New Jersey Residential Mortgage Lending Act Practice Test

Misleading borrowers regarding the terms or costs of a mortgage loan is considered a deceptive practice under the New Jersey Residential Mortgage Lending Act because it undermines the transparency and fairness expected in lending practices. This Act aims to protect consumers by ensuring they are fully informed about the mortgage products they are considering. Misrepresentation or confusion about loan terms can lead borrowers to make uninformed decisions, ultimately resulting in financial harm.

In contrast, providing accurate loan information fosters an environment of trust and accountability between lenders and borrowers. Charging standard interest rates aligns with industry practices and does not exploit borrowers. Offering incentives, when done transparently and ethically, can be a legitimate business practice aimed at attracting borrowers without misleading them. Thus, the focus is on accurate communication and fair dealings within the mortgage industry.