New Jersey § 46:10b-27

§ 46:10b-27.

a. Notwithstanding any other law to the contrary, if a home loan was made, arranged,

or assigned by a person selling either a manufactured home, or home improvements to

the dwelling of a borrower, or was made by or through a creditor to whom the borrower

was referred by such seller, the borrower may assert all affirmative claims and any

defenses that the borrower may have against the seller or home-improvement contractor

limited to amounts required to reduce or extinguish the borrower's liability under

the home loan, plus the total amount paid by the borrower in connection with the transaction,

plus amounts required to recover costs, including reasonable attorney's fees against

the creditor, any assignee or holder, in any capacity. b. Notwithstanding any other provision of law, any person who purchases or is otherwise

assigned a high-cost home loan shall be subject to all affirmative claims and any

defenses with respect to the loan that the borrower could assert against the original

creditor or broker of the loan; provided that this subsection shall not apply if

the purchaser or assignee demonstrates, by a preponderance of the evidence, that a

reasonable person exercising reasonable due diligence could not determine that the

mortgage was a high-cost home loan. It shall be presumed that a purchaser or assignee has exercised such due diligence

if the purchaser or assignee demonstrates by a preponderance of the evidence that

it: (1) has in place at the time of the purchase or assignment of the loan, policies

that expressly prohibit its purchase or acceptance of assignment of any high-cost

home loan; (2) requires by contract that a seller or assignor of home loans to the

purchaser or assignee represents and warrants to the purchaser or assignee that either

(a) it will not sell or assign any high-cost home loan to the purchaser or assignee

or (b) that the seller or assignor is a beneficiary of a representation and warranty

from a previous seller or assignor to that effect; and (3) exercises reasonable due

diligence at the time of purchase or assignment of home loans or within a reasonable

period of time thereafter intended by the purchaser or assignee to prevent the purchaser

or assignee from purchasing or taking assignment of any high-cost home loan. c. Notwithstanding any other law to the contrary, but limited to amounts required

to reduce or extinguish the borrower's liability under the home loan plus amounts

required to recover costs including reasonable attorney's fees, a borrower acting

only in an individual capacity may assert against the creditor or any subsequent holder

or assignee of the home loan: (1) within six years of the closing of a high-cost home loan, a violation of this act in connection with the loan as an original action ; and (2) at any time during the term of a high-cost home loan after an action to collect

on the home loan or foreclose on the collateral securing the home loan has been initiated

or the debt arising from the home loan has been accelerated or the home loan has become

60 days in default, any defense, claim or counterclaim. d. It is a violation of this act for any person, in bad faith, to attempt to avoid

the application of this act by: (1) Dividing any loan transaction into separate parts; or (2) Any other such subterfuge, with the intent of evading the provisions of this act. e. Nothing in this section shall be construed to limit the substantive rights, remedies

or procedural rights, including, but not limited to, recoupment rights under the common

law, available to a borrower against any creditor, assignee or holder under any other

law. The limitations on assignee liability in subsection b. of this section shall not

apply to the assignee liability in subsections a., c. and d. of this section.