Does anyone know if there are limits in NJ on the grace period for late fees, i.e, 10 days or 15 days? I know most of you banks do not care but we are a non-depository institution and we'd like to know. Thank you.

According to the New Jersey Statutes, the grace period is 15 days, and the maximum fee is 5%. See NJSA 17:9A-59.7.

"I know most of you banks don't care" What's that comment about?

Anon-
You can also look at the Savings and Loan Act of 1963. See NJSA 17:12B-48(13). We have interpreted this section to permit a late charge of 4% of the total payment amount. On a residential mortgage loan, we assess 4% of the principal, interest, and escrow payment as long as the loan has not been sold to Fannie Mae or Freddie Mac. If the loan is sold to them, then the late charge is 5% of the principal and interest payment. We provide for a 10 day grace period on non-real estate secured consumer loans and a 15 day grace period on real estate secured loans. We switched to the 15 day grace period on real estate secured loans when we changed charters from a state-chartered S & L to a federal S& L. See 12 CFR 560.33 for the OTS regulation on late charges for federal thrifts.

4% for non-sold loans is correct