This bulletin details the updates made by NJHMFA to comply with HUD Mortgagee Letters 19-06 and 19-07. The changes below will be effective for FHA Case Numbers assigned on or after July 23, 2019.
The New Jersey Attorney General's Office has provided the required Legal Opinion Letter that New Jersey Housing and Mortgage Finance Agency has the appropriate governmental authority to provide Down Payment Assistance. Additionally, NJHMFA is jurisdictionally approved in the State of New Jersey to provide Down Payment Assistance to qualified borrowers.
In compliance with the HUD Mortgagee Letter 19-06, NJHMFA will begin utilizing a new Down Payment Assistance (DPA) Award Letter and we have updated the existing Commitment Letter for all FHA-insured First Mortgages with Down Payment Assistance. The new DPA Award Letter and updated Commitment Letter have been reviewed and approved by NJHMFA's Legal team. The DPA Award Letter and Commitment Letter adhere to the governmental requirements for administering DPA Programs.
It has also been determined that the existing purchase advice and related documents appropriately satisfy the requirement that the Agency provide our lending partners with documentation of the satisfaction of the obligation to fund the DPA with Agency funds. This documentation should be maintained in all Mortgagee files.
To request a sample copy of the Down Payment Assistance Award Letter and the updated Commitment Letter, please send an email request to the Single Family Business Development Team at
We have included links to the Legal Opinion Letter, and to the sections of the NJ statute that provide our governmental authority and proper jurisdiction.