reglab/statecodes huggingface dataset:
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10A-1 - Demanding or exacting money or other valuable thing for making or obtaining mortgage loan

46:10A-1. Demanding or exacting money or other valuable thing for making or obtaining mortgage loan
Whenever any agreement for the sale of real estate is conditioned upon any person named therein obtaining a mortgage loan upon such real estate in order that he may perform such agreement on his part, it shall be unlawful for any person to demand or exact for himself, or for any other person, from any party named in said agreement, any sum of money, or other valuable thing, for the making or obtaining of such loan, or in connection with the closing or final settlement pursuant to said agreement other than is provided in said agreement, unless written notice of the sum or thing which will be exacted or demanded, and the person from whom it will be exacted and demanded, shall be served upon each party to said agreement not less than 12 days before said closing or final settlement provided, however, that where final settlement or closing is to take place at a time less than 12 days after the date of said agreement, the written notice required by this act shall be served upon each party immediately upon the signing of said agreement. The provisions of this act shall apply to premiums, discounts, commissions and other such charges exacted from any party to the agreement, as a consideration for making a loan, but shall not apply to reasonable and customary fees for title examination, and all necessary documents in connection therewith, legal fees, survey, appraisal fees and pro rata portion of the ground rents, hazard insurance premiums, current year's taxes and other prepaid items normally involved in financing such transactions.
L.1960, c. 179, p. 722, s. 1, eff. Jan. 18, 1961.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10A-2 - Violators as disorderly persons

46:10A-2. Violators as disorderly persons
Any person who violates any provision of this act shall be a disorderly person, and any payment or thing paid or exacted in violation of this act may be recovered from the person receiving the same, in a civil action, with treble damages measured by the amount or value thereof.
L.1960, c. 179, p. 723, s. 2.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10A-3 - Issuance of mortgagee title insurance policy required; notice to mortgagor

46:10A-3. Issuance of mortgagee title insurance policy required; notice to mortgagor
Whenever in connection with the making of a real estate purchase money mortgage loan upon a 1, 2, 3 or 4 family dwelling house for a term exceeding 2 years, the mortgagee requires the issuance of a mortgagee policy of title insurance, the company issuing the policy of title insurance shall prior to the disbursement of the mortgage funds cause the mortgagor to be advised in writing of the fact that a mortgagee title insurance policy is to be issued, the name or names of the insured under said policy, and of the face amount of such policy. Such notice shall also advise the mortgagor of his right and opportunity to obtain title insurance in his own favor if the same has not already been ordered or obtained.
L.1964, c. 100, s. 1.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10A-4 - Statement of receipt of notice by mortgagor

46:10A-4. Statement of receipt of notice by mortgagor
At or before the closing of the mortgage loan transaction the company issuing the title insurance shall obtain from the mortgagor a statement in writing that he has received the notice required under section 1 of this act.
L.1964, c. 100, s. 2.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10A-5 - Violation; penalty

46:10A-5. Violation; penalty
If the company issuing the mortgagee policy of title insurance shall fail to comply with the provisions of section 1 of this act the said company shall forfeit to the State of New Jersey the sum of $100.00, to be recovered with costs in a civil action to be prosecuted by the Attorney General who shall prosecute such actions whenever it shall appear that this act has been violated.
L.1964, c. 100, s. 3.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-1 - Definitions

46:10B-1. Definitions
As used in this act:
(a) "Mortgage loan" means a loan secured by an interest in real property consisting of land upon which is erected or to be erected, in whole or in part with the proceeds of such loan, a structure containing one, two, three, four, five or six dwelling units, a portion of which structure may be used for nonresidential purposes and upon which interest is taken or contracted for at a rate in excess of $6.00 for the forbearance of $100.00 for a year;
(b) "Mortgagor" includes any person other than a corporation liable for the payment of a mortgage loan, and the owner of the real property which secures the payment of a mortgage loan;
(c) "Prepayment" of a mortgage loan means the payment in full of the balance owing on a mortgage loan at any time prior to the time limited for the final payment of such loan in an instrument evidencing such loan.
L.1968, c. 54, s. 1, eff. June 6, 1968. Amended by L.1979, c. 85, s. 2, eff. May 10, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-2 - Prepayment of mortgage loan without penalty

46:10B-2. Prepayment of mortgage loan without penalty
Prepayment of a mortgage loan may be made by or on behalf of a mortgagor at any time without penalty.
L.1968, c. 54, s. 2, eff. June 6, 1968. Amended by L.1973, c. 297, s. 1, eff. Dec. 6, 1973; L.1975, c. 87, s. 1, eff. May 8, 1975; L.1979, c. 85, s. 3, eff. May 10, 1979; L.1979, c. 253, s. 2, eff. Dec. 21, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-3 - Additional payments

