TENTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

Agreement (the "Tenth Amendment") is entered into as of the date set forth on Schedule A 

attached hereto as the Tenth 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 HP A") 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"), as further amended by that certain Fourth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the "Fourth Amendment"), as further amended by that certain Fifth Amendment to Commitment 

to Purchase Financial Instrument and HFA Participation Agreement (the "Fifth Amendment"), as 

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

Instrument and HFA Participation Agreement (the "Sixth Amendment"), as further amended by 

that certain Seventh Amendment to Commitment to Purchase Financial Instrument and HFA 

Participation Agreement (the "Seventh Amendment"), as further amended by that certain Eighth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the "Eighth Amendment"), and as further amended by that certain Ninth Amendment to 

Commitment to Purchase Financial Instrument and HFA Participation Agreement (the "Ninth 

Amendment"; and together with the Original HPA as amended thereby, by the First Amendment, 

Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth 

Amendment, Seventh Amendment, and Eighth 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, as applicable, and Treasury has agreed to the 

same; 

Tenth Amendment to HPA — California 

Doc# US1 8610854v I 
WHEREAS, HFA, Eligible Entity and Treasury wish to enter into this Tenth Amendment to 

document all approved modifications to the Service Schedules and Permitted Expenses, as 

applicable; 

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 Tenth 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 

Tenth Amendment. All references herein to the "HPA" shall mean the Current HPA, as 

further amended by this Tenth 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 Tenth 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 Tenth 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 Tenth 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 Tenth Amendment and any other closing documentation delivered to 

- 2 -

Doc#:USl:8610854v1 
Treasury in connection with this Tenth 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 

Tenth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

3. Miscellaneous 

A. The recitals set forth at the beginning of this Tenth 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 Tenth 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 Tenth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

- 3 -

Doc#: USl:8610854vl 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

hereby execute and deliver this Tenth 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: I si Claudia Cappio 

Name: Claudia Cappio 

Title: Executive Director 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

CALHFA MORTGAGE ASSISTANCE 

CORPORATION 

By: I si Diane M. Richardson 

Name: Diane M. Richardson 

Title: President 

[Signature Page to Tenth Amendment to HPA — California] 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

hereby execute and deliver. this_ Tenth 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: By: -1,y\ 

Name: 

Title: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

CALHFA MORTGAGE ASSISTANCE 

CORPORATION 

By: 

Name: 

Title: 

[Signature Page to Tenth Amendment to HPA — California] 
EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

Doc# US1 8610854v I 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

CalHFA Mortgage Assistance Corporation 

Nonprofit Public Benefit Corporation 

California 

HFA Information: 

Name of HFA: 

Organizational form: 

Date of Application: 

Date of Action Plan: 

Notice Information: 

California Housing Finance Agency 

Agency of the State of California 

April 16, 2010 

September 1,2010 

Program Participation Cap: 

Portion of Program Participation Cap 

Representing Original HHF Funds: 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: 

Permitted Expenses: 

Closing Date: 

First Amendment Date: 

Second Amendment Date: 

Third Amendment Date: 

Fourth Amendment Date: 

$1,975,334,096.00 

$ 699,600,000.00 

$ 476,257,070.00 

$ 148,150,057.20 

June 23, 2010 

September 23, 2010 

September 29, 2010 

December 16, 2010 

March 31, 2011 

Doc# US1 8610854vl 
Fifth Amendment Date: 

Sixth Amendment Date: 

Seventh Amendment Date: 

Eighth Amendment Date: 

Ninth Amendment Date: 

Tenth Amendment Date: 

Eligible Entity Depository Account Information: 

August 3, 2011 

October 28, 2011 

May 3, 2012 

July 17, 2012 

December 14, 2012 

June 6, 2013 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

Doc# US1 8610854vl 
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-l, Service 

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

Doc# US1 8610854vl 
SCHEDULE B-l 

California Housing Finance Agency Mortgage Assistance Corporation ("CalHFA 

MAC") 

UNEMPLOYMENT MORTGAGE ASSISTANCE PROGRAM 

1. Program 

Overview 

2. Program Goals 

3. Target 

Population / 

Areas 

4. Program 

Summary Guidelines 

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 twelve (12) 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. 

UMA's goal is to help homeowners remain in their homes and 

prevent avoidable foreclosures despite loss of income due to 

unemployment. 

The UMA 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 

receiving California Employment Development Department 

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. 

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. 

$874,995,915.28 

Doc#USl:8610854vl 
Allocation 

(Excluding 

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. 

