Fourth Amendment to HPA — California 

TAMPA/176363.1

FOURTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

This Fourth Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the “Fourth Amendment”) is entered into as of the date set forth on 

Schedule A attached hereto as the Fourth 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”), as further amended 

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

Participation Agreement (the “Third Amendment”; and together with the Original HPA as 

amended thereby, by the First Amendment and by the Second 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 Treasury has agreed to the same; 

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

document all approved modifications to the Service Schedules; 

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 Fourth Amendment; and all references in the 
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TAMPA/176363.1

Current HPA to Schedules A or B shall mean the Schedules A or B attached to this Fourth 

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

amended by this Fourth 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 Fourth 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 Fourth 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 Fourth Amendment and any other closing documentation delivered to 

Treasury in connection with this Fourth 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 

Fourth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous

A. The recitals set forth at the beginning of this Fourth 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 
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TAMPA/176363.1

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 
[Signature Page to Fourth Amendment to HPA — California] 

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

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: TREASURY: 

CALIFORNIA HOUSING FINANCE 

AGENCY 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ L. Steven Spears By: 

Name: L. Steven Spears Name: Timothy G. Massad 

Title: Executive Director Title: Acting Assistant Secretary for 

 Financial Stability 

 

ELIGIBLE ENTITY:

CALHFA MORTGAGE ASSISTANCE 

CORPORATION 

By: /s/ Diane M. Richardson 

Name: Diane M. Richardson 

Title: President 

 

TAMPA/176363.1

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 
TAMPA/176363.1

SCHEDULE A

BASIC INFORMATION

Eligible Entity Information: 

Name of the Eligible Entity: CalHFA Mortgage Assistance Corporation

Corporate or other organizational form: Nonprofit Public Benefit Corporation

Jurisdiction of organization: California

Notice Information: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HFA Information: 

Name of HFA: California Housing Finance Agency 

Organizational form: Agency of the State of California 

Date of Application: April 16, 2010 

Date of Action Plan: September 1, 2010 

Notice Information: 

 

 

 

 

 

 

 
TAMPA/176363.1

 

 

 

 

 

 

 

 

Program Participation Cap: $1,975,334,096.00 

Portion of Program Participation Cap 

Representing Original HHF Funds: $ 699,600,000.00 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: $ 476,257,070.00 

Permitted Expenses: $ 148,150,057.20

Closing Date: June 23, 2010 

First Amendment Date: September 23, 2010 

Second Amendment Date: September 29, 2010 

Third Amendment Date: December 16, 2010 

Fourth Amendment Date: March 31, 2011 

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/176363.1

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/176363.1

SCHEDULE B-1

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”) 

UNEMPLOYMENT MORTGAGE ASSISTANCE PROGRAM 

Summary Guidelines 

1. Program 

Overview 

The Unemployment Mortgage Assistance Program (UMA) is one of 

CalHFA MAC’s federally-funded programs developed to provide 

temporary financial assistance to eligible California homeowners 

who wish to remain in their homes but have suffered a loss of income 

due to unemployment. 

CalHFA MAC is partnering with financial institutions to directly 

provide program funds to subsidize an eligible homeowner’s 

mortgage payments. 

UMA provides mortgage payment assistance equal to the lesser of 

$3,000 per month or 100% of the PITI (principal, interest, tax, 

insurance) and any escrowed homeowner’s association dues or 

assessments, for up to six (6) months, with the purpose of preventing 

avoidable foreclosures until such time that the homeowner retains 

employment sufficient to meet the demands of satisfying their regular 

mortgage payment. 

2. Program Goals UMA’s goal is to help homeowners remain in their homes and 

prevent avoidable foreclosures despite loss of income due to 

unemployment. 

The UMA program will minimize past due payments, and provide a 

homeowner with additional time to find alternate employment and 

replace income needed to make their mortgage payment. 

UMA was designed to assist homeowners who are currently eligible 

to receive unemployment benefits. 

UMA was designed to complement other loss mitigation programs, 

including increasing a homeowner’s eligibility for an extended 

written forbearance plan and/or loan modification. 