46:10B-3. Additional payments
A mortgagor shall have the right, during any 6 month period beginning with the date of the mortgage loan, to pay, without charge or penalty, an additional sum of $50.00, or multiples thereof, on account of the principal amount owing on a mortgage loan, provided that the additional sums so paid and the principal payments required to be made by the terms of such mortgage loan during such 6 month period do not together exceed in any such 6 month period 33 1/3 % of the face amount of such mortgage loan. The right to make additional payments as provided by this section shall not be cumulative, and to the extent that it is not exercised during any 6 month period, shall lapse.
L.1968, c. 54, s. 3, eff. June 6, 1968. Amended by L.1979, c. 86, s. 19, eff. May 15, 1979; L.1979, c. 388, s. 11, eff. Feb. 5, 1980.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-4 - Invalidity of mortgage provisions

46:10B-4. Invalidity of mortgage provisions
No provision in a mortgage or instrument of indebtedness which denies the rights conferred by sections 2 and 3 of this act, or which provides for prepayment fees in excess of those permitted by this act, or in which the rights conferred by sections 2 and 3 of this act are modified to the detriment of the mortgagor, or are waived or surrendered, shall be enforceable.
L.1968, c. 54, s. 4, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-5 - Violation; return of fees plus interest

46:10B-5. Violation; return of fees plus interest
Any holder of a mortgage loan or agent acting on behalf of the holder of a mortgage loan who shall knowingly demand and receive prepayment fees, except as provided in this act, shall be liable to the mortgagor for the return of the whole amount of the prepayment fees so received, plus interest thereon from the date of such receipt at the rate of 6% per annum.
L.1968, c. 54, s. 5, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-6 - Failure to deliver cancellation or discharge; forfeiture of fee

46:10B-6. Failure to deliver cancellation or discharge; forfeiture of fee
Any holder of a mortgage loan or agent acting on behalf of such holder who shall willfully fail or refuse to deliver a cancellation or discharge of a mortgage loan within a reasonable time after tender to him of the amount owing thereon together with the prepayment fee, if any, as provided in this act, shall forfeit his right to receive any prepayment fee, and the Superior Court shall have jurisdiction, in a summary action or otherwise, to order such cancellation or discharge upon payment into court of the amount owing thereon.
L.1968, c. 54, s. 6, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-7 - Failure to accept additional payments; forfeiture of interest

46:10B-7. Failure to accept additional payments; forfeiture of interest
Any holder of a mortgage loan or agent acting on behalf of such holder who shall wilfully fail or refuse to accept additional payments tendered pursuant to section 3 of this act shall forfeit his right to receive interest on the amount so tendered.
L.1968, c. 54, s. 7, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-8 - Increase in interest rate; limitation

46:10B-8. Increase in interest rate; limitation
If any mortgage loan or written contract or commitment for such loan provides for an increase in the rate of interest during the term of such loan, or after the execution of a written contract or commitment for such a loan, the increased rate shall not exceed 6% per annum in the case of a loan or written contract or commitment made before the effective date of this act or such rate of interest as may be authorized by law at the time such loan or written contract or commitment for such loan is made in the case of a loan or written contract or commitment for such loan made on or after the effective date of this act.
L.1968, c. 54, s. 8, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-9 - Application of act

46:10B-9. Application of act
This act shall not apply to loans secured by a mortgage on real property the prepayment of which is governed by any other statute of this State or of the United States, nor shall it apply to any loans, secured by mortgage on real property, made pursuant to any statute of this State or of the United States expressly authorizing interest charges in excess of 6% per annum.
L.1968, c. 54, s. 9, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-10 - Interest rate; points

46:10B-10. Interest rate; points
Except as otherwise provided by law, no mortgage loan shall be made at an interest rate in excess of the rate authorized by section 31:1-1 of the Revised Statutes. The charging of points in connection with a mortgage loan is prohibited. For the purposes of this act, "points" means an amount of money or other consideration paid for the making of a mortgage loan, other than interest payable pursuant to the terms of the mortgage loan, but does not include any such sum paid pursuant to a statute of this State or of the United States, nor does it include reasonable expenses and charges.
L.1968, c. 54, s. 10, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-11 - Points; liability for receiving

46:10B-11. Points; liability for receiving
Any holder of a mortgage loan or agent acting on behalf of the holder of a mortgage loan who shall knowingly receive points as defined herein shall be liable to the mortgagor for the return of the points and all interest paid on the mortgage loan plus a penalty of $1,000.00 and costs to be recovered by the mortgagor in a civil action instituted within 6 years from the date of payment of the points.
L.1968, c. 54, s. 11, eff. June 6, 1968.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-11.1 - Discount points deemed interest on loan

