New Jersey § 46:10b-38

§ 46:10b-38.

the terms of N.J.S.A. § 46:10B-48 .> As used in this act: “ Creditor ” means a State chartered bank, savings bank, savings and loan association or credit

union, any person required to be licensed under the provisions of the “New Jersey Residential Mortgage Lending Act,” sections 1 through 39 of P.L.2009, c. 53 ( C.17:11C-51 et seq. ) , and any entity acting on behalf of the creditor named in the debt obligation including,

but not limited to, servicers. “ Eligible borrower ” means a borrower who is obligated to repay a loan secured by an introductory rate

mortgage. “ Eligible foreclosed borrower ” means a borrower who is obligated to repay a loan secured by an introductory rate

mortgage and who receives a notice of intention to foreclose that mortgage pursuant

to the “Fair Foreclosure Act,” P.L.1995, c. 244 ( C.2A:50-53 et al.), except that an “eligible foreclosed borrower” shall not include an eligible

borrower who has previously exercised the right to obtain a three-year period of extension

pursuant to section 5 of this act. “ Full repayment ” means the full repayment of the amounts due under the introductory rate mortgage,

including, without limitation, upon the maturity date, a refinancing, or a sale of

or other transfer of title to the property. “ Fully indexed rate ” means the sum of the current value of the index used for the adjustable rate mortgage

and the margin disclosed in the loan agreement. “ Introductory rate mortgage ” means a consumer credit transaction in which the loan is secured by a mortgage on

real estate in this State upon which there is located a one to four family dwelling

which is occupied by the borrower as the borrower's principal residence, and which

provides for: (1) an introductory payment rate option that is set at least 3 percent

below the fully indexed rate at the time the loan was originated and payments may

adjust by more than 3 percent at the reset date regardless of whether the variable

rate index has increased; or (2) an interest rate that may adjust by more than 2

percent at the end of the initial fixed rate period of the loan and which, notwithstanding

the payment rate in effect, had an interest rate at origination of more than 200 basis

points over the Freddie Mac 30-year conventional interest rate and which provides

for an introductory rate that is set below the fully indexed rate at the time the

loan was originated and may adjust at the reset date regardless of whether the variable

rate index has increased. “Introductory rate mortgage” shall not include: (1) a loan that provides for a

fixed rate of interest for the first five years or longer; or (2) a loan that provides

for an introductory rate that is set below the fully indexed rate at the time the

loan was originated only as a result of the borrower's payment of bona fide discount

points.