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NJ A4443

Bill

Status

Introduced

2/24/2026

Primary Sponsor

Vincent Kearney

Click for details

Origin

General Assembly

2026-2027 Regular Session

AI Summary

  • Residential mortgage lenders holding hazard insurance proceeds in loss draft accounts during property rebuilding or repair must pay at least 2% annual interest on those funds
  • Interest must be credited to the loss draft account annually or when the account terminates, whichever comes first
  • Lenders cannot impose fees or charges on loss draft accounts that would reduce the effective interest rate below 2% per year
  • Applies to loans secured by residential properties with one to four family units in New Jersey
  • Exempts proceeds that state or federal regulators require to be held in non-interest-bearing trust accounts by non-financial institution lenders

Legislative Description

Requires residential mortgage lenders to deposit hazard insurance proceeds in interest-bearing accounts.

Financial Institutions and Insurance

Last Action

Introduced, Referred to Assembly Financial Institutions and Insurance Committee

2/24/2026

Committee Referrals

Financial Institutions and Insurance2/24/2026

Full Bill Text

No bill text available