HHF Rhode Island Date: April 21, 2017

B-1-1 

SERVICE SCHEDULE B-1 

Rhode Island Housing’s 

Loan Modification Assistance (LMA) 

Summary Guidelines 

1. Program Overview Loan Modification Assistance (LMA) will provide up to $50,000 to help 

facilitate an affordable mortgage modification or recast (including 

through principal reduction), or a full lien extinguishment. 

Lender/Servicer may be required to present a modification plan for 

Hardest Hit Fund Rhode Island (HHFRI) approval and a final 

modification agreement prior to release of funds. Lender/Servicer is 

required to affirm the approved use of funds. 

LMA is designed to address items that may be negatively impacting the 

homeowner’s ability to obtain a modification. Funding can be used to 

address: 

 insufficient income: unemployment or underemployment;

 insufficient equity;

 delinquent mortgage payments including escrows;

 escrow shortage payments;

 payment of non-escrowed taxes or insurances;

 satisfaction of delinquent condo or planned unit development (PUD)

homeowners association dues and special assessments;

 satisfaction of subordinate liens, superior real estate tax liens; or

other liens related to the property.

2. Program Goals To help Rhode Island homeowners at risk of foreclosure obtain a loan 

modification/recast or full lien extinguishment. 

3. Target

Population/Areas

Low- to moderate-income homeowners suffering a program eligible 

financial hardship, as defined in the program guidelines, related to 

reduction of income or other demonstrated financial hardship. 

Hardest Hit Funds are offered statewide. 

4. Program Allocation

(Excluding

Administrative

Expenses)

$24,695,046.11 
B-1-2 

5. Borrower Eligibility 

Criteria 

Eligible borrowers must be at risk of foreclosure due to a financial 

hardship through no fault of their own. A hardship is defined as an 

uncontrollable increase in expense (excluding consumer debt) or an 

uncontrollable decrease in income that places the homeowner at risk of 

foreclosure. Examples of a hardship include: underemployment, 

reduction of income, unemployment, death or disability in family, 

unforeseen medical expense, costly home repairs necessary for 

habitability, extended loss of rental income due to an inability to secure a 

tenant or negative equity. The loan to value ratio (LTV) must be 110% or 

greater in order for negative equity to be considered a hardship by itself. 

Completion of a Hardship Affidavit and appropriate supporting 

documentation is required. Homeowners must meet the following criteria 

to be eligible for assistance under LMA: 

 Borrower must have a pre-assistance monthly mortgage payment 

that is greater than 28% of their gross monthly household income; 

 Homeowners must meet current maximum income limits as 

determined in accordance with Program Guidelines; and 

 Borrower is able to satisfy program guidelines. 

If the eligible hardship is negative equity, LMA funding (other than for 

full lien extinguishment) may not be used to reduce the principal balance 

of an eligible borrower’s mortgage loan below 100% of the current market 

value of the property, unless it is required to achieve a permanently 

affordable payment, but in no event can the loan be reduced below an 80% 

LTV. Second mortgage debt may be considered on a case by case basis. 

This assistance must bring the total housing debt to income ratio to 42% or 

below. HHFRI will consider, on a case-by-case basis, investor program 

guidelines that utilize affordable mortgage definitions that result in a 

modification with a total housing debt to income ratio greater than 42%. 

Homeowners must meet these additional criteria to be eligible for a full 

lien extinguishment: 

 The primary income for the household must be from a fixed 

income source. 

 The homeowner must have a mortgage balance of $50,000 or less. 

 Total annual household income must be less than 125% of the state 

median income. 

In the event the servicer is subject to investor or insurer income hardship 

calculation requirements, HHFRI will consider use of alternate models to 

calculate gross monthly household income. The servicer must provide 

documentation evidencing the alternate model used. 
B-1-3 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to four-family Rhode 

Island properties and condominiums, provided the original mortgage was 

not greater than $820,500. 

7. Program Exclusions Homeowner has cash reserves and/or non-retirement liquid assets 

exceeding $20,000. 

Homeowners who previously received Hardest Hit Funds and failed to 

satisfy the terms of the assistance and or defaulted on their HHF 

obligation. 

8. Structure of 

Assistance 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property. The loan will be 

forgiven after five years, if the homeowner fulfills his or her obligations 

on a timely basis under the assistance agreement. If there is a request for a 

transfer of the property during the five years, or if the property is no longer 

owner occupied, forgiveness will be prorated 20% per calendar year from 

the original closing date and any remaining unforgiven balance will be due 

and payable at that time. 

Loans are repayable only from the proceeds to the borrower from a sale, 

refinance or other transfer. If the property is sold refinanced or otherwise 

transferred and has not increased in value to the degree necessary to repay 

the loan, all or a portion of the loan remaining unpaid after the proceeds 

are applied will be forgiven. 

Funds will be returned to the HHF Program for additional use in 

accordance with the Agreement. 

9. Per Household 

Assistance 

LMA will provide up to (i) $50,000 to achieve a loan modification/recast 

and (ii) up to $50,000 or the pre-assistance mortgage balance, whichever is 

less, for a full lien extinguishment. 

When combined with other HHF programs, up to $75,000 in total HHF 

assistance per household may be available for homeowners who are at risk 

of foreclosure. 

10. Duration of 

Assistance 

Assistance will be paid directly to the existing servicer in a one-time lump 

sum. 

11. Estimated Number of 

Participating 

Households 

We estimate that we will serve 711 homeowners based on the maximum 

program limit and program allocation at this time. 

12. Program 

Inception/Duration 

The program began November 1, 2010 and will last until program funds 

have been exhausted, but no later than December 31, 2020. 
B-1-4 

13. Program Interactions 

with Other HFA

Programs 

Additional aid may be available to eligible homeowners through other 

HHFRI programs up to program limits. 