Homeowner must complete and sign a Hardship Affidavit / 

3rd Party Authorization to document the reason for the 

hardship. 

Homeowners who have recently encountered a financial 

hardship due to underemployment or unemployment, 

including those whose unemployment hardship is related to 

their military service. 

Homeowner's total monthly first-lien mortgage payment PITI 

and escrowed association fees (principal, interest, taxes, and 

insurance, as applicable) must exceed 31 percent of the 

homeowner's gross monthly household income, including 

unemployment benefits. 

Homeowner must agree to provide all necessary 

documentation to satisfy program guidelines established by 

CalHFA MAC. 

Homeowner must be currently receiving California 

Employment Development Department unemployment 

benefits. 

Mortgage loan is delinquent or at risk of imminent default as 

substantiated by homeowner's hardship documentation. 

Loans in foreclosure at the time of homeowner request for 

assistance are not eligible. 

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. 

Property / Loan 

Eligibility 

Criteria 

Current unpaid principal balance ("UPB") of the first-lien 

mortgage loan is not greater than $729,750. 

The property securing the mortgage loan must not be 

abandoned, vacant or condemned. 

Doc#:USl:8610854vl 
7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

• 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. Mobile homes are eligible if they are permanently 

affixed to the real property that is secured by the first lien. 

• A Notice of Default ("NOD") has been recorded on the 

subject property as of the date of request for assistance or at 

the time homeowner requested HAMP UP forbearance from 

their servicer. 

• Homeowner in an "active" bankruptcy is ineligible for 

program assistance consideration. Homeowners who have 

previously filed bankruptcy are eligible for consideration with 

proof of court order "Dismissal" or "Discharge". 

• Loan is in foreclosure as evidenced by a recorded NOD. 

• Homeowner's "hardship" is a result of voluntary resignation 

of employment. 

• Homeowner in an active HAMP trial modification is not 

eligible for UMA consideration unless the trial is cancelled. 

• Homeowner becomes re-employed at any time during the 

UMA benefit period. 

• The homeowner is not eligible for unemployment benefits 

from the California Employment Development Department. 

• Homeowner is actively being reviewed for TAP benefits. 

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 a refinance that includes cash out 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. 

Up to $36,000 per household in total (average funding of 

$16,820.07), 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 $100,000 with respect to monies previously received under other 

HHF programs, if any). 

Homeowner participation in UMA is limited to twelve (12) months 

maximum. 

Doc#'. US 1:8610854vl 
11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception 

/Duration 

13. Program 

Interactions with 

Other 

HF A/Programs 

14. Program 

Interactions with 

HAMP 

15. Program 

Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

Approximately 52,021. This figure is based on loans with unpaid 

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

average funding of $16,820.07. 

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

continue up to five (5) years or until funding is fully reserved. 

UMA will serve as a gateway to homeowner programs aimed at 

reinstatement and principal reduction, as permitted by program 

guidelines. 

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

temporary unemployment assistance which when combined may 

provide assistance for more than one year. HAMP UP currently 

offers a minimum of twelve months' forbearance for some 

homeowners. 

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 and per investor guidelines. 

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

NSF and late charges). 

0 Yes • No 

Doc#:USl:86i0854vl 
SCHEDULE B-2 

California Housing Finance Agency Mortgage Assistance Corporation ("CalHFA 

MAC") 

MORTGAGE REINSTATEMENT ASSISTANCE PROGRAM 

Summary Guidelines 

1. Program 

Overview 

2. Program Goals 

3. Target Population 

/ Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility Criteria 

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. 

The MRAP 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 qualify for modification. 

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. 

$159,400,000.00 

• 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. 

• Homeowner must complete and sign a Hardship Affidavit / 

3rd Party Authorization to document the reason for the 

hardship. 

• Homeowners who have recently encountered a financial 

hardship due to their military service are eligible. 

Doc#:USl:8610854vl 
6. Property / Loan 

Eligibility Criteria 

7. Program 

Exclusions 

• Homeowner has adequate income to sustain reinstated firstlien mortgage loan, per CalHFA MAC approved investor 

guidelines. 

• Homeowner must agree to provide all necessary 

documentation to satisfy program guidelines established by 

CalHFA MAC. 

• Mortgage loan is delinquent as substantiated by 

homeowner's hardship documentation. Loans in foreclosure 

are eligible. 

• If the reinstatement assistance is combined with a loan 

modification, the homeowner's modified monthly mortgage 

payment ratio must be reduced to at least 38%) of the gross 

household income (excluding unemployment benefits) to 

meet the definition of an affordable payment. 

