Cohen, Conners Bill Suspending Mortgage Interest Payments for Active Duty Soldiers Advances

COHEN/CONNERS BILL SUSPENDING MORTGAGE INTEREST PAYMENTS FOR ACTIVE DUTY SOLDIERS ADVANCES

(TRENTON) - Legislation Assemblymen Neil M. Cohen and Jack Conners sponsored to temporarily suspend mortgage interest payments for active duty military personnel was unanimously released today by the Assembly Financial Institutions and Insurance Committee.

According to the sponsors, the legislation is needed to help combat the 1.3 million default notices, auction sales, and bank repossessions reported on New Jersey homes in 2007 in the wake of the national subprime mortgage market meltdown.

"Reservists and Guard members who are called into active duty often leave behind more lucrative jobs to perform their military duty," said Cohen (D-Union), the panel's chairman.  "They should not have to worry about protecting their home while they are off protecting our country."

Under the bill (A-2758), a New Jersey resident who is a member of the New Jersey National Guard or is a military reservist who is called to active duty would be given the option to request a suspension of the payment of interest on a mortgage loan for the duration of their active duty mobilization.

A month after completion of active duty, the suspension would be lifted and interest that would have been incurred during the active duty period would be paid in equal installments over the remaining term of the mortgage.

"Being called to active duty is a trying time for military men and women and their families," said Conners (D-Camden), a member of the committee and a former Army National Guardsman and Reservist.  "Active duty reservists fighting for our country should not have to worry about whether they will have a house to come home to."

The bill, part of a comprehensive package to address the foreclosure crisis in New Jersey, now heads to the Assembly Speaker, who decides if and when to post it for a floor vote.

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