HIGHTSTOWN, N.J. -
Assistance includes programs from various financial institutions representing more than $433 million in available mortgage refinancing, including $30 million from the New Jersey Housing and Mortgage Finance Agency for a pilot program serving families earning up to 140% of the state's median income. Additional services are anticipated, as well as the establishment of a task force to continue to monitor this issue and, in conjunction with the legislature, develop solutions.
The New Jersey Home Ownership Preservation Effort is a voluntary alliance that includes the U. S. Department of Housing and Urban Development, NeighborWorks America, the New Jersey Credit Union League, the New Jersey Bankers Association, the New Jersey League of Community Bankers, the New Jersey Mortgage Bankers Association, the Department of Banking and Insurance, the Department of Community Affairs, and the New Jersey Housing and Mortgage Finance Agency.
The goal of the alliance is to enhance home ownership preservation by raising consumer awareness of available mortgage products and funding, providing increased access to credit and loan counseling for those who need it, and providing temporary assistance to consumers who are in immediate danger of foreclosure.
At present, there are no specific credit unions participating.
"Nor are there any community banks participating yet," said Chris Abeel, director of government affairs for the New Jersey Credit Union League. "Participants are limited to the larger, commercial banks such as Bank of America, Citi, Wachovia, etc., which have extensive community development operations and CRA commitments."
The alliance was formed when New Jersey Gov. John Corzine tasked members of his administration with exploring ways to address the mortgage crisis.
According to Abeel, the league, together with the other trade associations will serve as conduit for information between the public and League's and Associations' members.
"The idea is to encourage those at risk to take action early, such as refinancing before a rate resets or they fall behind and compromise their credit rating," Abeel said. "The associations will jointly fund a toll-free call center to connect consumers with potential lenders, including credit unions, and other resources such as credit counselors."
There are several reasons the league is participating in this alliance. "It's good public policy," Abeel said. "And consistent with the credit union movement philosophy of people helping people and the value we place on financial literacy."
NJHOPE members will continue to participate in the current Department of Banking and Insurance's public information program, which will include the creation and distribution of printed material, citizen forums, assistance via a toll-free telephone hotline, public service announcements, and educational workshops.
Members have already conducted community forums in several markets, where counseling and information resources were offered to area residents. Additional forums will be scheduled in conjunction with the NJHOPE alliance.
FOR MORE DETAILS
www.njhope.nj.gov and www.njcul.org
