N.J. Admin. Code § 3:5-4.4
Current through Register Vol. 56, No. 23, December 2, 2024
Section 3:5-4.4 - Volume assessments(a) The volume assessment for depository institutions shall be calculated as follows: 1. The Department shall deduct the total base assessments for depositories from the total expenses for Depositories for the preceding calendar year.2. Using filings of each depository institution, the Department shall calculate, to nine decimal places, the percentage of total assets under supervision held by each depository institution in relation to the total assets under supervision for all depository institutions as of December 31 of the prior calendar year.3. The Department shall multiply the percentage for each depository institution times the expenses remaining after the total of the base assessments of depository institutions has been deducted from the total amount of expenses for Depositories for the preceding fiscal year.4. The volume assessment for each depository institution shall be added to the base assessment for each depository institution.(b) The volume assessment for credit unions shall be calculated as follows:1. There is no volume assessment for credit unions with assets under $ 40 million.2. The Department shall calculate the volume assessment for credit unions with assets of $ 40 million dollars or more by comparing the assets of each such individual credit union with the assets of a depository institution of equal size and assessing the credit union the same volume assessment that the credit union would have been assessed if the credit union had been a depository institution.3. In order to calculate the volume assessments set forth in (b)2 above, the Department will calculate, to nine decimal places, the percentage of the assets of each individual credit union, based on filings made by the credit union, as compared to the total assets for depository institutions which was used to calculate the volume assessment for depository institutions in (a)1 above. This figure will be multiplied by the expenses remaining after deduction of base assessments for depository institutions calculated pursuant to (a)2 above.4. The total assessment for each credit union with assets under $ 40 million shall equal the base assessment for the credit union.5. The volume assessment for each credit union with assets of $ 40 million or more shall be added to that credit union's base assessment, to produce the total assessment.(c) The volume assessment for licensees shall be calculated as follows:1. Using filings of each licensee, the Department shall calculate the percentage, to nine decimal places, of the loan volume and/or its equivalent as calculated below for each licensee, in relation to total loan volume and/or its equivalent for all licensees as of December 31 of the prior calendar year. i. The volume assessment for licensees of Consumer Finance shall be calculated on the basis of the total loan volume and/or its equivalent as calculated by the Department.ii. The Department shall determine the total loan volume for licensees that make and/or purchase loans based on the total dollar amount of regulated closed loans made, purchased and brokered by all licensees during the preceding calendar year, as reported in the licensees' annual reports.iii. For the purposes of this section, licensees that make loans include mortgage bankers, correspondent mortgage bankers, secondary lenders, business licensees under the New Jersey Residential Mortgage Lending Act, 17:11C-51 et seq., consumer lenders, pawnbrokers, sales finance companies, insurance premium finance companies, home repair contractors, and motor vehicle installment sellers. Licensees that purchase loans include consumer lenders, sales finance companies and home financing agencies.iv. For purposes of the calculation of the volume assessment for those who make loans, the Department shall consider the dollar volume of such loans. In calculating the volume assessment for licensees that purchase loans, the volume of loans purchased shall be considered as if it were dollars loaned. In calculating the volume assessment for sales finance companies that both make and purchase loans, the Department shall consider the total loan volume of such licensees to be the dollar volume of loans made plus the dollar volume of loans purchased by such licensees.v. For residential mortgage brokers and for residential mortgage lenders who broker loans, the Department shall determine the dollar volume of closed loans brokered by each licensee for the preceding calendar year as reported in the licensee's annual report. For purposes of calculation of the volume assessment for residential mortgage brokers, the Department shall consider the volume of closed loans brokered for each licensee as if it were the volume of dollars loaned by a licensee. In calculating the volume assessment for residential mortgage lenders who also broker loans, the Department shall consider the total loan volume of such licensees to be the dollar volume of loans made plus the dollar volume of closed loans brokered by such licensees.vi. For check cashers, the Department shall consider the dollar volume of checks cashed for a fee by each licensee for the preceding calendar year, as reported in the licensee's annual report. The volume shall include all checks cashed for a fee or other compensation, whether received directly or indirectly, and shall treat the dollar volume of such checks as if it were a volume of dollars