New Jersey § 17:11c-54

§ 17:11c-54.

Except as provided under section 5 of this act, beginning no later than July 31, 2010,

or a later date approved by the Secretary of the United States Department of Housing

and Urban Development pursuant to the provisions of section 1508 of the federal “Secure

and Fair Enforcement for Mortgage Licensing Act of 2008,” Pub.L.110-289 ( 12 U.S.C. s.5107 ), the licensing requirements under this act shall be as follows: a. For residential mortgage lenders and residential mortgage brokers, as business

licensees: (1) No person shall act as a residential mortgage lender or broker without first obtaining

a license under this act, except that a person licensed as a residential mortgage

lender may act as a broker, if proper disclosure is made. The department shall issue licenses which specify whether a business licensee is

licensed as a residential mortgage lender or broker. (2) No person shall be issued or hold a license as a residential mortgage lender or

residential mortgage broker unless one officer, director, partner, owner or principal

is a qualified individual licensee. The commissioner may, by regulation, require a licensed residential mortgage lender

or broker to employ additional qualified individual licensees to properly supervise

the business licensee in its branch offices. If a qualified individual licensee allows his license to lapse or for some other

reason is no longer affiliated with the business licensee, the business licensee shall

notify the commissioner within 10 days, and shall appoint another qualified individual

licensee within 90 days or a longer period as permitted by the commissioner. (3) No person licensed as a mortgage banker, correspondent mortgage banker, mortgage

broker, or secondary lender under the provisions of the “New Jersey Licensed Lenders

Act,” sections 1 through 49 of P.L.1996, c. 157 ( C.17:11C-1 et seq. ), prior to the effective date of its reform and re-titling as the “New Jersey Consumer

Finance Licensing Act” pursuant to P.L.2009, c. 53 ( C.17:11C-51 et al.), shall continue to engage in any activities for which a license was previously

issued, and henceforth act as a residential mortgage lender or residential mortgage

broker without first obtaining a license under this act. b. For qualified individual licensees: (1) No individual shall act as a qualified individual licensee for a residential mortgage

lender or residential mortgage broker without first obtaining a license under this

act. A qualified individual licensee may act as a mortgage loan originator. (2) No individual licensee for a mortgage banker, correspondent mortgage banker, mortgage

broker, or secondary lender under the provisions of the “New Jersey Licensed Lenders

Act,” sections 1 through 49 of P.L.1996, c. 157 ( C.17:11C-1 et seq. ), prior to the effective date of its reform and re-titling as the “New Jersey Consumer

Finance Licensing Act” pursuant to P.L.2009, c. 53 ( C.17:11C-51 et al.), shall continue to engage in any activities for which a license was previously

issued, and henceforth act as a qualified individual licensee without first obtaining

a license under this act. c. For mortgage loan originators: (1)(a) No individual shall act as a mortgage loan originator without first obtaining

a license or transitional license under this act. (b) No individual, except as provided in paragraph (2) of this subsection, shall be

issued or hold a license or transitional license as a mortgage loan originator unless

employed as an originator by one, and not more than one, business licensee, and is

subject to the direct supervision and control of that licensee, employed by an exempt

company, or who is under a written agreement with and sponsored in the Nationwide

Mortgage Licensing System by one, and not more than one, person exempt from licensing

requirements and registered with the department under subsection a. of section 5 of P.L.2009, c. 53 ( C.17:11C-55 ), and is subject to the direct supervision and control of that exempt person. (2) No individual shall act as a loan processor or underwriter who is an independent

contractor or employed by an independent contractor without first obtaining a mortgage

loan originator license under this act, except as provided in subsection d. of this

section. (3) No individual registered as a mortgage solicitor under the provisions of the “New

Jersey Licensed Lenders Act,” sections 1 through 49 of P.L.1996, c. 157 ( C.17:11C-1 et seq. ), prior to the effective date of its reform and re-titling as the “New Jersey Consumer

Finance Licensing Act” pursuant to P.L.2009, c. 53 ( C.17:11C-51 et al.), shall continue to engage in any activities for which a registration was

previously issued, and henceforth act as a mortgage loan originator without first

obtaining a license under this act. d. For exempt companies: (1) No person shall qualify for registration as an exempt company unless the person

is in the business of mortgage loan origination solely by virtue of its performance

of loan processing or underwriting functions. The commissioner shall have the authority to adopt rules in accordance with the

“Administrative Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ) specifying additional criteria on the basis of which a person in the business of

mortgage loan origination solely by virtue of its performance of loan processing or

underwriting functions may qualify for registration as an exempt company. (2) An exempt company shall register with the commissioner and with the Nationwide

Mortgage Licensing System and Registry. An applicant for registration or for renewal of registration as an exempt company

shall: (a) Submit a completed application to the commissioner on the form, in the manner,

and with the appropriate evidence in support of the application as may be prescribed

by the commissioner; (b) Pay to the commissioner at the time of application a nonrefundable application

fee not to exceed $500 as established by the commissioner by regulation; (c) Pay to the Nationwide Mortgage Licensing System and Registry any fees required

by that system and registry, or any fees which, by arrangement of the commissioner,

are payable to the Nationwide Mortgage Licensing System and Registry on behalf of

the commissioner; and (d) Obtain a blanket bond in an amount and form prescribed by the commissioner, but

not less than $25,000. The bond shall be obtained from a surety company authorized by law to do business

in this State. The exempt company shall procure the bond to cover its mortgage loan origination

related activities. The bond shall run to the State for the benefit of any person injured by the wrongful

act, default, fraud or misrepresentation of any person covered by the bond. No bond shall comply with the requirements of this subparagraph unless the bond

contains a provision that it shall not be canceled for any cause unless notice of

intention to cancel is filed in the department at least 30 days before the day upon

which cancellation shall take effect. (3) A registered exempt company shall: (a) Respond in a timely manner to any request of the commissioner for the production

of and access to books, records, accounts, documents or other information relative

to its operations; (b) Submit to the Nationwide Mortgage Licensing System and Registry a mortgage call

report of conditions, in the form and manner, and with such information, at any time

as may be required by the nationwide system and registry, and any other report to,

or through, the nationwide system and registry pursuant to an arrangement for reporting

and sharing information; (c) Provide written notice to the commissioner within 10 days of the occurrence of

any event that would cause the exempt company to no longer qualify for registration

as such under the terms of this subsection d. and so notify in writing all licensed

mortgage loan originators employed or retained by the exempt company; and (d) Employ at least one individual who is licensed as a mortgage loan originator who

shall not engage in the origination of mortgage loans under P.L.2018, c. 108 and shall be assigned supervision and instruction duties with respect to individuals

employed as loan processors or loan underwriters as defined in section 3 of P.L.2009, c. 53 ( C.17:11C-53 ). e. The provisions of the “New Jersey Residential Mortgage Lending Act,” sections 1

through 39 of P.L.2009, c. 53 ( C.17:11C-51 through C.17:11C-89 ) shall also apply to residential mortgage lenders, residential mortgage brokers,

mortgage loan originators, and other persons that are located out-of-State, provided

they are otherwise required to be licensed pursuant to the provisions of the act in

the State.