NINTH AMENDMENT TO 

COMMITMENT TO PURCHASE FINANCIAL INSTRUMENT 

and 

HFA PARTICIPATION AGREEMENT 

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

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

attached hereto as the Ninth Amendment Date (the "Amendment Date"'), by and among the 

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

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

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

participate in the program described below ("Eligible Entity"). 

Recitals 

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

Purchase Financial Instrument and HFA Participation Agreement (the "Original HP A") dated as 

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

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

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

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

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

Participation Agreement (the "Third Amendment"), as further amended by that certain Fourth 

Amendment to Commitment to Purchase Financial Instrument and HFA Participation Agreement 

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

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

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

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

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

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

Eighth Amendment to Commitment to Purchase Financial Instrument and HFA Participation 

Agreement (the "Eighth Amendment"; and together with the Original HPA as amended thereby 

and by the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth 

Amendment, Sixth Amendment and the Seventh Amendment, the "Current HPA"), dated as of 

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

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

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

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

from time to time ("EESA"); 

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

to their Service Schedules and Permitted Expenses, as applicable, and Treasury has agreed to the 

same; 

Ninth Amendment to HPA — Nevada 

USl:8004560v2 
WHEREAS, HFA, Eligible Entity and Treasury wish to enter into this Ninth Amendment to 

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

applicable; 

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

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

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

Agreement 

1. Amendments 

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

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

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

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

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

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

hereunder and thereunder. 

-2 

USl:8004560v2 
(3) HFA has the full legal power and authority to enter into, execute, and deliver this 

Ninth Amendment and any other closing documentation delivered to Treasury in 

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

thereunder. 

Miscellaneous 

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

[SIGNATURE PAGE FOLLOWS; REMAINDER OF PAGE 

INTENTIONALLY LEFT BLANK] 

- 3 

USl:8004560v2 
In Witness Whereof, HFA, Eligible Entity and Treasury by their duly authorized officials 

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

Instrument and HFA Participation Agreement as of the Amendment Date. 

HFA: 

NEVADA HOUSING DIVISION 

TREASURY: 

UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: /s/ Charles L. Horsey. Ill 

Name: Charles L. Horsey, III 

Title: President 

By: 

Name: Timothy G. Massad 

Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: /s/ Charles L. Horsey, HI 

Name: Charles L. Horsey, III 

Title: President 

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

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

Instrument and HFA Participation Agreement as of the Arnendment Date. 

HFA: TREASURY: 

NEVADA HOUSING DIVISION UNITED STATES DEPARTMENT OF THE 

TREASURY 

By: By: 

Name: Name: Timothy G. Massad 

Title: Title: Assistant Secretary for 

Financial Stability 

ELIGIBLE ENTITY: 

NEVADA AFFORDABLE HOUSING 

ASSISTANCE CORPORATION 

By: 

Name: 

Title: 

fSignaluio Page to Nimh Amumlmcnt to ffPA — NuvadaJ 
EXHIBITS AND SCHEDULES 

Schedule A Basic Information 

Schedule B Service Schedules 

Schedule C Permitted Expenses 

USl:8004560v2 
SCHEDULE A 

BASIC INFORMATION 

Eligible Entity Information: 

Name of the Eligible Entity: 

Corporate or other organizational form: 

Jurisdiction of organization: 

Notice Information: 

Nevada Affordable Housing Assistance 

Corporation 

Non-profit corporation 

Nevada 

HFA Information: 

Name of HFA: 

Organizational form: 

Date of Application: 

Date of Action Plan: 

Notice Information: 

Nevada Housing Division 

A Division of the Nevada Department of 

Business and Industry of the State of 

Nevada 

April 16, 2010 

September 1,2010 

Program Participation Cap: 

Portion of Program Participation Cap 

Representing Original HHF Funds: 

Portion of Program Participation Cap 

Representing Unemployment HHF Funds: 

Permitted Expenses: 

Closing Date: 

$194,026,240.00 

$102,800,000.00 

$ 34,056,581.00 

$ 24,978,556.00 

June 23, 2010 

1

 Each Schedule A-l attached to the Original HPA, the First Amendment and the Second Amendment shall remain a 

part of the Current HPA. 

USl:8004560v2 
First Amendment Date: 

Second Amendment Date: 

Third Amendment Date: 

Fourth Amendment Date: 

Fifth Amendment Date: 

Sixth Amendment Date: 

Seventh Amendment Date: 

Eighth Amendment Date: 

Ninth Amendment Date: 

Eligible Entity Depository Account Information: 

September 23, 2010 

September 29, 2010 

December 16, 2010 

April 5, 2011 

May 25, 2011 

October 28, 2011 

December 8, 2011 

February 28, 2012 

June 28, 2012 

See account information set forth in the 

Depository Account Control Agreement 

between Treasury and Eligible Entity 

regarding the HHF Program. 

