NRMLA sent letters to the sponsors of New Jersey Senate Bill 4970 and Assembly Bill 6291 for explicitly exempting reverse mortgage transactions from an existing regulatory requirement that second mortgage loan payments be made in equal amounts and payment periods.
What they’re saying: “We commend the sponsors for introducing this bill, as it provides necessary clarity and common-sense regulatory relief that directly supports the core function of the reverse mortgage product,” says NRMLA.
The bottom line: Current regulations require that second mortgages be paid in installments that are substantially the same length of time and substantially equal in payment amount. Both bills exempt reverse mortgage transactions from this requirement.
“We believe SB 4970 is an essential technical amendment that recognizes the unique and beneficial nature of reverse mortgage financing. By formally excluding reverse mortgages from an irrelevant regulatory requirement, the bill promotes financial stability for New Jersey’s senior population without sacrificing any meaningful consumer protection,” says NRMLA.
