Restoring Stability: A Save the Dream Ohio Initiative Ohio Hardest-Hit Fund 20th Annual Fair Lending Conference Oct

1. Restoring Stability: A Save the Dream Ohio Initiative Ohio Hardest-Hit Fund 20th Annual Fair Lending ConferenceOctober 29, 2010Cleveland, Ohio

2. U.S. Treasury InitiativeHFA Innovation Fund for Hardest-Hit Housing Markets An extension of the Troubled Asset Relief Program ("TARP") administered by the U.S. Department of Treasury under the Emergency Economic Stabilization Act of 2008 (�EESA�) Purpose is to help families stay in their homes or otherwise avoid preventable foreclosure Focused on unemployed homeowners who are at risk of mortgage default or foreclosure due to a temporary or permanent reduction in income More information at www.financialstability.gov/roadtostability/hardesthitfund.html

3. Ohio Award: $570.4 Million Round 2 - $172 million Focused on areas of chronic economic distress Round 3 - $148.7 million Focused on unemployed homeowners only Round 4 - $249.7 million Focused on unemployed homeowners only

4. HHF Restrictions Funds must flow through an �Eligible Entity� which must be a financial institution as defined in EESA Ohio�s eligible entity is a newly created entity created by Ohio Capital Corporation for Housing called Ohio Homeownership Assistance LLC Legal assistance to homeowners is not an eligible use of funds Job training is not an eligible use of funds The role of housing counseling is limited to intake and triage Homeowners must be screened for Making Home Affordable

5. Restoring Stability Eligibility Current household income below 115% of area median income Liquid assets, excluding retirement funds, equal to less than three months mortgage payment Total first mortgage debt below maximum FHA loan amount Hardship based on involuntary loss of income Homeowner may be at risk of imminent mortgage default, delinquent or in foreclosure up to sheriff sale. One- to four-unit, owner-occupied primary residence, including condominiums

6. Maximum Benefit $15,000 May be used over one or more programs Rescue Payment Assistance To bring delinquent mortgages current Partial Mortgage Payment Assistance Up to 15 months assistance with mortgage payments for unemployed homeowners Modification Assistance with Principal Reduction Incentive payment matched by investor to reduce mortgage principal balance Transition Assistance Incentive payment to lender and homeowner to assist with short sale or deed in lieu

7. Rescue Payment Assistance Payment made to mortgage servicer to bring homeowner current on first mortgage May cover principal, interest, fees, delinquent taxes, escrow shortage or homeowner�s insurance Homeowner must demonstrate ability to make future payments for at least six months Sustainable payment is based on 38% or less of current household income Unemployed borrowers may qualify on basis of receiving partial mortgage payment assistance

8. Partial Mortgage Payment Assistance Limited to eligible homeowners who are unemployed or have exhausted unemployment benefits in previous 12 months Affordable payment, calculated at 31% of current income, must be at least 25% of current first mortgage payment Homeowner makes �Affordable Payment� to Special Servicer Ohio HHF program makes full payment to homeowner�s mortgage servicer for up to 15 months If homeowner misses a payment or is late twice, they are no longer eligible If a homeowner is re-employed within the benefit period, assistance may continue for 2 months

9. Mortgage Modification with Principal Reduction For eligible homeowners who do not qualify for existing loan modification options due to severe negative equity Incentive payment made to homeowner�s first mortgage servicer to reduce homeowner�s mortgage principal to 115% loan-to-value or less Payment must be matched at least one-to-one in the form of principal forgiveness or forbearance Mortgage modification must result in an affordable monthly payment

10. Transition Assistance Incentive paid to mortgage servicers to complete short sale or deed-in-lieu agreement First mortgage servicer gets $3,000 of which $1,500 is passed through to the homeowner to leave the property in good condition Incentive may be paid to second lien holder for up to 10% of the second lien balance up to $2,500 maximum Mortgage obligation is released � no deficiency judgment

11. Application Process Multiple homeowner entry points: Register online at www.savethedream.ohio.gov Call Save the Dream Ohio Hotline (888-404-4674) Go directly to a HUD-approved Housing Counseling Agency participating in Restoring Stability (HHF) Housing counselors screen for eligibility Housing counselors develop a Restoring Stability (HHF) Action Plan recommending which Restoring Stability program or combination of programs is best suited to help the homeowner avoid foreclosure OHFA reviews and approves eligibility and Restoring Stability (HHF) Action Plan and notifies Servicers Servicers accept reinstatement and full mortgage payments from OHFA on behalf of eligibly borrowers.

12. Interactions with Making Home Affordable

13. Repayment of HHF Assistance Repayment only applies to: Rescue Payment Assistance Partial Mortgage Payment Assistance Mortgage Modification with Principal Reduction A no-interest, five year second mortgage will be recorded for the amount of HHF assistance. All payments are deferred. 20% of the balance will be forgiven each year. If the homeowner sells or refinances, the loan is repayable from net proceeds.

14. Contacts for Restoring Stability Cindy Flaherty Director of Homeownership cflaherty@ohiohome.org 614-466-6886 Debbie Somerville Servicer Liaison dsomerville@ohiohome.org 614-644-5999 Stephanie Spruill Counseling Support Manager sspruill@ohiohome.org 614-387-1662 OHFA website: www.ohiohome.org Save the Dream: www.savethedream.ohio.gov Stephanie Casey Pierce Outreach Coordinator Stephanie.Pierce@com.state.oh.us 614-728-4291