This bill amends the definition of "mortgage loan" in New Jersey law to specify that such loans are primarily made for personal, family, or household purposes. The new legal language clarifies that these loans are secured by real property that may include residential structures with up to six dwelling units, while also allowing for a portion of the structure to be used for nonresidential purposes. This change aims to enhance clarity in lending laws and ensure that consumer mortgage loans are protected from prepayment penalties.

Additionally, the bill introduces flexibility regarding prepayment penalties for commercial mortgage loans, which is intended to support small real estate investors and promote economic growth. The act will take effect immediately and will apply to mortgage loans entered into on or after the effective date.

Statutes affected:
Introduced: 46:10B-1