Committee Statement - Senate Bill No. 1604, Senate Commerce Committee (New Jersey, February 11, 2021)

Summary

Senate Commerce Committee Statement to Senate, No. 1604, with committee amendments, State of New Jersey, dated February 11, 2021, reporting Senate Bill No. 1604 favorably. As amended, the bill supplements the "Fair Foreclosure Act" by codifying aspects of New Jersey Court Rule 4:64-1 regarding certifications of diligent inquiry. It provides that in all residential mortgage foreclosure actions an attorney filing a foreclosure complaint shall include a certification of diligent inquiry. The bill also stipulates that the court may, if it finds the plaintiff has failed to comply, dismiss the complaint or deny the accrual of costs, attorney's fees and other fees relating to the mortgage debt.

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     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                  SENATE, No. 1604
                   with committee amendments



 STATE OF NEW JERSEY
                   DATED: FEBRUARY 11, 2021

    The Senate Commerce Committee reports favorably and with
committee amendments Senate Bill No. 1604.
   As amended, this bill supplements the “Fair Foreclosure Act,”
P.L.1995, c.244 (C.2A:50-53 et seq.) by codifying aspects of New
Jersey Court Rule 4:64-1 regarding certifications of diligent
inquiry. Specifically, the bill provides that, 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 or of the plaintiff’s mortgage loan service
who: (a) personally reviewed the complaint and 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 plaintiff; and (b) confirmed the authority of the mortgage
loan servicer to act on behalf of the plaintiff;
   (2) the names and titles, and the responsibilities in those titles,
of the plaintiff’s employees or plaintiff’s mortgage loan servicer’s
employees with whom the attorney communicated and the date and
mode of communication employed to contact them;
   (3) that the attorney has reviewed the facts of the case, and
supporting documents, and 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
creditor entitled to enforce rights under the documents; and
   (4) that the attorney is aware that the failure to comply with the
provisions of the bill may result in the penalties provided for in the
bill or, where the failure constitutes a violation of the Rules of
Professional Conduct, may include sanctions imposed by the
Supreme Court of New Jersey.
                                 2

   The bill also stipulates that the court may, if it finds that the
plaintiff has failed to comply with the provisions of the bill, dismiss
the complaint or deny the accrual of any costs, attorney’s fees and
other fees relating to the mortgage debt.

COMMITTEE AMENDMENTS:
   The committee amended the bill to incorporate certain language
from New Jersey Court Rule 4:64-1, aspects of which this bill already
codifies.


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