14. Program Interactions 

with HAMP 

Funds will be paid to the servicer through this program to help the 

homeowner qualify for a modification. 

15. Program Leverage 

with Other Financial 

Resources 

This program is designed to complement and supplement HAMP, NonHAMP or other lender/servicer workout solutions. Lender/servicers must 

be willing to participate. 
B-2-1 

SERVICE SCHEDULE B-2 

Rhode Island Housing’s 

Temporary and Immediate Homeowner Assistance (TIHA) 

Summary Guidelines 

1. Program Overview The Temporary and Immediate Homeowner Assistance (TIHA) can 

provide up to $50,000 for partial or full reinstatement or other 

mortgage related default assistance. Mortgage related default 

assistance may help pay delinquent taxes, insurances and association 

dues. 

TIHA funds can be used to address: 

 delinquent mortgage payments including escrows 

 escrow shortage payments 

 payment of non-escrowed taxes or insurances 

 satisfaction of delinquent condo or planned unit development 

(PUD) homeowners association dues and special assessments 

 satisfaction of subordinate liens, superior real estate tax liens or 

other liens related to the property 

2. Program Goals To help a homeowner avoid foreclosure when faced with temporary 

or immediate crisis. 

3. Target 

Population/Areas 

Low- to moderate-income homeowners suffering a program eligible 

financial hardship, as defined in the program guidelines, related to 

reduction of income or other demonstrated financial hardship. 

Hardest Hit Funds, designed to prevent foreclosure, are offered 

statewide. 

4. Program Allocation

(Excluding 

Administrative 

Expenses) 

$14,899,042.20 

5. Borrower 

Eligibility Criteria 

TIHA provides one-time lump sum mortgage reinstatement 

assistance for eligible homeowners. 

Borrower must demonstrate that the hardship resulted in a housing 

debt-to-income ratio greater than 28% and caused the delinquency. 

Borrower’s post-assistance housing payment must be affordable 

(based on criteria set forth in program guidelines). 
B-2-2 

All homeowners will be required to complete a Hardship Affidavit. 

Homeowner must be able to document the reason for the hardship. 

A hardship is defined as an uncontrollable increase in expenses 

(excluding consumer debt) or an uncontrollable decrease in income 

that has placed the homeowner at risk of foreclosure. 

Examples of a hardship include: underemployment, reduction of 

income, unemployment, death or disability in family, unforeseen 

medical expense, costly home repairs necessary for habitability or 

an extended loss of rental income due to an inability to secure a 

tenant. A loss of home value does not, unto itself, constitute a 

financial hardship, but may be considered to be a contributing factor 

in the evaluation of the request for assistance. 

Homeowners must meet current maximum income limits as 

determined in accordance with Program Guidelines.  

Borrower is able to satisfy program guidelines. 

6. Property/Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to four-family 

Rhode Island properties and condominiums, provided the original 

mortgage was not greater than $820,500. 

7. Program 

Exclusions 

Homeowner has cash reserves and/or non-retirement liquid assets 

exceeding $20,000. 

Homeowners who previously received Hardest Hit Funds and failed 

to satisfy the terms of the assistance and or defaulted on their HHF 

obligation. 

8. Structure of 

Assistance 

Funds will be provided in the form of a zero-percent interest, nonrecourse, non-amortizing loan secured by the property. The loan will 

be forgiven after five years, if the homeowner fulfills his or her 

obligations on a timely basis under the assistance agreement. If 

there is a request for a transfer of the property during the five years, 

or if the property is no longer owner occupied, forgiveness will be 

prorated 20% per calendar year from the original closing date and 

any remaining unforgiven balance will be due and payable at that 

time. 

Loans are repayable only from the proceeds to the borrower from a 

sale, refinance or other transfer. If the property is sold, refinanced or 

otherwise transferred and has not increased in value to the degree 

necessary to repay the loan, all or a portion of the loan remaining 

unpaid after the proceeds are applied will be forgiven. 
B-2-3 

Funds will be returned to the HHF Program for additional use in 

accordance with the Agreement. 

9. Per Household 

Assistance 

The amount of assistance available under TIHA is up to $50,000 per 

household. 

When combined with other HHF programs, up to $75,000 in total 

HHF assistance per household may be available for homeowners 

who are at risk of foreclosure. 

10. Duration of 

Assistance 

Assistance will be paid directly to the existing servicer, taxing 

authority or lien holder in a one-time lump sum. 

11. Estimated Number 

of Participating 

Households 

We estimate that we will serve 857 homeowners based on the 

maximum program limit and program allocation at this time. 

12. Program 

Inception/Duration 

November 1, 2010 until program funds are exhausted. 

13. Program 

Interactions with 

Other HFA 

Programs 

Additional aid may be available to eligible homeowners through 

other HHFRI programs up to program limits. 

14. Program 

Interactions with 

HAMP 

This program does not interact with HAMP. 

15. Program Leverage 

with Other 

Financial 

Resources 

None. Lender/servicers must be willing to participate. 
B-3-1 

SERVICE SCHEDULE B-3 

Rhode Island Housing’s 

Moving Forward Assistance 

Summary Guidelines 

1. Program Overview The Moving Forward Assistance Program (MFA) will provide 

eligible homeowners who can no longer afford to stay in their 

home with up to $10,500 to assist in the transition. 

The MFA assistance can be used to facilitate a short sale or 

deed in lieu of foreclosure and/or assist with moving and 

relocation expenses. Eligible homeowners can receive up to a 

$2,000 allowance to pay for moving and relocation expenses 

and up to $8,500 towards satisfaction of a subordinate lien to 

facilitate a short sale/deed-in-lieu. Moving and relocation 

expenses may be disbursed directly to eligible homeowners. 

