Senate Commerce Committee Statement to Senate, No. 1604 — State of New Jersey (February 11, 2021)

Summary

A Senate Commerce Committee statement to the Senate on Senate Bill No. 1604 with committee amendments, State of New Jersey, dated February 11, 2021, reporting the bill favorably. As amended, the bill supplements the "Fair Foreclosure Act" by codifying aspects of New Jersey Court Rule 4:64-1 on certifications of diligent inquiry. In all residential mortgage foreclosure actions, the attorney filing the complaint must certify communication with employees of the plaintiff or its mortgage loan servicer who reviewed the complaint, name those employees, and state a reasonable basis for the action. If the plaintiff fails to comply, the court may 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.

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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