3. Target 

Population / 

Areas 

UMA is designed to target low-to-moderate income homeowners and 

address the needs of a homeowner’s specific situation in lieu of 

targeting certain regions or counties. 

4. Program 

Allocation

(Excluding 

$874,995,915.28 
TAMPA/176363.1

Administrative 

Expenses) 

5. Borrower 

Eligibility 

Criteria 

• Homeowner must qualify as a low-to-moderate income 

household, as follows: 

o Low-to-moderate income of 120% or less of the HCD 

Area Median Income (as defined by the California 

State Department of Housing and Community 

Development), for a family of four, in the county 

where homeowner resides. 

o A loan financed in whole or in part by bonds that are 

tax-exempt under IRC section 143, the homeowner is 

presumed to satisfy income limits. 

• Homeowner must complete and sign a Hardship Affidavit / 

3rd Party Authorization documenting the reason for the 

hardship. 

• Homeowners who have recently encountered a financial 

hardship due to underemployment or unemployment, 

including those whose financial hardship is related to their 

military service. 

• Homeowner must agree to provide all necessary 

documentation to satisfy program guidelines established by 

CalHFA MAC. 

• Homeowner must be currently eligible to receive 

unemployment benefits. 

• Mortgage loan is delinquent or at risk of imminent default as 

substantiated by homeowner’s hardship documentation. 

Loans in foreclosure are not eligible. 

• Homeowner in an “active” Chapter 7 or Chapter 13 

bankruptcy is eligible for the program subject to the 

homeowner’s counsel or bankruptcy trustee approval in 

accordance with local court rules and procedures. 

• General program eligibility is determined by CalHFA MAC, 

the housing counselor or servicer based on information 

received from the homeowner. Program-specific eligibility is 

determined by CalHFA MAC on a first-come/first-approved 

basis until program funds and funding reserves have been 

exhausted. Loan servicer will implement the HHF program 

based on participation agreement terms and conditions. 

• Funding allocation will be tracked, monitored and performed 

by CalHFA MAC in a centralized processing operation.

6. Property / Loan 

Eligibility 

Criteria 

• Current unpaid principal balance (UPB) of the first lien 

mortgage loan is not greater than $729,750 (GSE conforming 

limit for a one-unit property). 

• The property securing the mortgage loan must not be 

abandoned, vacant or condemned. 

• The applicant must own and occupy the single family, 1-4 
TAMPA/176363.1

unit home (an attached or detached house or a condominium 

unit) located in California and it must be their primary 

residence. 

7. Program 

Exclusions 

• Loan is more than three (3) payments delinquent as of the 

date of request for assistance or at the time homeowner 

requested HAMP UP forbearance from their servicer. 

• Loan is in foreclosure. 

• Homeowner owns other real property. 

• Homeowner’s “hardship” is a result of voluntary resignation 

of employment. 

• The homeowner is no longer eligible for unemployment 

benefits from the California Employment Development 

Department (EDD) benefit or such benefits will expire within 

90 days. 

8. Structure of 

Assistance 

CalHFA MAC will structure the assistance as a non-recourse, noninterest bearing subordinate loan in favor of the Eligible Entity 

(CalHFA MAC) secured by a junior lien recorded against the 

property in the amount of the total reduced PITI and any escrowed 

homeowner’s association dues or assessments, and equal to the total 

amount of HHF unemployment assistance. At the conclusion of (3) 

three years, the subordinate loan will be released. Loan funds will 

only be repaid to Eligible Entity (CalHFA MAC) in the event of a 

sale or refinance with sufficient net equity proceeds prior to 

forgiveness. Recovered funds will be recycled in order to provide 

additional program assistance until December 31, 2017, at which 

time any recovered funds will be returned to Treasury. 

After December 31, 2017, any remaining or returned funds will be 

returned to Treasury. 