USI:8004560v2 
SCHEDULE B 

SERVICE SCHEDULES 

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

replaced with the attached Service Schedules (numbered sequentially as Service Schedule B-l, Service 

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

USl:8004560v2 
SERVICE SCHEDULE B-l 

The Nevada Affordable Housing Assistance Corporation 

PRINCIPAL REDUCTION PROGRAM 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

To ensure that approximately 1,500 Nevada families are able to stay 

in their homes with a permanent change to their primary mortgages via 

principal reductions which will provide qualified homeowners a 

principal reduction of up to $50,000. This program will target 

borrowers pursuing loan modifications on a servicer matched 1:1 

basis. HARP eligible borrowers will be processed on an unmatched 

basis. 

The following method will be used to reduce the principal balance of a 

borrower's primary mortgage: 

• Up to $50,000 in assistance will be provided as a one-time up-front 

payment to the lender/servicer; or 

• Up to $50,000 in assistance may be provided over a three-year 

period as a payment to the lender/servicer for borrowers who receive 

a matching contribution from their Servicer. 

The primary goal is to reduce first mortgage principal balances. 

The funding will be distributed via a geographic formula of 1/3+1/3+1/3 

weight for unemployment + foreclosure rate + population. There will be 

target population segmentation into (a) the Clark County/Las Vegas 

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural Nevada. 

Where a finer breakdown is possible within each of the three geographic 

areas, zip code and census track targeting will be utilized. 

$75,412,386.70 

• Legal US Resident. 

• Borrower will be required to sign a financial Hardship Affidavit. 

Borrower eligibility criteria will be first analyzed by information 

provided during the application process. Typically, the application will 

commence by contacting Nevada's Hardest Hit Fund. If borrowers 

meet Nevada Hardest Hit Fund eligibility criteria then Servicer eligibility 

USl 8004560v2 
6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

will be confirmed as a next step. 

Funding will be provided on a first come-first-served basis within each 

geographical zone. Funding levels will vary by borrower. Borrowers will 

not always receive the maximum assistance amount of $50,000. 

• Home is currently owner occupied.. 

• Pre-reduction / Pre-modification principal balance must exceed 100% 

LTV based upon valuation obtained by NAHAC or the Servicer. 

• Post-reduction / Post-modification principal balance must fall 

between 100% and 150%) LTV based upon valuation obtained by 

NAHAC or the Servicer. 

• Mortgage balance cannot exceed the current GSE loan limit. 

• Homeowners pursuing principal reduction in conjunction with HARP 

must have a loan origination date prior to 5/31/2009 

• Must have a pre-assistance housing ratio greater than 25% on nonHARP transactions 

• Assistance is contingent upon successful achievement of 

modification or HARP. 

• None 

Depending on the agreement with the lender/servicer, the structure of 

assistance may be provided in one of two ways: 

• In the event there is no matching contribution by the Servicer, 

borrowers will sign a promissory note and will agree to maintain 

homeownership for the 24 months following assistance. 

• In the event the Servicer provides a dollar for dollar match of funds 

provided by Nevada Hardest Hit Fund toward the borrower's 

Principal Reduction, no lien will be required. Assistance may be 

provided to the Servicer in equal installments per the preference 

of the Servicer over a three year period, at months 13, 25 and 37, 

provided the homeowner remains in the home and continues to make 

current mortgage payments. Alternatively, assistance may be paid to 

the Servicer in one installment so long as the borrower has 

successfully completed a trial modification when applicable. 

The maximum amount of mortgage principal reduction receivable 

by a qualified borrower is $50,000. The median amount is expected 

to be close to the maximum (skewed right poisson distribution) amount. 

Program funds will be distributed as a one-time payment unless the 

Servicer elects the three payment mode. 

USl:8004560v2 
11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

Approximately 1,500 households could be assisted under this program. 

The HAMP specific segment of this program began on March 1, 2010. 

This program could last up to 48 months. 

The HARP specific segment of this program is to be introduced in 

July 2012. This program could last up to 48 months. 

The Principal Reduction Program is aimed at both the 

underemployed and the fully employed income qualified/limited home 

owners, not the unemployed. Thus, it is possible that a homeowner 

could receive a mortgage principal reduction through this program and 

then subsequently lose their job and eventually need the Short-Sale 

Acceleration Program. 

It is also possible that a homeowner may receive a second mortgage 

lien principal reduction or Mortgage Payment Assistance. 

Each HARP eligible candidate will be screened for second mortgage lien 

principal reduction eligibility. 

