Which entities must be licensed under the New Jersey Residential Mortgage Lending Act?

The New Jersey Residential Mortgage Lending Act mandates that specific entities involved in mortgage lending activities must obtain a license to operate legally within the state. Mortgage lenders and mortgage brokers are directly involved in the origination, negotiation, and closing of residential mortgage loans, which places them under the purview of this legislation.

Mortgage lenders provide the funds for home loans, while mortgage brokers act as intermediaries between borrowers and lenders, helping to facilitate the loan process. The requirement for licensing is aimed at ensuring that these entities meet certain standards and comply with regulations designed to protect consumers, promote fair lending practices, and maintain a level of oversight within the mortgage industry.

In contrast, real estate agents and appraisers, home inspectors and contractors, and title companies and insurance agents do not fall under the specific licensing requirements imposed by the New Jersey Residential Mortgage Lending Act, as their roles, while important in the real estate transaction process, do not directly encompass the lending and brokering of residential mortgages.