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

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 interest costs.

The sponsor who identified herself in the transcript as an Assemblywoman and who described herself as a licensed realtor testified that the bill improves flexibility for homeowners, gives borrowers the option to make extra principal payments without penalties and can materially reduce loan terms in many examples. A real‑estate professional, Sharif Atab, said the option helps borrowers pursue financial freedom and should be available consistently across institutions.

Members asked about servicer operational issues, whether loan servicers and out‑of‑state chartered institutions would be covered, and protections allowing borrowers to revert to monthly payments if circumstances change. The sponsor said the bill would apply to any mortgage institution providing mortgages to New Jersey residents and that mortgagors could revert to monthly payment schedules and that escrow/insurance/tax adjustments are addressed in the bill language.

The committee moved to amend and release the bills; the clerk recorded votes and the chair announced that the bill is amended and released.