New Jersey Origination Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| Residential Mortgage Lending Act / N.J. Admin. Code tit. 3, §1-16.3(a) | Advance Fee Disclosure - Broker | Before a lender or broker accepts any application fee, any credit report fee, appraisal fee or any reimbursement for third-party fees, the lender or broker must disclose in writing to the borrower: (1) a description and the amount of each fee; (2) whether all or any part of the fees are refundable; (3) the terms and conditions for the refund, if all or any part of the fees are refundable; (4) a realistic estimate of the number of calendar days required to issue a commitment following receipt of the fees by (lender. If the lender subsequently determines that the estimate is unrealistic, it may return the application and all fees paid and offer the borrower the opportunity to reapply.); (5) the name or title of a person with the lender's organization to whom the borrower may address written questions, comments, or complaints; and (6) for correspondent mortgage lenders, a statement indicating that the licensee is a correspondent mortgage lender and does not hold mortgage loans or service mortgage loans for more than 90 days in the regular course of business. The above disclosure must be acknowledged in writing by the borrower and maintained by the lender or broker. A copy of the acknowledgment must be given to the borrower. |
| Property Code / N.J. Stat. Ann. §46:10A-6(c) | Attorney Fee Disclosure - Lender | If a lender makes a written offer to a borrower to make a loan secured by real property located in New Jersey, the lender must disclose in writing as part of the loan commitment, or within 10 days after the issuance of the commitment, to the borrower and before the acceptance of the commitment by the borrower: (1) the basis for the determination of any charge which the borrower will be required to pay the lender's attorney for services provided to the lender in connection with that loan; and (2) a good faith estimate of any charge which the borrower will be expected to pay to the lender's attorney for the services specified in item (1). If the good faith estimate supplied to the borrower by the lender will be materially exceeded, the lender must notify the borrower of the increase at the time the lender becomes aware of the change and, to the extent feasible, at least prior to closing of the loan. The failure of the lender to advise the borrower of an increase in the estimate will preclude the lender from seeking payment of the excess from the borrower. |
| Secondary Mortgage Loan Law / N.J. Stat. Ann. §17:11C-76(b) | Balloon Note Disclosure | If the note provides for a final payment which is substantially greater than the previous installments, that fact, together with a statement that the licensee is under no obligation to refinance the loan, unless the licensee unconditionally obligates itself to do so, must be clearly disclosed in plain language, in at least 8-point bold face type on the face of the note. |
| Residential Mortgage Lending Act / N.J. Stat. Ann. §17:11C-75(j) | Blank Spaces on Mortgage Instruments | A residential mortgage lender may not, in connection with or incidental to the making of a first mortgage loan, require or permit the mortgage instrument or bond or note to be signed by a borrower if the instrument contains any blank spaces to be filled in after it has been signed, except blank spaces relating to recording. |
| Secondary Mortgage Loan Law / N.J. Admin. Code tit. 3, §15-10.3 | Collateral Other Than the Mortgage | A mortgage lender may not require or accept from a borrower as collateral or security for a first mortgage loan household or personal goods, such as furniture, electronic equipment, motor vehicles, appliances, and jewelry. |
| Secondary Mortgage Loan Law / N.J. Stat. Ann. §17:11C-82 | Copy of Documents | A residential mortgage lender must, in connection with a secondary mortgage loan, give to the borrower, without charge: (1) a copy of every instrument, document or other writing the borrower signs, and written evidence of any insurance obtained from the licensee; and (2) at the time the loan is made, if a closed-end loan, and at the time of the first advance, if an open-end loan, a closing statement which itemizes the individual amounts disbursed to or on behalf of the borrower, including, but not limited to: (A) the premium for insurance, if any; (B) the total amount of funds so disbursed; (C) the amount of the interest charge; (D) total amount of the loan, the amount; (E) the number and due date of the installment payments; and (F) the interest charge expressed as an annual percentage rate. |
