New Jersey Assembly Bill A820

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Provides mortgage payment relief for residential property owners and small landlords during time of coronavirus disease 2019 pandemic.

Impact

The bill defines an 'impacted homeowner' and outlines the conditions under which mortgage forbearance must be granted. Homeowners who have experienced significant income loss, whose gross household income is below 150% of the area median, and who have limited financial reserves are eligible. The process includes a requirement for creditors to respond to forbearance requests within 30 days, coupled with prohibitions against initiating foreclosures during this period. This provides substantial protection for homeowners who may otherwise face eviction during the ongoing economic crisis.

Summary

Bill A820 aims to provide essential mortgage payment relief to residential property owners and small landlords adversely affected by the COVID-19 pandemic. Specifically, it mandates that creditors must provide mortgage forbearance to impacted homeowners who demonstrate a substantial reduction in income due to the pandemic. This legislation reflects the urgent need to assist homeowners in navigating financial hardships that arose during the pandemic, ensuring that they can maintain their housing stability amidst economic uncertainty.

Contention

One point of contention within the implementation of A820 is the balancing act between creditor rights and homeowner protections. While the bill offers significant advantages for homeowners needing assistance, some creditors may argue that the obligation to provide forbearance without penalties might lead to financial strain on lending institutions. Moreover, the bill delineates specific provisions against discriminatory practices in the credit evaluation process, ensuring fairness in the treatment of applicants under the new guidelines. This aspect highlights the ongoing debate on safeguarding both homeowner rights and the financial viability of lending institutions.