N.J. Admin. Code § 3:25-4.3

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

Section 3:25-4.3 - Minimum standards for certifications of high-cost home loan credit counseling

(a) Prior to providing a certification in compliance with 46:10B-26(g), persons providing high-cost home loan credit counseling shall review with the consumer the following:

1. The estimated total monthly payment on the loan based upon principal and interest and, if applicable, taxes, homeowner's insurance and any other costs to be included in the monthly payment;

2. The equity that currently exists in the borrower's home, to the extent it is known;

3. The effect of the loan's terms, including its actual interest rate, annual percentage rate, points, fees, any provision for a balloon payment and prepayment penalties;

4. The borrower's financial situation both before and after the prospective loan, including the impact that the loan will have on the borrower's general financial condition and monthly finances, any personal benefits, and the advantages and disadvantages of proceeding with the high-cost home loan transaction;

5. The Federal Regulation X good faith estimate and Federal Regulation Z Truth in Lending Disclosure Statement, or other informational documentation supplied by the lender which provides the minimum information concerning the prospective high-cost home loan necessary for certification;

6. Opportunities for the borrower to seek other means of funding;

7. That the counselor is a non-affiliated third party agency and is not affiliated with any lender who offers high-cost home loans; and

8. Other information necessary to ensure that the consumer understands their obligations with regard to the prospective high-cost home loan and the ramifications of default.

N.J. Admin. Code § 3:25-4.3