. Duration of Assistance Assistance will be provided in a one-time lump sum payment to 

the homeowner’s lender/servicer. 

11. Estimated Number of 

Participating 

Households 

It is expected that 6,500 homeowners will receive assistance from 

the Program. 
TAMPA/143472.1 3 

12. Program Inception/ 

Duration 

The Program will begin January 1, 2011 and is expected to 

continue until December 31, 2017 or when available funds are 

exhausted. 

13. Program Interactions 

with Other Programs 

(e.g. other HFA 

programs) 

Homeowners may access the Partial Mortgage Payment 

Assistance Program prior to receiving a Short Refinance, if 

approved by the homeowner’s HHF Action Plan. Homeowners 

may access any HHF Program if the homeowner qualifies and 

needs assistance after receiving Short Refinance assistance, if 

they have not exhausted their maximum benefit.

14. Program Interactions 

with HAMP 

Homeowners participating in HAMP may be eligible for Short 

Refinance assistance if they qualify for a refinance under their 

lender’s underwriting guidelines. 

15. Program Leverage 

with Other Financial 

Resources 

To leverage other financial resources, contributions will be made 

to the homeowner’s lender/servicer to reduce the mortgage 

principal balance to at least 100 percent loan-to-value. For every 

dollar of principal reduction offered by the lender/servicer, one 

dollar of Program funds will be contributed. All late fees and 

other non-out-of-pocket collections costs must be waived by the 

lender/servicer and cannot be capitalized. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No
TAMPA/143472.1 

SCHEDULE C

PERMITTED EXPENSES

Ohio 

 

 

One-time / Start-Up Expenses: 

Initial Personnel $56,873.00 

Building, Equipment, Technology $413,500.00 

Professional Services $55,000.00 

Supplies / Miscellaneous $0.00 

Marketing /Communications $206,400.00 

Travel $3,000.00 

Website development /Translation $0.00 

Contingency $215,000.00 

 Subtotal $949,773.00 

 

Operating / Administrative Expenses: 

Salaries $11,889,450.57 

Professional Services (Legal, 

Compliance, Audit, Monitoring) $2,659,315.82 

Travel $152,000.00 

Buildings, Leases & Equipment $332,818.20 

Information Technology & 

Communications $1,022,416.00 

Office Supplies/Postage and 

Delivery/Subscriptions $46,700.00 

Risk Management/ Insurance $20,000.00 

Training $100,000.00 

Marketing/PR $2,760,461.41 

Miscellaneous $0.00 

 Subtotal $18,983,162.00 

 

Transaction Related Expenses: 

Recording Fees $2,853,864.00 

Wire Transfer Fees $50,000.00 

Counseling Expenses 

File Intake $15,600,000.00 

Decision Costs $0.00 

Successful File $26,500,000.00 

Key Business Partners On-Going $8,282,300.00 

 Subtotal $53,286,164.00 

 

Grand Total $73,219,099.00 

 

% of Total Award 12.8% 

Award Amount $570,395,099.00