Bill Text: NJ S1604 | 2020-2021 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Requires certification of diligent inquiry in residential mortgage foreclosure actions to be filed by attorneys.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2022-01-10 - Approved P.L.2021, c.337. [S1604 Detail]

Download: New_Jersey-2020-S1604-Amended.html

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[First Reprint]

SENATE, No. 1604

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED FEBRUARY 13, 2020

 

 

Sponsored by:

Senator  RICHARD J. CODEY

District 27 (Essex and Morris)

 

 

 

 

SYNOPSIS

     Requires certification of diligent inquiry in residential mortgage foreclosure actions to be filed by attorneys.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Commerce Committee on February 11, 2021, with amendments.

  

An Act concerning residential mortgage foreclosures and supplementing P.L.1995, c.244 (C.2A:50-53 et seq.). 

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.   In addition to any other requirements under law, regulation or court rule, in all residential mortgage foreclosure actions, an attorney filing a foreclosure complaint shall include a certification of diligent inquiry.  The certification of diligent inquiry shall certify:

     (1)   that the attorney has communicated with an employee or employees of the plaintiff ¹or of the plaintiff's mortgage loan servicer¹ who: (a) personally reviewed the ¹[documents being submitted to support the]¹ complaint ¹and confirmed the accuracy of its content, based on business records kept in the regular course of business by the plaintiff or the plaintiff's mortgage loan servicer, and who, if employed by the plaintiff's mortgage loan servicer, identified the relationship between the mortgage loan servicer and the plaintiff¹; and (b) confirmed the ¹[accuracy of the documents] authority of the mortgage loan servicer to act on behalf of the plaintiff¹;

     (2)   the names and titles, and the responsibilities in those titles, of the plaintiff's ¹or plaintiff's mortgage loan servicer's¹ employees with whom the attorney communicated pursuant to paragraph (1) of this section ¹and the date and mode of communication employed to contact them¹;

     (3)   that the attorney has reviewed the facts of the case and that, based on the information received pursuant to this section and the attorney's review of the pertinent documents, to the best of the attorney's knowledge, information and belief there is a reasonable basis for the commencement of the action and that the plaintiff is currently the residential mortgage lender entitled to enforce rights under those documents; and

     (4)   that the attorney is aware that the failure to comply with the provisions of this section may result in the penalties provided for in subsection b. of this section or, where the failure constitutes a violation of the Rules of Professional Conduct, may include sanctions imposed by the Supreme Court of New Jersey. 

     b.    If the court finds that the plaintiff has failed to comply with the provisions of subsection a. of this section, the court may dismiss the complaint¹[, with or without prejudice,]¹ or deny the accrual of any ¹[interest,]¹ costs, attorney's fees and other fees relating to the mortgage debt. 

     2.    This act shall take effect immediately and shall apply to mortgage foreclosure actions filed on or after the effective date.