New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY
Subchapter 21 - TRANSFER OF SERVICING OF SINGLE FAMILY MORTGAGE LOANS
Section 5:80-21.3 - Compensation adjustment due on transfer
Universal Citation: NJ Admin Code 5:80-21.3
Current through Register Vol. 56, No. 18, September 16, 2024
(a) The compensation paid to the Agency shall be adjusted upon sale or transfer by a servicer of Agency loans. At the time of the transfer, the servicer shall pay to the Agency an amount equal to three times the service fee earned for the month during which the transfer occurs.
(b) Compensation adjustment shall not be paid on loans in foreclosure or loans in default over 60 days.
(c) The compensation adjustment set forth in (a) above shall not apply to:
1. Newly
originated loans sold or transferred by sellers (originators) who are not
Agency approved servicers;
2.
Servicers of portfolios with 150 loans or less that are transferring their
entire Agency portfolio;
3.
Servicers who are subject to a servicer's agreement that provides for
compensation adjustment of amounts less than those provided by these rules;
and
4. Loan sale or organizational
transactions for which no compensation is involved.
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