Moving and relocation expenses above this amount will be paid 

when documented. The total amount available for facilitation of 

short sale/deed in lieu plus moving expenses cannot exceed 

$10,500. When MFA funds are used to encourage a short sale 

or satisfy other real estate liens the amount cannot exceed the 

amount of the lender charge-off. 

MFA assistance is available to homeowners who resided in the 

property within one of the following time frames: (i) within six 

(6) months of application for HHF assistance, or (ii) within 

ninety (90) days prior to the property having been listed as a 

short sale. In no case shall MFA assistance be provided where 

the short sale or deed-in-lieu transaction has occurred prior to 

the disbursement of assistance. 

In some circumstances, the best outcome for borrower, lender 

and community may be for the borrower to relinquish the 

property in an orderly process. MFA assistance can take the 

form of a contribution to the primary or secondary lender to 

help facilitate a short sale or deed in lieu of foreclosure. It could 

also be used to provide the borrower relocation assistance 

including a security deposit/first and last month’s rent, moving 

expenses, or utility deposit MFA assistance could be used to 

satisfy subordinate or superior real estate tax liens against the 

real estate that prevent the homeowner from transferring clear 

title. These liens may include mechanics liens, defects, 
B-3-2 

inheritance taxes, water fees, fire district or sewer fees, condo 

fees, PUD lien sale or other legal encumbrances on the property 

or to satisfy judgments or loan deficiency balances resulting 

from a short sale. 

2. Program Goals Rhode Island Housing (RIH) envisions that these monies would 

be used to complement other federal or lender programs 

designed specifically to stabilize communities by providing 

assistance to borrowers who have suffered a financial hardship 

and as a result are no longer financially able to stay in their 

home. 

3. Target 

Population/Areas 

Low- to moderate-income homeowners suffering a program 

eligible financial hardship, as defined in the program guidelines, 

who can no longer afford to stay in their home and require 

transition assistance. 

Hardest Hit Funds, designed to prevent foreclosure, are offered 

statewide. 

4. Program Allocation

(Excluding 

Administrative 

Expenses) 

$590,226.54 

5. Borrower Eligibility 

Criteria 

Borrower must be able to document the reason for the hardship 

and will be required to complete a Hardship Affidavit. 

A hardship is defined as an uncontrollable increase in housing 

expense or an uncontrollable decrease in income that has placed 

the homeowner at risk of foreclosure. Examples of a hardship 

include: underemployment, reduction of income, 

unemployment, death or disability in family, unforeseen 

medical expense, and costly home repairs necessary for 

habitability. A loss of home value does not, unto itself, 

constitute a financial hardship, but may be considered to be a 

contributing factor in the evaluation of the request for 

assistance. 

Homeowners must meet current maximum income limits as 

determined in accordance with Program Guidelines. 

Borrower is able to satisfy program guidelines. 

6. Property/Loan Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums, provided 
B-3-3 

Eligibility Criteria the original mortgage was not greater than $820,500. 

7. Program Exclusions Homeowner has cash reserves and/or non-retirement liquid 

assets exceeding $20,000. 

Homeowners who previously received Hardest Hit Funds and 

failed to satisfy the terms of the assistance and or defaulted on 

their HHF obligation. 

8. Structure of 

Assistance 

Funds are provided to eligible homeowners as a nonrecoverable grant. 

9. Per Household 

Assistance 

Up to $10,500 per family is available under this program to 

facilitate a short sale or deed in lieu of foreclosure and/or to 

assist the homeowner with relocation. 

When combined with other HHF programs, up to $75,000 in 

total HHF assistance may be available for homeowners who are 

at risk of foreclosure. 

10. Duration of 

Assistance 

Participation in this program is a one-time payment. 

11. Estimated Number of 

Participating 

Households 

We estimate that we will serve 88 homeowners based on the 

maximum program limit and program allocation at this time. 

12. Program Inception/

Duration 

November 1, 2010 until program funds have been exhausted, 

but no later than December 31, 2020. 

13. Program Leverage 

/Interactions with 

Other HFA 

Programs 

MFA can provide assistance, up to the household cap, if a 

homeowner has used other HHF programs and subsequently can 

no longer afford to stay in the home. 

14. Program Interactions 

with HAMP 

MFA can provide assistance, up to the household cap, if a 

homeowner has obtained a HAMP or a lender/servicer workout 

or other HHF program assistance and subsequently can no 

longer afford to stay in the home. 

15. Program Leverage 

with Other Financial 

Resources 

Rhode Island Housing intends to leverage its current emergency 

and rental assistance programs which include 

www.homelocatorri.net and other relocation services which 

include Homeless Protection and Rapid Placement (HPRP) and 

Road Home Emergency Housing Assistance. 
B-4-1 

SERVICE SCHEDULE B-4 

Rhode Island Housing 

Mortgage Payment Assistance - Unemployment Program (MPA-UP) 

 for Unemployed and/or Underemployed Homeowners 

Summary Guidelines 

1. Program Overview The Mortgage Payment Assistance - Unemployment Program 

(MPA-UP) will provide up to $50,000 in assistance to help 

stabilize unemployed and/or underemployed homeowners. 

MPA-UP assistance may be used to pay partial mortgage and 

mortgage-related expenses until the maximum household 

assistance amount is reached or the homeowner returns to work. 

Funds may be used to pay related arrearages. Current monthly 

mortgage payment assistance term cannot be less than twelve 

(12) months or exceed twenty four (24) months or $50,000, 

whichever is reached first. 

Homeowners’ monthly payment contribution will be 28% of 

household income but not less than $250. 

The homeowner may continue receiving assistance for up to two 

(2) months after reemployment or substantially increased 

employment, as long as the program household assistance limit 

has not been reached. Assistance funds will be paid directly to 

the lender/servicers. Rhode Island Housing or its designee will 

collect the homeowner’s portion of the payment. 

