Hardest Hit Fund

Memorandum of Understanding between

CalHFA Mortgage Assistance Corporation (“Eligible Entity”)

And

_______________________Name of Servicer

This Memorandum of Understanding (“Agreement”) is entered into as of

_______________(date) by and between CalHFA Mortgage Assistance Corporation (“CalHFA
MAC” or “Eligible Entity”) and _________________________ (“Servicer"). CalHFA MAC and
Servicer agree on the following principles for their joint participation in one or more
programs (“Program(s)”) that use monies from the Hardest Hit Fund (“HHF”) initiative:

1. Eligibility. The Eligible Entity is responsible for the selection/qualification of homeowners to

receive HHF funding; Servicer will not be involved in determining the eligibility of homeowners
but may, with prior written authorization from the Eligible Entity, refer homeowners to the Eligible
Entity for consideration.

2. Contacts. Both parties shall establish specific points of contact for HHF cases for the other
party. This includes both phone and email contact information, dedicated staff familiar with the
federal Making Home Affordable programs and the HHF programs offered within California in
which they have agreed to participate.

3. Foreclosure Hold. Upon notification that a homeowner has been conditionally approved for
HHF, the Servicer will accept or object to the homeowner’s participation in the Program in the
manner outlined in the Common Data File (“CDF”), sample available upon request. Upon
Servicer’s acceptance, Servicer shall not initiate the foreclosure process or, if the homeowner is
already in the foreclosure process, conduct a foreclosure sale for at least 45 days, with any
extensions by mutual consent of the Eligible Entity and the Servicer, as allowed by investor
guidelines. If a participating homeowner is brought current through Program assistance or other
means, the foreclosure action shall be dismissed.

4. NPI. All communications that include any homeowner’s Nonpublic Personal Information (“NPI”)
between Eligible Entity and Servicer shall be through encrypted email, secure loan port, or other
similar secure electronic delivery system. In accordance with all applicable privacy, telemarketing,
and information security laws, regulations, and guidelines, each party will maintain and implement
appropriate measures designed to (a) ensure the security and confidentiality of any NPI it receives
from the other party, including, without limitation, appointing a manager or group to coordinate
compliance with the confidentiality obligations herein; (b) protect against any anticipated threats or
hazards to the security or integrity of such information, including, without limitation, implementing
necessary screening and background checks for individuals that may access or use the NPI as
permitted by this Agreement; (c) protect against unauthorized access to or use of such information
that could result in substantial harm or inconvenience to the subject of such information; (d) ensure
the proper disposal of all NPI received from the other party upon
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 the termination of this Agreement for any reason, unless the information is required to be
retained for legal or regulatory record retention purposes; (e) treat the NPI with at least the same
degree of care that it uses to protect its own confidential and proprietary information of a similar
nature but with no less than a reasonable degree of care; and (f) implement or use appropriate
technological safeguards that comply with the Gramm-Leach-Bliley Act as well as any generally
recognized industry standards. For the purposes of this Agreement, the term "Nonpublic
Personal Information" shall mean any information received from or provided by the other party
that pertains to or identifies an individual, such as a name, postal address, email or IP address,
facsimile or phone number, mother's maiden name, social security or identification number,
transactional, employment, or financial data, medical or health records, personal, gender,
political, profile, account, and password information.

5. Vendor. If Eligible Entity has retained a Vendor or developed an automated process for
submitting homeowners to Servicer for workout consideration or for any other purpose relating
to the implementation of a Program, Servicer will not be charged or pay for the Vendor (or other
third party) or for the development or use of such process. Notwithstanding the foregoing
sentence, if an automated process different from that in existence on the effective date of this
Agreement is considered, the parties agree to negotiate any costs associated with that change.
Third party vendor shall also be bound by the terms and conditions of this Agreement.