9. Per Household 

Assistance 

Up to $18,000 per household total (average funding of $14,455.43), 

equaling the lesser of $3,000 per month or 100% of PITI and any 

escrowed homeowner’s association dues or assessments (and in all 

cases, subject to the HHF Program maximum benefit cap of $50,000 

with respect to monies previously received under other HHF 

Programs, if any). 

10. Duration of 

Assistance 

Homeowner participation in UMA is limited to six (6) months 

maximum. 

11. Estimated 

Number of 

Participating 

Households 

Approximately 60,531. This figure is based on loans with unpaid 

principal balances ranging from $200,000 to $400,000 with an 

average funding of $14,455.43. 

12. Program 

Inception / 

Duration 

The statewide launch of UMA was January 10, 2011 and it will 

continue up to three (3) years or until funding is fully reserved. 

13. Program UMA will serve as a gateway to homeowner programs aimed at 
TAMPA/176363.1

Interactions with 

Other HFA

Programs 

reinstatement and principal reduction as permitted by program 

guidelines. 

14. Program 

Interactions with 

HAMP 

This benefit may precede or extend HAMP, including HAMP UP for 

temporary unemployment assistance which when combined may 

provide assistance for up to one year. HAMP UP currently offers a 

minimum of three months and up to six months for some 

homeowners.

15. Program 

Leverage with 

Other Financial 

Resources 

Upon completion of all UMA benefit assistance payments and based 

on homeowner need, the Servicer agrees to consider an extension of 

unemployment forbearance plan (such as HAMP UP or other 

Proprietary program) or other foreclosure prevention program as 

applicable per investor guidelines. 

CalHFA MAC will request that the loan servicer waive fees (e.g., 

NSF and late charges). 

16. Qualify as an 

Unemployment 

Program 

; Yes  No 
TAMPA/176363.1

SCHEDULE B-2

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”) 

MORTGAGE REINSTATEMENT ASSISTANCE PROGRAM 

Summary Guidelines 

1. Program 

Overview 

The Mortgage Reinstatement Assistance Program (MRAP) is one of 

CalHFA MAC’s federally-funded programs developed to provide 

temporary financial assistance to eligible homeowners who wish to 

remain in their homes but are in imminent danger of losing their 

home to foreclosure. 

MRAP provides funds to assist income-qualified homeowners to 

help them cure their delinquent first mortgage loan arrearages, 

which may also include payments needed to reinstate their loans 

from foreclosure. 

2. Program Goals The MRAP program will prevent avoidable foreclosures by helping 

homeowners reinstate their past due first mortgage loans. 

MRAP will also mitigate the need for large reinstatement dollars to 

be capitalized with remaining loan balance, and thus, broaden the 

population of homeowners who otherwise may not qualify for 

modification. 

3. Target Population 

/ Areas 

MRAP is designed to target low-to-moderate income homeowners 

and address the needs of a homeowner’s specific situation in lieu of 

targeting certain regions or counties. 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

$129,400,000.00 

5. Borrower 

Eligibility Criteria 

• Homeowner must qualify as a low-to-moderate income 

household, as follows: 

o Low-to-moderate income of 120% or less of the 

HCD Area Median Income (as defined by the 

California State Department of Housing and 

Community Development), for a family of four, in 

the county where homeowner resides. 

o A loan financed in whole or in part by bonds that are 

tax-exempt under IRC section 143, the homeowner is 

presumed to satisfy income limits. 

• Homeowner must complete and sign a Hardship Affidavit / 

3rd Party Authorization documenting the reason for the 
TAMPA/176363.1

hardship. 

• Homeowners who have recently encountered a financial 

hardship due to their military service are eligible. 

• Homeowner has adequate income to sustain reinstated first 

lien mortgage loan. 

• Homeowner must agree to provide all necessary 

documentation to satisfy program guidelines established by 

CalHFA MAC. 

• Mortgage loan is delinquent or at risk of imminent default as 

substantiated by homeowner’s hardship documentation. 

Loans in foreclosure are eligible. 

• Homeowner in an “active” Chapter 7 or Chapter 13 

bankruptcy is eligible for the program subject to the 

homeowner’s counsel or bankruptcy trustee approval in 

accordance with local court rules and procedures. 

