In response to new federal requirements established in the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008, 12 U.S.C. s. 5101, et seq., residential mortgage activity is now
governed by The New Jersey Residential Mortgage Lending Act, P.L. 2009, c. 53, (“RMLA”) The
RMLA establishes licensing standards, business practices and oversight for residential mortgage
lenders, correspondent mortgage lenders, residential mortgage brokers, qualified individual
licensees and mortgage loan originators. These new terms will replace the terms mortgage banker,
mortgage broker, correspondent mortgage banker, secondary lender and registered mortgage loan
solicitor utilized in the New Jersey Licensed Lenders Act. Both residential first and residential
second lending activities are authorized under each of the RMLA licenses.
Pursuant to the changes enacted in the RMLA, all licensed lender licenses with mortgage
banker, correspondent mortgage banker, mortgage broker and/or secondary lender authorities and all
mortgage solicitor registrations renewed on July 1, 2009 will expire on July 31, 2010. The
processing of applications for licensure under the RMLA is anticipated to begin on or about January
1, 2010. The provisions of the Licensed Lenders Act will remain operative until July 31, 2010 to
permit the orderly transition of mortgage licensees and solicitors under the Licensed Lenders Act to
licensure under RMLA. A bulletin outlining specific timeframes for submission of applications for
licensure under the RMLA from current licensees and registrants under the Licensed Lender Act,
and from prospective business entities and individuals requiring licensure under RMLA will be
issued in the near future. All licenses issued under the RMLA during 2010 will expire on December
31, 2010 and will be required to be renewed annually in December of each subsequent year.
The requirements under the RMLA for business licensure as a residential mortgage lender,
correspondent mortgage lender or mortgage broker are as follows:
*completed electronic application through the Nationwide Mortgage Licensing System and Registry
which will assign a unique identifier
*criminal history background check for all officers, directors, partners and owners of a controlling
interest
*general finding of responsibility and fitness for licensure
*licensure of at least one officer, member, director, partner or owner as a qualified individual in
connection with the business entity applicant
*proof of surety bond coverage
*demonstration of tangible net worth
*such other requirements as the Commissioner may impose
*payment of required fees, including non-refundable application fees set by the commissioner that
shall not exceed $2800.
The requirements under the RMLA for licensure as either a qualified individual licensee or
a mortgage loan originator are as follows:
*completed electronic application through the Nationwide Mortgage Licensing System and Registry
which will assign a unique identifier
*criminal history background check, credit report, and check of governmental information related
to administrative, civil or criminal findings
* character and fitness for licensure
* employment by one residential mortgage lender or broker business licensee
*completion of pre-licensing education
*successful passage of written examination
*completion of continuing education requirements during 2011, prior to renewal in January, 2012,
and in each year thereafter
*coverage under employing business licensee’s surety bond
*such other requirements as the Commissioner may impose
*payment of required fees including non-refundable application set by the commissioner fees that
shall not exceed $500