MPA-UP assistance may be used to make ongoing partial 

mortgage payments and related expenses such as: 

 Escrows 

 Taxes and insurance 

 Condo association fees 

This Program will work as both a standalone program or to 

complement other HHFRI programs. Homeowners may receive 

assistance from one or more HHFRI Programs, up to the 

maximum program and household limit. 

2. Program Goals To assist unemployed and/or underemployed homeowners to 

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

their mortgages during their hardship so that they may avoid 

delinquency and foreclosure; and to help stabilize homeowners 

so that they can obtain a sustainable loan modification, if 
B-4-2 

necessary, after they have regained full employment. 

3. Target Population / 

Areas 

Low- to moderate-income, unemployed and/or underemployed 

homeowners suffering a program eligible financial hardship. 

Hardest Hit Funds, designed to prevent foreclosure, are offered 

statewide. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$43,609,940.74 

5. Borrower Eligibility 

Criteria 

Eligible borrowers are unemployed or underemployed 

homeowners, who through no fault of their own, are unable to 

make their mortgage payments and are at risk of imminent 

default or foreclosure, as specified in the program guidelines. 

Borrowers will be required to provide a financial hardship 

affidavit with appropriate documentation on the cause of their 

unemployment or underemployment. Unemployment will be 

verified by obtaining a copy of the homeowner’s unemployment 

benefit rate decision letter and copies of two (2) months bank 

statements to verify the unemployment direct deposit, or by 

automated verification through the Rhode Island Department of 

Labor and Training (DLT).

If information from DLT is unavailable, a letter or other written 

verification from the former employer indicating job loss was 

not the fault of the borrower will serve as a substitute. 

Eligible borrowers must have monthly mortgage payments that 

are greater than 28% of their gross monthly household income. 

All eligible borrowers must be able to document the 

unemployment hardship that has placed them at risk of 

imminent default or foreclosure. 

Household income must be fully documented and verifiable, 

income limits apply based on borrowers household gross annual 

income and family size. 

Homeowners must meet current maximum income limits as 

determined in accordance with Program Guidelines.  

Self-employed borrowers will be required to document loss of 

business and income and submit appropriate documentation. 

Homeowner will be required to contribute to their contractual 
B-4-3 

monthly mortgage obligation. They must make their portion of 

the mortgage payment as directed by Rhode Island Housing or 

its designee, on time; and must actively seek reemployment 

during the assistance period. 

Borrower is able to satisfy program guidelines. 

6. Property / Loan 

Eligibility Criteria 

Assistance will be provided to owner-occupied one-to fourfamily Rhode Island properties and condominiums, provided the 

original mortgage was not greater than $820,500. 

7. Program Exclusions Homeowner has cash reserves and/or non-retirement liquid 

assets exceeding $20,000 

Homeowners who previously received Hardest Hit Funds and 

failed to satisfy the terms of the assistance and or defaulted on 

their HHF obligation. 

8. Structure of Assistance Funds will be provided in the form of a zero-percent interest, 

non-recourse, non-amortizing loan secured by the property. The 

loan will be forgiven after five years, if the homeowner fulfills 

his or her obligations on a timely basis under the assistance 

agreement. If there is a request for a transfer of the property 

during the five years, or if the property is no longer owner 

occupied, forgiveness will be prorated 20% per calendar year 

from the original closing date and any remaining unforgiven 

balance will be due and payable at that time. 

Loans are repayable only from the proceeds to the borrower 

from a sale, refinance or other transfer. If the property is sold, 

refinanced or otherwise transferred and has not increased in 

value to the degree necessary to repay the loan, all or a portion 

of the loan remaining unpaid after the proceeds are applied will 

be forgiven. 

Funds will be returned to the HHFRI Program for additional use 

in accordance with the Agreement 

9. Per Household 

Assistance 

The amount of assistance under MPA-UP is up to $50,000 per 

household (including borrowers who are currently receiving 

assistance and who demonstrate a continued hardship per 

program guidelines). 

When combined with other HHF programs, $75,000 in total 

HHF household assistance may be available for homeowners 

who are at risk of foreclosure. 
B-4-4 

10. Duration of Assistance The duration of the assistance is determined by the individual 

need of each eligible borrower, but is up to two (2) years of 

payment assistance or the maximum household limit, whichever 

is reached first. The homeowner may continue receiving 

assistance for up to two (2) months after reemployment or 

substantially increased employment, as long as the program 

household limit has not been reached. 

Assistance will be paid directly to the existing servicer, 

municipality, association, insurer or lien holder and may be 

distributed in a lump sum or on a monthly basis until the 

maximum program amount is reached. 

Assistance will be terminated if an approved HHF homeowner 

becomes more than two (2) months delinquent in his/her portion 

of the monthly mortgage obligation. 

11. Estimated Number of 

Participating 

Households 

We estimate that we will serve 2,272 homeowners based on the 

maximum program limit and program allocation at this time. 

12. Program Inception / 

Duration 

December 1, 2010 until program funds have been exhausted, but 

no later than December 31, 2020. 

13. Program Interactions 

with Other HFA 

Programs 

MPA-UP program provides up to $50,000 in assistance and acts 

as a gateway to other HHFRI programs. 

 

Program funds may be used in combination with other HHFRI 

programs up to program and household limits. 

14. Program Interactions 

with HAMP 

MPA-UP complements other lender/servicer workout plans, 

including any offered under MHA. 

