New Jersey Issues Bulletin Regarding 2018 High-Cost Home Loan Dollar Adjustment
The New Jersey Department of Banking and Insurance has issued a Bulletin setting out the maximum principal amount for loans that may be considered “high-cost home loans” under the New Jersey Home Ownership Security Act of 2002. The adjusted dollar amount may be effective for loan applications received on or after January 1, 2018.
The New Jersey Home Ownership Security Act of 2002 requires an annual review and adjustment (if necessary) of the maximum principal loan amount that may be considered a high-cost home loan in New Jersey. The adjustment is based on the housing component of the national Consumer Price Index, which measures the average change in housing prices over time.
When the Act was first enacted, the maximum principal amount was set at $350,000. As of 2017 this amount had risen to $477,744.15, and as of December 6, 2017 the index indicated an increase of 39.32% from 2003 to 2017. Therefore, the New Jersey Department of Banking and Insurance has adjusted the definition of “high-cost home loan” to state that the maximum principal amount of a loan that may be considered a high-cost home loan in New Jersey is $487,618.86.
The full Bulletin is available below:
http://www.state.nj.us/dobi/bulletins/blt17_10.pdf
Zachary Pearlstein, JD, is a Regulatory Compliance Director with CLA's Mortgage Advisory Division. He joined CLA on January 1, 2014, as part of its acquisition of Bankers Advisory, Inc. Zachary oversees Mortgage Advisory's regulatory compliance team, which focuses on federal and state compliance, fair lending, and the Home Mortgage Disclosure Act (HMDA). He is a graduate of Brandeis University and earned his juris doctor at Suffolk University Law School. He is admitted to the Massachusetts Bar.
Is this related to HOEPA or another thing we should be testing or a certain disclosure to send out? I just need to know what or how this act impacts loans we are generating.