April 13, 2021

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Mortgage News

NJ Creates Notification Requirement for Residential Mortgage Lenders | Weiner Brodsky Kider PC

New Jersey legislation passed legislation Residential mortgage lenders must inform homeowners about the state Foreclosure brokerage program.

Bill No. 1063, passed on March 15, 2021, will enter into force on September 1, 2021. Under the bill, if a residential property mortgage lender sends a homeowner a letter of intent to foreclose, or if the lender files a foreclosure complaint against them, as a homeowner eligible for mediation, the lender must notify the homeowner of the foreclosure referral program.

In particular, the information provided by the lender would alert the homeowner that the assistance of a trained counselor in preventing foreclosures and reducing payment defaults is a prerequisite for participating in the mediation. The notice would also advise the homeowner that they do not have to pay any fees to participate in the mediation.