Title 17, Title 17: CORPORATIONS AND INSTITUTIONS FOR FINANCE AND INSURANCE

17:10B-2. Prohibitions relative to loan brokers 2. No loan broker shall: a. Assess, collect or hold an advance fee, directly or indirectly, from or on behalf of a borrower to provide services as a loan broker; b. Make or use any false or misleading representations or omit any mat…

17:10B-3. Investigations, examinations by commissioner 3. a. The commissioner may make such investigations and examinations upon reasonable suspicion as he deems necessary to determine whether a person has violated or is about to violate any provision of this act or any order, ru…

17:10B-4. Order to cease and desist, fine 4. a. The commissioner may order a loan broker to cease and desist whenever the commissioner determines that the loan broker has violated, is violating, or is about to violate any provision of this act, any rule or regulation promulgated …

17:10B-5. Violations, penalties, injunctions, summary actions 5. a. Any person who violates any provision of this act shall be liable to a civil penalty of not more than $7,500 for a first offense and not more than $15,000 for the second and each subsequent offense, to be recover…

17:10B-6. Action for recovery of damages 6. a. Any borrower injured by a violation of this act may bring an action for recovery of damages. Judgment shall be entered for actual damages, but in no case less than the amount paid by the borrower to the loan broker, plus reasonable a…

17:10B-7. Nonapplicability of act 7. The provisions of this act shall not apply to State or federally chartered banks, savings banks, savings and loan associations or credit unions; mortgage solicitors as defined by section 2 of P.L.1996, c.157 (C.17:11C-2); licensees regulated p…

17:10B-8. Rules, regulations 8. The commissioner may, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as he deems necessary in the administration of this act. L.1992,c.66,s.8.

17:10C-1 Residential Mortgage and Consumer Finance Advisory Board. 1. There is created in the Department of Banking and Insurance a Residential Mortgage and Consumer Finance Advisory Board. The board shall consist of the Commissioner of Banking and Insurance or his designee, who …

17:10C-2 Board duties. 2. The board shall act as a resource to the commissioner by developing and recommending to the commissioner ideas, programs and tools to assist: a. in the development of educational requirements for licensees; b. licensed residential mortgage lenders, resid…

17:11C-1 Short title amended. 1. Sections 1 through 49 of this act, previously known and cited as the "New Jersey Licensed Lenders Act," shall be known and may be cited as the "New Jersey Consumer Finance Licensing Act," on or after the effective date of P.L.2009, c.53 (C.17:11C-…

17:11C-10 Information on license; posting, disposition of license. 10. a. The consumer lender or sales finance company license shall state the name of the licensee and the licensee's place of business or businesses, as applicable, and shall contain any other information as the co…

17:11C-11 Issuance, surrender, expiration of license. 11. a. (1) Each consumer lender or sales finance company license issued pursuant to this act shall expire at the end of the license period of not less than two years as set by the commissioner by regulation. (2) A licensee may…

17:11C-12 Approval of transfer, sale. 12. Any sale or transfer of a controlling interest in a consumer lender or sales finance company licensee's or applicant's business shall be approved by the commissioner prior to the transfer or sale, after the licensee or applicant has provi…

17:11C-16. Net worth requirements for consumer lenders 16. a. Every applicant for a license as a consumer lender shall prove in a form satisfactory to the commissioner, that the applicant has a net worth of at least $100,000, and has available for the purpose of making consumer l…

17:11C-17 Change of address notice. 17. a. Nothing in this act or in the "Retail Installment Sales Act of 1960," P.L.1960, c.40 (C.17:16C-1 et seq.), shall be construed to require a consumer lender or a sales finance company to maintain an office in this State so long as it is qu…

17:11C-18 Commissioner's authority relative to issuance, revocation, oversight of licenses, enforcement. 18. The commissioner's authority with respect to issuing consumer lender and sales finance company licenses, and with respect to oversight of licensees and enforcement of the …

17:11C-19 Maintenance of books, accounts, records, documents. 19. a. Every consumer lender or sales finance company licensee shall identify the place of business where those books, accounts, records and other documents of the business conducted under the license, as may be prescr…

17:11C-2 Definitions regarding licensed lenders. 2. As used in this act: "Billing cycle" means the time interval between periodic billing dates. A billing cycle shall be considered monthly if the closing date of the cycle is the same date each month or does not vary by more than …

17:11C-21 Purchase of insurance by borrowers. 21. a. A borrower shall not be required to purchase credit life or accident and health insurance or credit involuntary unemployment insurance in connection with a consumer loan. If the borrower or borrowers consent thereto in writing,…

17:11C-3 License required for consumer lender, sales finance company. 3. a. No person shall engage in business as a consumer lender or sales finance company without first obtaining a license or licenses under this act. b. The department shall issue licenses under this act which s…

17:11C-32 Consumer loans permitted by consumer lender, terms. 32. a. Notwithstanding the provisions of R.S.31:1-1 or any other law to the contrary, every consumer lender authorized to engage in the consumer loan business may loan any sum of money not exceeding $50,000, repayable …

17:11C-33 Additional charges prohibited on consumer loan; violations. 33. a. In addition to the interest herein provided for on a consumer loan, no further or other charge, or amount whatsoever for any examination, service, brokerage, commission, expense, fee, or bonus or other t…

