Sponsored by:
Senator RICHARD J. CODEY
District 27 (Essex and Morris)
Senator NELLIE POU
District 35 (Bergen and Passaic)
Assemblyman GARY S. SCHAER
District 36 (Bergen and Passaic)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblyman RAJ MUKHERJI
District 33 (Hudson)
Co-Sponsored by:
Assemblywomen McKnight, Jasey and Assemblyman Stanley
SYNOPSIS
Requires certification of diligent inquiry in residential mortgage foreclosure actions to be filed by attorneys.
CURRENT VERSION OF TEXT
As reported by the Senate Commerce Committee on February 11, 2021, with amendments.
An Act concerning residential mortgage foreclosures and supplementing P.L.1995, c.244 (C.2A:50-53 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. In addition to any other requirements under law, regulation or court rule, in all residential mortgage foreclosure actions, an attorney filing a foreclosure complaint shall include a certification of diligent inquiry. The certification of diligent inquiry shall certify:
(1) that the attorney has communicated with an employee or employees of the plaintiff 1or of the plaintiff’s mortgage loan servicer1 who: (a) personally reviewed the 1[documents being submitted to support the]1 complaint 1and confirmed the accuracy of its content, based on business records kept in the regular course of business by the plaintiff or the plaintiff’s mortgage loan servicer, and who, if employed by the plaintiff’s mortgage loan servicer, identified the relationship between the mortgage loan servicer and the plaintiff1; and (b) confirmed the 1[accuracy of the documents] authority of the mortgage loan servicer to act on behalf of the plaintiff1;
(2) the names and titles, and the responsibilities in those titles, of the plaintiff’s 1or plaintiff’s mortgage loan servicer’s1 employees with whom the attorney communicated pursuant to paragraph (1) of this section 1and the date and mode of communication employed to contact them1;
(3) that the attorney has reviewed the facts of the case and that, based on the information received pursuant to this section and the attorney’s review of the pertinent documents, to the best of the attorney’s knowledge, information and belief there is a reasonable basis for the commencement of the action and that the plaintiff is currently the residential mortgage lender entitled to enforce rights under those documents; and
(4) that the attorney is aware that the failure to comply with the provisions of this section may result in the penalties provided for in subsection b. of this section or, where the failure constitutes a violation of the Rules of Professional Conduct, may include sanctions imposed by the Supreme Court of New Jersey.
b. If the court finds that the plaintiff has failed to comply with the provisions of subsection a. of this section, the court may dismiss the complaint1[, with or without prejudice,]1 or deny the accrual of any 1[interest,]1 costs, attorney’s fees and other fees relating to the mortgage debt.
2. This act shall take effect immediately and shall apply to mortgage foreclosure actions filed on or after the effective date.