6. Operational Term Sheets. All HHF Programs and workout options will be conducted in
accordance with the program descriptions and requirements detailed in the Operational Term
Sheet(s), attached as Exhibit A, which require acceptance by the Servicer and Eligible Entity.
Servicer must obtain all applicable investor and mortgage insurer approvals for any
mortgage loan that receives HHF monies. Subject to all applicable laws and regulations,
Servicer may elect not to have a particular mortgage loan or homeowner participate in any
Program. Operational Term Sheet(s) may be amended from time to time. Eligibility Entity will
notify Servicer of changes to the Operational Term Sheet(s) in writing through the issuance
of Bulletins.

7. Making Home Affordable Programs, Etc. Not all homeowners that qualify for HHF monies will
qualify for the federal government’s Making Home Affordable Programs, Home Affordable
Modification Program (HAMP), or other workout options. Relevant information about the workout
status of such homeowners must be communicated by Servicer to Eligible Entity, subject to any
legal or other restrictions.

8. Late Charges, Etc. Servicer will waive late charges and non-sufficient funds (“NSF”) fees. All
advances and third-party costs, including foreclosure or bankruptcy costs, are payable by the
homeowner, Eligible Entity or investor, subject to applicable laws, regulations and restrictions,
Operational Term Sheet(s), and the terms of this Agreement.

9. Participation. Participation by Servicer in all the HHF Programs is voluntary. Servicer must
designate the Programs in which it will participate. Servicer may elect to change its participation
in any Program(s) with written notification to Eligible Entity. Either party may terminate this
Agreement without cause on 30 days prior written notice. Either party may immediately
terminate this Agreement for cause, with written notice to the other party.

10. Third-Party Authorizations. Servicer, at its discretion, or Eligible Entity and its third-party partners
(e.g., non-profit counselors) that work with interested homeowners regarding a Program must secure
signed written authorization from each homeowner (in a form mutually approved by the parties) to
share information by and among Eligible Entity, Servicer and (if any) such third-party partners. The
party performing the file intake and underwriting for such loan shall be the

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 party that secures such authorization and shall provide the other party with a copy of the
signed authorization. Each party is responsible for the accuracy and completeness of each
written authorization it secures.

11. PITI Only. For the Unemployment Mortgage Assistance Program, HHF monies will only be
applied toward PITI (principal, interest, taxes, and insurance) and any escrowed homeowner’s
association (HOA) dues or assessments. For the Mortgage Reinstatement Assistance Program
and/or the Principal Reduction Program, HHF monies may also be applied to corporate
advances such as attorney’s fees, property inspection fees, escrow amounts for property taxes
and/or homeowner’s insurance, and other fees and expenses if such costs are deemed by
Servicer to be advances on behalf of the homeowner. If requested by Eligible Entity, Servicer
shall provide a detailed invoice to Eligible Entity showing how these funds are specifically
applied to a homeowner’s account. If it is later determined that the homeowner satisfied any
outstanding fees or shortages, the Servicer shall apply any HHF funds received from the Eligible
Entity under this section as either an escrow overage or principal reduction to the homeowner’s
benefit. Servicers will not apply HHF funds to HOA payments unless HOA payments have been
escrowed and are included in the homeowner’s monthly PITIA payment. Servicer should refer to
current, applicable Operational Term Sheet(s) for complete guidelines.

12. Escrows. For the Unemployment Mortgage Assistance Program, neither party will require non-
escrowed loans to become escrowed. During the period of unemployment assistance, the
homeowner will be responsible for paying non-escrowed property-related expenses (e.g.,
property taxes and insurance).

13. Timely Payment, Etc. Eligible Entity will use reasonable efforts to timely remit all of the
required HHF monies to Servicer. Funds will be distributed to the Servicer as outlined in the
Servicer Funding Agreement, attached as Exhibit B and the CDF. Servicer is responsible for
ensuring HHF funds are applied to homeowner’s account without unnecessary delay. Servicer
shall hold the homeowner harmless in the event Servicer receives payment in a timely manner
and fails to apply such funds in accordance with this Agreement. Eligible Entity and Servicer will
provide appropriate reports, as outlined in the CDF, to document the application of HHF monies.
For the Unemployment Mortgage Assistance Program, Servicer shall notify Eligible Entity in
writing of any change in such payment at least 30 calendar days prior to scheduled change,
unless otherwise agreed to by both parties. Where possible, the Eligible Entity will provide at
least 30 calendar days notice before it will cease homeowner payments to allow the Servicer
time to evaluate the homeowner for other loss mitigation options.

