SENATE COMMUNITY AND URBAN AFFAIRS COMMITTEE

 

STATEMENT TO

 

SENATE, No. 2961

 

STATE OF NEW JERSEY

 

DATED:  OCTOBER 8, 2020

 

      The Senate Community and Urban Affairs Committee reports favorably Senate Bill No. 2961.

      This bill enhances the notification requirements of residential mortgage lenders in association with foreclosure actions.

      Under the bill, whenever a residential mortgage lender provides a homeowner with a notice of intention to foreclose, or when the lender files a foreclosure complaint against a mediation-eligible homeowner, the lender is required to provide the homeowner with certain information in relation to the foreclosure mediation program.

      Specifically, the information provided by the lender would alert the homeowner that obtaining the assistance of a trained foreclosure prevention and default mitigation counselor is a prerequisite to participation in mediation.  The notice would also alert the homeowner that they will not be required to pay any fees in order to participate in mediation.