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  • NJ A766
  • Allows certain National Guard and United States Reserve members to temporarily defer mortgage loan payments and suspend property tax payments.*
In Committee
Crossed Over
2016-2017 Regular Session
This bill will allow a State resident who is called to mobilization for federal active duty as a member of the National Guard or a Reserve Component of the Armed Forces of the United States to request for that period of mobilization a deferment of the payment of interest on a mortgage loan that was secured by the person before entry into service on federal active duty. The deferment would remain in effect while that person remains in service on federal active duty for 60 days after the person's release from federal active duty Under the bill, the deferment will extend the term of the loan by the number of months of active duty service for which the person is receiving deferment, plus 60 days. In this way, the person's monthly principal and interest payments will not increase. Upon receipt of the request with the required information, the mortgagee will prepare and send for signature to the person, and any other mortgagor, a modification of agreement extending the term of the loan accordingly. The person and any other mortgagor must sign and return the modification of agreement to the mortgagee within 30 days of receipt of the agreement, or within 60 days of the person's separation from federal active duty if mobilization will occur less than 30 days from the date of the orders, and failure to do so disqualifies the person from the protections and benefits accorded under section 1 of this bill. The person requesting deferment is to inform the mortgagee of any modifications to the initial orders for federal active duty service. The bill further provides that taxes, unless suspended pursuant to section 2 of this bill, and insurance will continue to be paid by the person to the escrow account, if applicable, and that the escrow portion of the person's monthly payment will not be deferred and remains due as provided by the loan agreement. While failure on behalf of the person to make the monthly payment to escrow would not create a delinquency, any escrow payments not made may be included in the annual escrow analysis, and the payment to escrow may be increased following return from federal active duty if a shortage exists in the escrow account. If incurred prior to the date of entry on active duty, late or delinquency charges, attorneys' and collection fees, and recording or filing fees will not increase during the period of deferment, and may not accrue as a result of the deferment. Moreover, interest may not be compounded, or charged on top of interest, as the result of deferment. Finally, the bill provides that, upon receipt of an application and all required documentation for a suspension of payment of a tax bill for real and personal property by an eligible resident, the tax collector must notify the applicant and the mortgagee of the effective date of the suspension of the tax bill payment within 30 days. No tax lien may be issued against the real and personal property for which a suspension of payment is granted as the result of the suspension. The bill is intended to work in conjunction with federal law, the Servicemembers Civil Relief Act of 2003.
2nd Reading in the Assembly, 2nd Reading in the Senate, Bills and Joint Resolutions Signed by the Governor, Budget and Appropriations, Military and Veterans' Affairs, Passed Assembly, Passed both Houses
Approved P.L.2016, c.63.  (on 11/14/2016)
Date Chamber Action Description
11/14/2016 A Approved P.L.2016, c.63.
9/15/2016 A Passed Assembly (Passed Both Houses) (74-0-0)
9/15/2016 A Received in the Assembly, 2nd Reading on Concurrence
9/15/2016 S Passed by the Senate (35-0)
9/15/2016 S Substituted for S1386 (1R)
6/6/2016 S Reported from Senate Committee, 2nd Reading
6/6/2016 Senate Budget and Appropriations Hearing (13:00 6/6/2016 Committee Room 4, 1st Floor)
3/10/2016 S Referred to Senate Budget and Appropriations Committee
3/10/2016 S Reported from Senate Committee with Amendments, 2nd Reading
3/10/2016 Senate Military and Veterans' Affairs Hearing (13:00 3/10/2016 Committee Room 1, 1st Floor)
2/29/2016 S Received in the Senate, Referred to Senate Military and Veterans' Affairs Committee
2/18/2016 A Passed by the Assembly (75-0-0)
2/8/2016 A Reported out of Assembly Committee, 2nd Reading
2/8/2016 Assembly Military and Veterans' Affairs Hearing (10:00 2/8/2016 Committee Room 13, 4th Floor)
1/27/2016 A Introduced, Referred to Assembly Military and Veterans' Affairs Committee
Date Motion Yea Nay Other
Detail 9/15/2016 Senate Floor: Third Reading - Final Passage 35 0 5
Detail 9/15/2016 Assembly Floor: Concur in Senate Amendments 74 0 6
Detail 9/15/2016 Senate Floor: Substitute For S1386 (Voice Vote) 0 0 0
Detail 6/6/2016 Senate Budget and Appropriations Committee: Reported Favorably 13 0 0
Detail 3/10/2016 Senate Military and Veterans' Affairs Committee: Reported with Amendments 3 0 2
Detail 2/18/2016 Assembly Floor: Third Reading - Final Passage 75 0 5
Detail 2/8/2016 Assembly Military and Veterans' Affairs Committee: Reported Favorably 6 0 0