46:10B-18 - Reverse annuity and reverse direct payment mortgages; authorization to make; conditions - New Jersey Statutes

46:10B-18.  Reverse annuity and reverse direct payment mortgages; authorization to make;  conditions
    Notwithstanding any law, rule, regulation, or opinion to the contrary, it shall be lawful for any institution authorized in the State to make first lien loans secured by a mortgage on real property to make reverse annuity mortgages and reverse direct payment mortgages subject to the following conditions:

    a.  Said mortgages shall be made to a mortgagor who is at least 60 years old;  provided, however, that the Commissioner of Banking may by regulation raise or lower the age limit for eligibility.  Such mortgages shall not be made  in an amount to exceed 70% of the value of the mortgaged property, or such  amount as is established by the commissioner by regulation.

    b.  Said mortgages shall be made voidable at the option of the mortgagor upon payment of the principal and interest to date, with no penalty.

    c.  Interest on said mortgages shall not exceed the usury rate.

     L.1979, c. 140, s. 3, eff. July 6, 1979.