Bill > A6291

This bill amends an existing law regarding secondary mortgage loans by creating an exemption for reverse mortgage transactions from the requirement that loan payments be made in substantially equal amounts and payment periods. Specifically, the bill modifies Section 28 of a previous law to exclude reverse mortgage transactions (as defined under federal law at 15 U.S.C. s.1602) from the standard provision that requires secondary mortgage loans to have installment payments that are roughly the same size and frequency. This means that reverse mortgages, which are typically used by older homeowners to convert home equity into cash and have unique payment structures, will no longer need to conform to the standard equal payment schedule. The bill maintains all other existing requirements for secondary mortgage loans, such as the need for clear labeling, a borrower notice, and complete documentation. The amendment takes effect immediately upon enactment, providing immediate flexibility for reverse mortgage lenders and borrowers in New Jersey.

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https://www.njleg.state.nj.us/bill-search/2024/A6291