N.J. Admin. Code § 5:80-21.3

Current through Register Vol. 57, No. 1, January 6, 2025

Section 5:80-21.3 - Compensation adjustment due on transfer

(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.

N.J. Admin. Code § 5:80-21.3

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 (a); in (b) substituted "Compensation adjustment" for "A transfer fee" and added (c).