Reed Smith Client Alerts

The New Jersey Department of Banking and Insurance recently amended its mortgage processing regulation to more narrowly define what constitutes a permissible appraisal fee, and it posted a new mandatory application disclosure form on its website to be used in connection with all mortgage applications taken on or after January 1, 2018. These actions by the Department can raise implementation issues and compliance risks for New Jersey residential mortgage lenders and brokers.

Authors: Robert M. Jaworski Leonard A. Bernstein

Type: Client Alerts

The New Jersey Department of Banking and Insurance (the “Department”) recently took two actions of significance to residential mortgage lenders doing business in the state of New Jersey. It amended its mortgage processing regulation (“Mortgage Processing Regulation”)1 to change the definition of a permissible appraisal fee, and it published on its website a new mandatory mortgage application disclosure form. Details concerning both actions are set forth below, starting with the new form.