15. Program Leverage with 

Other Financial 

Resources 

There is no investor match required for this program. However, 

lender/servicers must be willing to participate. 
B-5-1 

SERVICE SCHEDULE B-5 

Principal Reduction Program 

Hardest Hit Fund 

Summary Guidelines 

1. Program 

Overview 

In the current housing crisis, many borrowers have found themselves 

owing more than their homes are worth (i.e. are “underwater”); there 

is also growing evidence that these loans are more likely to default, 

and that principal reduction may further the long-term sustainability 

of a loan. This program, designed by Bank of America, provides 

financial assistance, matched by the investor, to reduce the principal 

balance of underwater mortgages. The assistance (up to $25,000) will 

be matched on a dollar-for-dollar basis. Borrowers may access the 

program through the HFA either directly or by referral from servicer 

(with HFA approval). 

2. Program Goals Leverage HHF dollars by reducing the principal balances of 

“underwater mortgages” (specifically mortgages for which the markto-market LTV is greater than 115%) and provide financial assistance 

to qualifying homeowners to remain in their homes during this period 

of steep declines in value. 

A reduction in principal can achieve desired income and loan-to-value 

ratios that result in an affordable payment for a customer on the 

existing mortgage loan or can be used in conjunction with a loan 

modification. 

3. Target 

Population / 

Areas 

The target population includes customers whose loans are at least 

sixty (60) days or more delinquent, where hardship is documented. 

The goal of the program is to target and address the needs of a 

customer’s specific situation in lieu of targeting certain regions or 

counties. 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

$568,210.93 
B-5-2 

5. Borrower 

Eligibility 

Criteria 

Generally consistent with HAMP Criteria 

 At least sixty (60) days delinquent or in imminent default 

6. Property/Loan 

Eligibility 

Criteria 

The property must be the customer’s principal residence; other 

criteria include: 

 Owner-Occupied, Single-Family 1-4 unit property 

 First Lien, Purchase or Rate & Term Refinance 

 Unpaid principal balance below $729,750 

 Property not vacant or condemned 

7. Program 

Exclusions 

Exclusions include: 

 Mortgage is a Cash-out-Refinance

 Loan Originated after 1/1/2009

 LTV < 115%

 Notice of trustee sale has been recorded and the trustee sale is 

scheduled within seven (7) days of date application received 

by servicer. 

Homeowners who previously received Hardest Hit Funds and failed 

to satisfy the terms of the assistance and or defaulted on their HHF 

obligation. 

8. Structure of 

Assistance 

Assistance will not be structured as a loan, since there is a dollar-fordollar match on assistance. HHFRI assistance will be provided in 

accordance with the Servicers Principal Reduction schedule. 

9. Per Household 

Assistance 

Up to $25,000 HHF dollars (not including investor match). 

10. Duration of 

Assistance 

HHFRI assistance will be provided in accordance with the Servicers 

Principal Reduction schedule. 

11. Estimated 

Number of 

Participating 

Households 

32 

12. Program Approximately one to three years or until HHF funds are fully 
B-5-3 

Inception / 

Duration 

utilized.

13. Program 

Interactions 

with Other HFA 

Program 

Additional aid may be available to eligible homeowners under 

Temporary and Immediate Homeowner Assistance (TIHA) and 

Moving Forward Assistance (MFA) up to program limits. 

14. Program 

Interactions 

with HAMP and 

other Programs 

HHF / Investor principal reduction will be the first step in the 

principal reduction assistance waterfall, prior to the HAMP 

alternative waterfall (per the guidance contained within the MHA 

Handbook) and any proprietary servicer programs. Borrower may 

access this program after unemployment assistance, but must be able 

to demonstrate their ability to sustain the modified mortgage. 

15. Program 

Leverage with 

Other Financial 

Resources 

The applicable investor matches state contributed HHF principal 

reduction funds on a dollar-for-dollar basis. Servicer waives certain 

NSF and late charges. 

16. Servicer 

reporting to 

HFA 

The servicer will be able to identify all loans which received 

assistance through a HHF program and provide the HFA updates on 

the status of the loan (e.g. current/delinquent, foreclosure, short sale, 

etc.) on a quarterly basis for a period of twelve (12) months after 

assistance ends. 
B-6-1 

SERVICE SCHEDULE B-6 

Rhode Island Hardest Hit Fund 

Down Payment Assistance (DPA) Program 

Summary Guidelines 

1. Program 

Overview 

The Down Payment Assistance (DPA) Program will provide an 

incentive to qualified homebuyers who purchase and occupy an 

eligible property in targeted hardest hit areas in Rhode Island. 

The DPA loan is only available to eligible homebuyers who 

obtain first mortgage financing through Rhode Island Housing’s 

single-family mortgage program. 

2. Program Goals The goal of the DPA Program is to provide an incentive to 

encourage homebuyers to choose an eligible property within a 

hardest hit neighborhood. Eligible Properties are defined in 

section 6 below. 

Encouraging homeownership in housing markets that have been 

hardest hit by unemployment and foreclosures will strengthen 

demand in those areas, stabilize the housing market and prevent 

future foreclosures. 

Rhode Island will identify meaningful indicators that will enable 

them to track and quantify the DPA Program’s impact in targeted 

areas. 

3. Target 

Population / 

Areas 

The DPA program will target those communities in the state that 

were most impacted by the state’s foreclosure crisis. RIH 

evaluated all communities in the state at a zip code level and 

identified targeted areas based on higher than average indicators 

of seriously delinquent mortgage loans, negative equity, short 

sales, REO sales, and foreclosure rates. Those target areas were 

originally: Warwick, Providence, Pawtucket, Johnston, West 

Warwick, Woonsocket, Central Falls, Cranston, North 

Providence, and East Providence. 

The target areas have been narrowed to Warwick, Providence, 

Pawtucket, Woonsocket, Cranston and East Providence based 

upon additional indicators of distressed sales and the number of 

vacant homes. 
B-6-2 

4. Program 

Allocation 

(Excluding 

Administrative 

Expenses) 

$8,700,877.03 

5. Borrower 

Eligibility 

Criteria 

Eligible borrowers must qualify for and meet all applicable 

income and purchase price limitations and requirements of Rhode 

Island Housing’s single-family first-time buyer loan programs. 

