The state of New Jersey has enacted provisions related to the recording of mortgages and foreclosure of mortgages. A new provision permits only the established holder of a mortgage to take action to foreclosure on a mortgage. The “established holder of a mortgage” is defined as the person or entity who is:

• The record holder of the mortgage as established by the latest record of assignment or by the original mortgage recording in the records of the county clerk or the register of deeds and mortgages or
• Found to be the holder of the mortgage in a civil action joining as defendants the record holder of the mortgage, the mortgagor, and any other person known to have an interest in the mortgage

In addition, the definition of “mortgagee” has been amended to mean: the holder of the mortgage reflected in the latest record filed with the county recording office. If the entity that is recorded as the holder of the mortgage is no longer in existence, “mortgagee” shall mean the entity that was authorized to receive the latest payment on the mortgage.

A new provision requires the mortgage servicer to advise, in writing, each mortgagor whose mortgage the mortgage servicer is servicing of the name, address, and telephone number of the mortgage servicer. A foreclosure action cannot be based upon a payment made to the wrong mortgage servicer due to fraud or misinformation.

These provisions are effective on February 18, 2016.