This bill aims to improve access to foreclosure counseling services for homeowners in New Jersey. It amends existing laws to ensure that financial counseling is available to homeowners facing foreclosure, regardless of their intention to participate in foreclosure mediation. The bill mandates that when a residential mortgage lender issues a notice of intention to foreclose, they must notify the New Jersey Housing and Mortgage Finance Agency (HMFA) within one business day. This notification will trigger outreach efforts by HMFA, ensuring that a trained foreclosure prevention and default mitigation counselor contacts the homeowner promptly to offer counseling services.

Additionally, the bill modifies the existing "New Jersey Foreclosure Counseling Fund" to allow for reimbursement of costs associated with providing pre-foreclosure counseling services and assistance to homeowners affected by emergencies. It specifies that trained counselors will be available to assist homeowners regardless of their participation in mediation. The bill also includes provisions for the HMFA to adopt necessary rules and regulations to implement these changes effectively. The new measures are set to take effect on the first day of the fourth month following the bill's enactment.

Statutes affected:
Introduced: 2A:50-56, 2A:50-81, 2A:50-82