Office of Legislative Services
State House Annex
P.O. Box 068
Trenton, New Jersey 08625
Legislative Budget and Finance Office
Phone (609) 847-3105
Fax (609) 777-2442
www.njleg.state.nj.us
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 3670
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: OCTOBER 7, 2024
SUMMARY
Synopsis: Provides for mortgage payment relief and foreclosure protection for
certain homeowners impacted by the remnants of Hurricane Ida.
Type of Impact: Time-limited delay in State revenue collections; time-limited State
expenditure increase.
Agencies Affected: Housing and Mortgage Finance Agency; State entities holding
mortgage loans; Department of Banking and Insurance; Department of
Community Affairs, the Judiciary.
Office of Legislative Services Estimate
Fiscal Impact FY 2025 – FY 2026
Potential State Revenue Shift Indeterminate
Potential State Expenditure Impact Indeterminate
The Office of Legislative Services (OLS) anticipates that the one-year mortgage forbearance
granted to certain homeowners under the bill will result in a time-limited delay in State revenue
collections made by the Housing and Mortgage Finance Agency and any other State entities
holding mortgage loans.
The OLS cannot determine the number of homeowners with mortgages through State agencies
who will request and be eligible for the mortgage forbearance, for how many months they will
suspend payment, or the amount of the mortgage payments typically owed. Therefore, the
timing and amount of the delayed revenues are indeterminate.
The OLS determines that there may be an indeterminate State expenditure increase as a result
of administrative responsibilities assigned to the Department of Community Affairs, which
include developing an online application within 90 days of enactment, reviewing applications,
and awarding Certifications of Eligibility for Forbearance.
The OLS finds there may also be a State expenditure increase associated with the bill’s
requirement that the Department of Banking and Insurance investigate certain complaints made
by storm-impacted homeowners who were denied a forbearance and maintain certain records. FE to S3670
2
The OLS finds that there may also be an indeterminate fiscal impact on the Judiciary related
to potential costs incurred and costs avoided associated with stays in foreclosure proceedings
allowed pursuant to the bill.
BILL DESCRIPTION
This bill would require mortgage servicers to grant a mortgage forbearance of one year to
certain storm-impacted homeowners who have successfully applied for and have been granted a
Certification of Eligibility for Forbearance by the Department of Community Affairs. Storm-
impacted homeowners would have 30 days following the date on which the department makes an
online application publicly available to apply for a certification. To qualify for a certification, an
applicant would be required to satisfy the following eligibility criteria: (1) meet the bill’s definition
of "storm-impacted homeowner;" (2) have a current mortgage obligation on their primary
residence; and (3) submit a complete application to the department, which satisfies the
requirements set forth in the bill. A successful applicant would receive mortgage forbearance for
a period of one year following the issuance of a certification, unless the applicant discontinues the
mortgage forbearance. During a period of forbearance, a mortgage servicer would be prohibited
from initiating the foreclosure process. The bill would extend the repayment period of any
mortgage subject to a forbearance by a certification, by the number of months the forbearance is
in effect. A deadline or time period for an action by a party to the foreclosure process for a
residential property, which that is subject to a certification and filed prior to the effective date of
the bill, would be tolled until the end of the period of the mortgage forbearance.
The Department of Community Affairs would be required, within 90 days of enactment of this
bill, to make an online application system publicly available on its Internet website. Within 60
days of an application submission, the department would be required to determine if the
application: (1) is complete; and (2) meets the eligibility criteria. The bill would require the
Department of Banking and Insurance to investigate complaints filed by storm-impacted
homeowners granted a certification but denied a forbearance from a mortgage servicer.
The bill would permit the Administrative Director of the Courts to require the mortgage
servicer to provide the docket numbers, party names, and property addresses for any pending court
actions involving a property granted a forbearance pursuant to the bill to the Superior Court Clerk’s
Office. A mortgage servicer would be required to submit information to the Department of
Banking and Insurance concerning all forbearances that the mortgage servicer provided within the
State pursuant to the bill.
The bill would direct the court to award a stay in a foreclosure proceeding following an
application by a storm-impacted homeowner. The receipt of a certificate would constitute good
cause for the award of a stay. The award of such a stay would conclude one year following the
initial award of the stay, or January 1, 2026, whichever is earlier.
The bill provides exceptions to mortgage loans made, insured, or securitized by certain
organizations. The bill would take effect immediately.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received. FE to S3670
3
OFFICE OF LEGISLATIVE SERVICES
The OLS anticipates that the one-year mortgage forbearance granted to certain homeowners
under the bill will result in a time-limited delay in State revenue collections made by the Housing
and Mortgage Finance Agency and any other State entities holding mortgage loans. The OLS
cannot determine the number of homeowners with mortgages through State agencies who will
request, and be eligible for, the mortgage forbearance, for how many months payment may be
suspended, or the amount of the mortgage payments typically owed. Therefore, the timing and
amount of the delayed revenues are indeterminate.
The OLS determines that there may be an indeterminate State expenditure increase as a result
of administrative responsibilities assigned to the Department of Community Affairs, which include
developing an online application within 90 days of enactment, reviewing applications, and
awarding Certifications of Eligibility for Forbearance. The OLS finds there may also be a State
expenditure increase associated with the bill’s requirement that the Department of Banking and
Insurance investigate certain complaints made by storm-impacted homeowners who were denied
a forbearance and maintain certain records. The OLS finds that there may also be an indeterminate
fiscal impact on the Judiciary related to potential costs incurred and costs avoided associated with
stays in foreclosure proceedings allowed pursuant to the bill.
Section: Local Government
Analyst: Grace Ahlin
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).