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Bill

Bill

A 4106

Clarifies mortgage loans to mean loans made primarily for personal, family, or household purposes.

2026-2027 Regular Session Introduced by Roy Freiman and 2 co-sponsors

New Jersey bill clarifies mortgage loans as those for personal/family/household purposes, likely expanding consumer protections to certain residential lending transactions.

Received in the Senate, Referred to Senate Commerce Committee
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Bill Summary · A 4106

Legislative bill overview

Bill A 4106 clarifies the legal definition of "mortgage loans" in New Jersey law to explicitly specify that they are loans made primarily for personal, family, or household purposes. This definitional clarification applies to existing mortgage lending regulations and consumer protections in the state. The bill was introduced by Assemblymember Roy Freiman and referred to the Assembly Financial Institutions and Insurance Committee.

Why is this important

Clarifying the definition of mortgage loans can affect which loans receive consumer protections under mortgage lending laws versus being classified as commercial or investment loans. This distinction determines applicability of interest rate caps, disclosure requirements, and other borrower safeguards. Ambiguity in definitions can create loopholes or legal disputes about whether specific loan products qualify for consumer protections.

Potential points of contention

  • Scope of "household purposes": Disagreement over whether this includes rental properties, investment properties, or only primary residences could significantly impact which lenders and loans are regulated
  • Commercial lending impact: Business groups may oppose if the clarification makes it harder to distinguish between residential mortgages and commercial real estate loans, potentially subjecting more transactions to residential mortgage rules
  • Unintended consequences: Clarifying definitions can sometimes create new problems by excluding transactions previously considered mortgages, potentially leaving some borrowers with less protection

Compiled from official sources — confirm details with the bill’s official record.

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