TRENTON – Legislation sponsored by Senator Barbara Buono and signed into law by Governor Corzine will curb abuses in the home lending industry which contributed to its collapse and led to the most severe economic recession in a generation. The law mandates that “residential mortgage loan originators,” who act as the primary point of contact for a prospective home buyer, be licensed and subject to educational and criminal background check requirements.
“In order to practice most trades and professions in New Jersey – such as realty, accountancy, and cosmetology, among others – you must be licensed, satisfy educational requirements, and pass entrance examinations. Yet, prior to the enactment of this legislation anyone could pay a $100 fee and call themselves a loan officer,” explained Senator Buono, D-Middlesex and Chairwoman of the Senate Budget and Appropriations Committee. “Purchasing a home is often the largest investment of an individual’s lifetime. Adequate safeguards are needed to ensure that the people and businesses dispensing this advice have the education, character, and financial fitness necessary to offer home mortgage services.