Bulletin: NJ2019004

Date:
July 03, 2019
To:
All New Jersey Issuing Offices
RE:
UNDERWRITING - NJ REO Properties - Affordable Housing Restrictions

Dear Associates:

Please be advised that on June 24, 2019, the State of New Jersey enacted the following bill, P.L.2019, c.132, concerning affordability controls on affordable housing. In relation to real estate owned (REO) properties, this bill now states that a deed restriction on affordable housing is not extinguished because of a foreclosure on that property. Therefore, when reviewing county and chancery searches for REO properties, please note any affordable housing restrictions that are disclosed of record, and always include them as an exception in your title commitment. The seller will need to obtain a recordable release of the restriction in order to be removed as an exception. 

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THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None