The New Jersey Department of Banking and Insurance has released Bulletin 24-01 regarding the annual review of the definition of a “high cost home loan” under the New Jersey Home Ownership Act of 2002 (the “Act”). High cost home loans in New Jersey are subject to additional lender requirements under the Act unless the principal loan amount exceeds the maximum threshold amount.
The Act requires an annual review and, if necessary, an adjustment to the maximum principal loan amount that may be considered a “high cost home loan.” The adjustment is “based on the last published increase in the housing component of the national Consumer Price Index, New York – New Jersey Region.” (N.J.S.A. 45:10B-22 to -35).
For 2024, the maximum principal loan amount increased from $556,429.97 for 2023 to $581,206.50. The increased amount is effective for all loans subject to the Act with completed applications dated on or after January 1, 2024, retroactively.
DocMagic has updated the New Jersey High Cost Test and applicable audits to consider the increased amount.
If you have any questions, please contact DocMagic’s Compliance Department.
