This bill mandates that financial institutions in New Jersey allow mortgagors who are in good standing to make biweekly or semi-monthly mortgage payments. Specifically, mortgagors can make biweekly payments where any excess amount paid beyond the total annual contractual mortgage payments will be applied to the principal. Additionally, they can make semi-monthly payments equal to half of the total monthly payment. The bill also permits mortgagors to pay extra amounts towards the principal without incurring penalties. Furthermore, if an escrow analysis indicates a shortage, the financial institution must notify the mortgagor of the new payment amount and apply any additional payments first to unsatisfied escrow payments and then to the principal.

The bill defines key terms such as "biweekly," "contractual mortgage payment," and "mortgagor," among others, to clarify the provisions. It stipulates that the act will take effect six months after its enactment and will apply to mortgage agreements entered into from that date forward. This legislation aims to provide more flexible payment options for mortgagors, enhancing their ability to manage their mortgage obligations effectively.