LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 4871
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: OCTOBER 30, 2024
SUMMARY
Synopsis: Provides for mortgage payment relief and foreclosure protection for
certain homeowners impacted by 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 process, reviewing applications, awarding
Certifications of Eligibility for Forbearance, and conducting hearings concerning certificates
terminated by the commissioner.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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 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.
BILL DESCRIPTION
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 a storm-impacted homeowners, as
defined in the bill.
The bill permits eligible homeowners, meeting the requirements set forth in the bill, to apply
to the Department of Community Affairs for Certifications of Eligibility for Forbearance online
through a system established by the department no later than 30 days after the date the application
becomes publicly available. The department would be required to review each application, as
specified in the bill, 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
would be permitted to 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 would be permitted to file a complaint with that agency,
which would be required to 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 modification, fees assessed,
late penalties, or penalties for early repayment. The bill also requires a mortgage servicer to: (1)
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 (2) submit certain
information on all forbearances that the mortgage servicer has provided within the State to the
Department of Banking and Insurance on a monthly basis, 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.
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FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
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 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 process, reviewing applications, awarding Certifications of
Eligibility for Forbearance, and conducting hearings concerning certificates terminated by the
commissioner. The OLS finds that 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.).