New Jersey Issues High Cost Loan and Mortgage License Renewal Bulletins
by: Margaret Wright
The New Jersey Department of Banking recently issued two Bulletins concerning high cost home loans and Residential Mortgage Act 2014 licensing information.
High Cost Home Loan Definition
Bulletin No. 13-20 addresses the NJ Home Ownership Security Act of 2002’s required annual review and maximum principal amount adjustment for determination of a high cost home loan. Effective for completed applications received by the lender on or after January 1, 2014 the maximum principal amount for a high cost loan will be $452,288.55.
The new maximum principal amount is annually reviewed and calculated using the data contained in Consumer Price Index, New York – Northern New Jersey Region and the maximum principal amount as specified in the original Act of $350,000.00.
2014 Residential Mortgage License Renewals
Bulletin No. 13-18 outlines information concerning residential mortgage transaction license renewal. The bulletin notifies licensees that the ability to request license renewal will begin on November 1, 2013 and may be electronically submitted through December 31, 2013. In the event the Department’s review is not completed by January 1, 2014 for a timely and complete renewal request; the licensee may continue to engage in residential mortgage lending activity until a decision has been reached.
Additionally, the Bulletin instructs licensees to address any deficiencies or requirements and ensure information is updated prior to submission of request for renewal. Submitting inaccurate information can be grounds for denial and possible imposition of sanctions. All outstanding Mortgage Call Reports must also be filed before renewal and any requirements or deficiencies must be satisfied before MCR submission.
The Residential Mortgage Lending Act requires licensees to complete twelve hours of continuing education, eight hours of which are required under the SAFE act and four hours of which is required under the NJ regulation. The Bulletin outlines that two of the four required NJ hours must include instruction on NJ state laws and regulations.
Other important Bulletin information includes authorization of credit reports for licensees currently in approved conditional or approved deficient status, completion of new electronic fingerprint scan as required by NMLS and business entity request renewals.
View the two Bulletins in their entirety:
http://www.state.nj.us/dobi/bulletin.shtml
About the Author
Margaret Wright, J.D., is VP and Manager of Regulatory Compliance at Bankers Advisory, Inc. She is a graduate of Stonehill College and earned her Juris Doctor at Suffolk University Law School. She serves on the Compliance Committee of the Massachusetts Mortgage Bankers Association and is admitted to the Massachusetts Bar. She can be reached at Margaret@bankersadvisory.com
Margaret Wright, JD, is regulatory compliance director with CLA. She is a graduate of Stonehill College and earned her juris doctor at Suffolk University Law School. She is admitted to the Massachusetts Bar.
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