Liability Not Limited to NJ High-Cost Loans?

The compliance law firm Kirkpatrick & Lockhart LLP recently advised its clients that certain home loans may be subject to the assignee liability provisions of New Jersey's predatory lending law, even if they are not so-called high-cost loans.In certain manufactured home loans and home improvement loans, the legislation provides for assignee liability for traditional as well as high-cost loans. "The Act applies to prime loans, with penalties and potential assignee liability well beyond what one normally would find in a traditional state mortgage banking law without anti-predatory overtones," said the law firm in an e-mail alert. It advised its clients to review their agreements with mortgage investors to ensure that they do not violate any of the act's provisions relating to representations and warranties.