Participating Servicers will screen their databases for HAMP eligible 

borrowers on a regular basis and make referrals as appropriate. 

While Nevada does not require a contribution from the Servicer on 

transactions associated with HARP, it will be encouraged. Nevada will 

also request that the loan servicer waive certain fees like late charges, 

delinquency fee and penalties and recast the principal reduced loan and 

participate in its recordation. 

• Yes 0 No 

USl 8004560v2 
SERVICE SCHEDULE B-2 

The Nevada Affordable Housing Assistance Corporation 

SECOND MORTGAGE REDUCTION PLAN 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

The Second Mortgage Reduction Plan is aimed at assisting 

borrowers 

who have a second mortgage lien interfering with either a short-sale, 

refinance or modification of the first mortgage. The expected borrower 

pool is believed to be both unemployed and underemployed families. 

The expected outcome of this program is to assist up to 2,200 

families 

remove the impediment of a second lien on their property such that 

either a short sale, refinancing or first mortgage modification can be 

carried out and thus prevent a foreclosure. 

The funding will be distributed via a geographic formula of 

1/3+1/3+1/3 weight for unemployment + foreclosure rate + 

population. There will be target population segmentation into (a) the 

Clark County/Las Vegas valley area, (b) the Reno-Sparks SMSA area 

and (c) all of rural Nevada. Where a finer breakdown is possible within 

each of the three geographic areas, zip code and census track targeting 

will be utilized. 

$ 36,552,962.00 

• Legal US Resident. Borrower must be in default, facing 

imminent default or participating in a principal curtailment 

application under the HHF Principal Reduction Program with 

their HHF participating Servicer. 

• Delinquency based on a financial hardship due to circumstances 

beyond the homeowner's control (no contrived defaults allowed). 

• Borrower will be required to sign a financial Hardship Affidavit. 

Eligibility criteria will be analyzed either on-line by the borrower's visit 

to the web site and using the 'screening tool,' directly at the 

intake portal of the contract agents (foreclosure mitigation and 

mediation agencies) or by the designated call center. If borrowers 

meet screening criteria, application packages will be assembled and 

USl:8004560v2 
6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of 

Assistance 

forwarded onto the NAHAC underwriters who will do the full 

verifications/confirmation and begin the relationship with the 

participating banks/lenders/servicers to work through the calculation of 

aid levels. 

Funding will be provided on a first come-first-served basis within each 

geographical zone. Monitoring of funding commitments/pipelines by 

zone will allow sufficient trend evidence to allow for sufficient lead 

time to 'cut-off further funding commitments what might exceed 

available resources. 

• Home is currently owner occupied. If vacant, homeowner must be 

able to prove that they moved due to extenuating circumstances and 

that the home was most recently used as a primary residence - not 

an investment property. 

• Should have only one existing mortgage and a 2nd lien. 

In circumstances where there exists a 3 rd lien strictly associated 

with a governmental or non-profit sponsored 'down payment 

assistance program' the 3rd lien relief will also be accepted for 

assistance under this program. 

• All 2nd liens obtaining relief through this program element will be 

completely extinguished and have an accompanying lien release of 

the entire lien. 

• 1st mortgage balance cannot exceed the current GSE loan limit. 

• If a program contribution of > $16,500 is needed by the Servicer 

then the borrower would be ineligible. 

Depending on the agreement with the lender/servicer, the structure 

of 

assistance may be provided in one of two ways: 

• No lien will be required in the event the Servicer provides a dollar 

for dollar match of funds provided by Nevada Hardest Hit Fund. 

• In the event there is no matching contribution by the Servicer, 

assistance will be structured as a forgivable lien recorded against the 

property. Borrowers who follow through and earn the loan 

forgiveness will not be required to repay their lien. The lien has a 

term of 3 years and is forgiven at a rate of 33% per year with full 

forgiveness at the end of year 3. If the borrower sells the property 

before the forgiveness period expires; all net sale proceeds up to the 

unforgiven lien balance will be due and payable to NAHAC. All 

funds returned to NAHAC may be recycled until December 31, 

2017; thereafter they will be returned to Treasury. 

• Assistance will be structured as a one-time payout to the Servicer. 

In the event a program recipient subsequently participates in the 

USl 8004560v2 
9. Per Household 

Assistance 

10. Duration of 

Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

NAHAC's Short Sale Acceleration Program, the lien recorded as a 

result of participation in the Second Mortgage Reduction Plan program 

may be extinguished. 

The maximum amount of 2nd mortgage lien relief from this program 

will be $8,500 when the borrower is pursuing a short sale. In the event 

the home is not listed as a short sale then the maximum amount of 

assistance will increase to $ 16,500. 

