Bill > A4893

This bill requires financial institutions to allow mortgagors (borrowers) who are in good standing on their mortgage to make biweekly (every two weeks) and semi-monthly (twice a month) mortgage payments, and to pay additional amounts to the mortgage principal without any penalties. If an escrow analysis results in an increase to the escrow amount, the financial institution must notify the mortgagor of the new contractual mortgage payment and apply any additional amounts paid first to the unsatisfied escrow payments and then to the mortgage principal. The mortgagor can also elect to make additional payments to reduce or eliminate any projected escrow shortage. The bill defines relevant terms such as "biweekly," "contractual mortgage payment," "escrow amount," and "principal," and applies to mortgage agreements entered into on or after the effective date of the bill.

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https://www.njleg.state.nj.us/bill-search/2024/A4893