New Jersey Administrative Code › Title 3 - BANKING › Chapter 1 - GENERAL PROVISIONS › Subchapter 3 - MORTGAGE LOANS IN DISASTER AREAS › Section 3:1-3.3 - Emergency mortgage powers exercisable by financial institutions

Current through Register Vol. 56, No. 14, July 15, 2024
(a) When at any
				time the Commissioner, pursuant to
				3:1-3.2, has declared that this
				Subchapter shall become operative and effective, a financial institution may
				exercise and use the emergency mortgage powers enumerated in (b)
				below.
(b) The emergency mortgage
				powers which a financial institution may exercise and use pursuant to this
				subchapter shall consist only of the following:
1. If the security of a mortgage loan, when
				made originally, consisted of real property improved by a one-family dwelling,
				an additional mortgage loan may be made. The total of such additional mortgage
				loan, together with the unpaid or unamortized principal balance due upon the
				existing mortgage loan or loans shall not exceed 160 percent of the appraised
				value of the real property, according to the appraisal certification on file
				with the financial institution.
2.
				If the security of a mortgage loan, when made originally, consisted of real
				property improved by either a two-family dwelling, three-family dwelling, or
				four-family dwelling, an additional mortgage loan may be made. The total of
				such additional mortgage loan, together with the unpaid or unamortized
				principal balance due upon the existing mortgage loan or loans shall not exceed
				100 percent of the appraised value of the real property according to the
				appraisal certification on file with the financial institution.
3. If a mortgage loan is secured by real
				property which, when originally made was represented by improvements other than
				those described in (b)1 and 2 above, a financial institution may make an
				additional mortgage loan. The total of any such additional mortgage loan,
				together with the unpaid or unamortized principal balance due upon the existing
				mortgage loan or loans, shall not exceed 133 1/3 percent of the appraised value
				according to the appraisal certification on file with the financial
				institution.
4. When any financial
				institution holds an existing mortgage loan which by its terms permits
				additional sums to be advanced or loaned in limited amounts, such financial
				institution may make additional loans or advances in any amounts,
				notwithstanding any limitation imposed in the original mortgage instrument;
				provided, however, that the total of such additional loans or advances shall
				not exceed the difference between the original principal amount of the existing
				mortgage loan and the unamortized or unpaid balance thereof.
5. A financial institution may make a
				mortgage loan secured by real property which is subject to an existing mortgage
				loan or loans held by another financial institution and such mortgage loan
				shall be subject to all of the restrictions, limitations and conditions
				provided herein.
6. A financial
				institution may reduce the rate of interest on mortgage loans secured by real
				property within a disaster area.
7.
				A financial institution may extend the term within which any mortgage loan must
				be amortized or paid for additional periods of time but in no event shall such
				an extension exceed a period of time twice the term of the original mortgage
				loan.