One-time payment. 

It is estimated that up to 2,200 borrowers/families could receive 2nd lien 

relief under this program. If the level of lender participation exceeds 

60%) versus the program's 40% or the average program funding level 

averages less than the maximum of $16,500 in necessary funding to 

create the 2nd lien relief, then there could be an increase in the number 

of borrowers assisted. 

The Second Mortgage Reduction Plan program began March 1, 2010 

and could last up to 48 months. 

None. 

HAMP eligible borrowers will be considered for 2MP which is designed 

to assist in the modification of a 2nd lien when applicable. Borrowers 

that are not eligible for 2MP may be considered for the Nevada Hardest 

Hit Fund 2nd Lien Elimination Program. 

The basis of the 2nd lien relief program is to 'free up' the first mortgage 

note holder to complete the necessary modification or refinance to keep 

the borrower current and in their home. In order to leverage the 2nd lien 

relief funds, the program requires participating lenders to contribute a 

minimum of $0.40 for each $0.60 contributed by this program except 

in the event the 2nd or 3rd lien is held by a down payment 

assistance program provider, in which event no matching funds will be 

required. 

• Yes 0 No 

USl 8004560v2 
SERVICE SCHEDULE B-3 

The Nevada Affordable Housing Assistance Corporation 

SHORT-SALE ACCELERATION PROGRAM 

Summary Guidelines 

1. Program Overview 

2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

The Short-Sale Acceleration Program is aimed at assisting 

borrowers 

who are beginning or need to initiate the short-sale process, deed in lieu 

of foreclosure or a similar foreclosure mitigation measure to relieve 

themselves of the mortgage burdens that they cannot sustain—even with 

a material loam principal reduction. 

It is expected that at an $8,025 level of average funding per 

family 

assisted up to 1,371 families facing imminent foreclosure threat, will 

have the burden of their home mortgage eliminated and the threats of a 

default judgment removed. 

Those Nevadans that are facing imminent threat of foreclosure. 

$6,175,464.30 

• Legal US Resident. 

• Borrower must have short-sale approval in place with lender if 

pursuing a short sale. 

• Borrower must provide verification of short sale approval or deed 

in lieu of foreclosure agreement. 

• Borrower will be required to sign a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 

circumstances beyond the homeowner's control (no contrived 

defaults allowed). 

• Borrowers who chose to leave the State of Nevada will not receive 

the rental assistance component of benefits under this program but 

will be entitled to all others. 

USl 8004560v2 
6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

10. Duration of 

Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program 

Interactions with 

Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

• Home is currently owner occupied. If vacant, homeowner must be 

able to prove that they moved due to extenuating circumstances and 

that the home was most recently used as a primary residence - not 

an investment property. 

• Borrowers with a 2nd lien will also be considered for the Second 

Mortgage Reduction Plan. 

• None 

This program is direct assistance through direct payment to vendors at 

closing of the escrow, or immediately post short-sale closing. The 

payments will not be structured as a loan. 

The maximum is program benefit per household is $8,025. 

Assistance can be used to cover the cost of up to 3 months of rent (not 

to exceed $4,500), fees incurred by a storage facility (not to exceed 

$1,000) and/or certain fees which are interfering with the short sale 

closing - specifically HO A liens and utility liens. 

Assistance will be a one-time set of payments. 

The Business Plan calls for this program element to assist up to 1,371 

families complete their home abandonment/ownership through a short 

sale and matriculate to a rental property somewhere else in Nevada. 

The Short Sale Acceleration Program began March 1, 2010 and could 

last up to 48 months. 

This program cannot be used when HAFA is also being utilized. 

None 

In the event the short sale program recipient has incurred a lien as 

a 

result of earlier participation in NAHAC's Principal Reduction, Second 

Mortgage Reduction Plan or Mortgage Assistance Program, then the 

lien may be extinguished for the purpose of helping to facilitate the 

short sale request. 

• Yes 0 No 

USl'.8004560v2 
Program 

USl 8004560v2 
SERVICE SCHEDULE B-4 

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM (MAP) 

Summary Guidelines 

1. Program Overview The Nevada Mortgage Assistance Program (MAP) is designed to help 

keep first mortgages current for approximately 5,220 families who 

have an unemployed or underemployed wage earner. The program 

will assist those qualified families by making up to the lesser of: 

(a) $1,000 (one thousand dollars ) of the principal, interest, property 

taxes and property insurance (when impounded) excluding Home 

Owner Association fees or (b) total payment due for those four 

components, to the family's monthly first mortgage payment only. 

