NC Pre-License Class          Pre-License Online Study          Audit a Class          Continuing Education          Online Courses               click here               Online Store          Find a Broker or Banker          Professional Organizations               50 State Map               Who is Paul Donohue          Our Instructor/Trainers          Founder’s Vision          All Testimonials	New Jersey Licensing Requirements Does the state require a physical location within the state? Yes, the primary New Jersey business office must be located in New Jersey. Is there individual loan officer licensing? Yes, loan officers must be registered as solicitors by their employer. What are lenders, brokers and loan officers called? The terms mortgage broker and mortgage banker are used in New Jersey. Loan officers must be registered as solicitors. Is there state reciprocity across state lines? As of this writing there is no pre-licensing state reciprocity. What is the cost of a license? Surety bond? Are there net worth requirements? The license fees required will depend on the number of "authorities" applied for (first mortgage lender, correspondent mortgage lender, mortgage broker, secondary mortgage lender). The application fees are: $700 for one authority $1,000 for two authorities $1,300 for three authorities $1,600 for four authorities The same fees apply for branch offices. There is an initial license application fee of $300 regardless of the number of authorities sought. The application fee for an initial branch license is $200. There must be a licensed individual of record who successfully passes an examination administered by the department. This individual must be an officer and reside within commuting distance of the in-state licensed location. These fees also apply for the affiliated individual application. An applicant must submit a completed application, a surety bond for the required amount, an audited financial statement reflecting the required net worth, evidence of a physical location in New Jersey (no residence allowed), written examination of "responsible individual officer" residing in a local New Jersey office and the applicable license and application fees. The licensed lender license is for a two year term, expiring on June 30 of odd-numbered years. The surety bond requirement is $100,000 if you are a mortgage banker, correspondent mortgage banker, mortgage broker or a secondary mortgage lender, or $150,000 if you are either a mortgage banker, correspondent mortgage banker, mortgage broker and a secondary mortgage lender. The net worth requirement is $250,000 for a mortgage banker, $150,000 for a correspondent mortgage banker, $50,000 for a mortgage broker and $150,000 (liquid) for a secondary mortgage lender. Is there a pre-licensing education requirement? Is there a test? The act requires that there be a licensed individual of record who successfully passes an examination administered by the department prior to licensing. Is there a CE requirement? No. Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)? The functions that you can engage in depend on the “authorities” that you hold under your license (see licensing section). Are there any state specific high cost loan provisions? The New Jersey Home Ownership Security Act became effective November 27, 2003. This act defines a “high cost home loan”, a “covered home loan” and numerous other terms. It provides for numerous restrictions on both “high cost home loans” and “home loans”. The terms of a “high cost home loan” must exceed at least one of the following thresholds: APR threshold - The APR at the time the loan is consummated equals or exceeds the Home Ownership and Equity Protection Act (HOEPA) APR threshold. Currently, for first-lien loans, the APR is 8 percent above yield on Treasury securities with comparable periods of maturity. For junior-lien loans, the APR is 10 percent above the yield on Treasury securities with comparable periods of maturity. Points and fees threshold - The total points and fees payable by the borrower at or before the loan closing, excluding either a conventional prepayment penalty or up to 2 bona fide discount points, exceed 5 percent of the total loan amount if the total loan amount is $40,000 or more; or 6 percent if the total loan amount is less than $40,000. Mortgage brokers are liable for violations of the New Jersey Home Ownership Security Act, but only for acts performed by the mortgage broker in the course of providing mortgage brokering services. A mortgage broker may be held liable for acts they perform outside the scope of mortgage brokering services if the acts are related to the purchasing or the making of a home loan and are prohibited under the act. Are there any state specific predatory lending laws? See the high cost loan provisions. Closing practices – attorney or title state? Wet or dry settlement? New Jersey is treated as a wet funding state by practice. There is no penalty for not delivering funds with closing documents, but closing may be delayed if funds are not delivered. Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages? The New Jersey Licensed Lenders Act includes within its scope anyone who advertises, solicits, negotiates, offers to make, or makes a secondary mortgage loan in New Jersey. You need to hold the “authority” to make second mortgages under your license. Who is the regulator and what is their contact information? State of New Jersey Department of Banking and Insurance Division of Banking P.O. Box 040 Trenton, NJ 08625 Phone number: 609-292-5360 Licensing Phone Number: 609-984-8435 www.state.nj.us/dobi DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action. Back to top Information acquired from the NAMB Members Only Section - Updated March 2006