N.J. Admin. Code § 3:25-4.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 3:25-4.2 - Minimum standards for individuals providing high-cost home loan credit counseling

(a) High-cost home loan credit counselors, and the individuals they employ to counsel prospective high-cost home loan borrowers, shall:

1. Possess sufficient expertise and ability to provide counseling on high-cost home loans to consumers as prescribed in 3:25-4.3 in a reasonably competent manner;

2. Possess an adequate working knowledge of high-cost home loans, sub-prime loans and other basic loan forms; and

3. Have an adequate working knowledge of all pertinent New Jersey and Federal consumer credit and banking laws and regulations.

(b) High-cost home loan credit counselors may make arrangements for funding or the payment of fees for high-cost home loan credit counseling consistent with the restrictions specified in the HUD Housing Counseling Program Handbook 7610.1 as amended and supplemented, which is incorporated herein by reference and which is available at www.hudclips.org.

(c) If a high-cost home loan credit counselors receives a fee for high-cost home loan credit counseling or high-cost home loan alternative credit counseling from the borrower, they may not receive an additional fee for that particular certification from another source. This prohibition shall not, however, preclude a high-cost home loan credit counselor from receiving payments under contractual arrangements with, or receiving funding from lenders or other parties in addition to the receipt of such fees from borrowers.

(d) High-cost home loan credit counselors shall not employ individuals who have demonstrated unworthiness, incompetence, bad faith or dishonesty in transacting business or otherwise.

N.J. Admin. Code § 3:25-4.2