46:10B-11.1. Discount points deemed interest on loan
Discount points paid by the buyer or seller in connection with a mortgage loan on a one-to-six family dwelling, occupied or to be occupied by the owner shall be deemed to be interest charged on the loan. For the purposes of this section, "discount point" shall mean an amount of money equal to 1% of the principal amount of the loan and payable at closing.
L.1981, c. 103, s. 19, eff. March 31, 1981.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-12 - Graduated payment mortgage defined

46:10B-12. Graduated payment mortgage defined
As used in this act, "graduated payment mortgage" means a mortgage loan with lower monthly payments of principal and interest during the early years of the mortgage and higher monthly payments during the later years of the mortgage. The graduation rate for the monthly payments, the term of graduation, and the interest rate are fixed throughout the term of the mortgage. Monthly payments of principal and interest are required in amounts sufficient to pay all interest and effect full repayment of principal within the term of the mortgage.
L.1979, c. 139, s. 1, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-13 - Authorization to make

46:10B-13. Authorization to make
Notwithstanding any law, rule, regulation, or opinion to the contrary, it shall be lawful for any institution authorized in this State to make mortgage loans secured by a mortgage on real property to make graduated payment mortgages.
L.1979, c. 139, s. 2, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-14 - Use for dwelling units; limits on interest

46:10B-14. Use for dwelling units; limits on interest
Graduated payment mortgages may be secured only by real estate on which there is erected or to be erected a structure containing one, two, three, four, five, or six dwelling units, a portion of which structure may be used for non-residential purposes, and interest thereon shall not exceed the usury rate established pursuant to R.S. 31:1-1 at any time during the term of the mortgage.
L.1979, c. 139, s. 3, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-15 - Option to convert to conventional level payment mortgage

46:10B-15. Option to convert to conventional level payment mortgage
At any time during the life of the graduated payment mortgage the mortgagor shall have the option without penalty to convert to a conventional level payment mortgage.
L.1979, c. 139, s. 4, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-17 - Definitions

46:10B-17. Definitions
As used in this act:
"Reverse annuity mortgage" means a mortgage loan secured by unencumbered residential property of the mortgagor which loan is used by the mortgagee to purchase annuities for the benefit of the mortgagor.
"Reverse direct payment mortgage" means a mortgage loan secured by unencumbered residential property of the mortgagor, which loan is paid directly to the mortgagor in fixed amounts over the term of the mortgage not to exceed 10 years, or such other term as may be established by the Commissioner of Banking by regulation.
L.1979, c. 140, s. 2, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-18 - Reverse annuity and reverse direct payment mortgages; authorization to make; conditions

46:10B-18. Reverse annuity and reverse direct payment mortgages; authorization to make; conditions
Notwithstanding any law, rule, regulation, or opinion to the contrary, it shall be lawful for any institution authorized in the State to make first lien loans secured by a mortgage on real property to make reverse annuity mortgages and reverse direct payment mortgages subject to the following conditions:
a. Said mortgages shall be made to a mortgagor who is at least 60 years old; provided, however, that the Commissioner of Banking may by regulation raise or lower the age limit for eligibility. Such mortgages shall not be made in an amount to exceed 70% of the value of the mortgaged property, or such amount as is established by the commissioner by regulation.
b. Said mortgages shall be made voidable at the option of the mortgagor upon payment of the principal and interest to date, with no penalty.
c. Interest on said mortgages shall not exceed the usury rate.
L.1979, c. 140, s. 3, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-19 - Option of mortgagor to enter into subsequent mortgage with same mortgagee

46:10B-19. Option of mortgagor to enter into subsequent mortgage with same mortgagee
With respect to a reverse annuity mortgage or a reverse direct payment mortgage, at the termination of the mortgage the mortgagor shall have the option to enter into a subsequent reverse annuity mortgage or a reverse direct payment mortgage with the same mortgagee, provided the mortgagee consents to the subsequent reverse annuity mortgage or the reverse direct payment mortgage and provided the mortgaged property has not depreciated significantly during the term of the initial mortgage and the subsequent mortgage does not exceed 90% of the value of the unencumbered portion of the mortgaged property, or such amount as is established by the commissioner by regulation.
L.1979, c. 140, s. 4, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-20 - Exemption of income from New Jersey Gross Income Tax Act

46:10B-20. Exemption of income from New Jersey Gross Income Tax Act
Income derived by mortgagors from mortgages authorized pursuant to this act shall not be considered income for purpose of the "New Jersey Gross Income Tax Act" .
L.1979, c. 140, s. 5, eff. July 6, 1979.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-23 - Findings, declarations relative to abusive lending practices.

