HHF Rhode Island Date: July 10, 2020
SERVICE SCHEDULE B-1
Rhode Island Housing’s
Loan Modification Assistance (LMA)
Summary Guidelines
B-1-1
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 Funds
(Excluding
Administrative
Expenses)
Not applicable. Program Funds may be disbursed under any program
included in Schedule B.
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 and underwriting 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-1-2
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, non-
recourse, non-amortizing loan secured by the property. The loan is
forgivable at 20% of the original principal balance per year over five (5)
years, if the homeowner fulfills his or her obligations on a timely basis under
the assistance agreement. Borrowers who refinance, transfer title or sell the
property within the five-year period must repay the loan on a pro-rata basis
provided there is sufficient equity from such refinance, title transfer or sale. 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 611 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-1-3
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, Non-
HAMP 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
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
To help a homeowner avoid foreclosure when faced with temporary
or immediate crisis.
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.
Not applicable. Program Funds may be disbursed under any
program included in Schedule B.
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 and underwriting guidelines.
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.
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.
Funds will be provided in the form of a zero-percent interest, non-
recourse, non-amortizing loan secured by the property. The loan is
forgivable at 20% of the original principal balance per year over five
(5) years, if the homeowner fulfills his or her obligations on a timely
basis under the assistance agreement. Borrowers who refinance,
transfer title or sell the property within the five-year period must repay
the loan on a pro-rata basis provided there is sufficient equity from
such refinance, title transfer or sale. 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.
B-2-3
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.
Assistance will be paid directly to the existing servicer, taxing
authority or lien holder in a one-time lump sum.
We estimate that we will serve 916 homeowners based on the
maximum program limit and program allocation at this time.
November 1, 2010 until program funds are exhausted.
Additional aid may be available to eligible homeowners through
other HHFRI programs up to program limits.
This program does not interact with HAMP.
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 Funds
(Excluding
Administrative
Expenses)
Not applicable. Program Funds may be disbursed under any
program included in Schedule B.
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.
B-3-3
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 are provided to eligible homeowners as a non-
recoverable 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 66 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
B-3-4
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 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 exceed twenty-four
(24) months or $50,000, 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 assistance limit
has not been reached. Assistance funds will be paid directly to
the lender/servicers.
MPA-UP assistance may be used to make delinquent and
ongoing 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
B-4-2
so that they can obtain a sustainable loan modification, if
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 Funds
(Excluding
Administrative
Expenses)
Not applicable. Program Funds may be disbursed under any
program included in Schedule B.
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 pursuant to program and
underwriting guidelines.
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 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.
Homeowner must actively seek reemployment during the
assistance period.
Borrower is able to satisfy program and underwriting guidelines.
B-4-3
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,
non-recourse, non-amortizing loan secured by the property. The
loan is forgivable at 20% of the original principal balance per
year over five (5) years, if the homeowner fulfills his or her
obligations on a timely basis under the assistance agreement.
Borrowers who refinance, transfer title or sell the property within
the five-year period must repay the loan on a pro-rata basis
provided there is sufficient equity from such refinance, title transfer
or sale. 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.
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.
B-4-4
11. Estimated Number of
Participating
Households
We estimate that we will serve 2700 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 June 30, 2021.
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
Rhode Island Hardest Hit Fund
Principal Reduction Program
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 mark-
to-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 Funds
(Excluding
Administrative
Expenses)
Not applicable. Program Funds may be disbursed under any program
included in Schedule B.
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-for-
dollar 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
B-5-3
12. Program
Inception /
Duration
Approximately one to three years or until HHF funds are fully
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 Funds
(Excluding
Administrative
Expenses)
Not applicable. Program Funds may be disbursed under any
program included in Schedule B.
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 is forgivable at 20% of the
original principal balance per year over five (5) years, if the
homeowner fulfills his or her obligations on a timely basis under the
assistance agreement. Borrowers who refinance, transfer title or sell
the property within the five-year period must repay the loan on a
pro-rata basis provided there is sufficient equity from such
refinance, title transfer or sale. 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-6-4
Funds will be returned to the HHF Program for additional use in
accordance with the Agreement.
9. Per Household
$7,500
Assistance
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
We estimate that we will serve an incremental 2,452
Number of
homeowners based on the maximum program limit and program
Participating
allocation at this time.
Households
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
The DPA Program will take advantage of an existing
Interactions
infrastructure of Participating Lenders and the Loan Center who
with Other HFA
actively originate both first mortgages and down payment
Programs
assistance loans as part of Rhode Island Housing’s current single-
family 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, post-
purchase counseling is also available.
14. Program
Interactions
with HAMP and
other Programs
None.
B-6-5
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)
Program was de-funded as of May 22, 2018
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 Funds
(Excluding
Administrative
Expenses)
Not applicable. Program Funds may be disbursed under any program
included in Schedule B.
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 (Fannie Mae) or
B-8-2
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 46 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
HHF Rhode Island Date: July 10, 2020
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
$11,208,997.83
Professional Services (Legal, Compliance,
Audit, Monitoring)
$260,646.96
Travel
$6,000.00
Buildings, Leases & Equipment
$662,108.98
Information Technology & Communications
$907,338.87
Office Supplies/Postage and
Delivery/Subscriptions
$145,911.52
Risk Management/ Insurance
$10,098.00
Training
$0
Marketing/PR
$657,198.26
Miscellaneous
$515,565.28
Subtotal
$14,373,865.70
Transaction Related Expenses:
Recording Fees
$0.00
Wire Transfer Fees
$272,293.75
Counseling Expenses
File Intake
$765,800.00
Decision Costs
$0.00
Successful File
$0
Key Business Partners On-Going
$0.00
Subtotal
$1,038,093.75
Grand Total
$15,411,959.45
% of Total Award
13.28%
Award Amount
$116,019,791.00