New Jersey Administrative Code
Title 3 - BANKING
Chapter 15 - RESIDENTIAL MORTGAGE LENDERS; CORRESPONDENT MORTGAGE LENDERS; MORTGAGE BROKERS; QUALIFIED INDIVIDUAL LICENSEES; MORTGAGE LOAN ORIGINATORS
Subchapter 5 - TANGIBLE NET WORTH, INSOLVENCY
Section 3:15-5.4 - Failure to maintain tangible net worth; action by the Department

Universal Citation: NJ Admin Code 3:15-5.4

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

(a) If the tangible net worth of a business licensee falls below the amounts required by 3:15-5.3 or if the business licensee is insolvent, the Department may take such action as it deems appropriate and necessary to protect the public. The action may include requiring the business licensee to operate pursuant to a Memorandum of Understanding, or directing the business licensee to submit and comply with a capital plan within a time frame established by the Department to attain the tangible net worth required by 3:15-5.3.

(b) When considering whether to suspend, revoke or refuse to renew the license of a business licensee who does not have the required tangible net worth, the Commissioner shall consider the following factors:

1. How far the business licensee is below the required level of tangible net worth;

2. The size of any warehouse line or table funding agreement, the institution(s) providing this credit, and any correspondent relationship that a business licensee may have with another financial institution;

3. The number and amount of loans typically made or brokered by the business licensee;

4. The history of consumer complaints received by the Department concerning the business licensee;

5. Whether the mortgage lender has committed to make loans that it has been unable to fund; and

6. Any other factors reflecting on the ability and fitness of the business licensee to transact business in its licensed capacity.

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