loaned. The volume shall include payroll services as defined in 17:15A-31.vii. For money transmitters and foreign money transmitters, the Department shall consider the dollar volume of money transmitted, the dollar volume of bills paid and the dollar volume of checks sold by each licensee for the preceding calendar year as reported in the licensee's annual report. This total dollar volume shall be treated for assessment purposes as if it were dollars loaned.viii. For the purposes of determining the volume assessment for sales finance companies and motor vehicle installment sellers licensed under 17:16C-1 et seq., the Department shall consider the dollar volume of loans for goods as defined by 17:16C-1(a) and the dollar volume of loans for services. For sales finance companies, the Department shall consider the dollar volume of such loans made plus the dollar volume of such loans purchased by those licensees.ix. For the purposes of determining the volume assessment for licensees under the Licensed Lenders Act, 17:11C-1 et seq., the New Jersey Residential Mortgage Lending Act, 17:11C-51 et seq. or the New Jersey Consumer Finance Licensing Act, 17:11C-1 to 43, the volume assessment shall be based on the aggregate dollars loaned or its equivalent as determined in accordance with this chapter for all their authorities.x. There will be no volume assessment for entities licensed to act as debt adjusters pursuant to 17:16G-1 or high cost home loan credit counselors registered pursuant to N.J.S.A. 46:10-22 et seq.xi. For purposes of determining the volume assessment of foreclosure consultants, the Department shall consider the number of foreclosure consultant agreements entered into by the licensee in accordance with 46:10B-56 and N.J.A.C. 3:18 and the total compensation received for having provided distressed property services in accordance with 46:10B-56.b(1) and 58, for the preceding calendar year.2. The Department shall multiply the percentage for each licensee regulated by Consumer Finance times the expenses remaining after the total assessments for credit unions and the base assessments of licensees have been deducted from the total amount of expenses for Consumer Finance for the preceding fiscal year.3. The volume assessment, if any, for each entity regulated by Consumer Finance shall be added to their previously determined base assessment.4. For the purpose of determining the total assessment for licensees under the Licensed Lenders Act, 17:11C-1 et seq., the New Jersey Residential Mortgage Lending Act, 17:11C-51 et seq. or the New Jersey Consumer Finance Licensing Act, 17:11C-1 to 43, licensees with more than one authority shall pay a separate base assessment for each separate authority, which shall be added to a single volume assessment, if any, based on the aggregate dollars loaned or its equivalent for all their authorities.(d) A regulated entity that ceases business or that is acquired shall be responsible for the filing of an annual report for the calendar year in which operations ceased or the acquisition occurred and the payment of the base assessment and any volume assessment for the entire preceding calendar year and for the year in which its operations ceased or it was acquired, as set forth below in this subsection. An entity that ceases business or is acquired shall: 1. Notify the Department in writing of its intention to cease business or be acquired at least 30 days prior to the date on which it will cease operating or be acquired, and provide the name, address and telephone number of the person within the licensee's operation to whom all communications from the Department should be directed and who will be responsible to ensure the payment of assessment(s) and filing of the final annual report;2. Pay all assessments that are due and owing as of the date on which the notice referenced in (1) above is provided and that may be subsequently issued;3. Prepay the base assessment for the year of the discontinuance or acquisition by paying the amount of the most recently billed base assessment. Such prepayment shall be due within 15 days of being notified by the Department of the amount of the prepayment due. Adjustments to the base assessment, if any, and the final volume assessment for the year of discontinuance or acquisition will be billed in the year following the discontinuance or acquisition; and4. Return all license(s) or other credential(s) issued by the Department no later than 30 days after ceasing business or being acquired.(e) Failure to comply with the above will subject the regulated entity to the penalties authorized by 17:1C-42, 43, or 44, together with any penalties applicable to the particular type of regulated entity as authorized by statute.N.J. Admin. Code § 3:5-4.4
Amended by R.2007 d.306, effective 10/1/2007.
See: 39 N.J.R. 2299(a), 39 N.J.R. 4111(a).
Rewrote (d); and added (e).
Amended by R.2011 d.294, effective 12/19/2011.
See: 43 N.J.R. 1629(a), 43 N.J.R. 3331(a).
In (c)1iii, inserted "business licensees under the New Jersey Residential Mortgage Lending Act, N.J.S.A. 17:11C-51 et seq.,"; in (c)1v, inserted "residential" preceding "mortgage" throughout and substituted "lenders" for "bankers" twice; and in (c)1ix and (c)4, inserted ", the New Jersey Residential Mortgage Lending Act, N.J.S.A. 17:11C-51 et seq. or the New Jersey Consumer Finance Licensing Act, N.J.S.A. 17:11C-1 to 43,".
Amended by R.2014 d.015, effective 1/6/2014.
See: 45 N.J.R. 969(a), 46 N.J.R. 65(a).
Added (c)1xi.