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. Specifically, 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 from trained foreclosure prevention and default mitigation counselors to offer assistance to the homeowner.

Additionally, the bill establishes that the New Jersey Foreclosure Counseling Fund will support these counseling services, which are crucial for homeowners navigating the foreclosure process. It also clarifies that the counseling services provided through this fund will be available to all homeowners facing foreclosure, not just those participating in mediation. The bill requires HMFA to adopt necessary rules and regulations to implement these provisions within four months of enactment, ensuring that the enhanced counseling services are effectively rolled out.

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