Posted by Monique/NY on 6/18/07 12:02pm
Msg #195628

CEMA

I just had a closing which featured a CEMA Agreement. The borrower had no idea what was happening, or why we had two sets of notes and mortages (neither did I), we couldn't reach the loan officer or title company, and even if I knew what it was, I can't explain it anyway. She almost didn't sign. In the 4 years I've been witnessing signings, I've never come across this, let alone heard of it. Can someone please explain exactly what it is, what documents are required, and anything else I may have forgotten? I need to know what to look for when I run across something like this again.

Reply by Linda_H/FL on 6/18/07 12:15pm
Msg #195631

Try this link - maybe it will help - if not, google CEMA loan - you might find your answer

www.nycmortgage.com/CEMA.php

Reply by ZeeCA on 6/18/07 12:20pm
Msg #195633

Re: CEMA... I found this

"If a NY CEMA is used, you must deliver the complete NY CEMA delivery package listed below,
together with a separate, originally executed Consolidated Note, to Freddie Mac’s Document
Custodial Services Department or an eligible document custodian."

from http://www.freddiemac.com/cim/pdf/nycemaqa.pdf

Reply by Becca_FL on 6/18/07 12:41pm
Msg #195636

Check out this link for NY CEMAs

http://forum.brokeroutpost.com/loans/forum/2/8202.htm

Reply by Michael Coticchio on 6/18/07 2:00pm
Msg #195641

I do these all the time for one of my clients.

A CEMA is a Consolidation, Extension and Modification Agreement. I think they're unique to NY, and they're a way to avoid paying NYS mortgage tax on the whole amount of the loan. The two notes and two mortgages then get consolidated into one. You've got the CEMA, the note, a gap mortgage and a gap note. They only pay mortgage taxes on the gap (the difference between the original mortgage and the new one).

Reply by DonR_NYC on 6/18/07 8:09pm
Msg #195697

Send me your e-mail address and I'll forward to you an article I wrote for the Signing Registry newsletter which explains CEMA's in plain english.

Reply by Monique/NY on 6/25/07 4:17pm
Msg #196868

Thank you everyone for your responses. Sorry for the delay in my response - I just returned from a family emergency.