Assemblyman GARY S. SCHAER
District 36 (Bergen, Essex and Passaic)
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
Increases and clarifies permissible categories of fees chargeable by residential mortgage lenders and brokers.
CURRENT VERSION OF TEXT
As reported by the Assembly Financial Institutions and Insurance Committee on June 4, 2009, with amendments.
An Act concerning residential mortgage lender and broker fees, and amending P.L.2009, c.53.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 24 of P.L.2009, c.53 (C.17:11C-74) is amended to read as follows:
24. a. Notwithstanding the provisions of any other law, a residential mortgage lender, incidental to the origination, processing and closing of any mortgage loan transaction not involving a secondary mortgage loan, shall have the right to charge only the following fees: (1) credit report fee; (2) appraisal fee; (3) application fee, except that a residential mortgage lender shall not charge an application fee if a residential mortgage broker, pursuant to subsection b. of this section, charges an application fee in connection with the loan; (4) commitment fee; (5) warehouse fee; (6) fees necessary to reimburse the residential mortgage lender for charges imposed by third parties; [and] (7) discount points, which shall be disclosed as a percentage of the loan amount or a fraction thereof, payable to reduce the interest rate on that loan; (8) lock-in fee; and (9) origination fee, or alternatively, points, which shall be disclosed as a percentage of the loan amount or a fraction thereof.
b. Notwithstanding the provisions of any other law, a residential mortgage broker, incidental to the brokering of any mortgage loan transaction not involving a secondary mortgage loan, shall have the right to charge only the following fees: (1) application fee; [and] (2) [discount points] (Deleted by amendment, P.L. , c. ) (pending before the Legislature as this bill); and (3) broker fees, which may be disclosed as a percentage of the loan amount or a fraction thereof, or as a flat fee, and a portion of which may be disclosed as an origination fee to meet Federal Housing Administration or Veterans Benefits Administration loan requirements 1and which shall be payable only at closing1.
c. No residential mortgage lender or residential mortgage broker may charge any fee either not expressly authorized by this section or authorized by the commissioner by regulation.
(cf: P.L.2009, c.53, s.24)
2. This act shall take effect immediately.