Further, the borrower will be responsible for contributing a minimum 

of seventy-five dollars ($75) per month toward completing the full 

payment due. MAP payments may be extended for qualified families 

for up to 9 months with the right to extend up to 12 months if still 

unemployed or underemployed. The MAP payments are aimed at 

providing a financial bridge to unemployed or underemployed persons. 

For the purpose of this program, unemployed will be defined as an 

individual that is not currently working. Underemployed will be 

defined as any individual that is in in default or in a situation of 

imminent threat of going into default on their mortgage due to a 

change in economic status or a material reduction in measureable 

income, all subject to satisfaction of all other borrower eligibility 

criteria. 

Borrowers will submit their partial payment to the Nevada Affordable 

Housing Assistance Corporation (NAHAC) where it will be combined 

with the HHF funds and a full remittance made to the loan servicer for 

the loan. Borrowers can apply either through participating 

lenders/servicers who have received special training or directly 

through the NAHAC offices after first completing an appropriate 

screening tool and being given an appointment with the NAHAC loan 

underwriter. MAP payments will invoke a non-recourse lien which 

will have an earned forgiveness embedded in the Note. Borrowers 

who are able to sustain their homeownership for 30 successive months 

following the end of the MAP payments will have their lien 

extinguished. 

A final component of the MAP program will be a reinstatement 

component which will provide up to $12,500 per qualified borrower 

who can verify that they have overcome a previous financial hardship 

and their mortgage payment is sustainable - less than 43%> of their 

USl 8004560v2 
2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

household income. Under this final phase of the MAP, borrowers who 

can demonstrate that they can sustain their mortgage on an ongoing 

basis, but have an arrearage or accrued penalties will be eligible to a 

reinstatement benefit. Reinstatement will only be allocated in those 

instances where the entire past due balance and/or accrued penalties 

can be eliminated such that the borrower is in good standing post 

assistance. 

The MAP program's goal is to increase the probability that a borrower 

and/or recipient's family has a stronger chance of sustaining 

homeownership with the assistance from the HHF program. The 

enhanced home ownership through re-employment and job 

maintenance should decrease both the numbers and probability of 

foreclosures. 

The reinstatement benefit for MAP recipients that can demonstrate the 

sustainability of their mortgage is intended to prevent future 

foreclosures by helping borrowers regain current status. Sustainability 

for purposes of reinstatement means lending ratios equal or better than 

those of the Principal Reduction Program. 

The State of Nevada is currently enduring the USA's highest 

unemployment rate in its workforce. However, the highest levels of 

unemployed persons in Nevada are primarily centered in the two urban 

areas (Clark County/Las Vegas area and Reno/Sparks MSA) versus the 

rural agricultural and mining areas. With the assistance of the Nevada 

Department of Employment, Training and Rehabilitation's ("DETR") 

published data, MAP funds will be allocated on a pro-rata basis to 

jurisdictions based on a ratio of actual number of unemployed to total 

State-wide unemployed as a general allocation matter. However, a 

semiannual assessment will be undertaken to ensure allocations of 

remaining funds are representative of changes to the unemployed and 

underemployed populations in all jurisdictions. 

$45,906,871.00 

To ensure both consistencies with previously approved Participation 

Agreement programs and to lessen the burdens of administering the 

MAP program, adherence to the same underwriting qualification 

standards will be generally utilized. Thus, borrower eligibility criteria 

will consist of: 

USl 8004560v2 
6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of 

Assistance 

9. Per Household 

Assistance 

• Legal US Resident. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due specifically 

to unemployed or underemployed status. 

• Borrower will be required to sign a financial Hardship Affidavit 

attesting to their inability to make mortgage payments. 

• Reinstatement candidates must demonstrate sustainability of 

current payments with existing mortgage by demonstrating a 

housing ratio of less than 43%) of their household income but still 

have little or no ability to independently extinguish past missed 

payments, penalties or fees. 

Basic eligibility criteria will be analyzed either on-line by the 

borrower's visit to the web site and using the 'screening tool,' directly 

at the NAHAC offices or by the designated call center. If applicants 

meet screening criteria, application packages will be assembled by the 

NAHAC underwriters who will do the full verifications/confirmation, 

enter the applicant's data into the NAHAC database and accounts 

payable systems and begin the relationship with the borrower's 

participating banks/lenders/servicers to ensure aid is acceptable to 

them. 

• Home is currently owner occupied.. 

• Mortgage balance cannot exceed the current GSE loan limit. 

• None 

This program is administered through direct payment to the Servicer. 

All MAP program assistance will be structured as a 0% interest, 

forgivable lien recorded against the property, which will be forgiven 

over a period of time not to exceed 3 years. The loans will only be 

repayable if the borrower sells the property before the 3 year time 

period expires and there is sufficient equity to pay the loan. All MAP 

provided funds returned to program may be recycled until U.S. 

