N.J. Admin. Code § 3:15-6.7 - Ledger card and document retention requirement for mortgage lenders making secondary mortgage loans

Current through Register Vol. 54, No. 7, April 4, 2022

(a) Each mortgage lender shall maintain an individual record or ledger card for each secondary mortgage loan, which shall include the following information:
1. The account number;
2. The name and address of borrower (mortgagor);
3. The address and physical description of mortgaged property;
4. The date of the secondary mortgage loan;
5. The amount of the secondary mortgage loan;
6. The appraisal or inspection fee;
7. The credit investigation fee;
8. The title search fee;
9. Legal fees;
10. Recording and filing fees;
11. Insurance premiums and types of coverage;
12. The interest charge;
13. The full amount of the secondary mortgage loan;
14. The terms by which the secondary mortgage loan is to be repaid;
15. The amount and to whom any commissions, fees or points, if any, were paid by the licensee and the form of disbursement (for example, cash or check);
16. A record of the computation of any rebate upon prepayment of the secondary mortgage loan in full before maturity;
17. A record of the computation of any refund of unearned insurance premium charge upon prepayment of the secondary mortgage loan in full before maturity; and
18. The name and address of any subsequent holder of the secondary mortgage loan obligation if it is sold or assigned.
(b) Each person licensed as a mortgage lender shall maintain an original or true copy of the following instruments, documents, accounts, books and records for each secondary mortgage loan:
1. Promissory note evidencing each borrower's secondary mortgage loan indebtedness;
2. Mortgage indenture or any other similar instrument or document that creates a lien on the real property that is taken as security for a secondary mortgage loan;
3. Credit life and accident and health insurance policy or a certificate of insurance when such insurance is obtained in accordance with 17:11C-21;
4. Closing statement for each secondary mortgage loan;
5. Appraisal or search, where utilized;
6. Individual ledger card or any other form or record which shows all installment payments made by the borrower and all other charges or credits to the borrower's account;
7. Individual file in which the borrower's application for a loan and any correspondence, including collection letters, memorandums, notes or any other written information pertaining to the borrower's account, shall be kept; and
8. General ledger cash receipts and disbursements register, checkbook canceled checks and such other accounts, books or records as shall be required by the Commissioner in order to ascertain whether the licensee has been conducting secondary mortgage loan business in full compliance with the provisions of 17:11C-51 et seq.

Notes

N.J. Admin. Code § 3:15-6.7
Amended by R.1999 d.191, effective 6/21/1999 (operative July 21, 1999).
See: 30 N.J.R. 1658(a), 31 N.J.R. 1609(a).
Added (b).
Amended by R.2010 d.129, effective 6/21/2010 (operative July 31, 2010).
See: 41 N.J.R. 2829(a), 42 N.J.R. 1139(b).
Section was "Ledger card and document retention requirement for secondary lenders". In the introductory paragraph of (a), substituted "mortgage" for "person licensed as a secondary"; in the introductory paragraph of (b), substituted "mortgage" for "secondary", deleted "at his place of business in this State" following "maintain" and inserted "for each secondary mortgage loan"; and in (b)8, deleted "his" following "conducting" and updated the N.J.S.A. reference.

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