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A4106 • 2026

Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.

Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Freiman, Roy
Last action
2026-06-11
Official status
Received in the Senate, Referred to Senate Commerce Committee
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.

Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.

What This Bill Does

  • Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.
  • Topic: Commerce Fiscal note: This bill has not been certified by OLS for a fiscal note.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-06-11 New Jersey Legislature

    Passed by the Assembly (77-2-0)

  2. 2026-06-11 New Jersey Legislature

    Received in the Senate, Referred to Senate Commerce Committee

  3. 2026-03-19 New Jersey Legislature

    Reported out of Assembly Committee, 2nd Reading

  4. 2026-02-19 New Jersey Legislature

    Introduced, Referred to Assembly Financial Institutions and Insurance Committee

Official Summary Text

Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.
Topic:
Commerce
Fiscal note:
This bill has not been certified by OLS for a fiscal note.

Current Bill Text

Read the full stored bill text 
A4106

ASSEMBLY, No. 4106

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Assemblyman� ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblyman� ALEXANDER "AVI" SCHNALL

District 30 (Monmouth and Ocean)

Co-Sponsored by:

Assemblyman Sampson and Assemblywoman McCoy

SYNOPSIS

���� Clarifies mortgage loans to mean loans made primarily
for personal, family, or household purposes.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning
mortgage loans and amending P.L.1968, c.54.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 1 of P.L.1968,
c.54 (C.46:10B-1) is amended to read as follows:

���� As used in this act:

���� (a)� "Mortgage
loan"� means a loan
made primarily for personal, family, or household
purposes
secured by an interest in real property consisting of land upon
which is erected or to be erected, in whole or in part with the proceeds of
such loan, a structure containing one, two, three, four, five or six dwelling
units, a portion of which structure may be used for nonresidential purposes and
upon which interest is taken or contracted for at a rate in excess of $6.00 for
the forbearance of $100.00 for a year;

���� (b)� "Mortgagor"�
includes any person other than a corporation liable for the payment of a
mortgage loan, and the owner of the real property which secures the payment of
a mortgage loan;

���� (c)� "Prepayment"�
of a mortgage loan means the payment in full of the balance owing on a mortgage
loan at any time prior to the time limited for the final payment of such loan
in an instrument evidencing such loan.

(cf: P.L.1979, c.85, s.2)

���� 2.��� This act shall take
effect immediately and shall apply to mortgage loans entered into on or after
this date.

STATEMENT

���� This bill amends existing law
to clarify that mortgage loans are primarily made for personal, family, or
household purposes. �This bill intends to strengthen clarity in lending laws by
confirming that consumer mortgage loans, made primarily for personal, family,
or household purposes, are protected from prepayment penalties.� The bill also
modernizes lending frameworks by allowing prepayment penalty flexibility for commercial
mortgage loans, supporting small real estate investors, and promoting economic
growth.