Requires residential mortgage lenders to deposit hazard insurance proceeds in interest-bearing accounts.

This bill (A4443) requires New Jersey residential mortgage lenders to pay at least 2% annual interest on hazard insurance proceeds held for property repairs after damage. It applies to loans securing 1-4 family homes and prohibits lenders from charging fees that would reduce the effective interest rate below 2%. Lenders must deposit these funds in interest-bearing accounts at eligible financial institutions (like banks or credit unions), with exceptions for funds mandated by state/federal authorities to be held in non-interest accounts. The rule takes effect immediately upon enactment.