Treasury imposed deadline of December 31, 2017. Thereafter they 

will be returned to Treasury. The MAP assistance will be structured as 

an 'earned forgiveness' loan that is forgiven 33% each year. 

MAP recipients who qualify for reinstatement will have their up to 

$12,500 payments made on a 'one-time basis' directly to the mortgage 

servicer. 

The planned MAP program level of assistance should average 

approximately $l,000/month per recipient for up to 9 months or an 

expected average total mortgage payment assistance of $9,000. 

USl 8004560v2 
10. Duration of 

Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program Interactions 

with Other HFA 

Programs 

14. Program Interactions 

with HAMP 

15. Program Leverage 

with Other Financial 

Resources 

Reinstatement candidates will be limited to a 'one-time' amount that is 

the lesser of up to $12,500 or 100% of the delinquent payments fees or 

penalties accrued leading up to their MAP program original eligibility. 

The MAP assistance will last up to 9 months with a possible 3 month 

extension - for a total of up to 12 months if still experiencing a 

financial hardship due to loss of income, including unemployment or 

underemployment. 

Based upon average assistance of $9,000 for 80% of the recipients and 

up to 12 months for 20% of the recipients, then the expected number of 

potential recipients should be approximately 5,200 net of the number 

already served under this program through February 2012 and those 

funds exhausted as a result of reinstatement. This number may also be 

decreased slightly if the contingency funds described in Section 1 are 

utilized for such purpose. 

This program began on March 1,2010 and could last up to 48 months. 

The MAP program could have some forms of interaction with the 

other HHF programs. Specifically, if a MAP program recipient does 

achieve re-employment status and would possibly be a candidate for a 

HHF Principal Reduction Program, then NAHAC will advise the 

borrower of such. However, if the recipient drops out of the MAP 

program due to failing to remit their portion of the monthly mortgage 

payment, and it appears evident that the borrower may lose their home 

due to lack of means to sustain the mortgage, then the borrower will be 

advised about the HHF short-sale program. 

The MAP program could have some form of interaction with HAMP. 

HHF Funds (MAP) would be utilized prior to HAMP UP. 

Implementing the program in this order is the most beneficial to the 

borrower and investor since payments would continue to be made 

instead of capitalized, and no late charges or adverse credit reporting 

would occur. If a MAP program recipient does achieve reemployment status and the borrower would possibly be a candidate for 

either a HAMP modification and/or a HAMP principal reduction 

program, then NAHAC will advise the borrower of such. 

NAHAC will work with loan servicers for each qualified recipient to 

ensure that the funds from the MAP program payments are utilized 

strictly for the borrower's 'current first mortgage loan payments, 

excluding homeowner association dues and fees and not to 'make up' 

any past due penalties or payments. NAHAC accounting staff will 

communicate with the servicer to ensure that the MAP payments are 

USl 8004560v2 
16. Qualify as an 

Unemployment 

Program 

credited only toward current amounts of principal, interest, property 

taxes and property insurance due by the borrower on their first 

mortgage. If this means that the borrower and servicer have to execute 

some form of forbearance or forgiveness on past due amounts, 

NAHAC will be prepared to assist the borrower with the servicer on 

this. It is hoped that the servicers will cooperate on these matters. But 

until NAHAC actually begins distributing Servicer Participation 

Agreements for the MAP program, actual servicer participation cannot 

be accurately determined. 

0 Yes • No 

US I 8004560v2 
SERVICE SCHEDULE B-5 

The Nevada Affordable Housing Assistance Corporation 

MORTGAGE ASSISTANCE PROGRAM 

ALTERNATIVE (MAPA) 

Summary Guidelines 

Program Overview The Nevada Mortgage Assistance Program Alternative (MAPA) 

is designed to help keep first mortgages current for approximately 

416 individuals who are not currently working and collecting a 

fixed income such as that associated with one of the following: 

• Retirement 

• Disability 

• Social Security 

The program will assist those qualified families by paying the 

lesser of: 

(a) $1,000 (one thousand dollars ) of the principal, interest, 

property taxes and property insurance (when impounded) 

toward the monthly first mortgage payment 

(b) Total first mortgage payment due for the four 

aforementioned components 

Further, the borrower will be responsible for contributing a 

minimum of seventy-five dollars ($75) per month toward 

completing the full payment due. MAPA payments may be 

extended for qualified families for up to 9 months. 

MAPA payments are aimed at providing a financial bridge to 

income restricted, unemployed homeowners that are in pursuit of 

a homeownership sustainment program. 

