January 20, 2022
Correction issued to update bulletin number only
Lender Bulletin 2022-1:
Updates to the Policy and Procedures (Seller’s Guide) for Participating Lenders 
Effected Programs: All Programs
Effective Date: January 24, 2022
Due to the current health concerns related to COVID-19, the vast majority of NJHMFA staff will be working remotely until further notice. Please contact Agency staff via their work email address. NJHMFA encourages all of our business partners and constituents to submit any and all documentation in an electronic format whenever possible as staff will continue to check email and review information submitted electronically.  
Attention Lenders:
NJHMFA Seller’s Guide Updates

This bulletin details updates to the Policy and Procedures for NJHMFA Participating Lenders (Seller’s Guide). The new version of the Seller’s Guide will take effect on January 24, 2022 and is currently available to review on the Agency’s website. Loans reserved prior to January 24, 2022 are eligible for the new, less restrictive guidelines in the updated version of the Seller’s Guide. The prior version will remain available on the Agency’s website for reference purposes.  
Some of the key changes to the guide include the following updates:

  • HMFA will now require only one (1) month of reserves instead of two (2) for the Homebuyer Programs (First Time Homebuyer, Homeward Bound and HFA Advantage)
  • The term Annual Household Income has been clarified to only include borrowers, co-borrowers and mortgagors that intend to occupy the dwelling within 60 days of the closing date. Other household members are not included in this calculation.
  • The pre-closing Verbal Verification of Employment (VVOE) is no longer required within three (3) days of closing. The pre-closing VVOE is now required within the shorter of investor/insurer guideline, or ten (10) days.
  • The retired Homeseeker Program has been removed, as have the associated references to the Dodd-Frank Act.
  • HMFA will now limit pest inspection requirements for all programs to instances where the appraiser notes evidence of infestation or damage.
  • The definition of liquid assets used in the down payment assistance program asset test has been clarified to include gift funds
  • PFRS disclosure guidelines now require the monthly servicing fee to be included in the monthly payment and disclosed on the first payment letter and the pay history
  • All loans must meet all underlying investor/insurer requirements as well.

A summary of the new changes and the updated Seller's Guide can be accessed below. All pre-closing and purchase checklists have been updated to account for all of these changes.
Questions? Need Help? 
If you have questions about one of our loan products or need help with a loan in the ILRS system, please e-mail your requests to SFLenders@njhmfa.gov.

Access forms, checklists, policies, previous lender bulletins and more on the NJHMFA Lender Portal. 
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New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov