N.J. Admin. Code § 5:80-21.2

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

Section 5:80-21.2 - Agency review and approval of transfer

(a) No servicer may enter into any transfer as specified in N.J.A.C. 5:80-21.1 without obtaining prior written consent of the Agency. Approval of all transfers shall be made by the Executive Director of the Agency.

(b) In order for a transfer to be approved, the successor servicer must meet all of the following requirements:

1. Is a currently approved Agency seller/servicer and has a demonstrable ability to service an Agency portfolio, of the size to be transferred;

2. Have a net worth consistent with the standards set forth by the Federal National Mortgage Association (FNMA) and acceptable to bond insurers, where applicable;

3. Have a servicing portfolio of at least $ 25 million in total outstanding principal balances.

4. Be an approved servicer for the FNMA or Federal Home Loan Mortgage Corporation (FHLMC). If the servicer is not FNMA/FHLMC approved, the Agency reserves the right to make its own determination;

5. Have current certified financial statements and servicing and delinquency statistics that are satisfactory to the Agency;

6. Completion of the participation application to the satisfaction of the Agency;

7. Completion of the Agency's Questionnaire for Servicing Transfers to the satisfaction of the Agency. This form must also be completed by the transferring servicer;

8. Evidence of fidelity insurance, errors and omission insurance and other insurance required by the Agency;

9. If a successor servicer is an existing Agency servicer, there must be a record of acceptable servicing performance, as determined by the Agency; and

10. Be approved by any entity which has provided insurance for the specified bonds, if required by that entity.

(c) In addition to the requirements in (b) above, the successor servicer shall meet all requirements of the Agency's General Resolution and other documents issued in connection with the sale of bonds from which the financing for the serviced loans has been provided.

N.J. Admin. Code § 5:80-21.2

Amended by R.1997 d.523, effective 12/15/1997.
See: 28 New Jersey Register 4833(a), 29 New Jersey Register 5285(a).
Renamed the section; rewrote (b)1 and (b)2; in (b)3, deleted the requirement that the servicing portfolio contain at least 200 loans, and increased the minimum portfolio size to $ 25 million dollars; and added (b)10 and (c).
Amended by R.2000 d.132, effective 3/20/2000.
See: 32 New Jersey Register 191(a), 32 New Jersey Register 1065(a).