Bill Text: NJ A3485 | 2012-2013 | Regular Session | Introduced
Bill Title: Requires mortgage holders to accept certain mortgage payments.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-12-03 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A3485 Detail]
Download: New_Jersey-2012-A3485-Introduced.html
Sponsored by:
Assemblyman MICHAEL PATRICK CARROLL
District 25 (Morris and Somerset)
SYNOPSIS
Requires mortgage holders to accept certain mortgage payments.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning mortgage payments and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Unless the provisions of the mortgage provide for a particular manner of payment, a holder of a mortgage encumbering any real property located in this State shall accept the tender of payment by the borrower, or by anyone entitled to act on the borrower's behalf, in any form, including, but not limited to, cash, personal checks, attorney trust checks, bank checks, or electronic transfers. Any tender of payment shall be effective on the date received by the holder of the mortgage, subject to collection.
b. A holder of a mortgage shall accept any payment for less than the full balance of the amount outstanding on the mortgage loan and shall apply that payment against the outstanding amount. Acceptance of payment for less than the full balance of the amount outstanding on the loan shall not constitute waiver by the holder of a mortgage of its right to insist upon full payment of the amount owed prior to releasing the mortgage lien, any notification on the check or other means of payment to the contrary notwithstanding.
c. A violation of any provision of this act shall be an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.) and shall be subject to all remedies and penalties available pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
2. This act shall take effect immediately.
STATEMENT
This bill requires the holders of mortgages encumbering real property located in this State to accept the tender of payment by the borrower, or by anyone entitled to act on the borrower's behalf, in any form, including, but not limited to, cash, personal checks, attorney trust checks, bank checks, or electronic transfers, unless the provisions of the mortgage provide for a particular manner of payment. Under the bill, any tender of payment shall be effective on the date received by the holder of the mortgage, subject to collection.
The bill requires the holder of a mortgage to accept any payment for less than the full balance of the amount outstanding on the mortgage loan and to apply the payment against that outstanding amount. Acceptance of that payment shall not constitute waiver by the holder of a mortgage of its right to insist upon full payment of the amount owed prior to releasing the mortgage lien, any notification on the check or other means of payment to the contrary notwithstanding.
A violation of this bill would be an unlawful practice pursuant to the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), and is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, violations can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
