NJHMFA Lender Bulletin
Important Program Updates for Participating Lenders
August 21, 2020
Lender Bulletin 2020-11:
Forbearance Guidance for New Loan Purchases
Effected Programs: All Programs
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:

As part of NJHMFA’s ongoing response to the COVID-19 pandemic and the related forbearance activity, NJHMFA is providing an update to the initial guidance communicated in bulletin 2020-7. 

NJHMFA is not accepting PFRS or First Time Homebuyer loans for purchase if the loan is in forbearance. NJHMFA will purchase these loans once the loan exits forbearance, provided the loan has been remedied in accordance with first mortgage insurer/investor guidelines.

Homeward Bound loans are able to be purchased by NJHMFA if the loan is in forbearance, provided that the loan is purchased by the third business day of the month for the monthly payment due. If the loan is already past this date or is delinquent for a prior month’s payment, the loan is not eligible for purchase until after it exits forbearance and is in saleable condition.  

Additionally, participating lenders are required to adhere to the CARES Act, as applicable. Loans with FHA insurance or VA/RHS guarantee are federally-backed mortgages. Accordingly, lenders are required to offer forbearance on applicable loans if a request is received from the borrower. In order to ensure compliance with these guidelines, participating lenders are required to attest to the following statements before each loan is approved for purchase. 

Loans not in Forbearance:
Participating lenders are required to provide a lender attestation on company letterhead that certifies the following statements:
  • The loan is not currently in forbearance.
  • The borrower(s) has not requested or expressed a need for a forbearance.
  • As a lender I have not made part or all of the borrower’s monthly payments on the borrower’s behalf in an effort to get this loan approved for purchase.

Lenders must use the text of the sample letter provided and all letters must contain only the statements enclosed in our sample letter. Letters must be signed by a member of management that is authorized to accept accountability on behalf of the lender. The letter will be requested by NJHMFA at the same time as the final pay history is requested, and should be dated by the lender within five business days of the expected purchase date. 

Homeward Bound Loans in Forbearance:
This applies only to Homeward Bound loans that meet NJHMFA requirements to be purchased while in forbearance. Lenders should use this alternate letter, including the below statements:
  • This Homeward Bound loan has entered into a forbearance agreement but has not missed any payments as defined by the Note. 
  • As a lender I have not made part or all of the borrower’s monthly payments on the borrower’s behalf in an effort to get this loan approved for purchase.
  • I will not make any attempt to sell this loan to NJHMFA after the third business day of the month of the current due payment. 

Please refer any questions or issues regarding the above to the NJHMFA Business Development Team at SFLenders@njhmfa.gov.
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 at the Lender Resources Page: www.njhousing.gov/lenders/
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New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov