Participating Lenders: Please Review
NJHMFA Lender Bulletin
Important Program Updates for Participating Lenders
February 1, 2019
Lender Bulletin 2019-1: Renegotiation and Extension (R&E) Process
Homeward Bound, First-Time Homebuyer
February 1, 2019 for new and existing reservations
In response to your questions,
we have updated the R&E form with two additional numbered points
, which are also added to the original bulletin below,
listed in red
NJHMFA now allows Renegotiation and Extension (R&E) for eligible NJHMFA products. Below outlines the R&E Request Process:
The R&E Rules of Engagement:
R&E must be requested by the borrower, and may not be solicited by the Lender.
R&E may only be requested no more than 40 days and no less than five days prior to closing.
The R&E Request Form:
The R&E request must be completed
by the lender
using the official form found on the Lender Resources Page (see link below or
access the form directly here
), and submitted to
Renegotiation and Extension Terms:
R&E will be applied at the current market interest rate for the applicable product, plus 0.125%. For example, if the loan locked at 6% and market is 5.5%, the R&E will bring the rate to 5.625%.
R&E application will result in a decrease of 0.25 to the Lender’s loan price. For example, if the loan price had been 102.375, the new loan price will be 102.125.
R&E application will result in an extension of the lock expiration date by three business days to allow time for proper re-disclosures to be completed.
Any applied adjustments to the rate sheet price remain applicable to the loan, including extensions applied prior to the R&E or after the R&E.
Eligible products are limited to these specific programs: Homeward Bound and First Time Home Buyer programs. All other programs are ineligible for the R&E process.
R&E fees must not be passed on to the borrower.
Participating Lenders that wish to restrict R&E submissions to certain authorized users may submit the approved roster of signers to
Please see bulletin 2019-2 (which will be sent immediately following this bulletin) for a summary of changes to the
updated 2019 Seller's Guide
Visit the Lender Resources Page on the NJHMFA Website
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
Access Forms, Checklists, Policies, Previous Lender Bulletins and More at the Lender Resources Page:
New Jersey Housing and Mortgage Finance Agency | 609-278-7400 |