Allowable first mortgage loans are 30-year, fixed-rate loans 

insured or guaranteed by the Federal Housing Administration 

(FHA), Veterans Administration (VA), U.S. Department of 

Agriculture – Rural Development (RD) or GSE. 

Eligible borrowers must also meet the following criteria: 

 Borrowers must be First-time Homebuyers. For the 

purpose of the DPA Program, a First-time Homebuyer is 

someone who has not had an ownership interest in their 

primary residence in the past three years, unless purchasing 

a home in a Federally Designated Targeted Area as 

specified in the Rhode Island Housing Program Guide. 

 Borrowers must be credit-worthy and meet Rhode Island 

Housing’s underwriting guidelines and applicable Agency 

(FHA, VA, USDA-RD) or GSE or requirements. 

 Homeowners must meet current maximum income limits 

as determined in accordance with Program Guidelines. 

 Borrowers must complete a pre-purchase homebuyer 

education course and receive a certificate of completion. 

 Homebuyers must occupy the home as their primary 

residence and satisfy all mortgage occupancy requirements 

as applicable. 

 Borrowers must be legal U.S. citizens or lawful permanent

residents or otherwise meet the applicable Agency (FHA, 

VA, USDA-RD) or GSE requirements. 

 Borrowers must be able to provide a Dodd-Frank affidavit. 
B-6-3 

6. Property/Loan 

Eligibility 

Criteria 

 The property must be a single-family home, a condominium 

unit, a townhouse or a two-four family dwelling unit of which 

one unit is to be occupied by the mortgagor as his or her 

principal residence. 

 Must be the borrower’s primary residence. 

 Property must be located in one of the six HHF Targeted 

Areas. 

 Property must meet Rhode Island Housing HFA Homebuyer 

Loan Program guidelines. 

 Meet all applicable Agency (FHA, VA, USDA-RD) or GSE 

underwriting guidelines. 

7. Program 

Exclusions 

 Borrowers, properties and/or loans do not meet DPA Program 

eligibility requirements or Agency/Fannie Mae underwriting 

criteria. 

 Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years. 

 Homeowners who previously received Hardest Hit Funds and 

failed to satisfy the terms of the assistance and or defaulted on 

their HHF obligation. 

 The property must not be new construction. 

8. Structure of 

Assistance 

Funds will be provided in the form of a five year, zero-percent 

interest, non-recourse, deferred payment, forgivable subordinate 

loan. The loan will be evidenced by a note and secured by a 

mortgage on the property. The loan will be forgiven after five 

years, if the homeowner fulfills his or her obligations on a timely 

basis under the assistance agreement. 

If there is a request for a transfer of the property during the five 

years, or if the property is no longer owner occupied, forgiveness 

will be prorated 20% per calendar year from the original closing 

date and any remaining unforgiven balance will be due and 

payable at that time. 

Loans are repayable only from the proceeds to the borrower from 
B-6-4 

a sale, refinance or other transfer. If the property is sold, 

refinanced or otherwise transferred and has not increased in value 

to the degree necessary to repay the loan, all or a portion of the 

loan remaining unpaid after the proceeds are applied will be 

forgiven. 

Funds will be returned to the HHF Program for additional use in 

accordance with the Agreement. 

9. Per Household 

Assistance 

$7,500 

If the borrower has received HHF assistance under any other 

HHF program, the maximum amount of all assistance may not 

exceed $75,000. 

10. Duration of 

Assistance 

DPA Program funds will be disbursed in one lump sum at closing 

to eligible homebuyers. 

11. Estimated 

Number of 

Participating 

Households 

We estimate that we will serve an incremental 533 homeowners 

based on the maximum program limit and program allocation at 

this time. 

12. Program 

Inception / 

Duration 

The DPA Program will re-open in 2017 and it is projected that the 

allocation will be expended by December 31, 2020. 

13. Program 

Interactions 

with Other HFA 

Programs 

The DPA Program will take advantage of an existing 

infrastructure of Participating Lenders and the Loan Center who 

actively originate both first mortgages and down payment 

assistance loans as part of Rhode Island Housing’s current singlefamily mortgage program. A borrower who obtains the $7,500 

DPA may be evaluated for other assistance programs, but may not 

receive additional down payment assistance from Rhode Island 

Housing. This does not restrict or exclude a homebuyer from 

being evaluated for a RIH Mortgage Credit Certificate, closing 

cost or other non-down payment assistance subsidy programs. 

While first-time borrowers must participate in Rhode Island 

Housing approved pre-purchase homebuyer counseling, postpurchase counseling is also available. 

14. Program 

Interactions 

None. 
B-6-5 

with HAMP and 

other Programs 

15. Program 

Leverage with 

Other Financial 

Resources 

Funds may be leveraged by Rhode Island Housing, lenders or 

municipal partners using additional subsidy programs. 
B-7-1 

SERVICE SCHEDULE B-7

Rhode Island Hardest Hit Fund 

Reverse Mortgage Assistance Program (RMA)

Summary Guidelines

1. Program Overview The Reverse Mortgage Assistance Program (“RMA”) is 

designed to assist senior homeowners in Rhode Island who are 

facing foreclosure due to the inability to pay their property 

taxes, homeowners’ insurance and homeowners’ and/or condo 

association dues or other property-related charges that could 

result in a lien on the property which is subject to foreclosure 

(“Property Charges”) on their Equity Conversion Mortgage 

(HECM), as well as other types of “Reverse Mortgages”. 

Rhode Island will use HHF funds to provide an up-front, 

forgivable loan to eligible borrowers to be used to (i) repay the 

amounts advanced on their behalf by their mortgage loan 

servicer for Property Charges and (ii) pay the anticipated 

amount of upcoming Property Charges for up to 24 months. 

