Bill > S2926

Introduced Session

This bill is intended to enhance access to financial counseling services for homeowners facing foreclosure. Under existing law, a homeowner facing foreclosure is required to engage in financial counseling as a prerequisite for participating in foreclosure mediation services offered by the Judiciary. These existing counseling services are funded by the "New Jersey Foreclosure Counseling Fund" (counseling fund), administered by the New Jersey Housing and Mortgage Finance Agency (HMFA). This bill would expressly provide that the financial counseling services would be offered through the counseling fund to homeowners facing foreclosure, regardless of whether a homeowner intends to participate in foreclosure mediation. The bill would further provide that, whenever a residential mortgage lender provides a homeowner with a notice of intention to foreclose, no later than one business day following that action, the lender would also be required to notify HMFA, for the purpose of facilitating housing counseling outreach. Upon receiving this notice, the bill requires HMFA to ensure that a trained foreclosure prevention and default mitigation counselor promptly and diligently contacts the homeowner to offer counseling services. The bill takes effect on the first day of the fourth month following enactment, and directs HMFA to adopt rules and regulations to effectuate the provisions of the bill on or before the effective date.

Committee Categories

Joe Cryan (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 03/07/2024)

Official Document