Bill Text: NJ S3458 | 2018-2019 | Regular Session | Introduced
Bill Title: Allows certain employees affected by federal government shutdown to temporarily defer mortgage loan payments and property tax payments.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2019-02-07 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S3458 Detail]
Download: New_Jersey-2018-S3458-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
SYNOPSIS
Allows certain employees affected by federal government shutdown to temporarily defer mortgage loan payments and property tax payments.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the payment of mortgage loans and property taxes by certain federal employees and supplementing chapter 4 of Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Affected employee" means a federal employee who, during the shutdown, is a resident of this State, and is required to work as a federal employee without pay or furloughed as a federal employee without pay.
"Mortgagee" means the holder of a mortgage loan that is a State chartered bank, savings bank, savings and loan association or credit union, any person required to be licensed under the provisions of the "New Jersey Residential Mortgage Lending Act," sections 1 through 39 of P.L.2009, c.53 (C.17:11C-51 et seq.), and any entity acting on behalf of the mortgagee named in the debt obligation including, but not limited to, servicers.
"Mortgagor" means a person who borrows money by mortgaging a property to the lender as security for a mortgage loan.
"Mortgage loan" means a loan made to a natural person or persons to whom credit is offered or extended primarily for personal, family or household purposes which is secured by a mortgage constituting a lien upon real property located in this State on which there is erected or to be erected a structure, which is the primary residence of the natural person or persons, containing one to six dwelling units, a portion of which structure may be used for nonresidential purposes, in the making of which the mortgagee relies primarily upon the value of the mortgaged property.
"Shutdown" means the federal fiscal year 2019 partial government shutdown that began on December 22, 2018.
2. a. Between December 22, 2018 and April 1, 2019, an affected employee may secure a deferment of the payment of interest and principal on a mortgage loan that was secured by the affected employee, or the affected employee and another person jointly.
b. (1) An affected employee may make a request pursuant to subsection a. of this section by mailing a written request to the mortgagee that shall include a copy of proof of employment as an affected employee.
(2) Upon receipt of the request with the required information, the mortgagee shall grant a deferment of the payment of interest and principal, effective as of December 22, 2018. The deferment shall remain in effect during the period between December 22, 2018 and April 1, 2019.
(3) Upon receipt of the request with the required information, the mortgagee shall prepare and send for signature to the affected employee requesting the deferment, and any other mortgagor, a modification of agreement extending the term of the loan commensurate with the number of months for which the affected employee is receiving deferment. If the affected employee and any other mortgagor does not sign and return the modification of agreement to the mortgagee within 30 calendar days of receipt thereof, the affected employee shall not be entitled to the protections and benefits accorded under this section.
c. Nothing contained in this section shall affect payments to or from escrow, as required by the loan agreement, for property taxes, special assessments, mortgage insurance, and hazard insurance, nor shall the affected employee's monthly escrow payments following deferment increase as a result of deferment, except commensurate with an increase in the amount for taxes or insurance premiums. Failure on behalf of the affected employee to make the monthly payment to escrow shall not create a delinquency. Any payments to escrow not made may be included in the annual escrow analysis, and the payment to escrow following deferment may be increased if a shortage exists in the escrow account. Payments to or from escrow for taxes assessed against real and personal property solely owned by the resident, or with a spouse, shall be deferred if the affected employee is granted a deferment pursuant to this act.
d. The following charges, incurred prior to deferment, when imposed pursuant to law, shall not increase during the period of deferment, nor shall they accrue as a result of the deferment: late or delinquency charges; attorneys' and collection fees; and recording or filing fees. Interest shall not be compounded as a result of deferment, that is, interest shall not be charged on the deferred interest.
3. Every resident of this State who is an affected employee shall be entitled to a deferment of the amount of any tax bill for taxes assessed against real and personal property solely owned by the resident, or with another person jointly that becomes due during the period between December 22, 2018 and April 1, 2019. The tax amount deferred shall be due and owing on April 1, 2019, and shall be paid to the tax collector of the municipality in which the property is located. No interest shall be charged when the deferred property tax amount is paid in full on April 1, 2019. When the property tax amount is not paid in full, interest shall be charged on any unpaid amount at the rate it would have accrued since the original property tax due date.
