Current through Register Vol. 56, No. 18, September 16, 2024
(a) A person
licensed, in good standing, as a mortgage lender shall submit the following to
convert from a mortgage lender to a correspondent mortgage lender, and a person
licensed, in good standing, as a correspondent mortgage lender shall submit the
following to convert from a correspondent mortgage lender to a mortgage lender:
1. The original license, the licenses of all
branch offices, and the licenses of all qualified licensed
individuals;
2. A completed
conversion form, which shall include the name and address of the licensee, the
requested date of conversion and a copy of the licensee's most recent annual
report of tangible net worth filed pursuant to
3:15-6.1 2;
3. For a conversion from a mortgage lender to
a correspondent mortgage lender, a signed affidavit from the president or other
principal who owns, controls or votes 25 percent or more of the stock of the
licensee, a general partner, a managing member or the sole proprietor stating
that the licensee will not hold or service mortgage loans for more than 90 days
in the regular course of business; and
4. For a conversion from a correspondent
mortgage lender to a mortgage lender, an audited financial statement
demonstrating the required tangible net worth.
(b) A licensee shall submit the following to
convert from a mortgage lender or a correspondent mortgage lender to a mortgage
broker, or from a mortgage broker to a mortgage lender or a correspondent
mortgage lender:
1. The original license, the
licenses of all branch offices, and the licenses of all qualified licensed
individuals;
2. A completed
conversion form, which shall include the name and address of the licensee, the
requested date of conversion and a copy of the licensee's most recent annual
report of tangible net worth filed pursuant to
3:15-6.1 2;
3. For a conversion from a mortgage lender or
a correspondent mortgage lender to a mortgage broker, a signed affidavit from
the president or other principal who owns, controls or votes 25 percent or more
of the stock of the licensee, a general partner, a managing member or the sole
proprietor stating that the licensee will not issue commitments or lock-ins in
its name, will not close mortgage loans in its name, and will only charge
borrowers application fees and discount points; and
4. For a conversion from a mortgage broker to
a mortgage lender or to a correspondent mortgage lender, an audited financial
statement demonstrating the required tangible net worth.
(c) The Department shall approve an
application for conversion of a license that complies with (a) or (b) above so
long as the licensee satisfies the tangible net worth requirement for the
license sought, or the license sought has the same or a lesser tangible net
worth requirement as the tangible net worth requirement of the license held by
the licensee.