• On a case by case basis, CalHFA MAC reserves the right to 

review and approve investor program guidelines that utilize 

affordable mortgage definitions greater than 38%. 

• 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. 

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

mortgage loan is not greater than $729,750. 

• 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. Mobile homes are eligible if they are permanently 

affixed to the real property that is secured by the first lien. 

• Homeowner in an "active" bankruptcy is ineligible for 

MRAP assistance consideration. Homeowners who have 

previously filed bankruptcy are eligible for consideration 

with proof of court order "Dismissal" or "Discharge". 

• MRAP benefit assistance request for reinstatement with a 

first-lien PITI and any escrowed homeowner's association 

dues or assessments, payment of greater than 38% of the 

homeowner's gross monthly household income, excluding 

unemployment benefits will be considered unaffordable and 

is excluded from MRAP reinstatement benefit assistance 

Doc#:USl:8610854vl 
8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception / 

Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

unless that assistance is combined with a loan modification. 

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

request for 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 a refinance that includes cash out 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. 

Up to $25,000 per household in total (average funding of 

$18,052.46) 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 $100,000 with respect to monies 

previously received under other HHF programs, if any). 

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

Approximately 8,830. This figure is based on loans with unpaid 

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

average funding of $18,052.46. 

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

continue up to five (5) years or until funding is fully reserved. 

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. 

MRAP will serve as a gateway to HAMP which may include 

principal reduction of homeowner's mortgage. 

Doc#. USl:8610854vl 
15. Program Leverage 

with Other 

Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

CalHFA MAC will require that the servicer waive all accrued and 

unpaid late charges and NSF fees for all payments funded with 

MRAP benefits. 

• Yes 0 No 

Doc# US1 8610854v I 
SCHEDULE B-3 

California Housing Finance Agency Mortgage Assistance Corporation ("CalHFA 

MAC") 

PRINCIPAL REDUCTION PROGRAM 

Summary Guidelines 

1. Program 

Overview 

2. Program Goals 

3. Target Population 

/ Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility Criteria 

The Principal Reduction Program ("PRP") is one of CalHFA 

MAC's federally-funded programs developed with a goal to provide 

capital to homeowners that have suffered a hardship to reduce the 

outstanding principal balances of qualifying properties with negative 

equity. 

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

mortgage through a loan recast or in conjunction with a loan 

modification that includes a rate reduction, each with the purpose of 

establishing an appropriate level of debt for eligible homeowners 

with qualifying properties. 

The PRP will reduce the principal balances of underwater mortgages 

in cooperation with participating lenders. Such lenders will recast 

eligible loans or provide a loan modification that includes a rate 

reduction, in each case to 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, by way of either a loan recast 

or loan modification, will achieve desired income ratios and 

affordability for a homeowner with respect to their existing 

mortgage. 

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. 

$772,197,793.52 

• 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 

Doc#:USl:8610854vl 
the county where homeowner resides. 

Homeowner must complete and sign a Hardship Affidavit / 

3rd Party Authorization to document 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 CalHFA MAC approved investor 

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. 

The homeowner's modified monthly mortgage payment ratio 

must be reduced to at least 38% of the gross household 

income (excluding unemployment benefits) to meet the 

definition of an affordable payment. On a case-by-case basis, 

CalHFA MAC reserves the right to review and approve 

investor program guidelines that utilize affordable mortgage 

definitions greater than 38%. 

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. 

Property / Loan 

Eligibility Criteria 

Property is encumbered by a first-lien mortgage loan that 

was originated on or before January 1, 2010. 

Current unpaid principal balance ("UPB") of the first-lien 

mortgage loan is not greater than $729,750. 

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. Mobile homes are eligible if they are permanently 

affixed to the real property that is secured by the first lien. 

PRP funds may be used in conjunction with a loan recast or a 

loan modification that includes a rate reduction to achieve 

long term sustainability for the homeowner. Loan 

Doc#:USl:8610854vl 
7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

modifications that include PRP assistance must include a rate 

reduction and may or may not include an adjustment to term 

or additional forbearance to achieve affordability. 

• Homeowner in an "active" bankruptcy is ineligible for 

assistance consideration. Homeowners who have previously 

filed bankruptcy are eligible for consideration with proof of 

court order "Dismissal" or "Discharge". 

• Homeowner fails to satisfy lender underwriting guidelines. 

• Loan to value (LTV) of less than 105%. 

