Current through Register Vol. 56, No. 18, September 16, 2024
(a) A
selling servicing organization or mortgagee and a purchasing servicing
organization shall both notify the tax collector not more than 45 days after
the actual date, or not less than 10 days prior to the date, the next payment
of property taxes is due, whichever is earlier, of a sale, assignment,
satisfaction, or transfer of a mortgage escrow account by filing an Escrow
Account Transaction Notice (ME-2) or substitute. The form shall be used as
follows:
1. The original of the notice
prepared by the current mortgage holder or the selling servicing organization
shall be mailed or otherwise delivered to the tax collector;
2. The original of the notice prepared by the
new servicing organization shall be mailed or otherwise delivered to the tax
collector. This shall be supplemented with the purchaser's procedure for
responding to questions regarding a mortgage escrow account it
manages;
3. In lieu of separate
forms filed by both the seller and purchaser, the seller may forward the
documentation directly to the new servicing organization for confirmation and
approval. The new servicing organization shall then forward the completed form
to the tax collector on behalf of both parties;
4. In the case of a property owner making
final satisfaction of a mortgage, the section noted "Property Sold or Property
Owner Satisfaction of Mortgage" shall be completed, and sent to the municipal
tax collector;
5. In the case of a
property sale, the section noted "Property Sold or Property Owner Satisfaction
of Mortgage" shall be completed, and sent to the municipal tax collector;
and
6. In addition, in accordance
with 17:16F-17(a),
copies of all initial sale, transfer, and assignment transactions shall also be
sent to the borrower.
(b) A substitute form may be used in lieu of
the ME-2 form. A substitute form shall not describe more than one property, and
must include the following elements:
1.
Property identification information;
2. Date of transaction;
3. Type of transaction;
4. Any internal loan identifying number or
code;
5. For the originator or
seller of a mortgage, servicing organization or property tax processor change;
the name, address, internal identifying number, bank code number, contact
person and phone number related to the organization(s) being changed;
6. For the recipient or buyer of a mortgage,
servicing organization or property tax processor change, the name, address,
internal identifying number, bank code number, contact person and phone number
related to the new organization(s);
7. If the transaction is a sale or owner
satisfaction of a mortgage, indication of which action and the effective
date;
8. If the recipient or buyer
is to receive notice of foreclosure pursuant to N.J.S.A. 54:5-104.4 8,
indication of same and signature of mortgagee representative, typed name and
title; and
9. Name, signature, and
phone number of the individual preparing the notice, date the form was
prepared, and the name of the organization submitting the notice; if the form
is being sent to the recipient or buyer organization for confirmation pursuant
to (a)3 above, this same information for the buying organization.
(c) To ensure that original tax
bills are properly forwarded, the following procedures shall be followed:
1. In the case of a mortgage sale, the holder
of the tax bill shall forward the original tax bill to the new mortgagee or
property tax servicing organization.
2. In the case of a property sale, the holder
of the tax bill shall forward the tax bill to the municipal tax collector. Upon
receipt of a ME-1 notice, the tax collector shall forward the tax bill to the
new servicer of property tax processing organization.
(d) If a donor is a mortgagor whose mortgagee
servicing organization or property tax processing organization pays the
property taxes on the mortgaged parcel, and the donor makes a donation to the
charitable fund, the creditable portion thereof shall be reported by the tax
collector to the mortgagee, servicing organization, or property tax processing
organization. If a credit has been applied to the donor's property tax
obligation, the tax collector shall report the credit to the mortgagee,
servicing organization, or property tax processing organization and any tax
payment made by the mortgagee, servicing organization, or property tax
processing organization toward the credited amount shall be refunded to the
mortgagee, servicing organization, or property tax processing organization by
the municipality.
(e) If a
mortgagor elects to have a portion of his or her mortgage escrow account paid
to a local unit charitable fund in lieu of property taxes, the mortgagor shall
provide the following information to the mortgagee, servicing organization, or
property tax processing organization handling such payments:
1. The name of the local unit or units, and
the charitable fund or funds being donated to;
2. Total contribution amount to each
charitable fund; and
3. The amount
of the contribution creditable toward the mortgagor's property taxes.
(f) If a mortgagor elects to have
a portion of his or her mortgage escrow account paid to a local unit charitable
fund in lieu of property taxes, the mortgagee, servicing organization, or
property tax processing organization shall provide the charitable fund with the
information required under
N.J.A.C.
5:30-18.9, except for the copy of the tax
bill required under
N.J.A.C.
5:30-18.9(a)3v.
(g) If a mortgagor elects to have a portion
of his or her mortgage escrow account donated to a local unit charitable fund
in lieu of property taxes, the mortgagee, servicing organization, or property
tax processing organization shall provide the following information to the tax
collector:
1. Name of property
owner;
2. Address of property;
3. Contact information of the
mortgagee, servicing organization, or property tax processing
organization;
4. Property block,
lot, and qualifier;
5. The
mortgagee's legal interest in the property;
6. Payment amount;
7. The identity of the charitable fund or, if
payment is to be made to multiple charitable funds of the local unit, the
identity of each such local unit charitable fund and the amount of payment to
be made to each such charitable fund; and
8. The portion of the charitable fund
donation creditable toward the property tax obligation.
