2020 New Jersey Revised Statutes
Title 17 - Corporations and Institutions for Finance and Insurance
Section 17:16F-32 - License not transferable or assignable; surrender; name change.

17:16F-32 License not transferable or assignable; surrender; name change.

6. a. A mortgage servicer license shall not be transferable or assignable. A licensee shall not use any name other than its legal name or a fictitious name approved by the commissioner, provided the licensee shall not use its legal name if the commissioner disapproves use of the name. Any licensee who intends to permanently cease acting as a mortgage servicer at any time during a license period for any cause, including, but not limited to, bankruptcy or voluntary dissolution, shall file with the department a request to surrender the license for each office at which the licensee intends to cease to do business, not later than 15 days after the date of the cessation. A surrender shall not be effective until accepted by the commissioner.

b. A mortgage servicer licensee may change the name of the licensee or address of any office specified on the most recent filing with the department if:

(1) at least 30 calendar days prior to the change, the licensee files the change with the department and, in the case of a main office or branch office, provides, directly to the commissioner, a bond rider or endorsement, or addendum, as applicable, to any bond or evidence of errors and omissions coverage on file with the commissioner that reflects the new name or address of the main office or branch office; and

(2) the commissioner does not disapprove the change, in writing, or request further information within the 30-day period.

c. The mortgage servicer licensee shall notify the department, in writing, not later than five business days after the licensee has reason to know of the occurrence of any of the following events:

(1) a material change of financial condition, filing for bankruptcy, or the consummation of a corporate restructuring, of the licensee;

(2) filing of a criminal indictment against the licensee or receiving notification of the filing of any criminal felony indictment or felony conviction of any of the licensee's officers, directors, members, partners or shareholders owning ten percent or more of the outstanding stock;

(3) receiving notification of the institution of license denial, cease and desist, suspension or revocation procedures, or other formal or informal regulatory action by any governmental agency against the licensee and the reasons for the action;

(4) receiving notification of the initiation of any action by the Attorney General or the attorney general of any other state and the reasons for the action;

(5) suspension or termination of the licensee's status as an approved seller or servicer by the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or Government National Mortgage Association;

(6) receiving notification that certain servicing rights of the licensee will be rescinded or cancelled, and the reasons provided therefor;

(7) receiving notification of filing for bankruptcy of any of the licensee's officers, directors, members, partners or shareholders owning ten percent or more of the outstanding stock of the licensee; or

(8) receiving notification of the initiation of a class action lawsuit on behalf of consumers against the licensee that is related to the operation of the licensed business.

L.2019, c.65, s.6.