17:11C-34 Requirements for consumer lender relative to closed-end loan. 34. Every consumer lender, incident to a closed-end consumer loan, shall: a. Deliver to the borrower at the time a loan is made a statement in the English language showing in clear and distinct terms the amou…

17:11C-35. Limits on closed-end consumer loans 35. a. No closed-end consumer loan in an amount of $1,000 or less shall be made for a greater period of time than 36 months and 15 days. b. No closed-end consumer loan in an amount in excess of $1,000, but not exceeding $2,500, shall…

17:11C-36 Open-end consumer loans; conditions, terms. 36. a. A licensee authorized to engage in the consumer loan business may make open-end consumer loans and may contract for, and receive thereon, interest at an annual percentage rate or rates agreed to by the licensee and the …

17:11C-37 Prohibited charges for large consumer loans. 37. No licensee authorized to engage in the consumer loan business shall directly or indirectly charge, contract for, or receive any interest, discount, or consideration greater than the licensee would be permitted by law to …

17:11C-38 Certain payments deemed loan secured by assignment. 38. The payment of $50,000 or less in money, credit, goods or things in action, as consideration for any sale, assignment or order for the payment of wages, salary, commissions or other compensation for services, wheth…

17:11C-39. Validity of chattel mortgage, security interest, conditions 39. No chattel mortgage or security interest, as defined in N.J.S.12A:1-201, in, or other lien on, household furniture then in the possession and use of the borrower, taken in connection with a consumer loan, …

17:11C-40 Loans secured by property. 40. The payment of $50,000 or less in money, credit, goods or things in action as consideration for any sale of personal property which is made on condition that the property be sold back at a greater price shall, for the purposes of this act,…

17:11C-41 Consumer lenders, prohibited practices. 41. The following practices shall be prohibited and a violation of the "New Jersey Consumer Finance Licensing Act," sections 1 through 49 of P.L.1996, c.157 (C.17:11C-1 et seq.): a. No consumer lender shall make any loan upon secu…

17:11C-42 Investigations, examinations of licensees. 42. a. The commissioner may make such investigations and examinations of any licensee or other person as the commissioner deems necessary to determine compliance with this act and the orders, rules and regulations issued hereun…

17:11C-43 Annual report by licensees; violations, penalties. 43. A consumer lender or sales finance company licensee shall annually file a report with the commissioner which shall set forth such information as the commissioner shall require concerning the business conducted as a …

17:11C-44. Agreements unenforceable, void 44. Any agreement to waive any provision of this act shall be unenforceable and void. L.1996,c.157,s.44.

17:11C-49. Rules, regulations 49. The commissioner may issue and promulgate rules and regulations, in accordance with the "Administrative Procedure Act," P.L.1968, c. 410 (C.52:14B-1 et seq.), necessary to effectuate the provisions of this act. L.1996,c.157,s.49.

17:11C-51 Short title. 1. Sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 through C.17:11C-89) shall be known and may be cited as the "New Jersey Residential Mortgage Lending Act." L.2009, c.53, s.1.

17:11C-52 Findings, declarations relative to certain licensed lending activities. 2. The Legislature finds and declares that the activities of residential mortgage lenders and residential mortgage brokers, previously licensed in New Jersey as mortgage bankers, correspondent mortg…

17:11C-53 Definitions relative to certain licensed lending activities. 3. As used in this act: "Approved conditional status" means the status of the license of an individual who has satisfied all conditions for licensure as a mortgage loan originator or qualified individual licen…

17:11C-54 Licensing requirements. 4. 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…

17:11C-55 Inapplicability of act. 5. The requirements of this act shall not apply to: a. Depository institutions; but subsidiaries and service corporations of these institutions shall not be exempt. A depository institution may register with the department for the purpose of spon…

17:11C-56 Conditions for issuance of licenses for residential mortgage lenders, brokers. 6. 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…

17:11C-57 Issuance of licenses for mortgage loan originators, individual licensees, lenders, brokers. 7. 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…

17:11C-58 Fees for license applications. 8. a. An applicant for a new license or for a renewal of a license to be a residential mortgage lender or residential mortgage broker, as a business licensee: (1) Shall pay to the commissioner at the time of the application a nonrefundable…

17:11C-59 Required educational courses. 9. a. An applicant for a new license as a mortgage loan originator or a qualified individual licensee shall complete, as a pre-licensing requirement, at least 20 hours of education from an educational course provided by an educational cours…

17:11C-6. Exempt consumer loan business, certain 6. A depository institution, trust company, insurance company, or pawnbroker operating under R.S.45:22-1 et seq., may conduct consumer loan business without obtaining a license under this act and without being subject to this act. …

17:11C-60 Written test required for licensure. 10. a. (1) An applicant for a new license as a mortgage loan originator or a qualified individual licensee shall pass, as a pre-licensing requirement, a qualified written test, developed by the Nationwide Mortgage Licensing System an…

17:11C-61 Educational requirements for license renewal. 11. a. An applicant for a renewal of a license as a mortgage loan originator or a qualified individual licensee, shall complete, as a requirement for the license renewal, at least 12 hours of education from one or more conti…