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Bill > A4106
NJ A4106
NJ A4106Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.
summary
Introduced
02/19/2026
02/19/2026
In Committee
02/19/2026
02/19/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill amends existing law to clarify that mortgage loans are primarily made for personal, family, or household purposes. This bill intends to strengthen clarity in lending laws by confirming that consumer mortgage loans, made primarily for personal, family, or household purposes, are protected from prepayment penalties. The bill also modernizes lending frameworks by allowing prepayment penalty flexibility for commercial mortgage loans, supporting small real estate investors, and promoting economic growth.
AI Summary
This bill clarifies that a "mortgage loan" is defined as a loan primarily intended for personal, family, or household use, secured by real estate that includes one to six dwelling units, and where the interest rate exceeds a certain threshold. This amendment aims to provide clearer protections for consumers taking out these types of loans, particularly regarding prepayment penalties, while also allowing for more flexibility in prepayment terms for commercial mortgage loans, which is intended to support small real estate investors and foster economic growth.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 02/19/2026)
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/A4106 |
| BillText | https://pub.njleg.gov/Bills/2026/A4500/4106_I1.HTM |
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