According to NJ Stat. Ann. §17:11C-78(a) a second mortgage loan shall “be in the form of a promissory note for a closed-end loan, and in the form of a loan agreement for an open-end loan, and shall be identifiable by the use of the words “SECONDARY MORTGAGE LOAN” printed prominently, in 14-point bold type or larger, centered and at the top of the promissory note or loan agreement.” We have made a small adjustment to Cx1063 (Fixed Rate Note New Jersey Second) by adding the word “NOTE” in the title of the document, directly below “SECONDARY MORTGAGE LOAN” to identify that the instrument is a note. Additionally, we have added “SECONDARY MORTGAGE LOAN” to Cx21652 (New Jersey HELOC Agreement) in accordance with §17:11C-78(a) when lien position is second lien.
Additionally, Subsection (c) requires that a “NOTICE TO BORROWER” statement be “printed prominently….in 10-point bold type or larger, directly above the space provided for the signature of the borrower”. We have updated Cx21652 (New Jersey HELOC Agreement) by adding this NOTICE TO BORROWER language when the lien position is a second lien. We have also updated Cx1063 (Fixed Rate Note New Jersey Second) by adjusting the language to track the language exactly as provided in subsection (c).
These changes are available for testing on Stage & Stage 2 servers and will take effect on June 25, 2024. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
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