NJ Proposes to Amend Collateral Ban

The New Jersey Department of Banking and Insurance has issued a proposed rule that would amend the prohibition on the use of personal items as collateral for first-lien mortgages, according to the Washington law firm Lotstein Buckman LLP.The department is seeking comment on a proposal that would permit certificates of deposit or shares of corporate stock to be used as collateral on first-lien loans. However, the proposed rule would also add household and personal goods such as furniture, electronic equipment, motor vehicles, appliances, and jewelry to the list of items that are prohibited from being used as collateral. The deadline to submit comments on the proposed rule is Feb. 18.