NJHMFA Renegotiation and Extension (R&E) Process and Form
Rules of Engagement:
NJHMFA will permit a maximum of one Renegotiation and Extension (R&E) per loan and R&E is only available for
products that NJHMFA makes eligible for this process.
1. R&E must be requested by the borrower, and may not be solicited by the Lender.
2. R&E may only be requested when loan is less than 40 days prior to loan closing, and must be requested at
least 5 business days prior to closing.
3. R&E must be redisclosed by Lender in a timely manner and in accordance with all relevant mortgage
compliance regulations and requirements.
4. If the loan is expired at the time of receipt of the R&E request, NJHMFA will extend at cost in 30 day
increments and apply the R&E. Requests on cancelled loans will be denied.
5. R&E request must be completed by the Lender using this form, and submitted to firstname.lastname@example.org. Any
request with information deemed incomplete or incorrect by NJHMFA will not be approved, and once the
request has been denied the lender may submit a new request, subject to new market terms. Once an R&E
request is received by email@example.com, no revised or corrected R&E request may be submitted for the
loan until the pending request has been fully completed.
6. Any loan(s) cancelled and re-reserved for the (any of the) same borrower(s) and the same property will be
treated as one loan, subject to all R&E rules and terms, unless the preceding loan(s) were expired for a full 60
days prior to re-reservation.
Renegotiation and Extension Terms:
1. 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%.
2. 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.
3. R&E application will result in an extension of the lock expiration date by 3 business days, to allow time for
proper redisclosures to be completed.
4. Any applied adjustments to the rate sheet price remain applicable to the loan, including any extensions
applied prior to the R&E or after the R&E.
5. 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.
6. R&E fees must not be passed on to the borrower.
7. Participating Lenders that wish to restrict R&E submissions to certain authorized users may submit the
approved roster of signers to firstname.lastname@example.org.
Lender Name: ________________________________
NJHMFA Loan #: ______________________________
Borrower Last Name: __________________________
Applied Rate: _____________________
Original Rate: _______________
New Loan Price: ___________________
Requested Rate: _____________
New Expiration Date: _______________
V 1.0 dated 012819