N.J. Admin. Code § 5:80-21.4 - Compensation adjustment due on transfer
(a) The
compensation paid to the Agency shall be adjusted upon sale or transfer by a
servicer of Agency loans. At the time of the transfer, the servicer shall pay
to the Agency an amount equal to three times the service fee earned for the
month during which the transfer occurs.
(b) Compensation adjustment shall not be paid
on loans in foreclosure or loans in default over 60 days.
(c) The compensation adjustment set forth in
(a) above shall not apply to:
1. Newly
originated loans sold or transferred by sellers (originators) who are not
Agency approved servicers;
2.
Servicers of portfolios with 150 loans or less that are transferring their
entire Agency portfolio;
3.
Servicers who are subject to a servicer's agreement that provides for
compensation adjustment of amounts less than those provided by these rules;
and
4. Loan sale or organizational
transactions for which no compensation is involved.
Notes
See: 28 New Jersey Register 4833(a), 29 New Jersey Register 5285(a).
In (a), inserted a reference to agreements between the Agency and the transferring servicer; and in (b), inserted the second sentence.
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(a) The rules within this subchapter and all terms and conditions of the then current agreements between the Agency and the transferring servicer shall apply in their entirety to any subsequent transfers by servicers who became successor servicers under the provisions of these rules.
(b) Successors servicers shall assume and abide by all the terms, including compensation adjustments, of the applicable mortgage servicing agreements on the loans being serviced unless different terms are agreed to in writing by the successor servicer and the Agency . Portfolio records shall be delivered to the successor, including, but not limited to, current and past status, escrow balances, and prepayment and curtailment information. Transferor and transferee shall fully indemnify the Agency against losses or claims resulting from the transfer.
Notes
See: 28 New Jersey Register 4833(a), 29 New Jersey Register 5285(a).
In (a), inserted a reference to agreements between the