This bill mandates that financial institutions in New Jersey must 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 is required to notify the mortgagor of any changes to their contractual payment and apply additional payments first to any escrow shortages before applying them to the principal.

The bill defines key terms such as "biweekly," "contractual mortgage payment," "escrow amount," and "mortgagor," among others, to clarify the provisions. It emphasizes the importance of transparency and communication between financial institutions and mortgagors regarding payment adjustments and escrow management. The act is set to take effect six months after its enactment and will apply to mortgage agreements entered into from that date forward.