New Jersey Assembly Bill 1063 has passed and will be enacted into law on September 1, 2021. The bill enhances notification requirements for residential mortgage lenders. Specifically the bill amends Section 3 of P.L.2019, c.64 to require a lender to inform a borrower that they are required to obtain the assistance of a foreclosure prevention and loss mitigation counselor to participate in mediation and that the homeowner is not required to pay any fees to avail themselves of the mediation process. This notice is to be provided each time the lender serves a homeowner with a notice of intent to foreclose or files a foreclosure summons and complaint on a 1-3 family home which is occupied by the borrower as their primary residence.
The passage of this bill is not a surprise and furthers New Jersey’s current goal of enhancing and spreading awareness of their foreclosure mediation program. If you have any questions, please contact Richard O’Brien, Esq. at robrien@friedmanvartolo.com or Deborah Gallo, Esq. Director of Operations at dgallo@friedmanvartolo.com.