For the purpose of this program, the target population will include 

individuals which cannot return to the workforce through no fault 

of their own and are in default or in a situation of imminent threat 

of going into default due to limited income - subject to 

satisfaction of all other borrower eligibility criteria. 

Borrowers will submit their partial payment to the Nevada 

Affordable Housing Assistance Corporation (NAHAC) where it 

will be combined with the HHF funds and a full remittance made 

to the loan servicer. Borrowers can apply directly through the 

NAHAC offices after first completing an appropriate screening 

tool and being given an appointment with the NAHAC loan 

USl 8004560v2 
2. Program Goals 

3. Target Population / 

Areas 

4. Program Allocation 

(Excluding 

Administrative 

Expenses) 

5. Borrower Eligibility 

Criteria 

underwriter. MAPA payments will invoke a non-recourse lien 

which will have an earned forgiveness embedded in the Note. 

Borrowers who are able to sustain their homeownership for 36 

successive months following closing will have their lien 

extinguished. 

A final component of MAPA will be a reinstatement component 

which will provide up to $12,500 per qualified borrower who 

participated in MAPA and has subsequently enrolled in a 

homeownership sustainment program or can demonstrate that 

their economic situation has improved in such a way that the 

mortgage payment is now sustainable - less than 43% of their 

household income. Under this final phase of MAPA, those 

borrowers who can demonstrate that they can sustain 

homeownership through their verifiable enrollment in a 

homeownership sustainment program, are entitled to a 

reinstatement benefit which will cover un-extinguished 

arrearage/penalties and missed payments. Reinstatement will 

only be allocated in those instances where the entire past due 

balance and/or accrued penalties can be eliminated such that the 

borrower is in good standing post assistance. 

The MAPA program's goal is to increase the probability that a 

recipient sustaining homeownership with assistance from the 

HHF program. Enhanced homeownership through MAPA, 

subsequent homeownership sustainment programs and 

reinstatement should decrease both the numbers and probability 

of foreclosures. 

The reinstatement benefit for qualified MAPA recipients is 

intended to prevent future foreclosures by helping borrowers 

regain current status. Sustainability for purposes of reinstatement 

means lending ratios equal or better than those of the Principal 

Reduction Program. 

Funding will be distributed on a first come, first served basis with 

target populations spanning (a) the Clark County/Las Vegas 

valley area, (b) the Reno-Sparks SMSA area and (c) all of rural 

Nevada. 

$5,000,000.00 

To ensure both consistencies with previously approved 

Participation Agreement programs and to lessen the burdens of 

administering the MAPA program, adherence to the same 

USl:8004560v2 
6. Property / Loan 

Eligibility Criteria 

7. Program Exclusions 

8. Structure of 

Assistance 

underwriting qualification standards will be generally utilized. 

Thus, borrower eligibility criteria will consist of: 

• Legal US Resident. 

• Borrower must be in default or facing imminent default. 

• Borrower must be experiencing financial hardship due to 

circumstances beyond the homeowner's control (no 

contrived defaults allowed). 

• Borrower will be required to sign a financial Hardship 

Affidavit attesting to their inability to make mortgage 

payments. 

• Reinstatement candidates must demonstrate sustainability of 

current payments. By definition that would mean that their 

mortgage payment is less than 43% of their household 

income. The borrower must also demonstrate they still have 

little or no ability to extinguish past missed payments, 

penalties or fees. Reinstatement will only be allocated in 

those instances where the entire past due balance and/or 

accrued penalties can be eliminated such that the borrower is 

in good standing post assistance. 

Basic eligibility criteria will be analyzed either on-line by the 

borrower's visit to the web site and using the 'screening tool,' 

directly at the NAHAC offices or by the designated call center. If 

borrowers meet screening criteria, application packages will be 

assembled by the NAHAC underwriters who will do the full 

verifications/confirmation, enter the borrower's data into the 

NAHAC database and accounts payable systems and begin the 

relationship with the borrower's participating 

banks/lenders/servicers to ensure aid is acceptable to them. 

• Home is currently owner occupied. 

• Mortgage balance cannot exceed the current GSE loan 

limit. 

• Borrowers that have received 9 months of assistance 

through MAP will be ineligible for assistance through 

MAPA. In the event a borrower has received less than 9 

months of assistance through MAP or MAPA, the borrower 

can reapply to receive assistance through either program on 

a pro-rata basis where any borrower will receive a 

maximum of 9 months of combined assistance 

Borrower must proactively pursue homeownership sustainment 

program which must be verified with 45 days of closing on 

MAPA or borrower will be disenrolled from program. 

