New Jersey Administrative Code
Title 3 - BANKING
Chapter 1 - GENERAL PROVISIONS
Subchapter 3 - MORTGAGE LOANS IN DISASTER AREAS
Section 3:1-3.3 - Emergency mortgage powers exercisable by financial institutions

1. If the security of a mortgage loan, when made originally, consisted of real property improved by a one-family dwelling, an additional mortgage loan may be made. The total of such additional mortgage loan, together with the unpaid or unamortized principal balance due upon the existing mortgage loan or loans shall not exceed 160 percent of the appraised value of the real property, according to the appraisal certification on file with the financial institution.

2. If the security of a mortgage loan, when made originally, consisted of real property improved by either a two-family dwelling, three-family dwelling, or four-family dwelling, an additional mortgage loan may be made. The total of such additional mortgage loan, together with the unpaid or unamortized principal balance due upon the existing mortgage loan or loans shall not exceed 100 percent of the appraised value of the real property according to the appraisal certification on file with the financial institution.

3. If a mortgage loan is secured by real property which, when originally made was represented by improvements other than those described in (b)1 and 2 above, a financial institution may make an additional mortgage loan. The total of any such additional mortgage loan, together with the unpaid or unamortized principal balance due upon the existing mortgage loan or loans, shall not exceed 133 1/3 percent of the appraised value according to the appraisal certification on file with the financial institution.

4. When any financial institution holds an existing mortgage loan which by its terms permits additional sums to be advanced or loaned in limited amounts, such financial institution may make additional loans or advances in any amounts, notwithstanding any limitation imposed in the original mortgage instrument; provided, however, that the total of such additional loans or advances shall not exceed the difference between the original principal amount of the existing mortgage loan and the unamortized or unpaid balance thereof.

5. A financial institution may make a mortgage loan secured by real property which is subject to an existing mortgage loan or loans held by another financial institution and such mortgage loan shall be subject to all of the restrictions, limitations and conditions provided herein.

6. A financial institution may reduce the rate of interest on mortgage loans secured by real property within a disaster area.

7. A financial institution may extend the term within which any mortgage loan must be amortized or paid for additional periods of time but in no event shall such an extension exceed a period of time twice the term of the original mortgage loan.