New Jersey predatory lending law passed

On May 1, 2003, New Jersey Governor James E. McGreevey signed into law the New Jersey Home Ownership Security Act of 2002. The Act, which takes effect on November 27, 2003, is intended to protect consumers in New Jersey from predatory mortgage lending practices. The implications of the Act extend not only to mortgage finance companies, but also will affect the secondary mortgage market, financial institutions, community banks, mortgage loan brokers, home contractors and others, including companies that may make occasional mortgage loans to officers or employees. The Act potentially exposes creditors which are covered by the Act, including an assignee of the creditor, to an unknown and possibly unlimited amount of damages. Anyone involved in any aspect of residential mortgage lending in New Jersey will have to pay careful attention to the provisions of the Act and the limitations and restrictions imposed thereby.