New Jersey Administrative Code › Title 3 - BANKING › Chapter 1 - GENERAL PROVISIONS › Subchapter 16 - MORTGAGE LOANS, FEES, OBLIGATIONS › Section 3:1-16.1 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this subchapter,
				  shall have the following meanings unless the context clearly indicates
				  otherwise.
"Application" means the document(s) or information, including
				  the payment of any fees, that a particular lender or broker requires a borrower
				  to submit for the purpose of having the lender or broker begin to process the
				  loan document(s) to determine whether to grant or deny a mortgage loan.
"Borrower" means a natural person or persons who applies for
				  credit or to whom credit is offered or extended primarily for personal, family
				  or household purposes, and shall mean all co-borrowers, except that the lender
				  may require the co-borrowers to designate one of the co-borrowers as the
				  borrower for the purposes of these rules or, at the election of such natural
				  person or persons, shall mean the attorney for the natural person or persons,
				  but shall not mean other agents of the borrower.
"Borrower's agent" means a person or entity hired, contracted
				  or requested by the borrower to supply information or documentation to the
				  lender. A borrower's agents may include the seller, the borrower's attorney,
				  depository institutions, title insurance companies, employer, spouse, surveyor,
				  etc. A borrower's agents shall not include any person or entity hired,
				  contracted or selected by the lender to perform a service or provide
				  information or documentation to the lender, such as an appraiser, a credit
				  reporting agency, the lender's attorney, the investor, etc.
"Broker" means any mortgage broker as that term is defined in
				  17:11C-53, or any lender when
				  accepting and processing a mortgage loan application on behalf of a lender
				  which will issue the commitment or loan denial.
"Business day" means any day on which the office or offices
				  of the lender or broker are open to the public to provide financial services. A
				  day shall not be regarded as a business day solely because the lender or broker
				  conducts some transactions by appointment for particular customers on that day.
				  A day may be a business day even though the lender or broker does not make
				  entries into the books of the business on that day.
"Commitment" means a signed statement issued by a lender in
				  which the lender promises to make a loan of specified terms to a specified
				  borrower, and which is based on a satisfactory underwriting analysis of the
				  appraisal, if an appraisal is required in connection with the loan, and a
				  satisfactory underwriting analysis of the credit report, if a credit report is
				  required in connection with the loan, except that any document indicating
				  approval of a loan application which is contingent on the approval of a party
				  to whom the lender seeks to sell the loan shall not be deemed a
				  commitment.
"Current market yield" means:
1. In the case of a mortgage loan originated
				  under a special program of, or committed for sale before expiration of the
				  lock-in agreement to, a particular secondary market purchaser, the yield being
				  sought by that purchaser for that loan; or
2. In the case of a mortgage loan not
				  originated or committed as described in paragraph 1 above and not to be held in
				  the lender's portfolio, the yield being sought, for the type of mortgage loan
				  applied for, by the secondary market purchaser which purchased the highest
				  dollar volume of such mortgage loans from the lender during the preceding
				  12-month period; or
3. In the case
				  of a mortgage loan to be held in the lender's portfolio, the average commitment
				  rate offered by the lender, for the type of mortgage loan applied for, during
				  the preceding 30-day period.
"Lender" means a State or Federally-chartered bank, savings
				  bank, savings and loan association, credit union, or a mortgage lender or
				  correspondent mortgage lender as defined in
				  17:11C-53.
"Lock-in agreement" means an agreement between the lender and
				  the borrower whereby the lender guarantees until a specified date the
				  availability of a specified rate of interest or specified formula by which the
				  rate of interest will be determined and/or specific number of discount points,
				  provided the loan is approved and closed by the specified date. If a specified
				  date is not determinable, the lender may fulfill the requirement of this
				  provision by setting forth with specificity the method by which the duration of
				  the lock-in period will be determined. The term "lock-in agreement" does not
				  include an agreement to fix the rate executed three or fewer calendar days
				  before closing where appropriate disclosures have been made under the
				  provisions of this subchapter.
"Mortgage loan" means any closed-end loan to a borrower which
				  is secured by a first mortgage on real property located in New Jersey on which
				  there are one to four dwelling units, a portion of which may be used for
				  nonresidential purposes.
"Promptly refund" or "return" means to refund or return to
				  the borrower within seven calendar days following receipt of a written request
				  for same from the borrower.
"Receipt" (or "received") means:
1. In the case of the lender, actual receipt
				  (or actually received) at the office or by the person designated by the lender
				  or broker as the place where or the person to whom the application or
				  documentation must be submitted or, if no such place or person is designated,
				  at the lender's or broker's principal office or any of its branch offices;
				  or
2. In the case of a borrower:
i. Actual receipt (or actually received)
				  where the document or correspondence is personally delivered to the borrower or
				  sent to the borrower by registered or certified mail or by means of a
				  commercial delivery service; or
ii.
				  The third calendar day following deposit in the regular U.S. mail.