§ 17:16F-39 — Prohibited actions.

13. A mortgage servicer shall not: a. directly or indirectly employ any scheme, device or artifice to defraud or mislead mortgagors or mortgagees or to defraud any person; b. engage in any unfair or deceptive practice toward any person or misrepresent or omit any material information in connection with the servicing of a residential mortgage loan, including, but not limited to, misrepresenting the amount, nature or terms of any fee or payment due or claimed to be due on a residential mortgage loan, the terms and conditions of the servicing agreement or the mortgagor's obligations under the residential mortgage loan; c. obtain property by fraud or misrepresentation; d. knowingly misapply or recklessly apply residential mortgage loan payments to the outstanding balance of a residential mortgage loan; e. knowingly misapply or recklessly apply payments to escrow accounts; f. place hazard, homeowner's or flood insurance on the mortgaged property when the mortgage servicer knows or has reason to know that the mortgagor has an effective policy for the insurance; g. knowingly or recklessly provide inaccurate information to a credit bureau, thereby harming a mortgagor's creditworthiness; h. fail to report both the favorable and unfavorable payment history of the mortgagor to a nationally recognized consumer credit bureau at least annually if the mortgage servicer regularly reports information to a credit bureau; i. collect private mortgage insurance beyond the date for which private mortgage insurance is required; j. fail to issue a release of mortgage in accordance with the provisions of P.L.1975, c.137 (C.46:18-11.2 et seq.); k. fail to provide written notice to a mortgagor upon taking action to place hazard, homeowner's or flood insurance on the mortgaged property, including a clear and conspicuous statement of the procedures by which the mortgagor may demonstrate that the mortgagor has the required insurance coverage and by which the mortgage servicer shall terminate the insurance coverage placed by it and refund or cancel any insurance premiums and related fees paid by or charged to the mortgagor; l. place hazard, homeowner's, or flood insurance on a mortgaged property, or require a mortgagor to obtain or maintain that insurance, in excess of the replacement cost of the improvements on the mortgaged property as established by the property insurer; m. fail to provide to the mortgagor a refund of unearned premiums paid by a mortgagor or charged to the mortgagor for hazard, homeowner's, or flood insurance placed by a mortgagee or the mortgage servicer if the mortgagor provides reasonable proof that the mortgagor has obtained coverage so that the forced placement insurance is no longer necessary and the property is insured. If the mortgagor provides reasonable proof that no lapse in coverage occurred so that the forced placement is not necessary, the mortgage servicer shall promptly refund the entire premium; n. require any amount of funds to be remitted by means more costly to the mortgagor than a bank or certified check or attorney's check from an attorney's account to be paid by the mortgagor; o. refuse to communicate with an authorized representative of the mortgagor who provides a written authorization signed by the mortgagor, provided the mortgage servicer may adopt procedures reasonably related to verifying that the representative is in fact authorized to act on behalf of the mortgagor; p. conduct any business covered by this act, without holding a valid license as required under this act, or assist or aid and abet any person in the conduct of business without a valid license as required under this act; or q. negligently make any false statement or knowingly and willfully make any omission of a material fact in connection with any information or reports filed with a governmental agency or the department or in connection with any investigation conducted by the commissioner or another governmental agency. L.2019, c.65, s.13.