46:10B-23 Findings, declarations relative to abusive lending practices.
2. The Legislature finds and declares that:
a. Abusive mortgage lending has become an increasing problem in this State, exacerbating the loss of equity in homes and causing an increase in the number of foreclosures in recent years. One of the most common forms of abusive lending is the making of loans that are equity-based, rather than income-based. The financing of points and fees in these loans provides immediate income to the originator and encourages the repeated refinancing of home loans. The lender's ability to sell loans reduces the incentive to ensure that the homeowner can afford the payments of the loan. As long as there is sufficient equity in the home, an abusive lender benefits even if the borrower is unable to make the payments and is forced to refinance. In addition, the financing of high points and fees causes the loss of precious equity in each refinancing and often leads to foreclosure.
b. Abusive lending has threatened the viability of many communities and caused decreases in home ownership. While the marketplace appears to operate effectively for conventional mortgages, too many homeowners find themselves victims of overreaching lenders who provide loans with unnecessarily high costs and terms that are unnecessary to secure repayment of the loan.
c. As competition and self-regulation have not eliminated the abusive terms from loans secured by a consumer's home, the consumer protection provisions of this act are necessary to encourage lending at reasonable rates with reasonable terms.
d. Pursuant to this 2004 amendatory act, the "New Jersey Home Ownership Security Act of 2002," P.L.2003, c.64 (C.46:10B-22 et seq.) was amended to delete the covered home loan category and the provisions of subsection b. of section 4 of P.L.2003, c.64 (C.46:10B-25) which prohibited flipping a home loan. The deletions of the covered home loan category and of the prohibition on flipping shall create no presumption that any home loan that has been refinanced is not unconscionable, and the deletions of the covered home loan category and of the prohibition on flipping shall create no presumption that any home loan that is refinanced does not constitute an unlawful practice under P.L.1960, c.39 (C.56:8-1 et seq.).
L.2003,c.64,s.2; amended 2004, c.84, s.1.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-25 - Creditors, prohibited practices relative to home loans.

46:10B-25 Creditors, prohibited practices relative to home loans.
4. a. No creditor making a home loan shall finance, directly or indirectly, any credit life, credit disability, credit unemployment or credit property insurance, or any other life or health insurance, or any payments directly or indirectly for any debt cancellation or suspension agreement or contract, except that insurance premiums or debt cancellation or suspension fees calculated and paid on a monthly basis shall not be considered financed by the creditor.
b. (Deleted by amendment, P.L.2004, c.84).
c. No creditor shall recommend or encourage default on an existing loan or other debt prior to and in connection with the closing or planned closing of a home loan that refinances all or any portion of that existing loan or debt.
d. No creditor shall charge a late payment fee in relation to a home loan except according to the following rules:
(1) The late payment fee may not be in excess of 5% of the amount of the payment past due.
(2) The fee may only be assessed by a payment past due for 15 days or more.
(3) The fee may not be charged more than once with respect to a single late payment. If a late payment fee is deducted from a payment made on the loan, and such deduction causes a subsequent default on a subsequent payment, no late payment fee may be imposed for such default. If a late payment fee has been once imposed with respect to a particular late payment, no such fee shall be imposed with respect to any future payment which would have been timely and sufficient, but for the previous default.
(4) No fee shall be charged unless the creditor notifies the borrower within 45 days following the date the payment was due that a late payment fee has been imposed for a particular late payment. No late payment fee may be collected from any borrower if the borrower informs the creditor that nonpayment of an installment is in dispute and presents proof of payment within 45 days of receipt of the creditor's notice of the late fee.
(5) The creditor shall treat each and every payment as posted on the same date as it was received by the creditor, servicer, creditor's agent, or at the address provided to the borrower by the creditor, servicer, or the creditor's agent for making payments.
e. No home loan shall contain a provision that permits the creditor, in its sole discretion, to accelerate the indebtedness. This provision does not prohibit acceleration of the loan in good faith due to the borrower's failure to abide by the material terms of the loan.
f. No creditor shall charge a fee for informing or transmitting to any person the balance due to pay off a home loan or to provide a release upon prepayment. Payoff balances shall be provided within seven business days after the request.
L.2003,c.64,s.4; amended 2004, c.84, s.3.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-29 - Violations, remedies, liability.