• A loan recast or loan modification that would result in a 

post-modified LTV of greater than 140%. 

• Homeowner's pre-modified total monthly first-lien mortgage 

payment PITI and escrowed association fees (principal, 

interest, taxes, and insurance, as applicable) is less than 31 

percent of the homeowner's gross monthly household 

income, excluding unemployment benefits as determined by 

CalHFA MAC at the time of a homeowner's application for 

assistance. Unemployment benefits may not be used to 

qualify for PRP 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 (5) five 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 a refinance that includes cash out 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 PRP 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. 

Up to $100,000 per household (average funding of $86,029.41), less 

program monies previously received under other HHF programs. 

In most cases, assistance will be available to households on a onetime only basis; provided, however, CalHFA MAC reserves the 

right to provide additional PRP benefits (not exceed the maximum 

program assistance amount per household) to previous PRP 

recipients if the homeowner has suffered a subsequent, valid 

Doc#. USl:8610854vl 
11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception / 

Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other 

Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

hardship. 

Approximately 8,976. This figure is based on loans with unpaid 

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

average funding of $86,029.41. 

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

continue up to five (5) years or until funding is fully reserved. 

PRP may be used in conjunction with MRAP aimed at 

reinstatement. 

PRP may work in conjunction with a HAMP modification to help 

eligible homeowners achieve desired income ratios and 

affordability. PRP may also be combined or used in conjunction 

with the HAMP Principal Reduction Alternative (PRA). PRP funds 

are not eligible in any combination to qualify for HAMP PRA 

investor incentive compensation. 

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

leverage PRP funds as necessary by providing a loan modification 

that includes a rate reduction or loan recast to help establish an 

appropriate level of first mortgage debt for homeowners with 

qualifying properties. 

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. CalHFA MAC will require the servicer to 

waive any associated recast fee. 

• Yes 0 No 

Doc# US1 8610854vl 
SCHEDULE B-4 

California Housing Finance Agency Mortgage Assistance Corporation ("CalHFA 

MAC") 

THE TRANSITION ASSISTANCE PROGRAM 

Summary Guidelines 

1. Program 

Overview 

2. Program Goals 

3. Target Population 

/ Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility Criteria 

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 will 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 also be available for transition assistance 

counseling services. 

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. 

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. 

$2,300,000.00 

• 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 

Doc#: USl:8610854vl 
6. Property / Loan 

Eligibility Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

11. Estimated 

Number of 

Community Development), for a family of four, in 

the county where homeowner resides. 

• Homeowner must complete and sign a Hardship Affidavit / 

3rd Party Authorization to document 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. 

• 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. 

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

mortgage loan is not greater than $729,750. 

• 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. Mobile homes are eligible if they are permanently 

affixed to the real property that is secured by the first lien. 

• Homeowner in an "active" bankruptcy is ineligible for TAP 

assistance consideration. Homeowners who have previously 

filed bankruptcy are eligible for consideration with proof of 

court order "Dismissal" or "Discharge". 

TAP assistance will not be structured as a loan. 

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

returned to Treasury. 

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

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

Approximately 460. This figure is based on loans with unpaid 

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

Doc*. USl:86l0854vl 
Participating 

Households 

12. Program 

Inception 

/Duration 

13. Program Leverage 

with Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other 

Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

average funding of $5,000.00. 

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

continue up to five (5) years or until funding is fully reserved. 

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 $100,000. 

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. 

None. 

• Yes 0 No 

Doc#:USl:8610854vl 
SCHEDULE B-5 

California Housing Finance Agency Mortgage Assistance Corporation ("CalHFA MAC") 

Community HousingWorks 

C2MPRP: Community 2nd Mortgage Principal Reduction Program 

Summary Guidelines 

1. Program 

Overview 

The Community 2nd Mortgage Principal Reduction Program 

(Community 2nd Mortgage PRP, or C2MPRP) is offered through a 

CalHFA federally-funded Hardest Hit Fund program through a 

contract between CalHFA MAC and Community HousingWorks. 

Community HousingWorks will administer this program. 

