The commissioner of the New Jersey Department of Banking and Insurance is urging mortgage brokers to use "prudence" when recommending certain loan products to their clients.Steven M. Goldman told attendees at the New Jersey Association of Mortgage Brokers annual convention in Atlantic City that mortgage brokers are "very large and important players" in the housing cycle. It is no secret that the real estate market has softened in recent months, and brokers need to adjust to those conditions, he said. From his perspective as a regulator, Mr. Goldman said he wanted to caution that putting marginal borrowers into certain products is not a good practice. Mr. Goldman said he is not suggesting a suitability test, but that a mortgage broker can tell if an applicant would have to stretch to get into a home. "It is a benefit to your industry, a benefit to the department," and it avoids lawsuits, Mr. Goldman said.

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