New Jersey A4443 mandates residential mortgage lenders to deposit hazard insurance proceeds in interest-bearing accounts.

New Jersey A4443 requires residential mortgage lenders to deposit hazard insurance proceeds in interest-bearing accounts, ensuring that interest accrues at a rate of at least two percent per year. This applies to lenders holding proceeds in a loss draft account pending property rebuilding or repair. The bill prohibits lenders from imposing fees or charges that would reduce the interest rate below two percent. Exceptions are made for proceeds required by regulatory authorities to be placed in non-interest-bearing demand trust fund accounts. The act takes effect immediately.

New Jersey A4443 mandates residential mortgage lenders to deposit hazard insurance proceeds in interest-bearing accounts.

New Jersey A4443 requires residential mortgage lenders to deposit hazard insurance proceeds in interest-bearing accounts, ensuring that interest accrues at a rate of at least two percent per year. This applies to lenders holding proceeds in a loss draft account pending property rebuilding or repair. The bill prohibits lenders from imposing fees or charges that would reduce the interest rate below two percent. Exceptions are made for proceeds required by regulatory authorities to be placed in non-interest-bearing demand trust fund accounts. The act takes effect immediately.