NJ A3479

Homeowners who received federal disaster assistance due to Hurricane Ida damage (September 1-3, 2021) and whose 2022 income is below 150% of area median income may request a one-year mortgage forbearance from their servicer within six months of the bill's enactment.

During forbearance, mortgage servicers cannot charge fees, penalties, or additional interest, and cannot initiate foreclosure proceedings or report negative payment information to credit agencies.

The mortgage repayment period extends by the number of months of forbearance, with missed payments due monthly during the extension period rather than in a lump sum.

Homeowners already in foreclosure may apply for a court-ordered stay of proceedings, lasting up to one year or until January 1, 2026, whichever comes first.

Violations by mortgage servicers may result in fines up to $5,000 per violation, credit repair orders, damages awards (minimum $350), and attorney's fees; the bill applies retroactively to payments missed after September 1, 2021.