This bill amends the existing Foreclosure Mediation Assistance Program administered by the New Jersey Housing and Mortgage Finance Agency (HMFA) to include reimbursements for pre-purchase homebuyer counseling. The program currently provides support for trained foreclosure prevention and default mitigation counselors who assist homeowners facing foreclosure through mediation and pre-foreclosure counseling. The bill expands the scope of these services to include pre-purchase counseling, which is aimed at reducing the risk of foreclosure by educating potential homebuyers and helping them avoid mortgage delinquency and default.

Key changes in the bill include the deletion of the phrase indicating that nearly 5,000 households have been served, replaced with "thousands of households have been served," and the addition of provisions that allow for reimbursement of costs associated with providing pre-purchase homebuyer counseling services. This expansion is intended to enhance the existing program by leveraging the expertise of foreclosure counselors to offer proactive support to homebuyers, thereby preventing future foreclosures. The bill is set to take effect immediately upon passage.

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