ASSEMBLY RESOLUTION No. 165
STATE OF NEW JERSEY
219th LEGISLATURE
INTRODUCED JUNE 1, 2020
Sponsored by:
Assemblywoman AURA K. DUNN
District 25 (Morris and Somerset)
SYNOPSIS
Urges Congress to enact legislation creating national mortgage modification program.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolutionurging Congress to enact legislation creating a national mortgage modification program in response to the COVID-19 pandemic.
Whereas, COVID-19 is a novel coronavirus that has caused a global pandemic leading to an unprecedented and overwhelming public health crisis; and
Whereas, In response to the devastating effect COVID-19 has had on the country, the President issued a declaration of a National State of Emergency on March 13, 2020 and announced social distancing measures in an effort to halt the spread of COVID-19; and
Whereas, The State of New Jersey, the state with the second highest incidence of COVID-19 in the United States, also enacted policies that required residents to remain at home and practice social distancing; and
Whereas, Social distancing, while effective at slowing the spread of COVID-19, has caused considerable economic disruption throughout the State and throughout the country, with many businesses forced to close or operate at reduced capacity; and
Whereas, These disruptions have caused financial hardships for both business owners, who have seen a reduction in income, and employees, who have faced layoffs, reduced hours, and furloughs; and
Whereas, The governments of other countries struggling to fight the COVID-19 pandemic have stepped in to offer assistance to mortgagors; and
Whereas, In Italy, the government has worked with banks to impose a policy of temporarily suspending mortgage payments, either the full payment or just the principal, for mortgagors who can demonstrate a financial impact until the end of the COVID-19 pandemic; and
Whereas, A national mortgage modification program would create consistency among federal agencies and financial institutions that service mortgages and would not only help individual mortgagors, but would also serve to aid state economies and the national economy overall; now, therefore,
Be It
Resolved by the General Assembly of the State
of New Jersey:
1. This House urges Congress to enact legislation creating a national mortgage modification program in response to the COVID-19 pandemic.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Majority and Minority Leaders of the United State Senate, the Speaker and Minority Leader of the United States House of Representatives and every member of Congress elected from this State.
STATEMENT
This resolution urges Congress to enact legislation creating a national mortgage modification program in response to the COVID-19 pandemic.
COVID-19 is a novel coronavirus that has caused a global pandemic leading to an unprecedented and overwhelming public health crisis. In response to the devastating effect COVID-19 has had on the country, the President issued a declaration of a National State of Emergency on March 13, 2020 and, along with many state leaders, including the Governor of New Jersey, announced social distancing measures in an effort to halt the spread of COVID-19. Social distancing, while effective at slowing the spread of COVID-19, has caused considerable economic disruption throughout both the State and the country, forcing many businesses to either close or operate at a reduced capacity for the foreseeable future. These economic disruptions have caused financial hardships for both business owners, who have seen a reduction in income, and their employees, who have faced layoffs, reduced hours and furloughs.
The health crises and economic hardships caused by COVID-19 have rendered many United States citizens unable to pay their debts, including mortgage payments, as they come due. In an effort to remedy this, many financial institutions and federal agencies have agreed to provide mortgage grace periods, institute moratoriums on foreclosures and evictions and provide relief from mortgage-related fees and charges and certain negative credit reporting during the COVID-19 pandemic. This is a global problem. Other countries that have been devastated by the COVID-19 pandemic have stepped in to offer assistance to mortgagors within their countries. In Italy, a country hit very hard by COVID-19, the government has worked with banks to impose a policy of temporarily suspending mortgage payments. Mortgagors who can demonstrate a financial impact can request that either the full payment or just the principal payments be suspended until the end of the COVID-19 pandemic.
The creation of a national mortgage modification program, instituted in response to the COVID-19 pandemic, would help to foster consistency amongst financial institutions and federal agencies, and would not only help individual mortgagors but would also lead to a reduction in mortgage defaults that would help state economies and the national economy overall.