• General program eligibility is determined by CalHFA MAC, 

the housing counselor or servicer based on information 

received from the homeowner. Program-specific eligibility 

is determined by CalHFA MAC on a first-come/firstapproved basis until program funds and funding reserves 

have been exhausted. Loan servicer will implement the HHF 

program based on participation agreement terms and 

conditions. 

• Funding allocation will be tracked, monitored and performed 

by CalHFA MAC in a centralized processing operation. 

6. Property / Loan 

Eligibility Criteria 

• Current unpaid principal balance (UPB) of the first lien 

mortgage loan is not greater than $729,750 (GSE conforming 

limit for a one-unit property). 

• The property securing the mortgage loan must not be 

abandoned, vacant or condemned. 

• The applicant must own and occupy the single family, 1-4 

unit home (an attached or detached house or a condominium 

unit) located in California and it must be their primary 

residence. 

7. Program 

Exclusions 

• Homeowner owns other real property. 

• Homeowner’s “hardship” is a result of voluntary resignation 

of employment. 

• MRAP benefit assistance request for reinstatement with a 

first lien PITI and any escrowed homeowner’s association 

dues or assessments, payment of greater than 31% of the 

homeowner’s gross monthly income, excluding 

unemployment benefits or per servicer guidelines will be 

considered unaffordable and is excluded from MRAP benefit 

consideration. 

• Loan is less than two (2) payments delinquent as of the date 

of request for assistance. 
TAMPA/176363.1

8. Structure of 

Assistance 

CalHFA MAC will structure the assistance as a non-recourse, noninterest bearing subordinate loan in favor of the Eligible Entity 

(CalHFA MAC) secured by a junior lien recorded against the 

property in the amount of the HHF assistance. At the conclusion of 

(3) three years, the subordinate loan will be released. Loan funds 

will only be repaid to Eligible Entity (CalHFA MAC) in the event of 

a sale or refinance with sufficient net equity proceeds prior to 

forgiveness. Recovered funds will be recycled in order to provide 

additional program assistance until December 31, 2017, at which 

time any recovered funds will be returned to Treasury. 

After December 31, 2017, any remaining or returned funds will be 

returned to Treasury. 

9. Per Household 

Assistance 

Up to $15,000 per household (average funding of $14,047.92) for 

PITI and any escrowed homeowner’s association dues or 

assessments, arrearages (and in all cases, subject to the HHF 

Program maximum benefit cap of $50,000 with respect to monies 

previously received under other HHF Programs, if any). 

10. Duration of 

Assistance 

Available on a one-time only basis, per household. 

11. Estimated 

Number of 

Participating 

Households 

Approximately 9,211. This figure is based on loans with unpaid 

principal balances ranging from $200,000 to $400,000 with an 

average funding of $14,047.92. 

12. Program 

Inception / 

Duration 

The statewide launch of MRAP was February 7, 2011 and it will 

continue up to three (3) years or until funding is fully reserved. 

13. Program 

Interactions with 

Other HFA

Programs 

MRAP will serve as a gateway to other loss mitigation programs 

including loan modification which may include principal reduction, 

including other HHF Programs and the Principal Reduction 

Program. 

14. Program 

Interactions with 

HAMP 

MRAP will serve as a gateway to HAMP which may include 

principal reduction of homeowner’s mortgage. 

15. Program Leverage 

with Other 

Financial 

Resources 

CalHFA MAC will require that the servicer waive all accrued and 

unpaid late charges and NSF fees for all payments funded with 

MRAP benefits. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/176363.1

SCHEDULE B-3

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”) 

PRINCIPAL REDUCTION PROGRAM 

Summary Guidelines 

1. Program 

Overview 

The Principal Reduction Program (PRP) is one of CalHFA MAC’s 

federally-funded programs developed with a goal to provide capital 

on a dollar-for-dollar matching basis with participating lenders to 

reduce over a three-year period the outstanding principal balances of 

qualifying properties with negative equity. 