46:10B-29 Violations, remedies, liability.
8. a. (1) Any violation of this act constitutes an unlawful practice under P.L.1960, c.39 (C.56:8-1 et seq.). Any borrower may seek damages under the provisions of section 7 of P.L.1971, c.247 (C.56:8-19) or subparagraph (a) of paragraph (1) of subsection b. of this section, but not both.
(2) Notwithstanding any provision of P.L.2003, c.64 (C.46:10B-22 et seq.) or other law to the contrary, any borrower who asserts any defense, claim or counterclaim pursuant to subsection c. of section 6 of P.L.2003, c.64 (C.46:10B-27) may do so only in an individual capacity and may not assert that defense, claim or counterclaim in a class action.
b. Except as provided in subsection a. of this section and, where applicable, subject to any limitation on the amounts recoverable against a holder or assignee pursuant to section 6 of this act, in addition to the remedies available to a borrower under P.L.1960, c.39 (C.56:8-1 et seq.) and without limiting those remedies:
(1) Any person found by a preponderance of the evidence to have violated this act shall be liable to the borrower for the following:
(a) For material violations, statutory damages equal to the finance charges agreed to in the home loan agreement, plus up to 10% of the amount financed;
(b) Punitive damages, when the violation was malicious or reckless in appropriate circumstances as determined by the fact-finder; and
(c) Costs and reasonable attorneys' fees.
(2) A borrower may be granted injunctive, declaratory, and such other equitable relief as the court deems appropriate in an action to enforce compliance with this act.
(3) The remedies provided in this section are not intended to be the exclusive remedies available to a borrower, nor must the borrower exhaust any administrative remedies provided under this act or any other applicable law before proceeding under this section.
c. A creditor in a home loan who, when acting in good faith, fails to comply with the provisions of this act, will not be deemed to have violated this section if the creditor establishes that either:
(1) Within 45 days of the loan closing, the creditor has made appropriate restitution to the borrower, and appropriate adjustments are made to the loan; or
(2) Within 365 days of the loan closing and prior to receiving any notice from the borrower of the compliance failure, and the compliance failure was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adopted to avoid such errors, the borrower is notified of the compliance failure, appropriate restitution is made to the borrower, and appropriate adjustments are made to the loan.
Examples of bona fide errors include clerical, calculation, computer malfunction and programming, and printing errors. An error of legal judgment with respect to a person's obligations under this section is not a bona fide error.
d. The remedies provided in this section are cumulative.
L.2003,c.64,s.8; amended 2004, c.84, s.5.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-30 - Rights, remedies, prohibitions declared additional, cumulative.

46:10B-30 Rights, remedies, prohibitions declared additional, cumulative.
9. The rights, remedies, and prohibitions accorded by the provisions of this act are hereby declared to be in addition to and cumulative of any other right, remedy, or prohibition accorded by the common law or statutes of the United States or of this State, and nothing herein shall be construed to deny, abrogate, or impair any such common law or statutory right, remedy, or prohibition. Without limiting the foregoing, the rights, remedies and prohibitions accorded by the provisions of this act are hereby further declared to create no presumption that any home loan or any term in a home loan is not unconscionable, whether or not the home loan or loan term, alone or in conjunction with other terms of the loan, violates the provisions of this act.
L.2003,c.64,s.9.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-31 - Law of state of location of property applicable.

46:10B-31 Law of state of location of property applicable.
10. The law of the state in which the property is located shall be applied to all transactions governed by this act regardless of where those transactions originated. This act shall apply to all loans made or entered into after the effective date of this act.
L.2003,c.64,s.10.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-32 - Program of consumer counseling, awareness.

46:10B-32 Program of consumer counseling, awareness.
11. The Director of the Division of Banking in the Department of Banking and Insurance, in consultation with the Director of the Division of Consumer Affairs and the Division of Civil Rights in the Department of Law and Public Safety, shall develop and implement a program of consumer counseling and awareness designed to inform the public about the methods by which predatory creditors impose unconscionable and noncompetitive fees and charges as part of complex home mortgage transactions, to protect the public from incurring those fees and charges, and otherwise to encourage the informed and responsible use of credit.
L.2003,c.64,s.11.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-33 - Liability of mortgage broker.

46:10B-33 Liability of mortgage broker.
12. Notwithstanding any provision of this act to the contrary, a mortgage broker shall be liable under the provisions of this act only for acts performed by the mortgage broker in the course of providing mortgage brokering services. However, a mortgage broker may be held liable for acts performed by the mortgage broker outside the scope of mortgage brokering services if the acts are related to the purchasing or the making of a home loan and are otherwise prohibited under this act.
L.2003,c.64,s.12.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-34 - Preemption of local rules, regulations.

46:10B-34 Preemption of local rules, regulations.
13. No municipality, county or political subdivision thereof, shall enact an ordinance or resolution or promulgate any rules or regulations relating to this act. The provisions of any ordinance or resolution or rules or regulations of any municipality or county relative to abusive home loan lending practices are superseded by the provisions of this act.
L.2003,c.64,s.13.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-35 - Regulations.

