Stubbs v. Security Consumer Discount Co.

The opinion of the Court was delivered by

SULLIVAN, J.

This appeal involves a class action by 162 low income homeowners against Security Consumer Discount Company (Security) and its successors in interest. Plaintiffs seek to have certain secondary mortgage loans issued by Security declared void and unenforceable 2 as executed in violation of the Secondary Mortgage Loan Act, N.J.S.A. 17:llA-34 et seq.

In 1968, Security, a Pennsylvania corporation, obtained a license to engage in the secondary mortgage loan business in New Jersey. Leonard Moonblatt, Security’s director, secretary-treasurer and…