Fifth Amendment to HPA — California 

TAMPA/186711.1

FIFTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

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

attached hereto as the Fifth 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”), as further amended by that certain Fourth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

(the “Fourth Amendment”; and together with the Original HPA as amended thereby, by the First 

Amendment, Second Amendment and Third Amendment, the “Current HPA”), dated as of their 

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

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

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

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

from time to time (“EESA”); 

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

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

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

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

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

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

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

TAMPA/186711.1 

Agreement 

1. Amendments

A. Definitions. All references in the Current HPA to the “Agreement” shall mean the 

Current HPA, as further amended by this Fifth 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 Fifth 

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

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

Treasury in connection with this Fifth 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 

Fifth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 
- 3 - 

TAMPA/186711.1 

3. Miscellaneous

A. The recitals set forth at the beginning of this Fifth 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 Fifth 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 

Fifth Amendment shall be treated as originals for all purposes. 

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

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

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

hereby execute and deliver this Fifth 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/ Claudia Cappio By: 

Name: Claudia Cappio 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/186711.1 

EXHIBITS AND SCHEDULES

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 
TAMPA/186711.1 

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: Diane Richardson, President 

 CalHFA Mortgage Assistance Corporation 

500 Capitol Mall, 4th Floor 

M/S 1450 

Sacramento, CA 95814 

Phone: (916) 326-8082 

Fax: (916) 324-8640 

Email: drichardson@calhfa.ca.gov 

 

 With a copy to: Thomas Hughes, General Counsel 

CalHFA Mortgage Assistance Corporation 

500 Capitol Mall, 4th Floor 

M/S 1450 

Sacramento, CA 95814 

Phone: (916) 323-3424 

Fax: (916) 322-3151 

Email: thughes@calhfa.ca.gov

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: L. Steven Spears, Executive Director 

 CalHFA Mortgage Assistance Corporation 

 500 Capitol Mall, 4th Floor 

M/S 1450 

Sacramento, CA 95814 

Phone: (916) 326-8080 

Fax: (916) 324-8640 

Email: sspears@calhfa.ca.gov 
TAMPA/186711.1 

With a copy to: Thomas Hughes, General Counsel 

CalHFA Mortgage Assistance Corporation 

500 Capitol Mall, 4th Floor 

M/S 1450 

Sacramento, CA 95814 

Phone: (916) 323-3424 

Fax: (916) 322-3151 

Email: thughes@calhfa.ca.gov 

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 

Fifth Amendment Date: August 3, 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/186711.1 

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/186711.1 

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 

Administrative 

$874,995,915.28 
TAMPA/186711.1 

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 to document 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’s total monthly first lien mortgage payment 

PITI+escrowed A (principal, interest, taxes, insurance and 

escrowed association fees, 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 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. 

• 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/186711.1 

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. 

7. Program 

Exclusions 

• Loan is more than three (3) payments past due 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 KYHC 

program assistance consideration. However, CalHFA MAC 

will handle written requests for assistance received from a 

homeowner’s bankruptcy attorney or trustee on an exception 

basis. Final approval is subject to servicer participation in 

accordance with investor guidelines. Homeowners who have 

previously filed bankruptcy are eligible for consideration with 

proof of court order “Dismissal” or “Discharge”. 

• Loan is in foreclosure. 

• Homeowner owns other real property. 

• 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 no longer eligible for unemployment 

benefits from the California Employment Development 

Department (EDD) benefit. 

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 
TAMPA/186711.1 

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

13. Program 

Interactions with 

Other HFA

Programs 

UMA will serve as a gateway to homeowner programs aimed at 

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/186711.1 

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 to document the reason for the 

hardship. 
TAMPA/186711.1 

• 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 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. 

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. Mobile homes are eligible if they are permanently 

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

7. Program 

Exclusions 

• Homeowner owns other real property. 

• Homeowner in an “active” bankruptcy is ineligible for 

KYHC program assistance consideration. However, CalHFA 

MAC will handle written requests for assistance received 

from a homeowner’s bankruptcy attorney or trustee on an 

exception basis. Final approval is subject to servicer 

participation in accordance with investor guidelines. 

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 or per servicer guidelines will be 

considered unaffordable and is excluded from MRAP benefit 
TAMPA/186711.1 

consideration. 

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

request for assistance. 

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 five (5) 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. 
TAMPA/186711.1 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/186711.1 

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) 

$772,197,793.52 

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 / 

3rd Party Authorization to document the reason for the 
TAMPA/186711.1 

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. 

• The homeowners modified monthly mortgage payment ratio 

must be reduced to 31% of the gross household income 

(excluding unemployment benefits) to meet the definition of 

an affordable payment. CalHFA MAC will review investor 

program guidelines that utilize affordable mortgage 

definitions greater than 31% on a case-by-case basis. 

