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Under New Jersey anti-predatory lending provisions, which of the following loan terms would trigger high-cost mortgage protections for a first-lien mortgage?

Correct Answer

D) APR exceeds the average prime offer rate by 6.5 percentage points

New Jersey's high-cost mortgage threshold for first-lien loans is triggered when the APR exceeds the average prime offer rate by 6.5 percentage points, which is higher than federal thresholds.

Answer Options
A
APR exceeds the average prime offer rate by 1.5 percentage points
B
Points and fees exceed 8% of the loan amount
C
Points and fees exceed 3% of the loan amount
D
APR exceeds the average prime offer rate by 6.5 percentage points

Why This Is the Correct Answer

New Jersey's high-cost mortgage threshold for first-lien loans is triggered when the APR exceeds the average prime offer rate by 6.5 percentage points, which is higher than federal thresholds.

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