Bill
Bill > S1420
NJ S1420
NJ S1420Exempts reverse mortgage transaction from requirement that secondary mortgage loan payments be made in equal amounts and payment periods.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill exempts reverse mortgage transaction from the requirement that secondary mortgage loan payments be made in equal amounts and payment periods. Current law requires that second mortgages to be paid in installments that are substantially the same length of time and substantially equal in payment amount. This bill exempts reverse mortgage transactions from this requirement.
AI Summary
This bill amends existing New Jersey law concerning secondary mortgage loans to exempt reverse mortgage transactions from the requirement that loan payments be made in equal amounts and at regular payment periods. Currently, secondary mortgage loans, which are loans secured by a second lien on a borrower's property, must generally be repaid in installments that are of similar duration and amount. However, this bill carves out an exception for reverse mortgages, a type of loan typically offered to older homeowners that allows them to convert home equity into cash, often with flexible repayment terms that do not necessarily involve equal periodic payments. The bill also clarifies that this exemption applies to reverse mortgage transactions as defined by federal law (15 U.S.C. s.1602).
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/S1420 |
| BillText | https://pub.njleg.gov/Bills/2026/S1500/1420_I1.HTM |
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