On February 24 , 2021, the New Jersey Department of Banking and Insurance released Bulletin No. 21-04 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 (N.J.S.A. 45:10B-22 to -35).
The adjustment is “based on the last published increase in the housing component of the national Consumer Price Index, New York – Northern New Jersey Region.” The maximum principal loan amount has been increased from $506,059.40 for the year 2020 to $513,782.50 for 2021. The increased amount is effective for all completed applications on loans that are subject to the Act and received on or after January 1, 2021, 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.
