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, it applies to qualified veterans who have been declared by the United States Department of Veterans' Affairs to have a 100 percent service-connected disability. The bill stipulates that the mortgage application can proceed without the inclusion of property tax obligations if the municipal assessor certifies that the applicant meets all eligibility requirements for the disabled veterans property tax exemption, except for property ownership.

Additionally, the bill includes provisions for the submission of a preliminary application for a property tax exemption, which must be completed by the veteran or surviving spouse seeking a mortgage. The assessor is tasked with certifying the eligibility for the property tax exemption based on the applicant's current residence status. The bill also mandates the Commissioner of Banking and Insurance to publish a list of financial institutions available for veterans to apply for mortgages and to create necessary rules and forms to implement the act. Overall, this legislation is designed to facilitate access to mortgage loans for disabled veterans and their families by alleviating the financial burden associated with property tax obligations during the application process.

Statutes affected:
Introduced: 54:4-3.31