New Jersey passed a bill amending the Residential Mortgage Lending Act (RMLA). The bill: adds several definitions to the RMLA; permits depository institutions to register with the Department of Banking and Insurance (Department) for the purpose of sponsoring licensed mortgage loan originators (if registered, must maintain a surety bond in accordance with RMLA requirements); sets forth the parameters as to when the Department may deem an application for licensure abandoned; requires lenders and brokers to have a branch manager for each branch office; exempts loan processing and underwriting companies from the RMLA (these companies must register as an exempt company); requires exempt company registrants to provide written notice to the Department upon the occurrence of any event that would cause the exempt company to no longer qualify for an exempt company registration; amends requirements with respect to the fees that may be charged during the origination, processing and closing of a mortgage loan; and grants the Department the authority to issue transitional mortgage loan originator licenses. The bill went into effect November 22, 2018.
See New Jersey Legislature website for the full text of the Statutes: http://www.njleg.state.nj.us/2016/Bills/A2500/2060_T1.PDF
