4 Hour NJ SAFE: New Jersey Mortgage Lending Laws

This course is designed to prepare candidates to take the exam to become a state-licensed mortgage loan originator in New Jersey under the New Jersey Department of Banking and Insurance (DOBI). This 4-hour course covers New Jersey specific rules and regulations, and is required as part of the 20 hours of prelicensure education needed to become a New Jersey mortgage loan originator.

Topics and Learning Objectives

This course consists of five modules and a final exam:

1. Overview of the Department of Banking and Insurance (DOBI) (10 minutes)
2. What is a Mortgage Loan Originator? (50 minutes)
3. Initial Licensure in New Jersey (30 minutes)
4. Professional Behavior of the Mortgage Loan Originator (40 minutes)
5. Mortgage Loan Originator and Borrower/Client Protocol (50 minutes)
6. Final Exam (20 minutes)

Total study time: 4 credit hours (200 minutes)

Module 1: Overview of the Department of Banking and Insurance (DOBI)

In this module we will summarize the organization and purpose of the State of New Jersey Department of Banking and Insurance (DOBI).

Module 2: What is a Mortgage Loan Originator?

In this module, we will cover the foundational basics for understanding your role as a mortgage loan originator. We will define the residential mortgage loan, and the important players in the issuance of a residential mortgage loan. Then, we will define the vital role of the mortgage loan originator. Finally, we will address the federal and state laws that regulate your professional activities as a mortgage loan originator.

Module 3: Initial Licensure in New Jersey

New Jersey law requires that any person who participates in the following transactions must first obtain an New Jersey Mortgage Loan Originator license:

• the completion of the mortgage loan application process, or
• the negotiation of the terms of a residential mortgage loan.

In this module, we will cover New Jersey mortgage loan originator licensure.

Module 4: Professional Behavior of the Mortgage Loan Originator

In this module, we will first outline New Jersey law regarding MLO licensure for a person with an existing criminal background. You will see that New Jersey has a strict definition of what types of criminal background will prohibit licensure. Then we will dive deeper into New Jersey law that outlines the expected professional behavior of an MLO, including the prohibited acts as defined by law. This section will conclude with a description of what can happen if an MLO violates the law.

Module 5: Mortgage Loan Originator and Borrower/Client Protocol

In this module we will address specific requirements surrounding the relationship between the MLO and the residential mortgage loan applicant. We will start with a review of the regulations regarding the MLO and advertising for new clients. Advertising for a mortgage loan is highly regulated by New Jersey law, and it is important to take note of what is required in the advertisement, and what is prohibited.

After addressing advertising, we will then address several other additional funding opportunities that can arise after the initial residential mortgage is funded, which are call secondary mortgages. Then, we will address the options and requirements that can be given to the mortgage loan application in order to insure the mortgage loan. Finally, we will address the fees that the MLO can charge the loan applicant, as defined by New Jersey law.

NMLS ID Required

You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.

If you already have an NMLS ID, but don't remember what it is:

• Login into NMLS,
• Click on the Composite View tab, then
• Click View Individual on the sub-header row.
• The number that appears in parentheses after your name is your NMLS ID number.

If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center