SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE
STATEMENT TO
SENATE, No. 3670
STATE OF NEW JERSEY
DATED: SEPTEMBER 30, 2024
The Senate Community and Urban Affairs Committee reports
favorably Senate Bill No. 3670.
This bill would provide mortgage payment relief and foreclosure
protection for certain homeowners impacted by the remnants of
Hurricane Ida.
Hurricane Ida initially approached the Gulf Coast as a category 4
hurricane, and caused severe damage to a large area of the south and
northeast regions of the country. In New Jersey, thousands of families
have been displaced and unable to return to their homes as a result of
this storm. This bill would offer certain homeowners impacted by the
remnants of Hurricane Ida temporary protections against foreclosure,
and would require mortgage servicers to provide a temporary pause in
the mortgage payment obligations of the storm-impacted homeowners.
The bill defines a "storm-impacted homeowner" as a mortgagor
who, as of August 31, 2021, occupied the residential property as their
primary residence and received federal disaster assistance for needs
related to damage sustained from the remnants of Hurricane Ida.
The bill permits eligible homeowners, meeting the requirements
set forth in the bill, to apply to the Department of Community Affairs
(department) for Certifications of Eligibility for Forbearance online
through a system established by the department no later than 30 days
after the date the department makes the application publicly available.
The department would be required to review each application to
determine whether the applicant meets eligibility criteria
demonstrating their need for assistance, and if they do, issue a
Certification of Eligibility for Forbearance to the applicant, which
would entitle the applicant to receive a one-year mortgage forbearance
from their mortgage servicer. Any homeowner who is denied a
Certification of Eligibility for Forbearance may appeal that decision,
and any homeowner who obtains a Certification of Eligibility for
Forbearance but is denied a forbearance from a mortgage servicer
licensed by the Department of Banking and Insurance may file a
complaint with that agency, which must investigate, and if appropriate,
order the mortgage servicer to grant a forbearance.
The bill requires that, during forbearance, and during the
subsequent time period constituting an extension of the mortgage, all
terms and conditions of the original mortgage, except with regard to
default and delinquency during forbearance, are to continue without 2
modification, fees assessed, late penalties, or penalties for early
repayment. The bill also requires a mortgage servicer to: submit
certain information, as specified in the bill, related to any pending
actions involving property granted a forbearance to the Superior Court
Clerk’s Office; and, on a monthly basis, submit certain information on
all forbearances that the mortgage servicer has provided within the
State to the Department of Banking and Insurance, except as provided
in the bill.
Further, a storm-impacted homeowner who is the subject of a
foreclosure proceeding would be awarded, by the court and upon
application by the property owner for good cause shown, a stay in the
foreclosure proceedings. An application to the court by a storm-
impacted homeowner would be required to be made prior to the first
day of the sixth month following the effective date of the bill, unless
the courts in their discretion permit application submission for a longer
period. The award of a stay pursuant to the bill would conclude upon
the earlier of:
• the conclusion of one year following the initial award of a stay
of foreclosure proceedings; or
• January 1, 2026.