NJ S3525

Financial institutions must allow mortgagors in good standing to make biweekly mortgage payments, with any excess over annual contractual payments applied to principal, or semi-monthly payments equal to half the monthly amount due

Mortgagors may pay additional amounts toward their mortgage principal without any penalty

When escrow analysis reveals a shortage or payment increase, financial institutions must notify mortgagors and adjust recurring payment amounts, applying extra payments first to escrow shortfalls then to principal

Mortgagors may make voluntary additional escrow payments to reduce or eliminate projected shortages, separate from principal payments

Applies to State-chartered banks, savings banks, savings and loan associations, credit unions, licensed lenders, and mortgage servicers for residential properties with 1-6 dwelling units; takes effect on the first day of the sixth month after enactment for new mortgage agreements