| Mortgage Escrow Account Transactions / N.J. Admin. Code §5:33-4.4(a) | Initial Tax Authorization Notice | All mortgagees and servicing organizations must use the Initial Tax Authorization Notice as the initial authorization by a borrower to the tax collector to send the original tax bill to the lender or the lender's servicing organization. |
| Secondary Mortgage Loan Law / N.J. Stat. Ann. §17:11C-78(d) | Instruments Evidencing Secondary Mortgage Loans | The instrument evidencing a secondary mortgage loan must contain the following notice: NOTICE TO BORROWER Read this promissory note or loan agreement before you sign. Do not sign this promissory note or loan agreement if it contains blank spaces. The Promissory note or loan agreement is secured by a secondary mortgage on your real property. The notice must be printed prominently, in the identical form indicated above, in 10-point bold type or larger, directly above the space provided for the signature of the borrower. |
| Residential Mortgage Lending Act / N.J. Admin. Code tit. 3, §1-16.5 | Loan Commitment | At or before issuance of a commitment, a mortgage lender must disclose in writing the information outlined in N.J. Admin. Code tit. 3, §1-16.5(a). The information required to be disclosed may be contained in 1 or more documents, for example, in a federal Regulation X or federal Regulation Z form disclosure, supplemented with the additional information required. |
| Residential Mortgage Lending Act / N.J. Stat. Ann. §17:11C-79 | Loan Provisions | No writing of any kind executed in connection with a secondary mortgage loan may contain: (1) a power of attorney to confess judgment; (2) an assignment of or order for the payment of any salary, wages, commissions or any other compensation for services, or any part thereof, earned or to be earned; (3) an agreement to pay any amount other than the unpaid balance of the promissory note or loan agreement or any other charge authorized by the NJRMLA; (4) a provision relieving the residential mortgage lender or broker from liability for any claim, or from any legal remedy, which the borrower may have against the licensee under the terms of the promissory note or loan agreement; (5) a provision whereby the borrower waives any right of action against the licensee, a subsequent holder or any person acting on the licensee's or holder's behalf for any illegal act committed in the collection of payments under the promissory note or loan agreement; or (6) an acceleration clause under which the unpaid balance of the promissory note or loan agreement not yet matured or any part thereof may be declared due and payable because the licensee or subsequent holder deems himself to be insecure. |
Residential Mortgage Lending Act / N.J. Admin. Code §3:1-16.4(a) | Lock-In Agreement | All lock-in agreements must be in writing, and must contain at least the following provisions: (1) the expiration date of the lock-in, if any; (2) the interest rate locked in, if any; (3) the discount points locked in, if any; (4) the commitment fee locked in, if any; (5) the lock-in fee, if any; and (6) a statement advising of the provisions below, if applicable. |
| Residential Mortgage Lending Act / N.J. Admin. Code tit. 3, §1-16.10 | Mortgage Broker Service Agreement | Before accepting any loan application, a mortgage broker must give a written disclosure to the borrower in a separate service agreement which states: (1) the amount of the broker's application fee, if any; (2) whether and under what circumstances all or any part of the broker's application fee is refundable; (3) the amount of any discount points payable to the broker for its services; (4) a statement advising that a broker may not execute a lock-in agreement or issue a commitment or guarantee acceptance into any particular loan program or promise any specific loan terms; (5) a detailed listing of the specific services that will be provided or performed by the broker, together with a statement that all fees which are payable to the broker will be refunded if the broker does not perform the services indicated; and (6) whether the broker places loans exclusively with any 3 or fewer lenders and, if so, the names of the lenders. The above disclosure must be acknowledged in writing by the borrower and must be maintained by the broker, and a copy of the acknowledgment must be given to the borrower. |
