Moran v. American Funding, Ltd.

OPINION

LESEMANN, J.S.C.

These related cases raise the question of whether a 1987 amendment to the Secondary Mortgage Loan Act, N.J.S.A. 17:11A-34 et seq. (hereinafter “The Act”) should be applied *265retroactively or only prospectively. That amendment (included within L.1987, C. 230) drastically changed the effect of a lender’s non-compliance with the Act. Prior to its adoption, the Act provided that if a lender violated the Act while making a loan, the loan was void and the lender could recover neither the principal advanced nor any interest. The 1987 amendment modified that harsh result to…