Permits mortgage forbearance of 180 days for borrowers whose primary residence is in State-declared disaster area.

S4235

SENATE, No. 4235

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 14, 2026

Sponsored by:

Senator� BENJIE E. WIMBERLY

District 35 (Bergen and Passaic)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Permits mortgage forbearance of 180 days for
borrowers whose primary residence is in State-declared disaster area.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
co
ncerning mortgage forbearance in
State-declared disaster areas and supplementing Title 46 of the Revised
Statutes.

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

���� 1.��� As used in this act:

���� �Borrower� means a natural
person obligated to repay a loan secured by a residential mortgage.

���� �Mortgage forbearance"
means a temporary agreement between a borrower and the borrower�s residential
mortgage lender to pause residential mortgage payments.

���� �Residential mortgage� means

a mortgage, security interest, or similar, in which
the security is a residential property of no more than four dwelling units that
is occupied, or is to be occupied, by a borrower as a primary residence.

���� �Residential mortgage
lender" means

any person, corporation, or
other entity licensed pursuant to the �New Jersey Residential Mortgage Lending
Act,� P.L.2009, c.53 (C.17:11C-51 et seq.), which makes or holds a residential
mortgage, and any person, corporation or other entity to which the residential
mortgage is assigned.

���� 2.��� a.� A borrower shall
receive a mortgage forbearance on the borrower�s primary residence if:

���� (1)�� the residence is located
in an area of the State that is proclaimed by the Governor to be a disaster
area within the meaning of applicable State law; and

���� (2)�� the borrower submits a
request, in a form and manner as determined by the Commissioner of Banking and
Insurance, to the borrower�s residential mortgage lender for a mortgage
forbearance during the period in which a disaster area is proclaimed pursuant
to paragraph (1) of this subsection.

���� b.��� The lender shall approve
the request made pursuant to paragraph (2) of subsection a. of this section
within 15 business days.

���� c.���� (1)� Upon approval, the
mortgage forbearance established pursuant to subsection a. of this section
shall be for a period of 180 days, with an option for the borrower to extend
the forbearance for an additional period of 180 days.�

���� (2)�� No penalties, fees, or
interest shall accrue on the residential mortgage during the period of
forbearance established pursuant to this subsection.

���� 3.��� a.� A borrower shall
repay the residential mortgage payments that were subject to forbearance
pursuant to section 2 of this act.�

���� b.��� Repayments pursuant to
subsection a. of this section shall be made to the lender and shall be
structured through:

���� (1)�� an extension of the
borrower�s residential mortgage loan;

���� (2)�� a modification of the
borrower�s residential mortgage loan; or

���� (3)�� a payment deferral that
shall be due at the end of the residential mortgage loan term.

���� 4.��� The Commissioner of
Banking and Insurance shall adopt, pursuant to the �Administrative Procedure
Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as is
necessary to implement the provisions of this act.�

���� 5.��� This act shall take
effect on the 90th day next following enactment and shall apply to residential
mortgages secured on or after the date of enactment.

STATEMENT

���� This bill permits a mortgage
forbearance of 180 days for borrowers whose primary residence is in a
State-declared disaster area.

���� Under the bill, a borrower is
to receive a mortgage forbearance on the borrower�s primary residence if:

���� (1)�� the residence is located
in an area of the State that is proclaimed by the Governor to be a disaster
area; and

���� (2)�� the borrower submits a
request to the borrower�s residential mortgage lender for a mortgage
forbearance during the period in which a disaster area is proclaimed.

���� A request submitted for a
mortgage forbearance under this bill, that is submitted by the borrower to the
lender, will be approved within 15 business days.

���� Upon approval, the mortgage
forbearance established pursuant to this bill will be for a period of 180 days,
with an option for the borrower to extend the forbearance for an additional
period of 180 days.� No penalties, fees, or interest will accrue on the
residential mortgage during the period of forbearance.

���� Finally, pursuant to the bill,
the borrower will be required to repay residential mortgage payments that were
forborne under the bill to the lender.� The repayments must be structured
through:

���� (1)�� an extension of the
borrower�s residential mortgage loan;

���� (2)�� a modification of the
borrower�s residential mortgage loan; or

���� (3)�� a payment deferral that
shall be due at the end of the residential mortgage loan term.