New Jersey Administrative Code
Title 3 - BANKING
Chapter 18 - FORECLOSURE CONSULTANTS
Subchapter 2 - LICENSE REQUIREMENTS
Section 3:18-2.1 - License required

Universal Citation: NJ Admin Code 3:18-2.1

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

(a) No person shall act as, offer to act as, or hold himself or herself out to be, a foreclosure consultant or use the designation foreclosure consultant, foreclosure consultant specialist, or similar designation in this State unless licensed by the Commissioner as set forth in the Act.

(b) "Foreclosure consultant" shall not include any of the following:

1. A housing counseling agency certified by the United States Department of Housing and Urban Development to provide counseling;

2. A person who holds or is owed an obligation secured by a lien on any distressed property in situations in which the person performs services in connection with the obligation or lien, provided the obligation or lien did not arise as the result of, or as part of, a proposed distressed property conditional conveyance or a distressed property conveyance;

3. A licensed attorney who negotiates the terms of a distressed property conveyance on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney receives, directly or indirectly, any compensation, benefit, or gain for the attorney's services from a foreclosure consultant business licensee or any individual or entity who should be licensed as a foreclosure consultant;

4. An entity which is licensed pursuant to P.L. 1979, c. 16 (17:16G-1 et seq.) or an successor statute;

5. A municipality which has a tax lien on distressed property;

6. An assignee or a purchaser of a municipal tax lien from a tax sale;

7. A sponsor which is certified by the Commissioner of Community Affairs to participate in the New Jersey Housing Assistance and Recovery Program established pursuant to sections 8 through 14 of P.L. 2008, c. 127 (55:14K-88 et seq.);

8. A bank, savings bank, savings and loan association, credit union, or other Federally insured financial institution, or insurance company, or affiliate or subsidiary thereof, organized, chartered, licensed, or holding a certificate of authority to do business under the laws of this State or any other state or under the laws of the United States;

9. A person licensed as a real estate broker, broker-salesperson, or salesperson pursuant to 45:15-1 et seq., while acting under the authority of that license;

10. A person licensed as a title insurance producer pursuant to the New Jersey Insurance Producer Licensing Act of 2001, P.L. 2001, c. 210 (17:22A-26 et seq.) while acting under the authority of that license or conducting the business of title insurance pursuant to P.L. 1975, c. 106 (17:46B-1 et seq.);

11. A mediator duly authorized pursuant to and acting under the authority of the Judiciary's Foreclosure Mediation Program; or

12. A person licensed pursuant to the New Jersey Residential Mortgage Lending Act, P.L. 2009, c. 53 (17:11C-51 et seq.), while acting under the authority of that license.

(c) An individual licensee shall only engage in foreclosure consultant activity while employed by a business licensee. An individual licensee shall not be employed by more than one business licensee at any given time.

1. An individual licensee shall only receive compensation for the performance of foreclosure consulting activity from the business licensee by which he or she is employed.

2. Other than compensation payable to the business licensee, an individual licensee shall not receive or solicit any compensation for foreclosure consulting directly from or on the behalf of, a distressed property owner.

(d) A business licensee shall be responsible for all of the foreclosure consulting activity of all individual licensees employed by it.

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