17:16F-29 Licensure for mortgage servicer required; exceptions.

3. a. On and after the effective date of this act, no person shall act as a mortgage servicer, directly or indirectly, without first obtaining a license under section 4 of this act from the commissioner for its main office, which shall be designated by the mortgage servicer, and each branch office where business is conducted, unless the person is exempt from licensure pursuant to subsection b. of this section.

b. The following persons shall be exempt from mortgage servicer licensing requirements:

(1) any bank, out-of-state bank, credit union chartered in New Jersey, federal credit union, or out-of-state credit union, provided the bank or credit union is federally insured;

(2) any wholly-owned subsidiary of the bank or credit union;

(3) any operating subsidiary in situations in which each owner of the operating subsidiary is wholly owned by the same bank or credit union;

(4) any person licensed as a residential mortgage lender pursuant to the "New Jersey Residential Mortgage Lending Act," P.L.2009, c.53 (C.17:11C-51 through C.17:11C-89) while acting as a mortgage servicer, provided that:

(a) the person meets the supplemental mortgage servicer surety bond, fidelity bond, and errors and omissions coverage requirements under section 8 of this act; and

(b) during any period that the license of the residential mortgage lender in this State has been suspended, the exemption shall not be effective; and

(5) the New Jersey Housing and Mortgage Finance Agency.

c. The provisions of sections 9 through 12 of this act shall apply to any person, including a person exempt from licensure pursuant to subsection b. of this section, who acts as a mortgage servicer in this State on or after the effective date of this act.

L.2019, c.65, s.3.