Senator VIN GOPAL
District 11 (Monmouth)
Urges financial institutions to provide forbearance for mortgage borrowers during coronavirus disease 2019 pandemic.
CURRENT VERSION OF TEXT
A Senate Resolution urging financial institutions to provide forbearance for mortgage borrowers during coronavirus disease 2019 pandemic.
Whereas, As coronavirus disease 2019 spreads across the country, the United States is facing the possibility of a pandemic on a scale that has not been seen in over a century; and
Whereas, Numerous cases of coronavirus disease 2019 have been identified in the State of New Jersey; and
Whereas, The Governor has declared a Public Health Emergency and State of Emergency, and established curfew policies on restaurants, bars, casinos, movie theaters, and other businesses in agreement with the governors of neighboring states; and
Whereas, Many individuals have been practicing social distancing, and avoiding locations and events where people congregate in order to minimize their exposure to the coronavirus or prevent themselves from unwittingly exposing others to the disease; and
Whereas, These enforced and common-sense health precautions cause economic hardship to small businesses and their employees who see a reduced clientele for their services or who may be forced out of operation altogether; and
Whereas, The coronavirus disease 2019 pandemic may persist for an unknown, and perhaps extended, duration of time, and continued economic hardship may lead to considerable loss of income for small business owners and employees, rendering them unable to service their debt, including mortgages; and
Whereas, In Italy, a country that has already faced considerable social and economic upheaval as a result of coronavirus disease 2019, the government has worked with banks to impose a temporary suspension of mortgage payments for individuals and families; and
Whereas, Under the Italian policy, mortgagees who can demonstrate a financial impact may request from their lenders a suspension of mortgage payments, either the full installment or just the principal, until the end of the coronavirus disease 2019 emergency; and
Whereas, During this public health emergency, a mortgage forbearance would help mortgagees, a reduction in mortgage defaults would help the State and national economy overall; now, therefore,
Be It Resolved by the Senate of the State of New Jersey:
1. This House respectfully
urges financial lending institutions to provide forbearance toward mortgage
borrowers for the duration of the coronavirus disease 2019 emergency.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the Mortgage Bankers Association of New Jersey and the national Mortgage Bankers Association, with a request to disseminate it to their membership.
This resolution respectfully urges financial institutions to show forbearance toward delinquent mortgage borrowers for the duration of the coronavirus disease 2019 emergency. This action is similar to that taken in Italy, where a temporary suspension of mortgage payments has been imposed, if a mortgagee can demonstrate financial impact. Forbearance toward delinquent mortgage borrowers will help borrowers and the economy at large during this public health crisis.
The resolution shall be transmitted by the Secretary of the Senate to the Mortgage Bankers Association of New Jersey and the national Mortgage Bankers Association, with a request to disseminate it to their membership.