This bill amends current law regarding secondary mortgage loans by exempting reverse mortgage transactions from the requirement that payments be made in equal amounts and payment periods. Specifically, it modifies Section 28 of P.L.2009, c.53 (C.17:11C-78) to state that, except for reverse mortgage transactions as defined by federal law, secondary mortgage loans must provide for payment in full through substantially equal payment periods and installment amounts. The bill allows for flexibility in payment schedules for borrowers whose income may vary, but this flexibility does not apply to reverse mortgages.

The key change in the bill is the deletion of the requirement for equal payment amounts and periods for reverse mortgages, thereby allowing these transactions to have more varied payment structures. This legislative change aims to accommodate the unique financial situations of borrowers utilizing reverse mortgages, which often differ from traditional secondary mortgage loans. The bill is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:11C-78