NJ Rev Stat § 17:16F-30 (2021)
2021 New Jersey Revised Statutes|Title 17 - Corporations and Institutions for Finance and Insurance|Section 17:16F-30 - Issuance of mortgage servicer license; requirements.

17:16F-30 Issuance of mortgage servicer license; requirements.  4. a. The commissioner shall issue a mortgage servicer license to an applicant if the commissioner finds that:  (1) the applicant has identified a qualified individual for its main office, and a branch manager for each branch office where the business is conducted, provided the qualified individual and branch manager have supervisory authority over the mortgage servicer activities at the respective office location and at least three years' experience in the mortgage servicing business within the five years immediately preceding the date of the application for licensure;  (2) the applicant, the control persons of the applicant, the qualified individual and any branch manager with supervisory authority at the office for which the license is sought, have not been convicted of or pled guilty or nolo contendere to, in a domestic, foreign, or military court, a felony during the seven-year period preceding the date of the application for licensing, or a felony involving an act of fraud or dishonesty, a breach of trust or money laundering at any time preceding the date of application, except that any pardon or expungement of a conviction shall not be a conviction for purposes of this paragraph;  (3) the applicant demonstrates that the financial responsibility, character and general fitness of the applicant, the control persons of the applicant, the qualified individual and any branch manager having supervisory authority over the office for which the license is sought, warrant a determination that the applicant will operate honestly, fairly and efficiently within the purposes of this act. Financial responsibility shall be demonstrated by submission of the applicant's most recent audited financial statements and by such other information and documents as the commissioner may require by regulation; (4) the applicant has met the surety bond, fidelity bond, and errors and omissions coverage requirement under section 8 of this act;  (5) the applicant has not made a material misstatement in the application; and  (6) the applicant has met any other similar requirements as determined by the commissioner.  If the commissioner fails to make the findings, the commissioner shall not issue a license, and shall notify the applicant of the denial and the reasons for the denial. For purposes of this subsection, the level of offense of the crime and the status of any conviction, pardon, or expungement shall be determined by reference to the law of the jurisdiction where the case was prosecuted. In the event the jurisdiction does not use the term "felony," "pardon," or "expungement," the terms shall include legally equivalent events. For purposes of paragraph (1) of this subsection, "experience in the mortgage servicing business" means paid experience in the:  (a) servicing of mortgage loans;  (b) accounting, receipt and processing of payments on behalf of mortgagees or creditors; or  (c) supervision of these activities, or any other relevant experience as determined by the commissioner. b. An application for a license as a mortgage servicer or renewal of the license shall be filed with the department, in a form prescribed by the commissioner, and shall be accompanied by the fees required by section 7 of this act. The applicant shall, at a minimum, furnish to the department information concerning the identity of the applicant, any control person of the applicant, the qualified individual and any branch manager, including personal history and experience in a form prescribed by the commissioner, and information related to any administrative, civil or criminal findings by any governmental jurisdiction. The applicant shall notify the department of any change to the information submitted in connection with its most recent application for licensure not later than 15 days after the applicant has reason to know of the change. For the purpose of this subsection, evidence of experience of the qualified individual and any branch manager shall include:  (1) a statement specifying the duties and responsibilities of the person's employment, the term of employment, including month and year, and the name, address and telephone number of a supervisor, employer or, if self-employed, a business reference; and  (2) if required by the commissioner, copies of W-2 forms, 1099 tax forms or, if self-employed, 1120 corporate tax returns, signed letters from the employer on the employer's letterhead verifying the person's duties and responsibilities and term of employment including month and year, and, if the person is unable to provide the letters, other proof satisfactory to the commissioner that the person meets the experience requirement. The commissioner may conduct a criminal history records check of the applicant, any control person of the applicant, the qualified individual and any branch manager with supervisory authority at the office for which the license is sought and require the applicant to submit the fingerprints of those persons as part of the application. The commissioner is authorized to exchange fingerprint data with and receive criminal history record information from the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules and regulations, for the purposes of facilitating determinations concerning licensure eligibility for the applicant, any control person of the applicant, the qualified individual and any branch manager. The applicant shall bear the cost for the criminal history record background check, including all costs of administering and processing the check. The Division of State Police shall promptly notify the commissioner in the event any person who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed, whether the person is a prospective new licensee, or subsequently, a current license holder.  c. (1) The minimum standards for license renewal for a mortgage servicer shall include the following:  (a) the applicant continues to meet the minimum standards under subsection a. of this section, including, but not limited to, the financial responsibility requirement of paragraph (3) of subsection a. of this section ; and  (b) the mortgage servicer has paid all required fees for renewal of the license. (2) The license of a mortgage servicer that fails to satisfy the minimum standards for license renewal shall expire. The commissioner may adopt procedures for the reinstatement of expired licenses. The commissioner may suspend a mortgage servicer license if the licensee is in violation of any provision of this act. After a license has been suspended pursuant to this section, the commissioner shall give the licensee notice of the suspension, pending proceedings for revocation or refusal to renew pursuant to sections 14 and 15 of this act and an opportunity for a hearing on the action and require the licensee to take or refrain from taking any action that, in the opinion of the commissioner, is necessary to effectuate the purposes of this act. d. (1) Withdrawal of an application for a license filed under this section shall become effective upon receipt by the commissioner of a notice of intent to withdraw the application. The commissioner may deny a license up to one year after the effective date of withdrawal. (2) If the license of a mortgage servicer expires due to the licensee's failure to renew, the commissioner may institute a revocation or suspension proceeding or issue an order suspending or revoking the license pursuant to subsection a. of section 14 of this act not later than one year after the date of the expiration. e. The commissioner may deem an application for a license under this section abandoned if the applicant fails to respond to any request for information required under this act, or the regulations adopted pursuant to this act. The commissioner shall notify the applicant that if the information is not submitted within 60 days from the date of the request, the application shall be deemed abandoned. An application filing fee paid prior to the date an application is deemed abandoned pursuant to this subsection shall not be refunded. Abandonment of an application pursuant to this subsection shall not preclude the applicant from submitting a new application for a license. L.2019, c.65, s.4.