On January 31, 2019 the New Jersey Department of Banking and Insurance released Bulletin No. 19-02 regarding the annual change required under the New Jersey Home Ownership Act of 2002 (the “Act”). As part of this change, the definition of a “high cost home loan” requires an annual review and in some cases, an adjustment of the maximum principal amount that will be subject to the triggering provisions of the Act.
For 2019, the maximum principal loan amount has been increased from $487,618.86 (FY 2018) to $498,610. The amount of $498,610 shall be effective for all completed applications on loans that may be subject to the Act received by lenders on or after January 1, 2019. DocMagic is updating the New Jersey High Cost test and any applicable audits immediately in response to this recent announcement.