C2MPRP will provide capital on 40/60 matching basis with 

participating nonprofit, credit union and lenders, to reduce the 

outstanding principal balances of subordinate second mortgages, as 

well as providing relief for a subordinate lien on a short sale on a 

40/60 matching basis for qualifying properties with negative equity 

exceeding 107% CLTV. The lenders who will participate in this 

program are nonprofit lenders, credit unions and lenders with 

qualifying subordinate liens. These lenders provided "amortizing 

seconds" home buyers throughout California. Participation in this 

program is Statewide. C2MPRP will provide monies to reduce the 

principal balance on a 40/60 matching basis for the purposes of 

establishing an appropriate level of debt for eligible borrowers with 

qualifying properties. For example, if the subordinate debt to be 

extinguished is $50,000, the C2MPRP program will provide up to 

40% of that amount or $20,000 and the participating lender/investor 

would forgive 60% or $30,000. A reduction in principal through 

C2MPRP can achieve desired income ratios and affordability for a 

borrower on the existing mortgage loans or can be used in 

conjunction with a loan modification. Lenders holding subordinate 

liens in the State of California may find that their clients' only 

option to avoid foreclosure is a short sale. The C2MPRP program 

can provide subordinate lien holders a 40/60 matching incentive for 

the subordinate lien holder to facilitate a short sale in order to 

avoid foreclosure. The principal reduction will be 40% of the 

principal balance and the lender will accept the 60% reduction. For 

example if the total principal balance is $50,000, the C2MPRP 

program can provide $20,000 to subordinate lien holders if they will 

accept the principal reduction of $30,000 in order to accept the 

short sale. The total amount of principal that can be paid out on all 

Doc# US1 8610854vl 
2. Program Goals 

3. Target 

Population/ 

Areas 

4. Program 

Allocation 

(Excluding 

Admin 

Expenses) 

5. Borrower 

Eligibility 

Criteria 

liens is $50,000. 

The goal of this program is to reduce foreclosures by reducing 

principal balances, on qualified amortizing subordinate debt, to 

those market levels needed to prevent avoidable foreclosures and 

promote sustainable homeownership. 

There are situations where a short sale is the only solution to 

avoiding foreclosure; by providing matching funds this will incent 

the subordinate lien holders, who in many cases are only able to 

recover a $1,000 or less in a short sale, to accept the transaction and 

allow the sale to go through. 

This program will be offered on a statewide basis. 

$9,245,330.00. 

• Borrower earns 120% AMI or less, as defined by the county they 

reside in. 

• Borrower must complete and sign a Hardship Affidavit and 

document the reason for the hardship. 

• Hardship is defined as economic hardship, which occurs when a 

household is unable to pay reasonable basic living expenses. The 

determination of a reasonable amount for basic living expenses 

will be made by the Underwriter and will vary according to the 

unique circumstances of every individual household. 

• Borrower has adequate income to sustain modified mortgage 

payments defined as a housing debt-to-income ratio of no more 

than 38% (first lien only), excluding temporary income such as 

unemployment or temporary disability payments. 

• In the case of a short sale request, homeowner must be able to 

verify that they have a hardship that does not permit them to 

make their monthly mortgage payments or they meet the GSE 

standard short sale requirements. 

• Borrower has completed level 2 counseling with a HUDapproved agency. Payment for counseling services will not be 

paid out of Hardest Hit funds 

Doc# US1 8610854vl 
6. Property/Loan 

Eligibility 

Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

• Borrower is able to satisfy program guidelines. 

• The first or second subordinate mortgage loan is delinquent or 

the servicer receives documentation from the borrower that 

substantiates an imminent default that meets hardship 

qualifications. 

• The property is encumbered by a first lien conventional loan 

• Property must be single family residential 1-4 units, 

condominium, or cooperative. 

• The total mortgage indebtedness cannot exceed the GSE 

conforming limit of $729,750. 

• The property securing the mortgage loan must not be 

abandoned, vacant, condemned or in a serious state of disrepair. 

• The subject property is the borrower's principal residence and 

the property is located in California. 

• HELOCs with required monthly payments (amortized or interest 

only) may be considered. Documentation that these loans have 

been closed and reconveyed if C2MPRP assistance is provided 

will be required. 

• Borrower's property is subject to a foreclosure trustee sale (does 

not apply to short sale requests). 

• Hardship caused by voluntary resignation of employment. 

• Second mortgages eligible for 2MP or 2LP. 

• Borrower fails to satisfy underwriting guidelines. 

• Homeowner in an "active" bankruptcy is ineligible for assistance 

consideration. Homeowners who have previously filed 

bankruptcy are eligible for consideration with proof of court 

order "Dismissal" or "Discharge". 

The assistance will not be structured as a loan since there will always 

be at least a 40/60 match from the lender. 

The lower of 2 limiting guidelines: 

Maximum of $50,000; or amount which, with the match, lowers 

CLTV tol07%. 

It is expected that the average assistance will be approximately 

$25,000. 

