N.J. Admin. Code § 5:80-21.2 - Agency review and approval of transfer
(a) No
servicer may enter into any transfer as specified in
5:80-21.1 without obtaining prior
written consent of the Agency. Approval of all transfers shall be made by the
Executive Director of the Agency.
(b) In order for a transfer to be approved,
the successor servicer must meet all of the following requirements:
1. Is a currently approved Agency
seller/servicer and has a demonstrable ability to service an Agency portfolio,
of the size to be transferred;
2.
Have a net worth consistent with the standards set forth by the Federal
National Mortgage Association (FNMA) and acceptable to bond insurers, where
applicable;
3. Have a servicing
portfolio of at least $ 25 million in total outstanding principal
balances.
4. Be an approved
servicer for the FNMA or Federal Home Loan Mortgage Corporation (FHLMC). If the
servicer is not FNMA/FHLMC approved, the Agency reserves the right to make its
own determination;
5. Have current
certified financial statements and servicing and delinquency statistics that
are satisfactory to the Agency;
6.
Completion of the participation application to the satisfaction of the
Agency;
7. Completion of the
Agency's Questionnaire for Servicing Transfers to the satisfaction of the
Agency. This form must also be completed by the transferring
servicer;
8. Evidence of fidelity
insurance, errors and omission insurance and other insurance required by the
Agency;
9. If a successor servicer
is an existing Agency servicer, there must be a record of acceptable servicing
performance, as determined by the Agency; and
10. Be approved by any entity which has
provided insurance for the specified bonds, if required by that
entity.
(c) In addition
to the requirements in (b) above, the successor servicer shall meet all
requirements of the Agency's General Resolution and other documents issued in
connection with the sale of bonds from which the financing for the serviced
loans has been provided.
Notes
See: 28 New Jersey Register 4833(a), 29 New Jersey Register 5285(a).
Renamed the section; rewrote (b)1 and (b)2; in (b)3, deleted the requirement that the servicing portfolio contain at least 200 loans, and increased the minimum portfolio size to $ 25 million dollars; and added (b)10 and (c).
Amended by R.2000 d.132, effective
See: 32 New Jersey Register 191(a), 32 New Jersey Register 1065(a).
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