PRP will provide monies to reduce the principal balance of the first 

mortgage loan for the purpose of establishing an appropriate level of 

debt for eligible homeowners with qualifying properties. 

2. Program Goals The PRP program will, in cooperation with participating lenders, 

leverage the HHF dollars by reducing the principal balances of 

underwater mortgages and provide an incentive for qualifying 

homeowners to remain in their homes during this period of steep 

declines in value. 

A reduction in principal through PRP can achieve desired income 

ratios and affordability for a homeowner on the existing mortgage 

loan or can be used in conjunction with a loan modification. 

3. Target Population 

/ Areas 

PRP is designed to target low-to-moderate income homeowners and 

address the needs of a homeowner’s specific situation in lieu of 

targeting certain regions or counties. 

4. Program 

Allocation

(Excluding 

Administrative 

Expenses) 

$790,488,123.52 

5. Borrower 

Eligibility Criteria 

• Homeowner must qualify as a low-to-moderate income 

household, as follows: 

o Low-to-moderate income of 120% or less of the 

HCD Area Median Income (as defined by the 

California State Department of Housing and 

Community Development), for a family of four, in 

the county where homeowner resides. 

o A loan financed in whole or in part by bonds that are 

tax-exempt under IRC section 143, the homeowner is 

presumed to satisfy income limits. 

• Homeowner must complete and sign a Hardship Affidavit / 
TAMPA/176363.1

3rd Party Authorization documenting the reason for the 

hardship. 

• Homeowners who have recently encountered a financial 

hardship due to their military service are eligible. 

• Homeowner has adequate income to sustain modified 

mortgage payments per lender guidelines. 

• Homeowner must agree to provide all necessary 

documentation to satisfy program guidelines established by 

CalHFA MAC. 

• Mortgage loan is delinquent or at risk of imminent default as 

substantiated by homeowner’s hardship documentation. 

Loans in foreclosure are eligible. 

• Homeowner in an “active” Chapter 7 or Chapter 13 

bankruptcy is eligible for the program subject to the 

homeowner’s counsel or bankruptcy trustee approval in 

accordance with local court rules and procedures. 

• General program eligibility is determined by CalHFA MAC, 

the housing counselor or servicer based on information 

received from the homeowner. Program-specific eligibility 

is determined by CalHFA MAC on a first-come/firstapproved basis until program funds and funding reserves 

have been exhausted. Loan servicer will implement the HHF 

program based on participation agreement terms and 

conditions. 

• Funding allocation will be tracked, monitored and performed 

by CalHFA MAC in a centralized processing operation.

6. Property / Loan 

Eligibility Criteria 

• Property is encumbered by a first lien mortgage loan that 

was originated on or before January 1, 2009. 

• Current unpaid principal balance (UPB) of the first lien 

mortgage loan is not greater than $729,750 (GSE conforming 

limit for a one-unit property). 

• The property securing the mortgage loan must not be 

abandoned, vacant or condemned. 

• The applicant must own and occupy the single family, 1-4 

unit home (an attached or detached house or a condominium 

unit) located in California and it must be their primary 

residence. 

7. Program 

Exclusions 

• Homeowner owns other real property. 

• Homeowner’s “hardship” is a result of voluntary resignation 

of employment. 

• Homeowner fails to satisfy lender underwriting guidelines. 

• LTV of 115% or less. 

• First lien PITI and any escrowed homeowner’s association 

dues or assessments, payments that are less than 31% of 

homeowner’s gross monthly income, excluding 

unemployment benefits, are considered affordable and are 
TAMPA/176363.1

excluded from PRP benefit assistance eligibility. 

• Homeowner consummated a “cash-out” refinance of the 

subject first lien mortgage property. 

o Refinancing for the sole purpose of obtaining a new 

interest rate and loan term is permissible. 

o Costs associated with the first mortgage refinance 

may be financed in the new loan. 

o Junior liens used to purchase the subject property 

first mortgage property are not excluded from 

eligibility. 