The assistance will be a onetime payment. 

Doc# US1 8610854vl 
Assistance 

11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception/ 

Duration 

13. Program 

Interactions 

with Other HFA 

Programs 

14. Program 

Interactions 

with HAMP 

15. Program 

Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

Approximately 370 

The Program will launch within 90 days of Treasury approval and will 

be available for approximately 2-3 years, until funds are exhausted. 

Any funds remaining on hand on December 31, 2017 will be 

returned to Treasury. 

C2MPRP cannot be utilized with other Keep Your Home California 

programs except for the Unemployment Mortgage Assistance 

program. Recipients of the C2MPRP program shall be notified in 

writing that their participation in that program will disqualify them 

from participating in any other Keep Your Home California program 

except the Unemployment Mortgage Assistance Program. 

C2MPRP complements and leverages HAMP 1s t mortgage 

modifications since reduction or elimination of the 2nd liens will 

enable many borrowers to qualify for a HAMP modification. 

Participating lenders will be required to write down 60% of the 

overall principal reduction (in the case of a short sale, lender will 

forgive debt up to 60%) calculated and approved by C2MPRP 

Underwriting, and C2MPRP shall pay the lender the remaining 40% 

as a subsidy. The lender will provide modification of the Note to 

reflect 100% of the overall principal reduction. 

• Yes 0 No 

Doc# US1 8610854vl 
SCHEDULE B-6 

California Housing Finance Agency Mortgage Assistance Corporation ("CalHFA 

MAC") 

Los Angeles Housing Department ("LAHD") 

Principal Reduction Program 

Summary Guidelines 

1. Program 

Overview 

LAHD will contract with CalHFA MAC to offer the Los Angeles 

Mortgage Modification Program (the "Program") through 

CalHFA MAC's Innovation Fund. This Program will target those 

neighborhoods most impacted by foreclosures and sub-prime 

lending in the City. Working with local community-based 

partners, the Program will enable eligible homeowners in 

Neighborhood Stabilization Program targeted neighborhoods to 

receive sustainable loan modifications with permanent principal 

reduction. Program funds will be used to compensate lenders for 

forgiven principal on proprietary (non-HAMP) loan modifications. 

For loans over 180 days past due, the payout will be $0.06 for 

each $ 1.00 of principal forgiveness. For loans up to 180 days past 

due, the equivalent payment will be the following payouts for 

each $1.00 of principal forgiveness: 

(LTV, CLTV) 105% - 115%: $0.21 

(LTV, CLTV) 115% - 140%: $0.15 

(LTV, CLTV) > 140%: $0.10 

Any changes to the payment structure authorized by the Home 

Affordable Modification Program Principal Reduction Alternative 

Program, including subsequent amendments to Supplemental 

Directive 10-05 may also apply to this Program. 

In certain circumstances, if necessary to prevent a foreclosure, 

additional assistance may be provided to enable a loan 

modification after the lender demonstrates that the additional 

assistance is needed to qualify the borrower for the modification. 

In no instance will the assistance exceed $50,000 or 50% of the 

total amount of forgiven principal, whichever is less. 

2. Program 

Goals 

Leverage existing neighborhood stabilization efforts in the City by 

targeting at-risk borrowers in those neighborhoods most impacted 

by foreclosures and providing sustainable loan modifications with 

affordable payments that include permanent principal reduction 

consistent with the guidelines outlined herein. The Program goals 

Doc#:USl:8610854vl 
3. Target 

Population / 

Areas 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower 

Eligibility 

Criteria 

6. Property / 

Loan 

Eligibility 

Criteria 

7. Program 

Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

include maximizing leverage (City grant/Amount of Principal 

Write down) at 21%, with a Loan to Value/Combined Loan to 

Value (LTV, CLTV) ranging from 105% to 125%. 

Eligible homeowners at risk of foreclosure with income less than 

120% AMI residing in neighborhoods most impacted by 

foreclosure and sub-prime lending as designated through the 

Neighborhood Stabilization Program (NSP), including all NSP1, 

NSP2, and NSP3 target areas funded by the U.S. Department of 

Housing & Urban Development (HUD) within the City of Los 

Angeles. 

$ 4,500,000.00 

• Borrower's household income must be at or below 120%) of 

Area Median Income. 

• Borrower must be currently paying more than 31% of 

verified monthly housing income toward their first and 

subordinate mortgage payments (principal, interest, taxes, 

insurance and association dues, if applicable). 