46:10B-35 Regulations.
14. The Commissioner of Banking and Insurance, in consultation and collaboration with the Director of the Division of Consumer Affairs in the Department of Law and Public Safety, shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) necessary to effectuate the provisions of P.L.2003, c.64 (C.46:10B-22 et seq.).
L.2003,c.64,s.14; amended 2004, c.84, s.6.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-37 - Findings, declarations relative to certain residential mortgages.

46:10B-37 Findings, declarations relative to certain residential mortgages.
2. The Legislature finds and declares that:
a. Many thousands of New Jersey homeowners are at risk of losing their homes as a result of mortgage foreclosures in the immediate future;
b. Foreclosure of a family's home often represents the loss of the family's most valuable financial asset, and foreclosures undermine the health and economic vitality of neighborhoods;
c. Foreclosures result in the loss of millions of dollars in assets, not only those of the homeowners who are the victims of foreclosure, but also in terms of the property values of homes located in the vicinity of foreclosed properties, as well as millions in additional costs to state and local government for the loss of property tax revenue;
d. According to a report issued by the U.S. Government Accountability Office (GAO) in October 2007, New Jersey experienced an increase in residential mortgage foreclosure start rates in excess of 50% over the prior two years and the GAO found that defaults and foreclosures on mortgages have a significant economic impact on homeowners, lenders, and neighborhoods;
e. According to a report issued in April 2008 by the State Foreclosure Prevention Working Group, which is composed of banking regulators and attorneys general of 11 states, the collective efforts of mortgage lenders and government officials to address rising foreclosures has not resulted in meaningful improvement in foreclosure prevention, and new approaches, such as targeted efforts to slow down the foreclosure process, are needed to prevent millions of unnecessary foreclosures nationwide;
f. Foreclosures are largely the result of subprime lending practices, which have placed many homeowners in loans that they cannot realistically afford, by using mortgage loan features such as low introductory rates which reset to higher, variable rates, thereby increasing the risk of default for many homeowners in the State who, at an increasing rate, cannot sell their home or refinance their mortgage;
g. Industry analysts estimate that, nationwide, about 1.5 million mortgages are due to reset in 2008, and that as many as three million subprime mortgages could end up in foreclosure over the next several years; and
h. There is a compelling need for the State of New Jersey to address the ongoing economic crisis in the subprime mortgage market and to provide the means by which homeowners can obtain a period of extension to adjust their finances in order to increase their ability to retain their homes, encourage mortgage lenders to modify mortgage loan terms and resolve foreclosure disputes, and protect local governments and neighborhoods from the negative social, economic, and fiscal consequences of foreclosure and abandonment.
L.2008, c.86, s.2.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-38 - Definitions relative to certain residential mortgages.

46:10B-38 Definitions relative to certain residential mortgages.
3. As used in this act:
"Creditor" means a State chartered bank, savings bank, savings and loan association or credit union, any person required to be licensed under the provisions of the "New Jersey Residential Mortgage Lending Act," sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 et seq.), and any entity acting on behalf of the creditor named in the debt obligation including, but not limited to, servicers.
"Eligible borrower" means a borrower who is obligated to repay a loan secured by an introductory rate mortgage.
"Eligible foreclosed borrower" means a borrower who is obligated to repay a loan secured by an introductory rate mortgage and who receives a notice of intention to foreclose that mortgage pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et al.), except that an "eligible foreclosed borrower" shall not include an eligible borrower who has previously exercised the right to obtain a three-year period of extension pursuant to section 5 of this act.
"Full repayment" means the full repayment of the amounts due under the introductory rate mortgage, including, without limitation, upon the maturity date, a refinancing, or a sale of or other transfer of title to the property.
"Fully indexed rate" means the sum of the current value of the index used for the adjustable rate mortgage and the margin disclosed in the loan agreement.
"Introductory rate mortgage" means a consumer credit transaction in which the loan is secured by a mortgage on real estate in this State upon which there is located a one to four family dwelling which is occupied by the borrower as the borrower's principal residence, and which provides for: (1) an introductory payment rate option that is set at least 3 percent below the fully indexed rate at the time the loan was originated and payments may adjust by more than 3 percent at the reset date regardless of whether the variable rate index has increased; or (2) an interest rate that may adjust by more than 2 percent at the end of the initial fixed rate period of the loan and which, notwithstanding the payment rate in effect, had an interest rate at origination of more than 200 basis points over the Freddie Mac 30-year conventional interest rate and which provides for an introductory rate that is set below the fully indexed rate at the time the loan was originated and may adjust at the reset date regardless of whether the variable rate index has increased. "Introductory rate mortgage" shall not include: (1) a loan that provides for a fixed rate of interest for the first five years or longer; or (2) a loan that provides for an introductory rate that is set below the fully indexed rate at the time the loan was originated only as a result of the borrower's payment of bona fide discount points.
L.2008, c.86, s.3; amended 2009, c.53, s.69
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-39 - Written notices from creditor to eligible borrower.

