US Bank, N.A., Plaintiff-Appellant and Cross-Respondent v. Nikia Hough, Defendant-Respondent and Cross-Appellant…

Summary

The Supreme Court of New Jersey held that N.J.A.C. 5:80-26.18(e) voids the portion of a loan that exceeds 95% of the allowable resale price of an affordable housing unit, not merely the mortgage securing it. The Court applied a de novo interpretation of the regulation and found the Housing and Mortgage Finance Agency's (HMFA) reading plainly unreasonable, reversing the Appellate Division and remanding for relief consistent with the plain language. Justice LaVECCHIA dissented, arguing that HMFA's interpretation should be given deference.