September 11, 2025

Lender Bulletin 2025-15

Important Information: Tax Service Fee Charges

Effected Programs: First Time Homebuyer, Homeward Bound, HFA Advantage

Attention Lenders:

Effective with reservations on or after November 1, 2025, NJHMFA will begin assessing a $75.00 Tax Service Fee for all First Time Homebuyer, Homeward Bound, and HFA Advantage loans. This fee will be netted from the Purchase wire as a separate line item on the Purchase Advice for each loan. Lenders are permitted to charge Tax Service fees to borrowers, provided the loan fees are charged in accordance with all First Insurer and regulatory guidance. Lenders should work with their internal compliance division to determine acceptable fees by loan type for conventional and government insured/guaranteed mortgages.

NJHMFA does not expect lenders to order the Tax Service Contract on loans. NJHMFA’s sub-servicing provider will order the Tax Service Contract once the loan is placed into service with the Agency.

Currently, a similar procedure is in place for PFRS loans, although those fees are handled by check. PFRS loans will continue to have Tax Service Fees handled via check. We will now assess the Tax Service Fee on all loan programs to provide a more consistent process and experience, ensure accurate monitoring and payment of property taxes, be in line with industry correspondent practice on fee collection, and to ease the compliance process for our lending partners.