46:10B-39 Written notices from creditor to eligible borrower.
4. a. Prior to the date on which the interest rate in effect during the introductory period of an introductory rate mortgage resets to a variable interest rate under the terms of the mortgage, a creditor shall provide a series of written notices, separate and distinct from all other correspondence, to an eligible borrower. The creditor shall provide these notices at 60-day and 30-day intervals prior to the date that the introductory interest rate resets.
b. Each notice required pursuant to subsection a. of this section shall include, in plain language and in at least 14 point bold type:
(1) the current interest rate under the terms of the introductory rate mortgage;
(2) the date on which the interest rate resets from a fixed interest rate applicable during the introductory period to a variable interest rate;
(3) an explanation of how the reset interest rate and monthly payment would be determined;
(4) the best estimate by the creditor of the amount of the monthly payment that will apply after the date of the reset, and the assumptions upon which the estimate is based;
(5) a list of alternatives an eligible borrower may pursue before the date of the reset, including any refinancing of the loan offered by the creditor or any renegotiation of loan terms offered by the creditor;
(6) an explanation of the borrower's right to obtain a period of extension prior to the initial interest rate reset of an introductory rate mortgage pursuant to this act and an explanation of the procedure that a borrower must follow to obtain a period of extension; and
(7) a certification of extension form that can be completed by a borrower in order to obtain a period of extension authorized pursuant to section 5 of this act.
L.2008, c.86, s.4.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-41 - Notice sent to eligible foreclosed borrower.

46:10B-41 Notice sent to eligible foreclosed borrower.
6. a. A creditor that issues to an eligible foreclosed borrower a notice of intention to foreclose an introductory rate mortgage pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et al.), shall send to the eligible foreclosed borrower a series of written notices, by regular and registered mail, separate and distinct from all other correspondence. The notices shall include in plain language and in at least 14 point bold type:
(1) A statement that the information in the notice is being provided as required by the "Save New Jersey Homes Act of 2008," P.L.2008, c.86 (C.46:10B-36 et seq.), which was enacted by the New Jersey Legislature and which provides certain rights to borrowers whose homes are the subject of a mortgage foreclosure action;
(2) A list of alternatives to foreclosure that an eligible foreclosed borrower may pursue, including any refinancing of the loan offered by the creditor and any renegotiation of loan terms offered by the creditor;
(3) An explanation of the eligible foreclosed borrower's right to obtain a period of extension for three years pursuant to the "Save New Jersey Homes Act of 2008," P.L.2008, c.86 (C.46:10B-36 et seq.), and an explanation of the procedure that an eligible foreclosed borrower must follow to obtain a period of extension;
(4) A statement that the notice should be read carefully and that the eligible foreclosed borrower may wish to consult with an attorney to understand the rights that may be available under the "Save New Jersey Homes Act of 2008," P.L.2008, c.86 (C.46:10B-36 et seq.); and
(5) A certification of extension form that can be completed by an eligible foreclosed borrower in order to obtain the period of extension authorized pursuant to section 7 of this act.
b. The notices required pursuant to subsection a. of this section shall be sent at the following intervals:
(1) within 10 days of issuing the notice of intention; and
(2) at the time that the creditor applies for entry of final judgment of foreclosure pursuant to section 6 of P.L.1995, c.244 (C.2A:50-58).
c. The notices shall be sent in envelopes that state the following information on the outside front portion of the envelope: "The New Jersey Legislature has enacted the Save New Jersey Homes Act of 2008, which may help you save your home from foreclosure. Details as to the rights you may have to obtain a period of extension of foreclosure under this new law are contained within. Please read the contents carefully. You may wish to consult with an attorney to understand your rights under this new law."
L.2008, c.86, s.6.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-43 - Violations, penalties.

46:10B-43 Violations, penalties.
8. a. Any person who willfully violates any provision of this act shall be liable to a penalty of not more than $10,000 for the first offense, and not more than $20,000 for the second and subsequent offense, which penalty may be collected in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), except that immaterial errors in a notice required to be provided by a creditor pursuant to this act, shall not constitute a violation of this act.
b. If a creditor violates any provision of this act, an eligible borrower, an eligible foreclosed borrower, or the Attorney General may bring an action to enforce compliance by a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
L.2008, c.86, s.8.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-44 - Creditor's failure to fulfill obligation.

