This bill aims to ease the mortgage application process for certain disabled veterans and their surviving spouses by prohibiting 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. Specifically, a qualified veteran or surviving spouse seeking a mortgage will not need to include property tax obligations in their application if the local assessor certifies that they meet all eligibility requirements for the disabled veterans property tax exemption, except for property ownership. For refinancing existing mortgages, the applicant must meet all eligibility criteria, including ownership of the property.

Additionally, the bill introduces new provisions regarding the application process for property tax exemptions, requiring veterans or surviving spouses to submit a preliminary application to the assessor, who will then certify their eligibility to the financial institution. The Commissioner of Banking and Insurance is tasked with publishing a list of participating financial institutions and creating necessary regulations and forms to implement the bill. The act will take effect seven months after its enactment, allowing time for the Commissioner to prepare for its implementation.

Statutes affected:
Introduced: 54:4-3.31