1. Who needs to be licensed?
Those entities that conduct mortgage banking, correspondent mortgage banking, mortgage brokering, second mortgage lending, sales finance business and consumer loan business. 

2. Is fingerprinting a condition of obtaining a license?
All candidates for New Jersey Licensed Lender licenses will be required to complete a fingerprinting process as a condition of securing a Licensed Lender license which includes mortgage banker, correspondent mortgage banker, mortgage broker, secondary lender, consumer lender and sales finance company authorities. This requirement affects all new candidates for individual Licensed Lender licenses, applicants for sole proprietorship licenses as well as officers, directors, members, partners, and substantial stockholders of corporations, limited liability companies and partnerships seeking business entity Licensed Lender licenses.

3. What is the difference between a mortgage banker, correspondent mortgage banker and a mortgage broker?
The differences between these categories of first mortgage lending are the functions that can be performed under the license and the amount of tangible net worth required: $50,000 for mortgage broker; $150,000 for correspondent mortgage banker and $250,000 for mortgage banker. The difference in functions: the mortgage banker can perform all functions under the law, the correspondent mortgage bankers can close in their own name, but cannot retain loans longer than 90 days, the mortgage broker cannot issue a commitment or close a loan. (See N.J.S.A. 17:11C et. seq.).

4. What is involved in getting a license?

1. Completed application
2. Audited financial statement
3. Surety Bond
4. Testing
5. Physical location in New Jersey

5. How long does the process take?
It takes approximately 60 days from acceptance of the application to receipt of the wall license.  This statement is based on the fact that the application is complete upon submission which includes the individual applicants original pass notice.

6. How much surety coverage is needed?
(a) $100,000 if you are a mortgage banker, correspondent mortgage banker, mortgage broker or a secondary mortgage lender; (b) $150,000 if you are either a mortgage banker, correspondent mortgage banker, mortgage broker and a secondary mortgage lender.

7. Must I have an office in New Jersey?
Yes, if you are an entity that conducts mortgage banking, correspondent mortgage banking, mortgage brokering, second mortgage lending and consumer loan business.  Only companies that conduct sales finance business are exempt from the in-state requirement.  If you have a question as to the suitability of your proposed location, please see Bulletin 05-10 (PDF).

8. If I’m an out-of-state mortgage banker/broker can I do any first mortgage loans without being licensed?
No.  If you are in the financial services business, you must be licensed prior to conducting any first mortgage business involving New Jersey property.

9. If the company has multiple locations, whether in state or out-of-state, must they be licensed as branch offices?
If these locations conduct business as defined in the Licensed Lenders Law, they must be licensed.

10. Who is required to take the Licensed Lender test?
The person to be the licensed individual of record who must also be a corporate officer; member of a partnership, etc and reside within commuting distance of the location to be licensed.

11. How do I get scheduled to take the examination?
A candidate contacts the testing vendor, Pearson VUE, via their website at
www.pearsonvue.com or by telephone at 1-800-470-8762 to schedule an appointment.

12. Is there a book to study?
There is no text or manual for the test.  The content outline for the test is part of the Candidate Handbook which can be reviewed on Pearson VUE's web site.  A copy of the New Jersey statute and regulations -  The Licensed Lender law is available from the Department at a cost of $35.  To obtain this material address a written request including payment made payable to: Treasurer, State of New Jersey and mail to: Licensing Services, NJDOBI, PO Box 473, Trenton, NJ 08625.

13. Are there courses required or given for preparation for the written examination?
There are no courses required to be taken in connection with this examination.  There are exam preparation courses given by private individuals who are not connected in any way with the Department.

14. How much net worth or tangible net worth must be demonstrated on the audited financial statement?

Mortgage Banker - $250,000
Correspondent Mortgage Banker - $150,000
Mortgage Broker - $50,000
Secondary Mortgage Lender - $150,000 (liquid)

15. Must I file an audited financial if this is a new entity?
The company must be capitalized to the dollar amount required and must demonstrate, via audited financial statement, that they meet the net worth/tangible net worth required under the law.

16. When does the license expire?
All licenses that are issued between July 1, 2007 and June 30, 2009 will expire on June 30, 2009. Licenses are due to be renewed for July 1, 2009. Renewed licenses will expire on June 30, 2011.

17. What is the cost of the license?
The application fee is a gradually increasing fee depending upon the number of authorities sought. The fee is assessed per authority per application. (See instructions).

18. Can a residence be used as a licensed office?
A residence shall not be considered a suitable location unless the applicant submits acceptable proof that the office would be separate from the residential area and has a separate business entrance. A floor plan, interior and exterior photographs and a written description must be submitted. 

19. Are loan officers/mortgage originators licensed?
The name New Jersey uses is “Mortgage Solicitor” (MS Word) and they must be registered with the Department.

20. What is the cost of the mortgage solicitor registration?
The registration fee is $100.

21. What is the procedure if I change my business address?
Before filing for an address change be certain that the proposed location is in compliance with NJDOBI standard for acceptable office locations – please see Bulletin 05-10 (PDF).

Complete the change of address information on the reverse side of the wall license. Enclose a copy of the deed, lease or rental agreement for the new business location (even if a Residence). Note: The agreement MUST be executed between the licensee and the landlord/property owner. If a sublease is involved, there must be written evidence of the landlord’s knowledge and acceptance of the subleasing arrangement.
          
Enclosed an original executed rider to the surety bond reflecting the amended business address IF the principal New Jersey office is involved.

22. What is the procedure if I change my business name?
Complete the change of name information on the reverse side of the wall license(s).

Enclose a copy of the amended Certificate of Incorporation or copy of Alternate Name Certificate, if a corporation; a copy of the amended Certificate of Formation, if a limited liability company; a copy of amended or new trade name certificate if a partnership or sole proprietorship; an amended Certificate of Authority to do Business in New Jersey if a foreign corporation.

Enclose an original executed rider to the surety bond reflecting the amended name and /or the addition or a new alternate name.

23. How do I obtain a duplicate license?
Request and complete a lost license affidavit.

24. What if I want to change my licensed lender authority?
Complete a conversion application form.  Along with the conversion application you need to attach:     

• a copy of the most recent annual report filing
• an unqualified audited financial statement, prepared by a CPA or PAdemonstrating required net worth if you are converting from a mortgage broker.  If converting from a mortgage banker or correspondent mortgage banker to a broker only the most recent copy of the annual report and affidavit are required.
• a fully executed, notarized Conversion Affidavit
• all current wall licenses and mortgage solicitor certificates

25. When do I file the annual report?
The annual report is due APRIL 1ST.  It can be filed online.

26. When is my assessment due?
The assessment MUST be paid within 30 days of the receipt of the assessment bill.

27. What must I do if I want to cease doing business?
You are required to notify the Department prior to ceasing business and must follow the steps contained in the regulations at N.J.A.C.3:15-2.15.

28. How can I contact DOBI if I have a question that wasn’t answered above?
You can put your question in writing and fax it to us at (609) 633-0822 or by e-mail to blic@dobi.state.nj.us.