Due to a recent document audit, we are updating our version of NJ Application and Disclosure (our form Cx21702), to align with the model form that is published by the NJ Department of Banking and Insurance.
This form is required to be provided to customers, in connection to close-ended mortgage loans, secured by a first mortgage on real property on which there are 1-to-4 dwelling units under the New Jersey Residential Mortgage Lending Act pursuant to N.J. Admin. Code § 3:1-16.3(a) .
The NJ Model form specifically states on Item 4 that:
The “Total Fee Amount” stated below must equal the total of the “Origination Charges” stated in Box A of your “Loan Estimate.”
The rule that governs the Loan Estimate Section A is 12 CFR 1026.37 (f) (1), which is subject to the rounding rule found under 1026.37(o)(4)(i)(A) that states:
The dollar amounts required to be disclosed by paragraphs (b)(6) and (7), (c)(1)(iii), (c)(2)(ii) and (iii), (c)(4)(ii), (f), (g), (h), (i), and (l) of this section shall be rounded to the nearest whole dollar.
N.J. Admin. Code § 3:1-16.3(a)(1) does not give specific guidance regarding if the fees should be reflected on the NJ Application and Disclosure as a rounded or unrounded number. Therefore, based on the instructions found on the NJ application Disclosure, we are updating Cx21702 so that the rounded number for the total origination charges found in Section A is duplicated from the Loan Estimate generically. This means that the unrounded amount, field 82329 Fee Section A Borrower (or All) Total, is being replaced with the rounded value, field 95486 Fee Section A Borrower (or All) Total Rounded, to better reflect the actual figure printing on the Loan Estimate.
This change will be in effect on July 10, 2021. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.