2. Program Goals The goal of the RMA is to help senior homeowners remain in 

their homes. 

3. Target

Population/Areas

Low-to-moderate income Reverse Mortgage borrowers who 

have suffered a hardship that has resulted in the inability to

repay the amounts advanced on their behalf by their mortgage

loan servicer for the payment of Property Charges. 

4. Program 

Allocation 

(Excluding

Administrative

Expenses)

$500,000.00
B-7-2 

5. Borrower

Eligibility 

Criteria

Eligible borrowers under RMA must meet the following 

criteria: 

o Must be a legal U.S. Citizen or lawful permanent

resident. 

o Homeowner must be on the title of the property. 

o Homeowner must meet current maximum income 

limits as determined in accordance with Program 

Guidelines. 

o Must have suffered a hardship that has resulted in the

 inability to repay the amounts advanced on their behalf 

by their mortgage loan servicer for the payment of 

Property Charges. Such hardships may include: 

o Medical expenses; 

o Home repairs for systems or appliances or due to 

a natural disaster (fire, hurricane, etc.); 

o Reduction in household income; 

o Unemployment or underemployment; 

o Divorce or death of spouse or partner; 

o Disability and the resulting expenses for 

specialized equipment, care or retrofitting for 

the home; and 

o Victimization by burglary, fraud or financial

exploitation. 

• Must show a reasonable likelihood of recovering from the 

hardship so as to afford the Property Charges on an

ongoing basis using methods of analysis specified in the

program guidelines. Servicer must agree to escrow taxes, 

insurance and condo fees if applicable. 

6. Property/Loan

Eligibility Criteria

• Assistance will be provided with respect to owneroccupied, one to four family properties and 

condominiums, provided the original mortgage was not 

greater than $820,500. 

• Property must be the borrower’s principal residence,

located in Rhode Island and may not be abandoned, 

vacant or condemned. 

• The property must be currently subject to a reverse

mortgage. 

• The borrower’s Reverse Mortgage must be serviced by a

HUD-approved HECM servicer or a regulated financial

institution. 
B-7-3 

7. Program 

Exclusions

• Borrowers who have a subordinate lien that is in

foreclosure. 

• Borrowers with bankruptcies that have not been discharged or 

dismissed. 

• Dodd-Frank exclusion for having been convicted of a

mortgage-related felony in the past ten years. 

• Unresolved Federal Tax Liens (not in approved 

payment plan) 

8. Structure of 

Assistance

The structure of assistance will be provided as an up-front, 

forgivable, subordinate mortgage loan to eligible borrowers 

for up to $50,000. The note evidencing the subordinate 

mortgage loan will carry the following terms: 

o Zero-percent (0%) interest, zero-payment loan; 

o Two-year term with a pro rata 50% forgiveness of the

original mortgage loan amount on each annual

anniversary date. The note will be forgiven on the

second (2nd) anniversary date providing the borrower 

has satisfied all terms of the loan. 

If a property is sold on or before the end of the two-year term, 

the loan is “due on sale” and any net proceeds are due to satisfy 

any portion of the loan that has not been forgiven. 

If there are insufficient or no net proceeds available, all or a

portion of the note will be forgiven so as not to create

additional hardships on the borrower/seller at the time of 

closing. Any loan proceeds that are returned to the Program

will be recycled back into the Program and used to provide

assistance to additional homeowners for the duration of the

Program in accordance with the Agreement. 

9. Per Household

Assistance

The lesser of $50,000 or the amount necessary to (i) repay the

amounts advanced on the borrower’s behalf by its mortgage loan 

servicer for Property Charges and (ii) pay anticipated Property 

Charges for up to 24 months. If the borrower has received HHF 

assistance under any other HHF program, the maximum amount 

of all assistance may not exceed $75,000. 

10. Duration of 

Assistance

Assistance will be disbursed in full to the borrower’s servicer 

upon loan closing and agreement of the servicer to accept the

HHF funds. 
B-7-4 

11. Estimated 

Number of 

Participating 

Households

It is anticipated that the RMA program will assist 

approximately 30 senior borrowers in Rhode Island who are

in default under the terms of their reverse mortgage. 

12. Program 

Inception/Duration

The RMA will begin in 2017 and it is projected that assistance 

will be committed through December 31, 2020. 

13. Program 

Interactions with 

Other Programs (e.g.

other HFA 

programs)

The RMA program will most likely not interact with Rhode 

Island’s other current HHF programs. RMA does interact with 

the U.S. Department of Housing and Urban Development’s 

(HUD) Home Equity Conversion Mortgage (HECM) Program 

and will provide funding to eligible Non-Borrowing Spouses 

as detailed in HUD Mortgagee Letter 2014-07 and any 

subsequent Mortgagee Letters or amendments. 

14. Program 

Interactions 

with HAMP

None. 

15. Program 

Leverage with 

Other Financial 

Resources

Rhode Island is partnering with the Department of Elderly 

Affairs, local Area Agencies on Aging, Fannie Mae, the National

Council on Aging, and others to coordinate reinstatement through 

the RMA Program with other available resources. Specifically, 

homeowners will be made aware of other assistance, such as 

assistance with the costs of food and medicine, to free up income 

that may be used towards future property tax and homeowners’ 

insurance bills. 
B-8-1 

SERVICE SCHEDULE B-8 

Rhode Island Housing 

Rhode Island Refi 

Summary Guidelines 

1. Program Overview Rhode Island Housing will leverage HHF dollars to facilitate a no 

cash out refinance in order to produce long-term mortgage 

sustainability. The new program aims to assist eligible 

homeowners who are current on their mortgage payments but owe 

more than their home is worth due to a long period of declining 

property values in their community. HHFRI will offer 

homeowners with negative equity (defined in Section 6) up to 

$75,000 to reduce the balance owed on their mortgage and 

refinance into a new affordable loan based on the current market 

value of their home. The forgivable loan will lower the amount 

owed on an underwater loan to a level that reflects the decline in 

the home’s value, allowing homeowners to erase their negative 

equity and refinance into an affordable 30-year fixed-rate Rhode 

Island Housing mortgage. 

