US BANK, N.A. V. NIKIA HOUGH, ET AL.
A-5623-08T3 09-14-10
This is a real property foreclosure action. The primary
question presented is whether a commercial lender, which makes a
loan secured by a mortgage on an affordable housing unit in
excess of the amount permitted by N.J.A.C. 5:80-26.8(b), is
prohibited from seeking to foreclose upon the mortgage. We
answered the question in the affirmative, holding that the
mortgage is void pursuant to N.J.A.C. 5:80-26.18(e).
A secondary question raised in the appeal is whether
N.J.A.C. 5:80-26.18(e) also prohibits the lender from seeking to
collect upon the underlying debt instrument. We answered that
question in the negative, holding that the regulation does not
bar the lender from seeking to collect upon the underlying
obligation.
