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What is CEMA?

Updated: 11/2/2022
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15y ago

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cema is a term used in the mortgage industry that helps people avoid paying county taxes again,

if some refinanced a loan of $300k and wants to refi a new loan for $350k 1 year later the cema would allow them to pay taxes on the new money only of $50k. CEMA is only typically charged in New York State.

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What happens if your title company neglect to record a CEMA even though they took the recording fee and now you cannot refinance without paying mortgage tax?

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