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Committee advances bill to let homeowners make biweekly and semimonthly mortgage payments

Financial Institutions and Insurance Committee · December 9, 2024
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Summary

Assembly Bill 4893 (and companion Senate Bill 3525) was amended and released to require mortgage lenders to allow biweekly and semimonthly payments for borrowers in good standing and to permit principal payments without penalty; sponsor and real‑estate witnesses said the change helps homeowners accelerate payoff and align payments with cash flow.

The committee amended and released Assembly Bill 4893 and companion Senate Bill 3525, a measure to require financial institutions to allow mortgagors in good standing to make biweekly or semimonthly payments and to accept payments directed to mortgage principal without penalty. Sponsors said measures of this type help borrowers accelerate payoff and reduce…

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