USl 8004560v2 
9. Per Household 

Assistance 

10. Duration of 

Assistance 

11. Estimated Number of 

Participating 

Households 

12. Program Inception / 

Duration 

13. Program 

Interactions with 

This program is administered through direct payment to the 

Servicer. Payments will be structured as a non-interest bearing, 

forgivable lien recorded against the property. The lien will be 

automatically forgiven over the 36 month timeframe following 

closing. Forgiveness will occur in equal installments of 33.33% 

annually. 

The lien will only be repayable if the borrower sells the property 

inside of the 36 month timeframe and IF there is sufficient equity 

to pay the remaining unforgiven balance. 

All MAPA provided funds returned to program may be recycled 

until U.S. Treasury imposed deadline of December 31, 2017. 

Thereafter they will be returned to Treasury. 

MAPA recipients who qualify for reinstatement will have up to 

$12,500 in reinstatement funds made on a 'one-time basis' 

directly to the mortgage servicer. 

Planned MAPA assistance (not including reinstatement) should 

average approximately $ 1,000/month per recipient for up to 9 

months or an expected average total mortgage payment assistance 

of $9,000. 

Reinstatement is limited to a 'one-time' amount that is the lesser 

of up to $12,500 or 100% of the delinquent payments fees or 

accrued penalties. 

MAPA will last up to 9 months. 

Based upon average assistance of $9,000 per household, it is 

anticipated that 15% of the program funds be exhausted by 

monthly mortgage payment expenditures - for a total of 

approximately 416 households. 

The average reinstatement payout is expected to be $12,500 per 

eligible borrower with a portion of MAPA eligible borrowers also 

qualifying and receiving reinstatement benefits. The remaining 

25%) of program funds are anticipated to be used in this category 

- for a total of 100 households. 

Thus, a total of 100 households are expected to benefit from both 

MAPA and reinstatement. 

This program began in February 2012 and could last through 

December 31, 2017. 

MAPA recipients could have some interaction with other HHF 

programs. MAPA recipients that have a second mortgage could 

USl 8004560v2 
Other HFA 

Programs 

14. Program 

Interactions with 

HAMP 

15. Program Leverage 

with Other Financial 

Resources 

16. Qualify as an 

Unemployment 

Program 

possibly become candidates for the HHF second lien relief 

program. 

If a MAPA recipient is unable to remit their portion of the 

monthly mortgage payment due to lack of means to sustain the 

mortgage, then they could pursue the HHF short-sale program. 

MAPA recipients that achieve re-employment status or have an 

improvement in their economic situation could also benefit from 

HAMP. 

MAPA funds would be used prior to HAMP since it is most 

beneficial to both the homeowner and mortgage servicer as 

payments would be made instead of capitalized and no additional 

late charges accrued. 

NAHAC will work with loan servicers for each qualified 

recipient to ensure that funds from MAPA payments are utilized 

strictly for the borrower's first mortgage loan payments to include 

principal, interest, taxes and insurance (excluding homeowner 

association dues). Funds will not be applied toward past due 

penalties except in those instances where the borrower qualifies 

for reinstatement. 

• Yes 0 No 

USl 8004560v2 
SCHEDULE C 

PERMITTED EXPENSES 

One-time / Start-Up Expenses: 

Initial Personnel $377,800.00 

Building, Equipment, Technology $666498.00 

Professional Services $260,240.00 

Supplies / Miscellaneous $115,600.00 

Marketing /Communications $109,250.00 

Travel $1,200.00 

Website development /Translation $15,700.00 

Contingency $1,170,000.00 

Subtotal 

'AStV," 

$2,715,988.00 

WW 1 0 4i'~ 

Operating I Administrative 

Expenses: 

Salaries $4,342,251.00 

Professional Services (Legal, 

Compliance, Audit, Monitoring) $2,506,051.00 

Travel $35,500.00 

Buildings, Leases & Equipment $239,120.00 

Information Technology & 

Communications $1,708,974.00 

Office Supplies/Postage and 

Delivery/Subscriptions $525,715.00 

Risk Management/ Insurance $304,646.00 

Training $14,511.00 

Marketing/PR $553,350.00 

Miscellaneous $0.00 

Subtotal $10,230,118.00 

Safe-*'/ ~"kk'^ 

:,,, .VSAZI. »«,.Ji(l 

Transaction Related Expenses: 

Recording Fees $1,083,881.00 

Wire Transfer Fees $32,200.00 

Counseling Expenses 

File Intake $10,639,169.00 

Decision Costs $277,200.00 

Successful File $0.00 

Key Business Partners On-Going $0.00 

USl:8004560v2 
Subtotal 1 $12,032,450.00 

> / v 

Grand Total $24,978,556.00 

% of Total Award 12.87% 

Award Amount $194,026,240.00 

USl 8004560v2