• Stand-alone second liens including home equity lines of 

credit and FEMA funded low-cost loans to homeowners to 

help pay for uninsured losses associated with natural 

disasters are considered “cash-out.” Homeowners with 

junior liens that meet this description are not eligible for 

program assistance. 

8. Structure of 

Assistance 

In the event that CalHFA MAC receives less than 100% match by 

the lender/servicer, CalHFA MAC will structure the assistance as a 

non-recourse, non-interest bearing subordinate loan in favor of the 

Eligible Entity (CalHFA MAC) secured by a junior lien recorded 

against the property in the amount of the HHF assistance. At the 

conclusion of (3) three years, the subordinate loan will be released. 

Loan funds will only be repaid to Eligible Entity (CalHFA MAC) in 

the event of a sale or refinance with sufficient net equity proceeds 

prior to forgiveness. Recovered funds will be recycled in order to 

provide additional program assistance until December 31, 2017, at 

which time any recovered funds will be returned to Treasury. 

If the lender/servicer matches the assistance in an amount equal to or 

greater than 100% of the HHF Program assistance provided to the 

homeowner, then the assistance is not required to be structured as a 

loan to the homeowner. 

After December 31, 2017, any remaining or returned funds will be 

returned to Treasury. 

9. Per Household 

Assistance 

Up to $50,000 per household (average funding of $31,449.58), less 

program monies previously received under other HHF Programs. 

10. Duration of 

Assistance 

Available on a one-time only basis, per household. 

11. Estimated 

Number of 

Participating 

Households 

Approximately 25,135. This figure is based on loans with unpaid 

principal balances ranging from $200,000 to $400,000 with an 

average funding of $31,449.58. 

12. Program 

Inception / 

Duration 

The statewide launch of PRP was February 7, 2011 and it will 

continue up to three (3) years or until funding is fully reserved. 
TAMPA/176363.1

13. Program 

Interactions with 

Other HFA 

Programs 

PRP may be used in conjunction with MRAP aimed at 

reinstatement. 

14. Program 

Interactions with 

HAMP 

PRP may work in conjunction with a standard HAMP modification 

to help eligible homeowners achieve desired income ratios and 

affordability. PRP may not be combined or used in conjunction with 

the HAMP Principal Reduction Alternative (PRA). PRP layering 

with HAMP PRA is strictly prohibited. PRP funds are not eligible in 

any combination to qualify for HAMP PRA investor incentive 

compensation. 

15. Program Leverage 

with Other 

Financial 

Resources 

The goal of the program is for the applicable servicer/lender to 

match PRP funds on a dollar-for-dollar basis. The servicer/lender’s 

matching funds will be paid no later than at the time of CalHFA 

MAC program funding. 

CalHFA MAC will require that the servicer waive all accrued and 

unpaid late charges and NSF fees at the time the modification 

agreement is completed 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/176363.1

SCHEDULE B-4

California Housing Finance Agency Mortgage Assistance Corporation (“CalHFA MAC”) 

THE TRANSITION ASSISTANCE PROGRAM 

Summary Guidelines 

1. Program 

Overview 

The Transition Assistance Program (TAP) is one of CalHFA MAC’s 

federally-funded programs developed to provide eligible 

homeowners with transition assistance when it is determined that 

they can no longer afford their home. 

TAP will be used in conjunction with short sale and deed-in-lieu 

programs to help homeowners make a smooth transition to housing. 

Homeowners will be required to occupy and maintain the property 

until the home is sold or returned to the lender as negotiated. 

Program funds would be available on a one-time only basis up to 

$5,000 per household and can be used or layered with other CalHFA 

MAC HHF Programs. Funds will be sent to the servicer or 

homeowner after or in connection with the short sale or deed-in-lieu 

of foreclosure closing. Funds are intended to help the homeowner 

secure new housing (e.g., rent, moving expenses, and security 

deposits) and will be available for transition assistance counseling 

services. 

