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 specifically states that this requirement does not apply to reverse mortgage transactions as defined by federal law.

The bill aims to provide greater flexibility for reverse mortgage borrowers by allowing them to structure their payment plans without the constraints of equal payment amounts and periods. This change is intended to accommodate the unique financial situations of borrowers utilizing reverse mortgages, thereby facilitating access to this type of financing. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 17:11C-78