• Borrower must complete and sign a Hardship Affidavit 

documenting the reason for the financial hardship. 

• Borrower must own and occupy the property and it must be 

their primary residence. 

• Property must be located in designated NSP areas in the City 

of Los Angeles. 

• Current unpaid principal balance of the first lien mortgage 

loan is not greater than $729,750. 

• Borrower owns other real property. 

• The assistance will not be structured as a loan since there will 

always be at least a 1 to 1 match from the lender. 

• Borrower receives a fixed rate loan on the modified 1st 

mortgage. 

• Borrower's housing payment must be affordable. 

• Loan to Value/Combined Loan to Value (LTV, CLTV) 

cannot be less than 105% if the post-mod DTI is 31% or 

greater and cannot be less than 115% if the post-mod DTI is 

less than 31 %. 

Estimated average assistance per household is $27,000 with a 

maximum amount of assistance of $50,000. 

Doc#:USl:8610854vl 
10. Duration of 

Assistance 

11. Estimated 

Number of 

Participating 

Households 

12. Program 

Inception / 

Duration 

13. Program 

Interactions 

with Other 

HFA 

Programs 

14. Program 

Interactions 

with HAMP 

15. Program 

Leverage with 

Other 

Financial 

Resources 

16. Qualify as an 

Unemploymen 

t Program 

One time payment. 

166 based on $27,000 estimated average assistance per household. 

The Program is planned to begin providing assistance in the fourth 

quarter of 2011 with duration of approximately 24 months from 

initial funding. 

None; a homeowner cannot receive benefits under this Program 

and CalHFA MAC's Keep Your Home California (HFA Hardest 

Hit Programs). 

None. Only borrowers that do not qualify for HAMP will be 

eligible for this Program. 

This Program will require lender matching as described above. 

• Yes 0 No 

Doc#:USl:8610854vl 
SCHEDULE B-7 

California Housing Finance Agency Mortgage Assistance Corporation 

("CalHFA MAC") 

NeighborWorks® Sacramento 

Short Sale Gateway Program 

Summary Guidelines 

1. Program Overview The Short Sale Gateway Program (the "Program") provides 

an avenue for homeowners who have exhausted options to 

modify loans to remain in their homes through a short sale 

coupled with a lease-purchase agreement between the 

homeowner and NeighborWorks® Sacramento ("NWS"). 

This will give the homeowner the possibility of returning to 

homeownership at the conclusion of a successful 

predetermined lease period. 

HHF assistance is structured in the form of a payment to the 

existing lender to enable a short sale (the "Program 

Payment"), which allows the purchase of the property by 

Neighbor Works® Sacramento at the then current market 

value, funded by a new mortgage loan obtained by NWS, 

and the lease of the property back to the original 

homeowner/borrower. The borrower will be eligible to 

execute a lease purchase agreement that will allow the 

borrower to purchase the property at the end of the lease 

period. To accomplish the purchase transaction, the 

borrower will assume the mortgage at the conclusion of the 

lease period at its then-current unpaid principal balance. 

The Program Payment will be twenty percent of the negative 

equity, not to exceed $45,000. Sales proceeds paid by NWS 

plus the Program Payment to lender will never exceed 80% 

of unpaid principal balance. Property value will be 

determined by Broker Price Opinion. The portion of the 

sales price paid by NWS must not exceed the value 

established by the Broker Price Opinion. NeighborWorks® 

Sacramento will receive an activity delivery fee of $5,000 

per unit at the closing of the short sale transaction. The 

Program Payment and activity delivery fee will be paid from 

HHF funds by CalHFA MAC to NWS. Funds used for the 

remainder of the sales proceeds will come from separate 

financing sources or NWS cash on hand. 

Doc#:USl:86l0854vl 
2. Program Goals 

3. Target 

Population/Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

If a borrower does not successfully complete the lease 

period, the home will be sold by NWS. Profits in excess of 

costs to NWS will be returned to CalHFA MAC for use in 

other Hardest Hit Fund programs or to be returned to the 

Department of Treasury. All transactions must be closed 

prior to December 21, 2017. Unspent funds as of December 

31, 2017 and funds recaptured from sales upon lease 

termination after December 31, 2017 will be returned to the 

Department of Treasury. 

The Program will, in cooperation with participating lenders, 

provide an option for borrowers to remain in their homes 

after efforts to modify loans have been exhausted. 

The Program goals are to prevent dislocation of households, 

prevent the creation of vacant units and return borrowers to 

successful homeownership. 

