A 5169 NJ

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Passed One Chamber

ASSEMBLY, No. 5169 STATE OF NEW JERSEY 222nd LEGISLATURE � INTRODUCED JUNE 1, 2026

Sponsored by: Assemblywoman� YVONNE LOPEZ District 19 (Middlesex) Assemblywoman� KATIE BRENNAN District 32 (Hudson) Assemblywoman� ANNETTE QUIJANO District 20 (Union) Senator� TROY SINGLETON District 7 (Burlington) Senator� BENJIE E. WIMBERLY District 35 (Bergen and Passaic)

Co-Sponsored by: Assemblywoman Haider, Assemblyman Kearney, Assemblywomen Peterpaul, Donlon, Senators Turner, McKnight and Timberlake

SYNOPSIS ���� Authorizes HMFA to make certain reimbursements to support pre-purchase homebuyer counseling under Foreclosure Mediation Assistance Program.

CURRENT VERSION OF TEXT ���� As introduced. ��

An Act authorizing certain reimbursements to support pre-purchase homebuyer counseling and amending P.L.2021, c.373 .

���� Be It Enacted by the Senate and General Assembly of the State of New Jersey:

���� 1.��� Section 1 of P.L.2021, c.373 (C.2A:50-81) is amended to read as follows: ���� 1.��� The Legislature finds and declares that: ���� a.���� The Foreclosure Mediation Assistance Program administered by the New Jersey Housing and Mortgage Finance Agency provides trained foreclosure prevention and default mitigation counselors for homeowner-borrowers participating in the Foreclosure Mediation Program established by the New Jersey Judiciary. ���� b.��� As provided by section 7 of the "New Jersey Foreclosure Mediation Act," P.L.2019, c.64 (C.2A:50-80), trained foreclosure prevention and default mitigation counselors are paid using a portion of funds paid by a foreclosure plaintiff in an action for foreclosure. ���� c.���� During the public health emergency declared by the Governor in Executive Order No. 103 of 2020 due to the coronavirus disease 2019 (COVID-19) pandemic, the New Jersey Housing and Mortgage Finance Agency expanded its Foreclosure Mediation Assistance Program to provide other supports to New Jersey residents including renter and pre-foreclosure counseling. ���� d.��� Since the expansion began, [ nearly 5,000 ] thousands of households have been served. ���� e.���� Sufficient funding exists for trained foreclosure prevention and default mitigation counselors to continue to provide pre-foreclosure counseling services [ although the public health emergency declared by the Governor in Executive Order No. 103 of 2020 has concluded ] and pre-purchase homebuyer counseling . ���� f.���� In the event of a declaration of a state of emergency, persons who have been trained to provide foreclosure counseling services under the Foreclosure Mediation Assistance Program are well positioned to help disaster victims prepare and submit applications for State and federal disaster assistance. ���� g.��� Pre-purchase housing counseling reduces the incidence of foreclosure among homebuyers and, therefore, may be used as an early intervention to prevent the occurrence of mortgage delinquency, mortgage default, and foreclosure. �Professionals providing foreclosure counseling services under the Foreclosure Mediation Assistance Program possess the expertise required to also offer pre-purchase counseling and education to homebuyers, making such proactive foreclosure prevention services a natural extension of the Foreclosure Mediation Assistance Program. (cf: P.L.2023, c.123, s.1) ���� 2.��� Section 2 of P.L.2021, c.373 (C.2A:50-82) is amended to read as follows: ���� 2.��� a.� There is established in the General Fund a separate, non-lapsing, dedicated account administered by the Department of Community Affairs to be known as the "New Jersey Foreclosure Counseling Fund." ���� b.��� The funds within the New Jersey Foreclosure Counseling Fund shall be paid to the New Jersey Housing and Mortgage Finance Agency no later than the 15th day of each quarter to reimburse trained foreclosure prevention and default mitigation counselors for costs expended thereby in: ���� (1) providing pre-foreclosure counseling services in accordance with guidance established by the New Jersey Housing and Mortgage Finance Agency and for the agency's services required under P.L.2019, c.64 (C.2A:50-74 et seq.); [ and ] ���� (2) providing, to homeowners and renters who have been impacted by real property damage to, or destruction on, their primary residence, as a result of an event that prompted the Governor or the President of the United States to declare a state of emergency or issue an emergency disaster declaration, assistance in the preparation and submission of applications for housing related expenses, including, but not limited to: (a) rental payments; (b) mortgage payments; (c) insurance payments; (d) property tax payments; and (e) repair, rehabilitation, or relocation assistance payments that have been made available, by the State or federal government, in response to the declared emergency or disaster ; and ���� (3)�� providing pre-purchase homebuyer counseling services in accordance with guidelines established by the New Jersey Housing and Mortgage Finance Agency . ���� c.���� The New Jersey Housing and Mortgage Finance Agency may assess up to five percent of New Jersey Foreclosure Counseling Fund's annual allocation amounts for administrative costs. ���� d.��� For purposes of this section, "trained foreclosure prevention and default mitigation counselors" shall have the same definition as in section 2 of the "New Jersey Foreclosure Mediation Act," P.L.2019, c.64 (C.2A:50-75). (cf: P.L.2023, c.123, s.2)

���� 3.��� This act shall take effect immediately.

STATEMENT

���� This bill authorizes the New Jersey Housing and Mortgage Finance Agency (HMFA) to provide certain reimbursements to support pre-purchase homebuyer counseling, by expanding the existing Foreclosure Mediation Assistance Program (program) to include early intervention prepurchase homebuyer counseling services. ���� Under current law, the program provides reimbursement to certain qualified counselors who assist homeowners by either: (1) providing mediation assistance through HUD certified housing counselors to qualified applicants of the New Jersey Judiciary�s Foreclosure Mediation Program, or (2) providing pre-foreclosure counseling assistance, to homeowners experiencing default or difficulty meeting their monthly mortgage payments.� The program operates through a network of participating housing counseling agencies serving in each county. ���� The bill authorizes HMFA to also provide reimbursements to qualified counselors to support pre-purchase homebuyer counseling.� The provision of pre-purchase housing counseling helps to reduce the incidence of foreclosure among homebuyers and serves as an early intervention to prevent the occurrence of mortgage delinquency, mortgage default, and foreclosure.