N.J. Admin. Code § 5:80-13.8

Current through Register Vol. 56, No. 24, December 18, 2024

Section 5:80-13.8 - Refinancing of pre-existing single family mortgage loans

(a) The Agency shall not acquire any single family mortgage loans made for the purpose of refinancing pre-existing single family mortgage loans. However, a mortgage loan made by a mortgage seller to finance the substantial rehabilitation of property upon which there is a pre-existing mortgage loan may include the refinancing of the pre-existing mortgage loan and still qualify as a single family mortgage loan under the following conditions:

1. At least 50 percent of the proceeds of the single family mortgage loans made by the mortgage seller shall be used to pay for labor and materials used to rehabilitate the property;

2. The single family mortgage loan shall be made only to a person determined in advance by the Agency to be a person of low or moderate income;

3. The economic facts and circumstances of the mortgagor and the property are such that the rehabilitation could not have been financed by other means;

4. The mortgage seller delivers to the Agency a certificate executed by the mortgage seller certifying that it reasonably believes, based upon prior investigation, that the conditions above have been met and that the refinancing of the pre-existing mortgage loan is incidental and necessary to the purpose of accomplishing the rehabilitation of the property and stating the facts and circumstances upon which the determination in (a)3 above was made; and

5. The executive director of the Agency determines and certifies that the facts and circumstances in the mortgage seller's certificate support the conclusion that the refinancing of the pre-existing mortgage loan is incidental and necessary to the purpose of accomplishing the rehabilitation of the property.

N.J. Admin. Code § 5:80-13.8