SENATE COMMERCE COMMITTEE

STATEMENT TO

SENATE, No. 3694

STATE OF NEW JERSEY

DATED:  OCTOBER 5, 2026

      The Senate Commerce Committee reports favorably Senate Bill No. 3694.

      This bill amends existing law to clarify that mortgage loans are primarily made for personal, family, or household purposes.  This bill intends to strengthen clarity in lending laws by confirming that consumer mortgage loans, made primarily for personal, family, or household purposes, are protected from prepayment penalties.  The bill also modernizes lending frameworks by allowing prepayment penalty flexibility for commercial mortgage loans, supporting small real estate investors, and promoting economic growth.

      As reported by the committee, Senate Bill No. 3694 is identical to Assembly Bill No. 4106, which was also reported by the committee on this date.