Which fee is prohibited under the New Jersey Residential Mortgage Lending Act?

Under the New Jersey Residential Mortgage Lending Act, charging an application fee without providing a written estimate of services is prohibited because it ensures transparency and consumer protection. The Act emphasizes that borrowers must receive a clear understanding of the costs associated with their mortgage application upfront. By requiring lenders to provide a written estimate, the law aims to prevent unexpected charges and to promote fair lending practices. This regulation is in place to protect consumers from potential exploitation and to help them make informed decisions regarding their mortgage applications.

The other options, while they may involve regulatory considerations, do not encapsulate the same level of consumer protection as the prohibition on application fees without a written estimate. For example, late payment fees may still be justifiable under certain conditions, and while multiple appraisal fees can be viewed critically, the law does not explicitly forbid charging them in the same way it does for the lack of upfront estimates. Therefore, option A stands out as the key protective measure under the Act.