46:10B-44 Creditor's failure to fulfill obligation.
9. Failure of a creditor to fulfill any obligation under this act shall not be considered to be the exercise of a power, right, benefit, or privilege under the parity provisions of P.L.1981, c.163 (C.17:9A-24b1), section 48 of P.L.1963, c.144 (C.17:12B-48), or section 12 of P.L.1984, c.171 (C.17:13-90), and it shall not be a defense to a violation of this act that the failure to fulfill any provision of the act is an exercise of such a power, right, benefit, or privilege.
L.2008, c.86, s.9.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-46 - Severability.

46:10B-46 Severability.
11. If any section, subsection, paragraph, sentence or other part of this act is adjudged unconstitutional or invalid, the judgment shall not affect, impair or invalidate the remainder of this act, but shall be confined in its effect to the section, subsection, paragraph, sentence or other part of this act directly involved in the controversy in which the judgment shall have been rendered.
L.2008, c.86, s.11.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-47 - Regulations.

46:10B-47 Regulations.
12. The Attorney General, in consultation with the Department of Banking and Insurance shall adopt regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of this act.
L.2008, c.86, s.12.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-49 - Report of mortgage foreclosure actions.

46:10B-49 Report of mortgage foreclosure actions.
15. a. (1) Except as provided in paragraph (2) of this subsection, a creditor that institutes a mortgage foreclosure action in the Superior Court of New Jersey shall report to the Department of Banking and Insurance, on a quarterly basis and on a form promulgated by the department, information about the number of mortgage foreclosure actions filed by the creditor in the State.
(2) When a creditor or other person is required by any Rule of Court or otherwise by law to file electronically with the Superior Court of New Jersey pleadings in an action to foreclose on a mortgage, and the Administrative Office of the Courts is capable of collecting and transmitting the data set forth in paragraphs (1) through (8) of subsection b. of this section in electronic form, the creditor or other person shall transmit the data to the Superior Court, in a manner prescribed by the Superior Court, as part of the pleadings in an action to foreclose a mortgage. The Administrative Office of the Courts shall collect the electronically submitted data and transmit it to the Department of Banking and Insurance, which shall produce and make available on its website quarterly reports, as set forth in subsection b. of this section.
b. The Department of Banking and Insurance shall produce a report, on a quarterly basis, detailing information about mortgage foreclosures filed by creditors in each county of the State, and shall make the report available to the public on its website. The report shall describe the type of mortgage being foreclosed on based on the following categories:
(1) prime rate mortgages foreclosed upon;
(2) subprime rate mortgages foreclosed upon;
(3) fixed rate mortgages foreclosed upon;
(4) adjustable rate mortgages foreclosed upon;
(5) nonconforming mortgages, as defined by Fannie Mae, Freddie Mac, or their successors;
(6) mortgages insured by the Federal Housing Administration foreclosed upon;
(7) mortgages insured by the Veteran's Administration foreclosed upon; and
(8) any other category of classification the department deems appropriate to effectuate the purpose of this section.
c. The Department of Banking and Insurance, pursuant to the "Administrative Procedure Act," P.L.1986, c.410 (C.52:14B-1 et seq.) shall adopt regulations necessary to effectuate the purpose of this section. Following the enactment of P.L.2009, c.296 (C.2A:50-69 et al.), the department, in consultation with the Administrative Office of the Courts, shall adopt regulations necessary to effectuate the purpose of this section.
L.2008, c.127, s.15; amended 2009, c.296, s.4.
2023 New Jersey Revised Statutes › Title 46 - Property › Section 46:10B-49.1 - Database reflecting extent of residential properties under foreclosure.

46:10B-49.1 Database reflecting extent of residential properties under foreclosure.
1. a. The Department of Community Affairs shall produce a database that details the extent to which residential properties in this State are under foreclosure pursuant to the "Fair Foreclosure Act," P.L.1995, c.244 (C.2A:50-53 et seq.). The department shall develop, maintain, and update the database based upon information submitted to the department by residential mortgage lenders pursuant to section 2 of P.L.2019, c.134 (C.46:10B-49.2), and information obtained from any other public sources.
b. The database shall contain:
(1) The address of each residential property under foreclosure and the county, municipality, lot and block number;
(2) the current owner of record; and
(3) the date the notice of intention to foreclose was sent to the residential mortgage debtor by registered or certified mail, return receipt requested.
c. The database shall be considered confidential and shall be used only by the department, the county clerks, the county registers of deeds and mortgages, the county sheriffs, the Administrative Office of the Courts and such other agencies as the Commissioner of Community Affairs designates, except that a municipality shall have access to the database only with respect to information pertaining to the geographical area within the municipality's jurisdiction. The database shall not be subject to public access, inspection or copying pursuant to P.L.1963, c.73 (C.47:1A-1 et seq.) or the common law concerning access to public records.
d. The Commissioner of Community Affairs may adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the provisions of P.L.2019, c.134 (C.46:10B-49.1 et al.).
L.2019, c.134, s.1.