What types of loans are covered by the act?
The act applies to home loans, covered loans and high-cost home loans. “Home loans” are extensions of credit for personal, family or household purposes, which are secured by a mortgage or deed of trust on real estate located in New Jersey or a security interest in a manufactured home, excluding reverse-mortgage transactions. Thus, all residential mortgage loans are subject to the “home loan” provisions of the act. “Covered home loans” are either: (1) home loans in which the total points and fees (excluding either a conventional prepayment penalty or two bona fide discount points) exceed (a) 4 percent of the total loan amount if the total loan amount exceeds $40,000, (b) 4.5 percent of the total loan amount if the total loan amount is $40,000 or less, or (c) 4.5 percent of the total loan amount if the loan is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA); or (2) “high-cost home loans.” “High-cost home loans” are home loans w
