N.J. Dramatically Tightens Oversight of Mortgage Servicers
Banking Law Attorneys Leonard Bernstein and Bob Jaworski were quoted by the Philadelphia Business Journal in regards to New Jersey’s nine-bill package being signed this week. The article discusses the new law that will make nonbank mortgage servicers obtain a license to operate in the state. In addition, the mortgage servicer licensees and other entities will be affected in regards to various regulatory obligations, restrictions and prohibitions from the department’s jurisdiction.
Mr. Bernstein said, “Many states with Democratic governors and attorneys general have been much more aggressive in enforcing consumer financial protection laws due to what they perceive as the Trump administration's attempts to weaken the Consumer Financial Protection Bureau (CFPB), established by the 2010 Dodd-Frank financial services reform act.”
Mr. Jaworski said, “Over the past five years, mortgage servicers have been at the forefront of federal and state regulators enforcement strategies after the foreclosure crisis during the recession. I just think state regulators want more businesses under their supervision.” He continued to state that New Jersey's companies and their principals must receive a background check and provide proof of their insurance coverage. After being licensed, they will then be subjected to examinations and investigations.
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