As of April 22, 2019, the NJHMFA is amending the allowable lender fee for the First-Time Homebuyer program. Lenders may now charge a reasonable and customary lender fee on the First-Time Homebuyer program as is allowable on the Homeward Bound Program. Fees produced by the Lender for these NJHMFA programs may not exceed fees charged by the lender for other loans of similar investor/insurer type, i.e. FHA, VA, USDA. Under no circumstances shall the fee for the First-Time Homebuyer program exceed $1,200.
This update applies only for new reservations on or after the above-referenced date. Reservations made prior to this date may not be altered, canceled and/or re-reserved in order to charge the borrower a higher lender fee.
This change will be reflected in upcoming updates to the Seller’s Guide, under Chapter 1: Participating Lender Compensation Fees; and Chapter 6: Loan Reservation Policy and Loan Reservation Pipeline Management.