Bill Text: NJ A2941 | 2012-2013 | Regular Session | Introduced
Bill Title: Establishes Consumer Finance Advisory Board; abolishes certain advisory boards in DOBI.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2013-12-19 - Received in the Senate, Referred to Senate Commerce Committee [A2941 Detail]
Download: New_Jersey-2012-A2941-Introduced.html
Sponsored by:
Assemblyman TROY SINGLETON
District 7 (Burlington)
Assemblyman TIMOTHY J. EUSTACE
District 38 (Bergen and Passaic)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
Establishes Consumer Finance Advisory Board; abolishes certain advisory boards in DOBI.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the Consumer Finance Advisory Board in the Department of Banking and Insurance, revising various parts of the statutory law, and supplementing Title 17 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 1 of P.L.1991, c.294 (C.17:16Q-1) is amended to read as follows:
1. As used in this act:
"Appropriate federal financial supervisory agency" means:
a. The Comptroller of the Currency with respect to federally chartered banks;
b. The Board of Governors of the Federal Reserve System with respect to bank holding companies and State chartered banks which are members of the Federal Reserve System;
c. The Federal Deposit Insurance Corporation with respect to State chartered banks and savings banks which are not members of the Federal Reserve System; and
d. The Director of the Office of Thrift Supervision with respect to associations whose deposits are insured by the Federal Deposit Insurance Corporation, and association holding companies.
"Board" means the [Community Financial Services] Consumer Finance Advisory Board established pursuant to [section 3 of this act] section 2 of P.L. c. (C ) (pending before the Legislature as this bill).
"Commissioner" means the Commissioner of Banking and Insurance.
"CRA" means the "Community Reinvestment Act of 1977," Pub.L. 95-128 (12 U.S.C. s.2901 et seq.).
"Depository institution" means a State or federally chartered bank, savings bank or savings and loan association located in this State.
(cf: P.L.1991, c.294, s.1)
2. (New section) There is created in the Department of Banking and Insurance a Consumer Finance Advisory Board. The board shall consist of the Commissioner of Banking and Insurance or his designee, who shall be ex officio the chair of the board, and nine members to be appointed by the Governor, with the advice and consent of the Senate, for a term of three years. Each member shall hold office for the term of appointment and until his successor is appointed and qualified. A member is eligible to be reappointed to the board. A member appointed to fill a vacancy occurring in the membership of the board for any reason other than the expiration of the term shall have a term of appointment for the unexpired term only. All vacancies shall be filled in the same manner as the original appointment. Any appointed member of the board may be removed from office by the Governor, for cause, after a hearing and may be suspended by the Governor pending the completion of the hearing. Appointed members of the board shall serve without compensation, but shall be reimbursed for necessary expenses incurred in the performance of their duties as members. Action may be taken and motions and resolutions may be adopted by the board at a board meeting by an affirmative vote of not less than five members.
Of the nine appointed members, two shall be public members representing credit unions; three shall be public members representing nonprofit organizations, who have had experience in programs to educate consumers regarding the credit and lending practices of depository institutions in this State; one shall have had, at the time of appointment, not less than five years of practical experience as a licensed residential mortgage lender located in the State of New Jersey; one shall have had, at the time of appointment, not less than five years of practical experience as a licensed residential mortgage broker located in the State of New Jersey; one shall be a representative from the licensed residential mortgage lending industry in the State of New Jersey who is not a salaried officer, director, partner, owner, principal, or employee of any licensed residential mortgage lender or broker; and one shall have had, at the time of appointment, not less than five years of practical experience as a lender licensed for providing loans other than residential mortgage loans. At no time shall there be more than one representative on the board from any one residential mortgage lender or broker.
3. (New section) The board shall:
a. Act as a resource to the commissioner, on matters pertaining to licensed residential mortgage lenders, residential mortgage brokers, and mortgage loan originators in this State, by developing and recommending to the commissioner ideas, programs and tools to assist:
(1) in the development of educational requirements for licensees;
(2) licensed residential mortgage lenders, residential mortgage brokers, and mortgage loan originators in meeting the mortgage lending needs of consumers;
(3) other consumer finance licensees in meeting the lending needs of consumers; and
(4) consumers in understanding and using:
(a) residential mortgage lending information and choosing from available mortgage lending opportunities through licensed residential mortgage lenders, residential mortgage brokers, and mortgage loan originators in this State; and
(b) consumer lending information and choosing from available consumer lenders;
b. Advise and make recommendations to the commissioner on matters pertaining to chartering, operation and supervision of credit unions;
c. Act as a resource to the commissioner by developing and recommending to the commissioner ideas and programs to assist depository institutions in meeting community credit needs and consumers in understanding and using credit opportunities available through depository institutions in the State; and
d. Review the CRA reports submitted to the board pursuant to section 2 of P.L.1991, c.294 (C.17:16Q-2).
4. The following law and sections are repealed:
P.L.1995, c.2 (C.17:10C-1 et seq.);
Section 46 of P.L.1984, c.171 (C.17:13-124);
Section 3 of P.L.1991, c.294 (C.17:16Q-3); and
Section 4 of P.L.1991, c.294 (C.17:16Q-4).
5. This act shall take effect on the 180th day after the date of enactment.
STATEMENT
This bill creates the Consumer Finance Advisory Board in the Department of Banking and Insurance and repeals statutes that established two currently active boards and one currently active council: the Residential Mortgage and Consumer Finance Advisory Board; the Community Financial Services Advisory Board; and the Credit Union Advisory Council.
The intent of the legislation is to consolidate the activities of these three separate entities into one Board that can advise and make recommendations to the Commissioner of Banking and Insurance on matters pertaining to the issues that these boards and council are currently considering. The legislation is in response to the Department of Banking and Insurance's recommendations pursuant to Executive Order No. 15, which directed all departments to scrutinize the duties and spending of independent State Boards, Commissions, Authorities, and Agencies. The Department of Banking and Insurance determined that the consolidation of the three entities into one Board would best serve the needs of the citizens of this State.
The new Consumer Finance Advisory Board will consist of nine members, appointed by the Governor with the advice and consent of the Senate, and the Commissioner of Banking and Insurance or his designee. Of the nine appointed members, two will be public members representing credit unions; three will be public members representing nonprofit organizations who have had experience in programs to educate consumers regarding the credit and lending practices of depository institutions in this State; one will have had, at the time of appointment, not less than five years of practical experience as a licensed residential mortgage lender located in the State of New Jersey; one will have had, at the time of appointment, not less than five years of practical experience as a licensed residential mortgage broker located in the State of New Jersey; one will be a representative from the licensed residential mortgage lending industry in the State of New Jersey who is not a salaried officer, director, partner, owner, principal, or employee of any licensed residential mortgage lender or broker; and one will have had, at the time of appointment, not less than five years of practical experience as a lender licensed for providing loans other than residential mortgage loans. At no time will there be more than one representative on the board from any one residential mortgage lender or broker.
The board's duties will include:
1. acting as a resource to the Commissioner of Banking and Insurance by developing and recommending to the commissioner ideas, programs and tools on matters pertaining to licensed residential mortgage lenders, residential mortgage brokers, and mortgage loan originators in this State;
2. advising and making recommendations to the commissioner on matters pertaining to chartering, operation and supervision of credit unions;
3. acting as a resource to the commissioner by developing and recommending to the commissioner ideas and programs to assist depository institutions in meeting community credit needs and consumers in understanding and using credit opportunities available through depository institutions in the State; and
4. reviewing the CRA reports submitted to the board pursuant to section 2 of P.L.1991, c.294 (C.17:16Q-2).
