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 fluctuations. The new language specifically states that this requirement does not apply to reverse mortgage transactions as defined by federal law (15 U.S.C. s.1602).

The bill aims to provide greater flexibility for reverse mortgage borrowers, allowing them to structure their payments in a way that may better suit their financial situations. By removing the stipulation for equal payment amounts and periods, the legislation acknowledges the unique nature of reverse mortgages, which are designed to provide income to seniors by allowing them to access the equity in their homes. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:11C-78