Our firm utilizes years of experience in representing lenders in CEMA (Consolidation, Extension, and Modification Agreement) transactions. A CEMA is a legal document that enables a consumer and lender to utilize Section 255 of the New York State Tax Law to reduce the mortgage tax in a refinance or purchase transaction. The CEMA process involves the consolidation of the additional amount financed with the existing balance on an open mortgage of record. This consolidation permits a reduction in mortgage tax which is computed only on the additional amount financed.

A CEMA potentially allows for significant savings to a borrower and lender on refinance transactions. It is also used as a method of achieving savings to a buyer, lender and seller on purchase transactions.

  • On refinance transactions, the purpose of a NY CEMA is to reduce the cost of mortgage tax for both the borrower and lender. Borrowers save between $780 and $1,800 per $100,000 of the existing mortgage. The lender is always responsible for .25% of the total tax; so as total tax is reduced, the greater the savings to the lender.
  • On purchase transactions, a CEMA reduces the amount of mortgage tax for the buyer and lender, as well as the transfer tax for the seller. The savings may total over thousands of dollars for the buyer, lender and seller.

Our firm works within a structured CEMA management framework in order to ensure that our CEMA transactions are enforceable, recordable, and comply with investor guidelines for loan sale on the secondary market. Throughout the process, we provide outstanding customer service to help our clients navigate through the process.


  • CEMA calculator & bundled fees for CEMA transactions services.
  • Customized training available On-site or On-line.
  • Loan collateral acquisition, management, and delivery services.
  • CEMA legal document preparation.
  • Purchase CEMA transaction management.
  • Coordinate with all parties to ensure understanding of program.
  • Provision of all associated documents and agreements.
  • Collateral ordering & assignment process.
  • Assumption agreement ordering & tracking.
  • Attorney-Reviewed witness closings & expert CEMA funding.


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