2. Program Goals CalHFA MAC envisions that these monies would be used to 

complement other federal or lender programs designed specifically 

to stabilize communities by providing assistance to homeowners 

who have suffered a financial hardship and as a result are no longer 

financially able to afford their mortgage payments. 

3. Target Population 

/ Areas 

TAP is designed to target low-to-moderate income homeowners and 

address the needs of a homeowner’s specific situation in lieu of 

targeting certain regions or counties. 

4. Program 

Allocation

(Excluding 

Administrative 

Expenses) 

$32,300,000.00 

5. Borrower 

Eligibility Criteria 

• Homeowner must qualify as a low-to-moderate income 

household, as follows: 

o Low-to-moderate income of 120% or less of the 

HCD Area Median Income (as defined by the 

California State Department of Housing and 

Community Development), for a family of four, in 
TAMPA/176363.1

the county where homeowner resides. 

o A loan financed in whole or in part by bonds that are 

tax-exempt under IRC section 143, the homeowner is 

presumed to satisfy income limits. 

• Homeowner must complete and sign a Hardship Affidavit / 

3rd Party Authorization documenting the reason for the 

hardship. 

• Homeowners who have recently encountered a financial 

hardship due to their military service are eligible. 

• Homeowner must agree to provide all necessary 

documentation to satisfy program guidelines established by 

CalHFA MAC. 

• Mortgage loan is delinquent or at risk of imminent default as 

substantiated by homeowner’s hardship documentation. 

Loans in foreclosure are eligible. 

• Homeowner in an “active” Chapter 7 or Chapter 13 

bankruptcy is eligible for the program subject to the 

homeowner’s counsel or bankruptcy trustee approval of the 

use of funds as required by the program guidelines in 

accordance with local court rules and procedures. 

• General program eligibility is determined by CalHFA MAC, 

the housing counselor or servicer based on information 

received from the homeowner. Program-specific eligibility 

is determined by CalHFA MAC on a first-come/firstapproved basis until program funds and funding reserves 

have been exhausted. Loan servicer will implement the HHF 

program based on participation agreement terms and 

conditions. 

• Funding allocation will be tracked, monitored and performed 

by CalHFA MAC in a centralized processing operation. 

6. Property / Loan 

Eligibility Criteria 

• Current unpaid principal balance (UPB) of the first lien 

mortgage loan is not greater than $729,750 (GSE conforming 

limit for a one-unit property). 

• The property securing the mortgage loan must not be 

abandoned, vacant or condemned. 

• The applicant must own and occupy the single family, 1-4 

unit home (an attached or detached house or a condominium 

unit) located in California and it must be their primary 

residence. 

7. Program 

Exclusions 

• Homeowner owns other real property. 

8. Structure of 

Assistance 

TAP assistance will not be structured as a loan. 

After December 31, 2017, any remaining or returned funds will be 

returned to Treasury. 
TAMPA/176363.1

9. Per Household 

Assistance 

Up to $5,000 per household (average funding of $5,000.00). 

10. Duration of 

Assistance 

Available on a one-time only basis, per household. 

11. Estimated 

Number of 

Participating 

Households 

Approximately 6,460. This figure is based on loans with unpaid 

principal balances ranging from $200,000 to $400,000 with an 

average funding of $5,000.00. 

12. Program 

Inception / 

Duration 

The statewide launch of TAP was February 7, 2011 and it will 

continue up to three (3) years or until funding is fully reserved. 

13. Program Leverage

with Other HFA 

Programs 

TAP benefits may be available to the homeowner even if UMA, 

MRAP and/or PRP benefits have been utilized, subject to the HHF 

Program maximum benefit cap of $50,000. 

14. Program 

Interactions with 

HAMP 

TAP complements HAMP and HAFA. The funds will leverage 

monies being made available through HAFA. Servicer is required to 

follow HAFA guidelines for allowable costs. In cases where the 

Servicer has approved the homeowner for a HAFA transaction, TAP 

dollars will be limited to $2,000 in order to maintain the $5,000 

HHF Program maximum per household.

15. Program Leverage 

with Other 

Financial 

Resources 

None. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No