This bill amends Section 28 of P.L.2009, c.53 (C.17:11C-78) to exempt reverse mortgage transactions from the existing requirement that secondary mortgage loan payments be made in equal amounts and payment periods. Under current law, secondary mortgage loans must provide for payments that are substantially equal in both amount and duration, with certain allowances for deferring initial payments and accommodating borrowers' intermittent income. The new language specifically states that this requirement does not apply to reverse mortgage transactions as defined by federal law.

By removing the obligation for reverse mortgages to adhere to equal payment structures, the bill aims to provide greater flexibility for borrowers utilizing reverse mortgages. This change recognizes the unique nature of reverse mortgages, which often involve different payment dynamics compared to traditional secondary mortgage loans. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:11C-78