New Jersey legislation · 2026-2027 Regular Session
New Jersey A5389: Secondary mortgage loan payments-concerns requirements
Status: In committee, October 29, 2026
Exempts reverse mortgage transaction from requirement that secondary mortgage loan payments be made in equal amounts and payment periods.
What the bill says
An Act concerning requirements pertaining to secondary mortgages and reverse mortgages and amending P.L.2009, c.53.
From the introduced text, September 10, 2026:
An Act concerning requirements pertaining to secondary mortgages and reverse mortgages and amending P.L.2009, c.53. Be It Enacted by the Senate and General Assembly of the State of New Jersey: 1. Section 28 of P.L.2009, c.53 (C.17:11C-78) is amended to read as follows: 28. An instrument evidencing a secondary mortgage loan shall: a. Be in the form of a promissory note for a closed-end loan, and in the form of a loan agreement for an open-end loan, and shall be identifiable by the use of the words "Secondary Mortgage Loan" printed prominently, in 14-point bold type or larger, centered and at the top of the promissory note or loan agreement. b. [Provide] [ADDED: Except for a reverse mortgage transaction as defined by 15 U.S.C. s.1602, provide] for the payment, in full, of the total amount of the secondary mortgage loan in substantially equal payment periods, measured in terms of weeks or months, and, except as otherwise permitted, substantially equal installment payment amounts, except that the initial payment period may be deferred for 60 days, and, provided further, when appropriate for the purpose of facilitating payment in accordance with the borrower's intermittent income, a promissory note or loan agreement may provide an installment schedule which reduces or omits payments over any period of time during which the borrower's income is reduced …
Sponsors
- Sterley S. Stanley (D, 18) · primary sponsor
- Roy Freiman (D, 16) · primary sponsor
Latest actions
- : SUB BY S1420
- : REP 2RA
- : TRANS AHO
- : INT 1RA REF AFI
Votes
- Assembly Housing Committee: Reported favorably (October 5, 2026): 7 yea, 0 nay, passed
Subjects: HOUSING - FINANCE
Common questions
- What is A5389?
- A5389 is a bill in the New Jersey Legislature (2026-2027 Regular Session): Secondary mortgage loan payments-concerns requirements.
- What does A5389 do?
- In its own words: An Act concerning requirements pertaining to secondary mortgages and reverse mortgages and amending P.L.2009, c.53.
- What is the status of A5389?
- In committee as of October 29, 2026. Latest action: SUB BY S1420 (October 29, 2026).
- Who sponsored A5389?
- Sterley S. Stanley (D, 18), with 1 co-sponsor.
- Where is the official record for A5389?
- On the New Jersey Legislature website: https://www.njleg.state.nj.us/bill-search/2026/A5389
Source: official New Jersey record. Tracked by Delilah, AI for legislation across all 50 states and Congress.