• 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. Mobile homes are eligible if they are permanently 

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

7. Program 

Exclusions 

• Homeowner owns other real property. 

• Homeowner in an “active” bankruptcy is ineligible for 

KYHC program assistance consideration. However, CalHFA 

MAC will handle written requests for assistance received 

from a homeowner’s bankruptcy attorney or trustee on an 

exception basis. Final approval is subject to servicer 

participation in accordance with investor guidelines. 
TAMPA/186711.1 

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. 

• LTV of 115% or less. 

• Homeowner’s total monthly first lien mortgage payment 

PITI+escrowed A (principal, interest, taxes, insurance and 

escrowed association fees, as applicable) does not exceed 31 

percent of the homeowner’s gross monthly household 

income, excluding unemployment benefits. Unemployment 

benefits may not be used to qualify for PRP assistance. 

• 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 Up to $50,000 per household (average funding of $45,694.88), less 
TAMPA/186711.1 

Assistance 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 16,899. This figure is based on loans with unpaid 

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

average funding of $45,694.88. 

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. 

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/186711.1 

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 

the county where homeowner resides. 
TAMPA/186711.1 

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 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. 

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. Mobile homes are eligible if they are permanently 

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

7. Program 

Exclusions 

• Homeowner owns other real property. 

• Homeowner in an “active” bankruptcy is ineligible for 

KYHC program assistance consideration. However, CalHFA 

MAC will handle written requests for assistance received 

from a homeowner’s bankruptcy attorney or trustee on an 

exception basis. Final approval is subject to servicer 

participation in accordance with investor guidelines. 

Homeowners who have previously filed bankruptcy are 

eligible for consideration with proof of court order 

“Dismissal” or “Discharge”. 

8. Structure of TAP assistance will not be structured as a loan. 
TAMPA/186711.1 

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

returned to Treasury. 

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 five (5) 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 
TAMPA/186711.1 

Service 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 C2M PRP) 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. 

C2M PRP will provide capital on 35/65 matching basis with 

participating nonprofit, credit union and small community lenders, to 

reduce the outstanding principal balances of subordinate second 

mortgages, for qualifying properties with negative equity exceeding 

115% CLTV. The lenders who will participate in this program are 

nonprofit lender, small credit unions and small community based 

lenders. These lenders provided “amortizing community seconds” 

for first time and low to moderate home buyers throughout 

California. Participation in this program is Statewide. C2M PRP will 

provide monies to reduce the principal balance on a 35/65 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 35% of that amount or $17,500 and the 

participating lender/investor would forgive 65% or $32,500. A 

reduction in principal through C2M PRP 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. 

2. Program Goals 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. The C2M PRP thus provides an 

incentive for qualifying homeowners to remain in their homes during 

this period of steep declines in value, in situations when existing 

Making Home Affordable and CalHFA programs are unable to do so. 

3. Target 

Population / 

Areas 

This program will be offered on a statewide basis. 
TAMPA/186711.1 

4. Program 

Allocation

(Excluding 

Admin 

Expenses) 

$9,245,330.00. 

5. Borrower 

Eligibility 

Criteria 

• 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 as derived from 

Treasury Regulations § 301.6343-1. An Economic hardship 

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. 

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

paid out of Hardest Hit funds

• 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. 

6. Property/Loan 

Eligibility 

Criteria 

• The property is encumbered by a first lien conventional loan, and 

a modification of the 1st mortgage has been attempted. 

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

condominium, or cooperative. 

• The total mortgage indebtedness cannot exceed to 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. 

7. Program • Borrower’s property is subject to a foreclosure trustee sale. 
TAMPA/186711.1 

Exclusions • Hardship caused by voluntary resignation of employment. 

• Borrower owns other real property. 

• Second mortgages and servicers eligible for 2MP or 2LP. 

• Borrower fails to satisfy underwriting guidelines. 

8. Structure of 

Assistance 

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

be at least a 35/65 match from the lender. 

9. Per Household 

Assistance 

The lower of 2 limiting guidelines: 

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

CLTV to 115%. 

It is expected that the average assistance will be approximately 

$25,000. 

10. Duration of 

Assistance 

The assistance will be a onetime payment. 

11. Estimated 

Number of 

Participating 

Households 

Approximately 370 

12. Program 

Inception/

Duration 

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. 

13. Program 

Interactions 

with Other 

HFA Programs 

 C2M PRP cannot be utilized with other Keep Your Home California 

programs 

14. Program 

Interactions 

with HAMP 

C2M PRP complements and leverages HAMP 1st mortgage 

modifications since reduction or elimination of the 2nd liens will 

enable many borrowers to qualify for a HAMP modification. 