2. Program Goal The goal of this Program is to achieve long-term mortgage 

sustainability by leveraging funds with a refinance. This will 

reduce the likelihood of future mortgage delinquency, default, or 

long-term unaffordability due to negative equity. 

3. Target Population / 

Areas 

The program will target income-eligible homeowners in Rhode 

Island who are current on their mortgage payments but owe more 

than their home is worth due to a long period of declining property 

values in their community. 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

$5,000,000.00 

5. Borrower Eligibility 

Criteria 

The program is targeted toward homeowners who have been 

current on their mortgage payments for at least 12 consecutive 

months. Borrower must also qualify for the new loan under RIH’s 

income and credit requirements. Eligible first mortgage loans 

include, but are not limited to, those insured or guaranteed by the 

Federal Housing Administration (FHA), U.S. Department of 

Veterans Affairs (VA), U.S. Department of Agriculture Rural 

Development (USDA), Federal National Mortgage Association 
B-8-2 

(Fannie Mae) or Federal Home Loan Mortgage Corporation 

(Freddie Mac), as set forth in the Program Guidelines. Additional 

borrower eligibility requirements include: 

 Homeowner must meet current maximum income limits as 

determined in accordance with Program Guidelines. 

 Mortgage current/in good standing (a minimum of 12 

consecutive months of on-time payments) 

 Must execute a Dodd-Frank affidavit. 

6. Property / Loan 

Eligibility Criteria 

 The property must be a single-family home, a condominium 

unit, a townhouse, or a two-four family dwelling unit 

 Must be owner occupied and borrower’s primary residence; 

 Meet all applicable Fannie Mae underwriting guidelines; 

 Underwriting: full credit qualifying with full appraisal; 

 Pre-assistance combined loan-to-value (CLTV) ratio must be 

110% or greater; 

 Borrowers must exit with a 30 year fixed rate mortgage; 

 Borrowers must exit with a loan-to-value (LTV) of 80% or 

greater and an “affordable monthly payment” defined as a 

maximum housing debt-to-income (DTI) of 38%. Borrower 

may only receive additional funds over the funds needed to 

arrive at 38% in order to satisfy investor’s maximum LTV 

requirement (e.g. Fannie Mae: 97%); and 

 Post-assistance principal balance cannot exceed $424,100. 

7. Program Exclusions  Dodd-Frank exclusion for having been convicted of a 

mortgage-related felony in the past ten years. 

 Homeowners who previously received Hardest Hit Funds and 

failed to satisfy the terms of the assistance and or defaulted on 

their HHF obligation. 

8. Structure of Assistance Borrower’s existing loan(s) will be refinanced into a Rhode Island 

Housing fixed rate, 30-year no cash-out refinance mortgage. 

Assistance is structured as a one-time disbursement at closing 

evidenced by a promissory note with a three-year term and a 

recorded Recapture Agreement. The assistance will be forgiven on 

a monthly pro-rata basis over the three-year term. Any remaining 

funds will be returned to the HHF Program for additional use in 

accordance with the Agreement. 

9. Per Household Eligible borrowers may receive up to $75,000. If an applicant also 

receives or received assistance through Hardest Hit Fund Rhode 
B-8-3 

Assistance Island (HHFRI), their maximum total assistance amount from HHF 

cannot exceed $75,000. 

10. Duration of Assistance Assistance under this program is intended to be a one-time 

disbursement to the closing agent. 

11. Estimated Number of 

Participating 

Households 

Approximately 100 households. 

12. Program Inception / 

Duration 

The Refinance Program will begin in 2017 and it is projected that 

the allocation will be expended by December 31, 2020. 

13. Program Interactions 

with Other HFA 

Programs 

None. 

14. Program Interactions 

with HAMP 

None. 

15. Program Leverage with 

Other Financial 

Resources 

The refinance program will take advantage of Rhode Island 

Housing's Participating Lenders and Loan Center who originate 

both purchase money and refinance first mortgages as part of 

Rhode Island Housing’s single-family mortgage program. 
C-1 

SCHEDULE C 

PERMITTED EXPENSES 

Rhode Island 

One-time / Start-Up Expenses: 

Initial Personnel $0.00

Building, Equipment, Technology $0.00

Professional Services $0.00

Supplies / Miscellaneous $0.00

Marketing /Communications $0.00

Travel $0.00

Website development /Translation $0.00

Contingency $0.00

 Subtotal $0.00

Operating / Administrative Expenses: 

Salaries $10,913,997.83

Professional Services (Legal, Compliance, 

Audit, Monitoring) $645,646.96

Travel $25,000.00

Buildings, Leases & Equipment $1,527,108.98

Information Technology & Communications $1,017,338.87

Office Supplies/Postage and 

Delivery/Subscriptions $80,911.52

Risk Management/ Insurance $20,098.00

Training $20,000.00

Marketing/PR $978,198.26

Miscellaneous $815,565.28

 Subtotal $16,043,865.70

Transaction Related Expenses: 

Recording Fees $0.00

Wire Transfer Fees $402,293.75

Counseling Expenses   

File Intake $765,800.00

Decision Costs $0.00

Successful File $200,000.00

Key Business Partners On-Going $0.00

Subtotal $1,368,093.75

Grand Total $17,411,959.45

% of Total Award 15.01% 

Award Amount $115,975,303.00