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MORTGAGE PROGRAM POLICY AND PROCEDURES FOR PARTICIPATING LENDERS
Revised: November 2019 / Effective January 1, 2020
Table of Contents
Chapter/Section No. INTRO DEF/ROC
Chapter 1 Sec. 1-1 Sec. 1-2 Sec. 1-3 Sec. 1-4 Sec. 1-5
Sec. 1-6 Chapter 2
Sec. 2-1
Sec. 2-2
Chapter 3 Sec. 3-1 Sec. 3-2 Sec. 3-3 Sec. 3-4 Sec. 3-5
Sec. 3-6 Chapter 4 Sec. 4-1 Sec. 4-2 Chapter 5 Sec. 5-1
Sec. 5-2
Title INTRODUCTION DEFINITIONS AND RULES OF CONSTRUCTION Definitions Rules of Construction PARTICIPATING LENDER RELATIONSHIP Initial Qualifications Participating Lender Approval Process Maintaining Participating Lender Approval Status Delegated Participating Lender Qualifications Loan Origination Responsibilities, Process and Requirements Participating Lender Compensation/Fees PARTICIPATING LENDER REPRESENTATIONS AND WARRANTIES Participating Lender, Representations, Warranties and Covenants Participating Lender Integrity, Responsibility and Nondiscrimination FIRST MORTGAGE PRODUCTS NJHMFA-Specific Guidelines Applicable to All Products NJHMFA First-Time Homebuyer Program NJHMFA Homeward Bound Program NJHMFA Stay at Home Program Police and Firemen's Retirement System (PFRS) Mortgage Loan Program NJHMFA 100% Financing Program ASSISTANCE PROGRAMS Smart Start Program HomeSeeker Program AGENCY UNDERWRITING PARAMETERS Participating Lender's General Underwriting Requirements Credit Underwriting Guidelines
Page Intro
i x
1-1 1-3 1-3 1-6 1-7
1-15
2-1
2-5
3-1 3-3 3-10 3-12 3-14
3-19
4-1 4-3
5-1
5-4
Revised Nov. 2019/Eff. Jan. 1, 2020
TOC - 1
Sec. 5-3 Sec. 5-4 Sec. 5-5 Chapter 6 Sec. 6-1
Sec. 6-2 Chapter 7
Sec. 7-1 Sec. 7-2 Sec. 7-3 Sec. 7-4 Sec. 7-5
Sec. 7-6
Chapter 8 Sec. 8-1 Sec. 8-2 Sec. 8-3 Sec. 8-4 Sec. 8-5 Sec. 8-6 Sec. 8-7 Sec. 8-8 Chapter 9 Sec. 9-1
Credit Report
5-9
Citizenship, Permanent and Non-Permanent Residents 5-11
Program Specific Underwriting Requirements
5-12
RATE LOCK POLICY AND PIPELINE MANAGEMENT
Loan Reservation Policy
6-1
A. Requirements
6-1
B. Mortgage Loan Reservation Process
6-2
C. Mortgage Loan Reservations - Confirmations
6-3
D. Price Guaranty Options
6-3
E. Loan Reservation Options
6-4
F. Policy for Extending Mortgage Loan Reservation
6-5
Options and/or Repricing Options
Loan Reservation Pipeline Management
6-6
PROPERTY GUIDELINES: STANDARDS,
CLASSIFICATIONS, REPORTS, CERTIFICATIONS AND
INSPECTIONS
Applicability
7-1
General Property Standards
7-1
Appraisal Reports and Requirements
7-3
Property Types and Classifications
7-5
Property Certifications, Inspections, Testing and
7-11
Reports: General Overview
Property Certifications, Inspections, Testing and
7-12
Reports - Requirements
INSURANCE REQUIREMENTS
Mortgage Insurance
8-1
Title Insurance
8-1
Property Insurance
8-6
General Property Insurance Coverage
8-7
Coverage for Units in Project Developments
8-9
Evidence of Property Insurance
8-13
Flood Insurance
8-14
Mortgagee Clause
8-17
CLOSING THE MORTGAGE LOAN
General Information
9-1
Revised Nov. 2019/Eff. Jan. 1, 2020
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Sec. 9-2 Sec. 9-3 Sec. 9-4 Sec. 9-5 Sec. 9-6 Sec. 9-7 Sec. 9-8 Sec. 9-9 Sec. 9-10 Sec. 9-11 Sec. 9-12 Sec. 9-13 Sec. 9-14 Sec. 9-15
Chapter 10 Sec. 10-1 Sec. 10-2 Sec. 10-3 Sec. 10-4 Sec. 10-5 Sec. 10-6 Sec. 10-7 Chapter 11 Sec. 11-1 Sec. 11-2 Sec. 11-3 Sec. 11-4 Chapter 12
Sec. 12-1
Sec. 12-2
Sec. 12-3
Limitations on Cash Back
9-2
Title Insurance
9-2
Mortgage Instrument(s) and Assignment
9-2
Mortgage Note
9-3
Consistency of Borrower Names
9-4
Co-Signers
9-5
Non Liable Co-Occupants
9-5
Power of Attorney
9-7
Homeowner's Insurance Policy
9-8
Mortgage Insurance Premiums
9-8
Taxes
9-8
Transfer of Servicing
9-9
1098 Reporting
9-9
Possession of a Mortgage Loan File by Participating 9-9
Lender/Servicer and/or Subservicer
SELLING THE MORTGAGE LOAN TO NJHMFA
Performance Standards
10-1
Submitting the Purchase Package
10-1
Servicing Procedures and Documents
10-2
Summary Reports
10-4
Purchase and Sale of Mortgage Loan
10-4
Conditions to Purchase
10-5
Mortgage Loan Benchmarks
10-6
COLLATERAL DOCUMENT SUBMISSIONS
Delivery Deadline
11-1
Delivery
11-1
Collateral Document File
11-1
Missing Documents Report
11-2
PARTICIPATING LENDER NON-COMPLIANCE: BREACH,
REMEDIES AND REPURCHASE
Participating Lender Non-compliance That May Lead to 12-1
Fees
Participating Lender Non-compliance That May Lead to 12-1
Repurchase
Participating Lender Non-compliance That May Result 12-4
in Termination
Revised Nov. 2019/Eff. Jan. 1, 2020
TOC - 3
Sec. 12-4 Chapter 13 13-1 13-2 Appendix I Appendix II Summary
Additional Agency Remedies MISCELLANEOUS Waivers Advertising Standards APPENDIX OF MORTGAGE LOAN FORMS APPENDIX OF APPLICABLE LAWS SUMMARY OF ADDRESSES, CLAUSES AND CONTACTS
12-7
13-1 13-1 Apx I-1 Apx II-1 S-1
Revised Nov. 2019/Eff. Jan. 1, 2020
TOC - 4
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