뉴저지 모기지 Advisor

New Jersey 모기지 뉴스/정보 공유

Consumer Protection Measures Strengthening State Mortgage Regulations Signed in Law

Author
admin
Date
2019-04-30 14:14
Views
1307
Consumer Protection Measures Strengthening State Mortgage Regulations Signed in Law


Consumer Protection Measures Strengthening State Mortgage Regulations Signed in Law
Mandate License for Mortgage Servicers and Impose Fines of Up $25,000 for Violators; Sets Provisions for Out-of-State Mortgage Lenders



(TRENTON) – Two measures aiming to strengthen consumer protections for residential mortgages and to develop a solutions-driven strategy in response to New Jersey’s residential foreclosure crisis were signed into law Monday.

One law (A-4997), the “Mortgage Servicers Licensing Act,” is sponsored by Assembly Democrats Yvonne Lopez (D-Middlesex), Vincent Mazzeo (D-Atlantic) and Carol Murphy (D- Burlington) and requires anyone working as a mortgage servicer to obtain a license from the Commissioner of Banking and Insurance for each main office and each branch office where business is conducted, unless the person is exempt under provisions outlined in the bill.
“A home is one of the most expensive purchases that a consumer makes in a lifetime,” said Lopez. “So it only makes sense that the person securing the purchaser’s mortgage be licensed and properly credentialed. This serves as a safeguard against fraud on many levels for consumers.”
The law defines a mortgage servicer as any person, wherever located, who performs certain functions for the holder of a residential mortgage loan secured by real property located in New Jersey. License applicants will be required to meet specific financial, character and fitness requirements and be mandated to file information annually regarding the mortgages serviced in the state. The law also stipulates that mortgage servicers file a surety bond, fidelity bond, and evidence of coverage with the Commissioner.

“A major part of the foreclosure crisis has been mortgages that were serviced by individuals who were not properly trained and in many cases, simply operated using unethical practices,” said Mazzeo. “This new law creates a checks and balances of sorts as it pertains to mortgage services.”

A mortgage servicer exempted from licensure will still be required to maintain records of each residential mortgage loan transaction and produce related records as requested. Upon assigning the servicing rights on a residential mortgage loan, the servicer will be required to make certain disclosures to the mortgagor as per the law. In addition, a mortgage servicer will need to maintain a schedule of fees charged to mortgagors. The bill also prohibits certain unfair and deceptive trade practices.

“There are thousands of New Jerseyans who poured their hard-earned money, savings and in some cases, inheritance into purchasing a home only to see these funds vanish due to a poorly serviced mortgage,” said Murphy. “These are lost funds that could take decades for these homebuyers to recover.”

The law authorizes the commissioner to investigate and examine mortgage servicers and suspend, revoke, or refuse to renew a mortgage servicer license for reasons defined in the bill. Violators can be penalized with a crime of the third degree and be subject to civil penalties of up to $25,000. The law will take effect in 90 days.

The second new law (A-4998) clarifies provisions of the “New Jersey Residential Mortgage Lending Act.” Sponsored by Assemblyman Benjie Wimberly (D-Bergen, Passaic) and Assemblywoman Patricia Egan Jones (D-Camden, Gloucester), it sets guidelines whereby out-of-state residential mortgage lenders, residential mortgage brokers and mortgage loan originators will need to be licensed as per the provisions defined in the act. Specifically, the act regulates the New Jersey mortgage loan origination activities of mortgage companies and their individual mortgage loan originators (MLOs). It also establishes licensing requirements for mortgage companies and MLOs; sets the qualifications needed to obtain those licenses; lists the fees mortgage companies may charge consumers; regulates how mortgage companies may deal with consumers; gives New Jersey Department of Banking and Insurance supervisory and enforcement authority over mortgage companies and MLOs; and imposes mortgage companies various reporting requirements.

“Mortgage lenders must be held to the same standards, regardless of whether they are located in New Jersey or elsewhere,” said Wimberly. “They must be authorized to operate here, monitored and held accountable.”
“Establishing these types of guidelines is necessary to ensure that the mortgage services consumers receive are not compromised,” said Egan Jones.

The law will take effect immediately.
Both laws were introduced on February 7, 2019.


https://www.insidernj.com/press-release/consumer-protection-measures-strengthening-state-mortgage-regulations-signed-law/
Total 111
NumberTitleAuthorDateVotesViews
111
[Pending] Waiting for administrator Approval.
admin | 2024.01.03 | Votes 0 | Views 266
admin2024.01.030266
110
[Pending] Waiting for administrator Approval.
admin | 2024.01.03 | Votes 0 | Views 224
admin2024.01.030224
109
[Pending] Waiting for administrator Approval.
admin | 2024.01.03 | Votes 0 | Views 249
admin2024.01.030249
108
美 모기지 상환비용, 월세의 1.5배…"27년 만 최대 격차"
admin | 2023.10.24 | Votes 0 | Views 266
admin2023.10.240266
107
미국서 집 사서 모기지 갚으려면 1년에 11만 5천불은 벌어야
admin | 2023.10.22 | Votes 0 | Views 260
admin2023.10.220260
106
8% 향하는 미국 모기지 금리…"주택 수요 빠르게 식어"
admin | 2023.10.07 | Votes 0 | Views 311
admin2023.10.070311
105
미국 모기지 금리 연 7.49%…2000년 12월 이후 최고
admin | 2023.10.06 | Votes 0 | Views 264
admin2023.10.060264
104
[Pending] Waiting for administrator Approval.
admin | 2023.10.05 | Votes 0 | Views 287
admin2023.10.050287
103
모기지 고금리에도 여전히 뜨거운 전국 주택시장
admin | 2023.10.03 | Votes 0 | Views 312
admin2023.10.030312
102
[Pending] Waiting for administrator Approval.
admin | 2023.09.05 | Votes 0 | Views 330
admin2023.09.050330
101
미국 모기지은행협회 지난 2년간 모기지금리
admin | 2023.09.05 | Votes 0 | Views 302
admin2023.09.050302
100
[부동산] 모기지론 종류와 수수료
admin | 2023.09.05 | Votes 0 | Views 317
admin2023.09.050317
99
5월 1일부터 새 모기지 수수료 규정이 시행
admin | 2023.06.01 | Votes 0 | Views 267
admin2023.06.010267
98
“매매차익·배당수익 다 잡는 미국 리츠, 무릎까지 하락”
admin | 2023.05.04 | Votes 0 | Views 352
admin2023.05.040352
97
미국 5월부터 새 모기지 규정 시행 ‘신용점수 높은 주택구입자 수수료 2배’
admin | 2023.05.03 | Votes 0 | Views 405
admin2023.05.030405