Residential Mortgage Lending Act / N. J. Admin. Code tit. 3, §1-16.3(d) | Mortgage Fee Disclosure | Until the time as the Department of Banking & Insurance promulgates a disclosure form in keeping with TILA (or RESPA, as applicable) compliance that accompanies the fee restrictions imposed by N.J., licensees are required to create their own disclosure. In compliance with these disclosure requirements, the disclosure must be a separate from other TILA (or RESPA, as applicable) disclosures. The disclosure requirements are as follows: (1) individual fees must be totaled by category, with the total amounts equal to the amounts shown on various blocks and lines on the LE (or GFE if issued under RESPA); (2) the disclosure must identify which, if any, fees are refundable in whole or in part and the terms and conditions for a refund; (3) the disclosure must specify the date presented to the borrower(s); (4) it is recommended to have the borrowers sign and date the form; (5) a copy should be maintained in the mortgage file for inspection and examination; and (6) the disclosure must not be attached to or refer to in any manner as an addendum or supplement to the Loan Estimate or Closing Disclosure (or GFE or HUD-1/HUD-1A, as applicable). |
| N.J.A.C. 3:1-16.3 | NJ Application Disclosure Form | DOBI Rules at N.J.A.C. 3:1-16.3 provide for the disclosure of fees charged in connection with a mortgage loan application. Beginning on January 1, 2018, the "NJ Application Disclosure Form" must be used for such disclosures, preferably in a two-sided single sheet format. A copy of the completed form must be provided to the applicant(s) and maintained in the loan file. |
| Property Code / N.J. Stat. Ann. §46:10B-56(e) | Notice of Foreclosure Consultant Contract Cancellation | A foreclosure consultant contract must be accompanied by a completed form, captioned “NOTICE OF CANCELLATION” which must be attached to the contract and easily detachable, and contain, in at least 14-point boldface type. |
| Home Ownership Security Act of 2002 / N.J. Stat. Ann. §46:10B-26(f) | Notice to Borrower | A creditor may not make a high-cost home loan unless the creditor has given the Notice to Borrower, or substantially similar notice, in writing, to the borrower, acknowledged in writing and signed by the borrower at least 3 business days prior to the consummation of the loan. |
| Residential Mortgage Lending Act / N.J. Stat. Ann. §17:11C-73(a) | Optional Insurance Disclosure | A borrower may not be required to purchase credit life or accident and health insurance or credit involuntary unemployment insurance in connection with any mortgage loan. If the borrower consents in writing, a residential mortgage lender or broker may obtain or provide: (1) insurance on the life and on the health or disability, or both, of 1 borrower, and on the lives, health or disability of 2 borrowers; and (2) credit involuntary unemployment insurance in accordance with forms and rates filed and approved by the Commissioner pursuant to applicable regulations. |
| Residential Mortgage Lending Act / N.J. Stat. Ann. §17:11C-67(a) | Photocopy of License | A licensee or any other person may not photocopy or otherwise reproduce a license except for legitimate business purposes. |
| Private Well Testing Act / N.J. Stat. Ann. §58:12A-27(b) | Private Well Testing Certification | Closing of title on the sale of the real property may not occur unless both the buyer and the seller have received and reviewed a copy of the water test results. At closing, the buyer and seller both must certify in writing that they have received and reviewed the water results. |
| Property Code / N.J. Stat. Ann. §46:10A-6(b) | Right to Choose Own Attorney Disclosure | If a lender makes a written offer to a borrower to make a loan secured by real property located in this State, the lender must disclose, in writing, prominently and in bold type, to the borrower before the acceptance of the offer by the borrower, that the interests of the borrower and lender are or may be different and may conflict, and that the lender's attorney represents only the lender and not the borrower and the borrower is, therefore, advised to employ an attorney of the borrower's choice licensed to practice law in this State to represent the interests of the borrower. |
| Residential Mortgage Lending Act / N.J. Stat. Ann. §17:11C-73(d) | Right to Choose Insurance Provider | A licensee may require a borrower to demonstrate that the property securing any mortgage loan is insured against damage or loss due to fire and other perils, including those of extended coverage, for a term not to exceed the term of the loan and in an amount not to exceed the amount of the loan, together with the amount needed to satisfy all prior liens on that property. A licensee must provide the borrower with the following written statement, to be printed in at least 10-point bold type: NOTICE TO THE BORROWER YOU MAY BE REQUIRED TO PURCHASE PROPERTY INSURANCE AS A CONDITION OF RECEIVING THE LOAN. IF PROPERTY INSURANCE IS REQUIRED, YOU MAY SECURE INSURANCE FROM A COMPANY OR AGENT OF YOUR OWN CHOOSING. |