4. a. No deferment of any tax amount assessed against real and personal property pursuant to this act shall be allowed except upon written application therefor, on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided by the governing body of the municipality constituting the taxing district in which the application is to be filed. The application shall specify any documentation required to be submitted in order to ascertain that the applicant is qualified to receive the deferment. The Director of the Division of Taxation in the Department of the Treasury shall promulgate any rules and regulations necessary to implement the provisions of this act.
b. A resident eligible for a deferment of any tax amount assessed against real and personal property pursuant to this act, or a person acting on behalf of the resident, shall file an application for deferment with the tax collector of the municipality in which the property is located. The application shall be accompanied by any documentation required to be submitted pursuant to subsection a. of this section. Upon receipt of an application for the deferment of payment and all required documentation by an eligible resident, the tax collector shall, within 30 calendar days, send a letter to the resident and any mortgagee incident to the payment of such tax amount notifying each of the effective date of the deferment.
c. No tax lien may be issued against the real and personal property for which the deferment of payment of a tax bill is granted pursuant to this act as the result of such deferment.
5. This act shall take effect immediately and shall be retroactive to December 22, 2018.
STATEMENT
This bill allows certain employees affected by the federal government shutdown to temporarily defer mortgage loan payments and property tax payments.
The bill applies to "affected employees," meaning federal employees who, during the federal fiscal year 2019 partial government shutdown that began on December 22, 2018, were residents of this State, and were required to work as federal employees without pay or furloughed as federal employees without pay.
The bill provides that, between December 22, 2018 and April 1, 2019, an affected employee may secure a deferment of the payment of interest and principal on a mortgage loan that was secured by the affected employee, or the affected employee and another person jointly. The bill provides that an affected employee may make a deferment request by mailing a written request to the mortgagee, including a copy of proof of employment as an affected employee. Upon receipt of the request with the required information, the mortgagee shall grant a deferment of the payment of interest and principal, effective as of December 22, 2018. The deferment shall remain in effect during the period between December 22, 2018 and April 1, 2019.
The bill requires the mortgagee, upon receipt of the request with the required information, to prepare and send for signature to the affected employee requesting the deferment, and any other mortgagor, a modification of agreement extending the term of the loan commensurate with the number of months for which the affected employee is receiving deferment. If the affected employee and any other mortgagor does not sign and return the modification of agreement to the mortgagee within 30 calendar days of receipt thereof, the affected employee is not be entitled to the protections and benefits accorded under the bill.
The bill provides that every resident of this State who is an affected employee is entitled to a deferment of the amount of any tax bill for taxes assessed against real and personal property solely owned by the resident, or with another person jointly that becomes due during the period between December 22, 2018 and April 1, 2019. The tax amount deferred is due and owing on April 1, 2019, and must be paid to the tax collector of the municipality in which the property is located. The bill provides that no interest is to be charged when the deferred property tax amount is paid in full on April 1, 2019. When the property tax amount is not paid in full, interest is to be charged on any unpaid amount at the rate it would have accrued since the original property tax due date.
The bill provides that no deferment of any tax amount assessed against real and personal property is to be allowed except upon written application therefor, on a form prescribed by the Director of the Division of Taxation in the Department of the Treasury, and provided by the governing body of the municipality constituting the taxing district in which the application is to be filed. The application must specify any documentation required to be submitted in order to ascertain that the applicant is qualified to receive the deferment. The Director of the Division of Taxation in the Department of the Treasury shall promulgate any rules and regulations necessary to implement the provisions of this act.
The bill provides that a resident eligible for a deferment of any tax amount assessed against real and personal property pursuant to the bill, or a person acting on behalf of the resident, shall file an application for deferment with the tax collector of the municipality in which the property is located. Upon receipt of an application for the deferment of payment and all required documentation by an eligible resident, the tax collector shall, within 30 calendar days, send a letter to the resident and any mortgagee incident to the payment of such tax amount notifying each of the effective date of the deferment.
This bill takes effect immediately and is retroactive to December 22, 2018.
