Bill Text: NJ S3967 | 2018-2019 | Regular Session | Introduced


Bill Title: Enhances homeowner notification of foreclosure mediation program requirements; requires notice of residential foreclosure actions to HMFA.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-06-20 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S3967 Detail]

Download: New_Jersey-2018-S3967-Introduced.html

SENATE, No. 3967

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED JUNE 20, 2019

 


 

Sponsored by:

Senator  JOSEPH P. CRYAN

District 20 (Union)

 

 

 

 

SYNOPSIS

     Enhances homeowner notification of foreclosure mediation program requirements; requires notice of residential foreclosure actions to HMFA.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning notification of foreclosure mediation and amending and supplementing P.L.2019, c.64.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 3 of P.L.2019, c.64 (C.2A:50-76) is amended to read as follows:

     3.    a.  A homeowner-borrower shall receive written notice from the residential mortgage lender of the option to participate in the Foreclosure Mediation Program in accordance with the court rules, procedures, and guidelines adopted by the Supreme Court at the time the homeowner-borrower receives a notice of intention to foreclose, pursuant to section 4 of P.L.1995, c.244 (C.2A:50-56).  Upon the filing of a mortgage foreclosure complaint against an eligible property, the homeowner-borrower shall again receive written notice of the option to participate in the Foreclosure Mediation Program in accordance with the court rules, procedures, and guidelines adopted by the Supreme Court. 

     b.  The written notice required pursuant to this section shall be available in both English and Spanish, and shall alert the homeowner-borrower that:

     (1)  pursuant to subsection b. of section 4 of P.L.2019, c.64 (C.2A:50-77), obtaining the assistance of a trained foreclosure prevention and default mitigation counselor is a prerequisite to participation in mediation; and

     (2)  pursuant to subsection c. of section 4 of P.L.2019, c.64 (C.2A:50-77), the homeowner-borrower is not required to pay any fees in order to participate in mediation.

(cf: P.L.2019, c.64, s.3)

 

     2.  (New section)  a.  Upon provision of a notice of intention to foreclose to a homeowner-borrower pursuant to section 4 of P.L.1995, c.244 (C.2A:50-56), and upon the filing of a mortgage foreclosure complaint against an eligible property, the residential mortgage lender shall notify the New Jersey Housing and Mortgage Finance Agency of each action.

     b.  The Executive Director of the New Jersey Housing and Mortgage Finance Agency, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), may adopt the such rules and regulations as may be necessary for the implementation of this section.

 

     3.    This act shall take effect on the first day of the sixth month next following enactment. 

STATEMENT

 

     This bill enhances the notification requirements of residential mortgage lenders in association with foreclosure actions. 

     This bill would require that, whenever a residential mortgage lender provides a homeowner with a notice of intention to foreclose, and when the lender files a foreclosure complaint against a mediation-eligible homeowner, the lender shall also provide the homeowner with certain information in relation to the foreclosure mediation program. 

     Specifically, the information required by this bill would alert the homeowner that obtaining the assistance of a trained foreclosure prevention and default mitigation counselor is a prerequisite to participation in mediation.  The notice would also alert the homeowner that they will not be required to pay any fees in order to participate in mediation. 

     Finally, the bill would also require a residential mortgage lender to notify the New Jersey Housing and Mortgage Finance Agency each time a notice of intention to foreclose is provided to a homeowner, and each time a foreclosure complaint is filed against a mediation-eligible homeowner.  0

feedback