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 duration and amount, with certain allowances for deferring initial payments and adjusting for the borrower's income. The new language specifies that this requirement does not apply to reverse mortgage transactions as defined by federal law.

The bill aims to provide greater flexibility for borrowers engaging in reverse mortgage transactions, recognizing the unique nature of these loans compared to traditional secondary mortgages. By removing the stipulation for equal payment amounts and periods, the legislation seeks to accommodate the financial circumstances of borrowers who may benefit from a more tailored repayment structure. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:11C-78