This bill aims to ease the mortgage application process for disabled veterans and their surviving spouses by prohibiting certain financial institutions, such as State-chartered banks, mortgage companies, and credit unions, from requiring these individuals to disclose anticipated property tax obligations when applying for a mortgage on their principal residence. The bill defines a "qualified veteran" as one who has been declared by the United States Department of Veterans' Affairs to have a 100 percent service-connected disability and outlines the necessary conditions under which the mortgage application can proceed without including property tax obligations. Specifically, the municipality's assessor must certify that the applicant meets all eligibility requirements for the disabled veterans property tax exemption, except for property ownership.

Additionally, the bill amends existing law to streamline the process for veterans and their surviving spouses applying for property tax exemptions. It requires them to submit a preliminary application for a property tax exemption alongside their mortgage application, which includes necessary documentation. The assessor will then certify the eligibility of the applicant and transmit this information to the financial institutions involved. The bill also mandates the Commissioner of Banking and Insurance to publish a list of participating financial institutions and to create necessary regulations to implement these provisions. The act is set to take effect seven months after its enactment, allowing time for the necessary preparations.

Statutes affected:
Introduced: 54:4-3.31