This bill mandates that financial institutions in New Jersey must permit mortgagors to make biweekly and bimonthly mortgage payments, as well as allow for additional payments towards the mortgage principal without incurring any penalties. Specifically, it stipulates that biweekly payments will apply any excess amount paid beyond the total annual mortgage payments to the principal, while bimonthly payments will be set at half of the total monthly payment due. The bill defines key terms such as "mortgagor," "financial institution," and "mortgage servicer" to clarify the entities and individuals involved in these transactions.

The legislation applies to various financial institutions regulated by the state, including banks, savings banks, savings and loan associations, credit unions, licensed lenders, and mortgage servicers. It is designed to enhance the flexibility of mortgage payment options for borrowers, thereby potentially aiding in the management of their mortgage obligations. The act will take effect six months after its enactment and will apply to mortgage agreements entered into on or after that date.