14. Fraud Detection, Etc. Eligible Entity is responsible for fraud detection (including, without
limitation, obtaining a Dodd-Frank Certification from each homeowner) and for ensuring the
continuing eligibility of the homeowner for HHF monies. Servicer will have no obligation to repay
amounts applied to a homeowner’s loan if that homeowner is later determined to be ineligible to
receive HHF monies. Servicer should notify the Eligible Entity of any ongoing action against a
homeowner, including fraud-related activities, or if the Servicer has evidence that the property is
non-owner occupied.

15. Servicer Program Participation: Please indicate the Programs in which you wish to
participate:

________ Unemployment Mortgage Assistance Program (“UMA”)

________ Mortgage Reinstatement Assistance Program (“MRAP”)

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 ________ Principal Reduction Program (“PRP”)

[ ] Recast Only (“PRP-K”)

[ ] With Modification (“PRP-P”)

________ Transition Assistance Program (“TAP”)

Servicers may review homeowners for HAMP or other investor specific workout programs
that may or may not utilize HHF.

16. Subsequent Agreements. Servicer and Eligible Entity acknowledge that one or more written
agreements may be necessary to implement the Program(s) efficiently and effectively. The
parties will work cooperatively and in good faith to negotiate and execute any further
agreement(s).

By: _____________________________ By: ____________________________

Sandra Gallagher Name: _________________________

Servicer Relations Manager Title: ___________________________

CalHFA Mortgage Assistance Corporation

Date: ___________________________ Date: ___________________________

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 Exhibit A

Term Sheets
[See associated Term Sheet document(s)]

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 Exhibit B

Servicer Funding Agreement

Keep Your Home California Program

CalHFA Mortgage Assistance Corporation

P O Box 4034, MS 115

Sacramento, CA 95812
ACH Credit Requests:

Requests for Keep Your Home California (“KYHC”) funding ACH Credits will be processed by the Keep
Your Home California Centralized Processing Center (“CPC”). Each request must be accompanied by the
following documentation:


Servicers will complete the Common Data File entries and submit
the required information to
the CPC via a secured FTP site to request program benefit assistance.

 
 CPC will complete and submit the Servicer’s Request for KYHC Funding Form, which will include:

o Borrower Funding Summary
  
Servicer loan number
 
Borrower name, address and phone number
o KYHC program participation description (e.g., what program(s), how much
requested per program, confirmation that $100,000 total benefit cap not exceeded).

This process will be triggered by the receipt of all required data from both homeowner and Servicer
enabling an informed decision regarding approval of assistance.

Return of HHF Monies Due to Unused Funds:

In the event that KYHC program funds are not used for a homeowner file, CalHFA MAC reserves the
right of return of said monies. Formal notice will be sent documenting the circumstances and requesting
return of funds with return ACH Credit instructions. Servicers will have 10 business days to remit
payment. If funds are not returned in the specified time period, CalHFA MAC reserves the right to
terminate this Agreement.

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Servicer Funding Instructions:

Servicers will complete and return an executed Servicer Funding Instruction (below) to CalHFA MAC to
be used to remit program funding. KYHC fundings are scheduled weekly. Clear to fund notification must
be received by the close of business Thursday to be transmitted by the Friday of the following week.
Fundings will be remitted after reconciliation and approval of the Servicer’s required supporting
documentation. Approved fundings will be disbursed by Friday at 2:30 PM Pacific time. ACH Credits will
be sent no later than 30 days from receipt of the Request for KYHC Funding. CalHFA MAC recommends
that a unique and separate account is established for incoming KYHC ACH Credits.

Complete and return this document along with an executed Memorandum of Understanding

Date:_______________________ Signature: __________________________

Name: _________________________________

Title: _________________________________

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