New Jersey S1420 exempts reverse mortgage transactions from the requirement for equal payment periods and amounts for secondary mortgage loans.

New Jersey S1420 amends existing law to exempt reverse mortgage transactions from the requirement that secondary mortgage loan payments be made in equal amounts and payment periods. Currently, second mortgages must be paid in installments that are substantially the same length of time and equal in payment amount. This bill allows reverse mortgage transactions to have varying payment schedules based on the borrower's intermittent income, including reduced or omitted payments during periods of reduced or suspended income. The final installment may also differ by up to $1 from other payments.

New Jersey S1420 exempts reverse mortgage transactions from the requirement for equal payment periods and amounts for secondary mortgage loans.

New Jersey S1420 amends existing law to exempt reverse mortgage transactions from the requirement that secondary mortgage loan payments be made in equal amounts and payment periods. Currently, second mortgages must be paid in installments that are substantially the same length of time and equal in payment amount. This bill allows reverse mortgage transactions to have varying payment schedules based on the borrower's intermittent income, including reduced or omitted payments during periods of reduced or suspended income. The final installment may also differ by up to $1 from other payments.