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NJ A4443
Bill
Status
Introduced
2/24/2026
Primary Sponsor
Vincent Kearney
Click for details
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