New JerseyReverse mortgages would be exempt from equal installment payment rules
Lenders making reverse mortgages covered by New Jersey’s second mortgage rules would be allowed to set repayment schedules with unequal amounts and intervals.
What it does
Reverse mortgages covered by New Jersey’s second mortgage rules would no longer need roughly equal repayment amounts or intervals. The exemption would apply immediately if the bill becomes law.
Argument forThe exemption could give borrowers and lenders more flexibility to arrange reverse mortgage repayment schedules that do not use equal installments.
Argument againstUneven payment amounts or timing could make it harder for borrowers to compare repayment schedules for covered reverse mortgages.
More detail
Lenders would be allowed to use unequal payment amounts and intervals for covered reverse mortgages. The exemption would cover reverse mortgages that fall under New Jersey’s rules for second mortgages. The loan would have to meet the federal definition of a reverse mortgage cited in the bill. The exemption would take effect immediately if the bill becomes law.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 29Substituted by S1420Latest
- Oct 5Reported out of Assembly Committee, 2nd ReadingMinor
- Oct 5Transferred to Assembly Housing CommitteeMinor
- Sep 10Introduced, Referred to Assembly Financial Institutions and Insurance CommitteeIntroduced
HousingConsumer Protection