The Program is designed to target low-to-moderate income 

homeowners who have exhausted loan modification options 

and address the needs of a borrower's specific situation in 

lieu of targeting certain regions or counties. 

$4,545,000.00 

• Low-to-moderate income limitation of 120% or less 

of Area Median Income based upon the county 

where borrower resides. 

• Borrower must complete and sign a Hardship 

Affidavit and document the reason for the hardship. 

• Borrower has adequate income to sustain lease to 

purchase rental payments. Borrower's maximum 

housing debt to income ratios: 38%) at time of lease 

execution, 38% at time of purchase. Borrower's 

maximum total debt to income ratios: 50%) at time of 

lease execution, 41%) at time of purchase. 

• The mortgage loan is delinquent or the servicer 

receives documentation from the borrower that 

substantiates an imminent default that meets hardship 

qualifications. 

• Borrower must demonstrate that she/he has sought 

Doc#:USl:8610854vl 
6. Property/Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of Assistance 

9. Per Household 

Assistance 

10. Duration of Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception/ 

Duration 

13. Program Interactions 

with Other HFA 

alternative loan modification and home preservation 

options and has not received a favorable response. 

• In order to regain homeownership the borrower must 

meet established underwriting standards of leasepurchase mortgage by the end of the specified lease 

period. 

• The property is encumbered by a first lien mortgage 

loan. 

• The total unpaid principal balance cannot exceed the 

GSE conforming limit of $729,750. 

• The property securing the mortgage loan must not be 

abandoned, vacant, condemned or in a serious state 

of disrepair. 

• 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 

must currently reside in the home as their primary 

residence. 

• Hardship caused by voluntary resignation of 

employment. 

• Borrower fails to satisfy lender underwriting 

guidelines. 

Assistance will not be structured in the form of a loan. 

Up to $50,000 inclusive of activity delivery fee. 

HHF funds will be a one time payment to lender/servicer 

and NWS. 

91 

The Program will be available to clients within 90 days of 

approval and it is estimated that funds will be exhausted in 

three years. 

This Program may not be used in conjunction with other 

CalHFA programs and is meant to be used as a last effort to 

Doc# US1 8610854v I 
Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage with 

Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

avoid foreclosure and displacement. 

Borrowers participating in this Program are not eligible for 

participation in HAFA. 

This Program may be used only after efforts to achieve 

successful modification under HAMP have been exhausted. 

The applicable servicer/lender will match Program funds 

more than dollar-for-dollar. The matching funds will come 

in the form of unpaid principal balance forgiven by the 

lender in the short sale process. 

Program funds will be leveraged with private funds from 

NWS. The property purchase amount, less the Program 

Payment will be provided by NWS via cash and mortgage 

financing. 

• Yes 0 No 

Doc#:USl:8610854vl 
SCHEDULE C 

Permitted Administrative Expenses 

- California 

»**., • 

One-time /Start-Up Expenses: 

Initial Personnel 

Building, Equipment, Technology 

Professional Services 

Supplies / Miscellaneous 

Marketing /Communications 

Travel 

Website development /Translation 

Contingency 

Subtotal 

$534,394.39 

$131,240.82 

$4,565,316.00 

$33,650.00 

$213,217.36 

$85,000.00 

$0.00 

$2,129,073.80 

$7,691,892.37 

-•i * 

Operating /Administrative Expenses: 

Salaries 

Professional Services (Legal, 

Compliance, Audit, Monitoring) 

Travel 

Buildings, Leases & Equipment 

Information Technology & 

Communications 

Office Supplies/Postage and 

Delivery/Subscriptions 

Risk Management/ Insurance 

Training 

Marketing/PR 

Miscellaneous 

Subtotal 

$56,846,522.70 

$17,419,051.90 

$726,830.13 

$2,179,641.01 

$7,403,818.75 

$1,208,153.66 

$109,552.50 

$12,320,000.00 

$2,309,648.91 

$100,523,219.56 

* 

Transaction Related Expenses: 

Recording Fees 

Wire Transfer Fees 

Counseling Expenses 

File Intake 

Decision Costs 

Successful File 

Key Business Partners On-Going 

$4,672,957.80 

$393,000.00 

$30,000,000.00 

$4,868,987.47 

Doc# US1 8610854vl 
Subtotal 

. 

Grand Total 

!

 - • ^ f 

% of Total Award 

Award Amount 

$39,934,945.27 

,**'"-

$148,150,057.20 

-* 

7.50% 

$1,975,334,096.00 

- , 

Doc# US I 8610854vl