15. Program 

Leverage with 

Other Financial 

Resources 

Participating nonprofit lender/credit union 2nd lien holder will be 

required to write down 65% of the overall principal reduction 

calculated and approved by C2M PRP Underwriting, and C2M PRP 

shall pay the lender the remaining 35% as a subsidy. The nonprofit 

lender/credit union will provide modification of the Note to reflect 

100% of the overall principal reduction. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/186711.1 

Service 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 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%. 
TAMPA/186711.1 

3. Target 

Population / 

Areas 

Eligible homeowners at risk of foreclosure with income less than 120% 

AMI residing in neighborhoods most impacted by foreclosure and subprime 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. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

$ 4,500,000.00 

5. Borrower 

Eligibility 

Criteria 

• 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. 

6. Property / 

Loan Eligibility 

Criteria 

• 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.

7. Program 

Exclusions 

• Borrower owns other real property.

8. Structure of 

Assistance 

• 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%. 

9. Per Household 

Assistance 

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

amount of assistance of $50,000. 

10. Duration of 

Assistance 

One time payment. 

11. Estimated 

Number of 

Participating 

166 based on $27,000 estimated average assistance per household. 
TAMPA/186711.1 

Households 

12. Program 

Inception / 

Duration 

The Program is planned to begin providing assistance in the fourth 

quarter of 2011 with duration of approximately 24 months from initial 

funding. 

13. Program 

Interactions 

with Other 

HFA Programs 

None; a homeowner cannot receive benefits under this Program and 

CalFHA MAC’s Keep Your Home California (HFA Hardest Hit 

Programs). 

14. Program 

Interactions 

with HAMP 

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

this Program. 

15. Program 

Leverage with 

Other 

Financial 

Resources 

This Program will require lender matching as described above. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/186711.1 

Service 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 

modifiy 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. 
TAMPA/186711.1 

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. 

2. Program Goals 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. 

3. Target 

Population/Areas 

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. Program Allocation

(Excluding 

Administrative 

Expenses) 

$4,545,000.00 

5. Borrower Eligibility 

Criteria 

 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 
TAMPA/186711.1 

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. 

6. Property/Loan 

Eligibility Criteria 

 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. 

7. Program Exclusions  Hardship caused by voluntary resignation of 

employment. 

 Borrower fails to satisfy lender underwriting 

guidelines. 

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

9. Per Household 

Assistance 

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

10. Duration of Assistance HHF funds will be a one time payment to lender/servicer 

and NWS. 

11. Estimated Number of 

Participating 

Households 

91 

12. Program Inception/

Duration 

The Progam will be available to clients within 90 days of 

approval and it is estimated that funds will be exhausted in 

three years. 

13. Program Interactions 

with Other HFA

This Program may not be used in conjuction with other 

CalHFA programs and is meant to be used as a last effort to 
TAMPA/186711.1 

Programs avoid foreclosure and displacement. 

Borrowers participating in this Program are not eligible for 

participation in HAFA. 

14. Program Interactions 

with HAMP 

This Progam may be used only after efforts to achieve 

successful modification under HAMP have been exhausted. 

15. Program Leverage with 

Other Financial 

Resources 

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. 

16. Qualify as an 

Unemployment 

Program 

 Yes ; No 
TAMPA/186711.1 

SCHEDULE C

PERMITTED EXPENSES

 California 

 One-time / Start-Up Expenses: 

Initial Personnel $534,394.39

Building, Equipment, Technology $131,240.82

Professional Services $4,565,316.00

Supplies / Miscellaneous $33,650.00

Marketing /Communications $213,217.36

Travel $85,000.00

Website development /Translation $0.00

Contingency $18,613,401.03

 Subtotal $24,176,219.60 

 

Operating / Administrative Expenses: 

Salaries $4,375,660.50

Professional Services (Legal, Compliance, Audit, 

Monitoring) 

$78,585,100.00

Travel $475,000.00

Buildings, Leases & Equipment $234,000.00

Information Technology & Communications $226,015.00

Office Supplies/Postage and Delivery/Subscriptions $75,250.00

Risk Management/ Insurance $105,495.00

Training $0.00

Marketing/PR $4,907,500.00

Miscellaneous $32,500.00

 Subtotal $89,016,520.50 

 

 Transaction Related Expenses: 

Recording Fees $0.00

Wire Transfer Fees $517,073.50

 Counseling Expenses   

File Intake $30,000,000.00

Decision Costs $4,440,243.60

Successful File $0.00

Key Business Partners On-Going $0.00

 Subtotal $34,957,317.10 

Grand Total $148,150,057.20 

% of Total Award 7.50% 

Award Amount $1,975,334,096.00