TRENTON, N.J. - New Jersey's top bank regulator is proposing tighter supervision of home-loan bankers and brokers.
Elizabeth Randall, state banking commissioner, has proposed that all mortgage bankers and brokers be required to notify the state agency if their lines of credit are terminated.
New Jersey is perhaps the most proactive home-lending regulator in the nation.
"When these sources of funding cease to exist, the department needs to know immediately so we can take prompt action to eliminate or minimize any harm to consumers," the commissioner said. Many consumers could lose fees on approved loans awaiting funding if the lender's credit is cut off, she said.
Her request for regulation will appear in the Feb. 21 New Jersey Register. After a 30-day comment period, she has one year to adopt the rule.