New Jersey Administrative Code
Title 3 - BANKING
Chapter 15 - RESIDENTIAL MORTGAGE LENDERS; CORRESPONDENT MORTGAGE LENDERS; MORTGAGE BROKERS; QUALIFIED INDIVIDUAL LICENSEES; MORTGAGE LOAN ORIGINATORS
Subchapter 3 - BONDING
Section 3:15-3.3 - Coverage of the bond; compensable claims

Universal Citation: NJ Admin Code 3:15-3.3

Current through Register Vol. 56, No. 18, September 16, 2024

(a) The surety company shall pay consumers claims based on the damages directly incurred by the wrongful act, default, fraud or misrepresentation of the business licensee or any employee of such licensee.

(b) Attorney's fees, pre- or post-judgment interest, court costs and similar charges are not recoverable through the bond, unless such charges are included in a final judgment against the licensee and the surety company was given prior notice of the court action and an opportunity to respond.

(c) A consumer may not recover third party charges for services that are necessary and transferable for future mortgage loan applications.

(d) The bond shall not be payable for claims made by business creditors.

(e) The bond shall not be payable for treble damage claims pursuant to the Consumer Fraud Act or any other State or Federal law.

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