The New Jersey Department of Banking and Insurance previously issued Bulletin No. 19-13, which describes the licensing requirement for mortgage servicers under the New Jersey Mortgage Servicers Licensing Act. For those entities currently conducting business as mortgage servicers in New Jersey and not otherwise exempt, the guidance provides a deadline of April 13, 2020, for applications to be submitted through NMLS. However, this license is not required for any business entity licensed as a residential mortgage lender pursuant to the New Jersey Residential Mortgage Lending Act.
As of the date of this post, the April 13 deadline has not yet been extended or modified as a result of the Covid-19 pandemic.
Among the various requirements of the New Jersey mortgage servicer license application are the following:
- Electronic surety bond in the amount of $100,000
- Errors and omissions insurance and a fidelity bond in an amount determined by the applicant’s volume of New Jersey residential mortgage loans serviced
- Tangible net worth of $250,000
- Qualifying individual with at least three years’ experience in the mortgage servicing business within the five years immediately preceding the application