DocMagic, Inc.'s Compliance Department has prepared a New Jersey Addendum to Residential Mortgage Loan Application (NJARMLA.MSC).  This Addendum gives the lender or broker an opportunity to determine if any borrower who intends to use property located in New Jersey to secure a mortgage loan transaction is involved in a civil union.  In New Jersey, parties to a civil union have the same property rights as a husband and wife with respect to property occupied as a principal residence.

As to real property acquired on or after May 28, 1980, and occupied jointly by a married person with his or her spouse as their principal residence, every married person is entitled to joint possession of the property with his or her spouse during their marriage, which right of possession may not be released, extinguished or alienated without the consent of both spouses except by judgment of a court of competent jurisdiction. All other real property owned by either spouse which is not the principal matrimonial residence may be alienated without the consent of both spouses.  N.J. Stat. Ann. §3B:28-3. Thus, a party to a civil union could claim a possessory or other interest to the secured property that is intended to be occupied by the civil union partners as a principal residence.

According to N.J. Stat. Ann. § 37:1-31(a), it states:

Civil union couples shall have all of the same benefits, protections and responsibilities under law, whether they derive from statute, administrative or court rule, public policy, common law or any other source of civil law, as are granted to spouses in a marriage.

In view of the above, the Addendum requires that the borrower identify any other person who could claim a possessory or other interest in the [New Jersey] property that will secure repayment of the loan.  If a borrower so identifies a person, a lender may use this information and, provided the lender's internal policy mandates such action, require the borrower's civil union partner to also sign the mortgage or other security instrument (and perhaps other related loan documents) that secures repayment of the subject loan.  The Addendum will appear in all New Jersey initial, pre-closing, and closing packages when the loan origination type selected in the DocMagic software is a lender or broker.

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