Bill Text: NJ A2815 | 2020-2021 | Regular Session | Introduced
Bill Title: Authorizes HMFA to offer loans for purpose of refinancing certain residential mortgages.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-02-20 - Introduced, Referred to Assembly Housing Committee [A2815 Detail]
Download: New_Jersey-2020-A2815-Introduced.html
Sponsored by:
Assemblywoman CAROL A. MURPHY
District 7 (Burlington)
SYNOPSIS
Authorizes HMFA to offer loans for purpose of refinancing certain residential mortgages.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the refinancing of certain residential mortgages and supplementing P.L.1983, c. 530 (C.55:14K-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The New Jersey Housing and Mortgage Finance Agency may establish a program to refinance residential mortgages with a loan-to-value ratio greater than 95 percent at a lower interest rate, to the extent feasible under current market conditions.
b. A homeowner may only participate in a program established pursuant to this section if the mortgaged property is the principal residence of the homeowner and is located in the State.
c. The agency may borrow money or secure credit and issue negotiable bonds and secure the payment thereof, which money shall be placed in a dedicated fund and used exclusively for the purpose of refinancing mortgage loans as provided in subsection a. of this section.
d. The agency may establish a priority system for the making of loans pursuant to this section, utilizing factors such as loan-to-value ratio, income, need, ratio of income to mortgage payments, and likelihood of pending foreclosure, and also may establish different maximum income levels for eligibility in the program for residents of different counties.
e. Loans awarded pursuant to this section shall be fixed-rate loans and shall be awarded for a maximum term of 40 years.
2. This act shall take effect immediately.
STATEMENT
This bill would allow the New Jersey Housing and Mortgage Finance Agency to establish a program through which homeowners with residential mortgages that have a loan-to-value ratio greater than 95 percent may refinance into lower interest rate mortgages. This would help reduce mortgage payments for those homeowners who are underwater, or close to it, on their mortgages.
This refinancing program would be limited to primary residences in the State. The agency would be permitted to establish a priority system for the making of loans under this bill.
