EXHIBIT 5


                                                 October 30, 2003



Board of Directors
PennFed Financial Services, Inc.
622 Eagle Rock Avenue
West Orange, New Jersey 07052

Members of the Board:

     We have acted as counsel to PennFed  Financial  Services,  Inc., a Maryland
corporation  (the  "Company"),  in connection  with the  preparation and filing,
pursuant  to Rule  414(d)  under the  Securities  Act of 1933,  as amended  (the
"Securities  Act"), of  Post-Effective  Amendment No. 1 (the "Amendment") to the
Registration  Statement  on Form S-3  (the  "Registration  Statement")  filed on
January 28, 1997  (Registration No.  333-20499) by PennFed  Financial  Services,
Inc., a Delaware corporation ("PennFed Delaware").  The Company is the successor
to PennFed  Delaware as a result of a  reincorporation  merger  whereby  PennFed
Delaware merged with and into the Company, its wholly owned subsidiary, with the
Company as the surviving corporation, pursuant to the Plan of Reorganization and
Agreement  of Merger,  dated as of September  16, 2003,  between the Company and
PennFed Delaware (the "Merger  Agreement").  The Registration  Statement and the
Amendment  relate to shares of the common stock,  par value $0.01 per share (the
"Common Stock"), of the Company issuable by the Company (as successor to PennFed
Delaware) under the PennFed Financial Services,  Inc. Dividend Reinvestment Plan
(the "Plan").  The Plan  provides  that shares of Common Stock  utilized for the
Plan  may be  either  issued  directly  from  the  Company  ("original  issuance
securities")  or purchased on the open market by the plan  administrator  or its
agent.  This  opinion  is  limited  to those  shares of Common  Stock  which are
original issuance securities.

     In this  connection,  we have  reviewed  originals or copies,  certified or
otherwise identified to our satisfaction, of the Merger Agreement, the Plan, the
Company's charter and bylaws,  PennFed  Delaware's  certificate of incorporation
and bylaws,  resolutions  of the boards of  directors of the Company and PennFed
Delaware  and such other  documents  and  corporate  records  as we have  deemed
appropriate for the purpose of rendering this opinion.

     Based upon the foregoing, it is our opinion that with respect to the shares
of Common Stock being so registered that are original issuance securities:

1.   Such shares have been duly authorized.

2.   Such shares will be, when issued,  sold and paid for as contemplated by the
     Plan, legally issued, fully paid and non-assessable.

     We hereby  consent  to the  inclusion  of our  opinion as Exhibit 5 to this
Registration  Statement.  In giving  this  consent,  we do not admit that we are
within the category of persons whose consent is required  under Section 7 of the
Securities  Act or the rules and  regulations  of the  Securities  and  Exchange
Commission thereunder.

                                             Very truly yours,



                                             /s/ SILVER, FREEDMAN & TAFF, L.L.P.