New Jersey Administrative Code
Title 3 - BANKING
Chapter 15 - RESIDENTIAL MORTGAGE LENDERS; CORRESPONDENT MORTGAGE LENDERS; MORTGAGE BROKERS; QUALIFIED INDIVIDUAL LICENSEES; MORTGAGE LOAN ORIGINATORS
Subchapter 9 - PERMISSIBLE FEES
Section 3:15-9.2 - Fees permitted to be charged for secondary mortgage loans

Universal Citation: NJ Admin Code 3:15-9.2

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

(a) A mortgage lender may charge a borrower, incident to a secondary mortgage loan, only the following:

1. The fees specified in 17:11C-80; and

2. Pursuant to 17:11C-82 and 46:18-11.2, the fee charged by the county recording officer to cancel the mortgage, plus an additional service fee not to exceed $ 25.00, providing that the borrower has received prior notice of the fees required by the lender, and providing further that if the lender collects the service fee at the time of the mortgage transaction and transfers the servicing rights prior to cancellation, the lender shall refund the service fee to the borrower.

(b) Nothing contained in this section shall limit a mortgage lender's ability to impose reasonable charges upon foreclosure.

1. A mortgage lender on a secondary mortgage loan shall not charge a borrower attorney fees if the attorney to whom the fee is to be paid is an employee, partner, officer, director or stockholder of the licensee. For purposes of this subsection, "stockholder" means and includes a person who directly, indirectly or acting through one or more other persons owns, controls or has power to vote 10 percent or more of any class of voting securities of a corporate licensee.

2. An attorney, who is providing legal service in accordance with 17:11C-80, shall not compensate any of the following persons for the preparation of documents or for any other services performed for on or behalf of the attorney:

i. A mortgage lender;

ii. An employee, partner, officer, director or stockholder of a mortgage lender; or

iii. Any other person in which a mortgage lender is an employee, partner, officer, member, director or stockholder.

3. No person listed in (c)2 above shall receive compensation for the preparation of documents or for any other services performed for or on behalf of an attorney who is providing legal service in accordance with 17:11C-80.

4. Any mortgage lender who requires a borrower to pay an attorney fee shall, at least four days prior to the closing of the loan, inform the borrower in writing of such requirement.

5. In order to receive reimbursement from the borrower at closing for attorney fees charged to the mortgage lender in connection with a secondary mortgage loan, the mortgage lender shall issue to the borrower at or before the closing of a secondary mortgage loan an itemized listing, prepared by the attorney, of the specific legal services performed by the attorney for and on behalf of the lender and the charge to the lender for each such service. All services charged by the attorney shall be listed irrespective of whether they are less than $ 100.00.

6. A mortgage lender shall provide the following to the borrower at or before closing:

i. A copy of the itemized listing of attorney fees prepared by the attorney pursuant to (c)5 above;

ii. A closing statement of all legal and other expenses to be paid by the borrower setting forth the net proceeds of the loan, itemized fees incurred or disbursed, interest charges, full amount of the loan and the terms by which the loan is to be repaid. Each expense item shall be separately listed with the corresponding dollar amount if the amount charged for that item exceeds $ 100.00.

7. Proof of compliance with this subsection shall be included in the licensee's loan file.

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