Bill Text: NJ S541 | 2012-2013 | Regular Session | Introduced
Bill Title: Allows certain National Guard and United States Reserve members on federal active duty to receive temporary suspension of payment of interest on mortgage loan.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced in the Senate, Referred to Senate Military and Veterans' Affairs Committee [S541 Detail]
Download: New_Jersey-2012-S541-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Senator NIA H. GILL
District 34 (Essex and Passaic)
Senator JEFF VAN DREW
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Allows certain National Guard and United States Reserve members on federal active duty to receive temporary suspension of payment of interest on mortgage loan.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the payment of interest on mortgage loans by certain persons in military service on federal active duty and supplementing P.L.1979, c.317 (C.38:23C-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Mortgagee" means the holder of a mortgage loan.
"Mortgage loan" means a loan made to a natural person or persons to whom credit is offered or extended primarily for personal, family or household purposes which is secured by a mortgage constituting a lien upon real property located in this State on which there is erected or to be erected a structure, which is the primary residence of the natural person or persons, containing one to six dwelling units, a portion of which structure may be used for nonresidential purposes, in the making of which the mortgagee relies primarily upon the value of the mortgaged property.
b. A person domiciled in this State who is called to mobilization for federal active duty as a member of the National Guard or a Reserve Component of the Armed Forces of the United States may secure, if a request is made during this period of mobilization, a suspension of the payment of interest on a mortgage loan that was secured by the person, or the person and another person jointly, before the mobilization for federal active duty.
c. A person may make a request pursuant to subsection b. of this section by mailing a written request to the mortgagee which shall include: (1) a copy of the person's military orders or an affidavit stating that the person is in service on federal active duty, and (2) the name, address, and phone number of an individual who may be contacted regarding the mortgage loan while the person is in service on federal active duty. Upon receipt of the request with the required information, the mortgagee shall grant a suspension of the payment of interest, effective as of the date on which the person is mobilized for federal active duty. The suspension shall remain in effect while that person remains in service on federal active duty, and interest that was incurred during that time shall be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan. The suspension shall expire one month after the person is released from service on federal active duty.
d. Nothing contained in this section shall affect the payment of loan principal, escrow, or other fees, as required by the loan agreement.
2. This act shall take effect immediately.
STATEMENT
This bill will allow a State resident who is called to mobilization for federal active duty as a member of the National Guard or a Reserve Component of the Armed Forces of the United States to request for that period of mobilization a suspension of the payment of interest on a mortgage loan that was secured by the person before entry into service on federal active duty. The suspension would remain in effect while that person remains in service on federal active duty, and interest that would have been incurred during that time would be paid, after the expiration of the suspension, in equal installments over the remaining term of the mortgage loan. The suspension would expire one month after the person is released from service on federal active duty. The bill would only apply to a mortgage securing a primary residence.
To apply, a person would submit to the mortgagee a written request that includes a copy of the person's military orders or an affidavit stating that the person is in service on federal active duty, as well as a contact person for the mortgage loan while the person is in service.
