DOBI announces public forums, education plan to address mortgage lending issues

Focus on consumer education, foreclosure prevention

TRENTON, September 26, 2007 – The Department of Banking and Insurance today announced a series of measures designed to address recent difficulties experienced by New Jersey residents in relation to their home mortgages, including skyrocketing mortgage payments due to resetting adjustable rate mortgages and threats of foreclosure.

DOBI, hosted by local mayors, will conduct a series of community forums throughout the state to offer information and direction to homeowners who have or may have recently experienced difficulty in making their mortgage payments. DOBI is also working with the New Jersey Housing and Mortgage Finance Agency (HMFA), a state agency that makes below market-rate mortgages for first-time and urban home buyers, and distributes federal tax credits to promote the construction of low-income housing.

In partnership with the financial services industry, DOBI and HMFA are promoting efforts to provide homeowners with affordable mortgage products, closing cost assistance, debt adjustment services, and credit counseling. The two state agencies have coordinated resources for consumers, including cross-linking of Web sites and programs regarding available refinancing, homelessness prevention, credit counseling and debt adjustment.

DOBI has set up a toll-free hotline (1-800-446-7467) to offer guidance and has enhanced its online resources (www.njdobi.org) to include licensed debt adjusters and credit counselors. The Department has also published a brochure, “A Homeowner’s Guide to Subprime,” for distribution throughout New Jersey to state and local governmental offices and assistance organizations. The brochure is also available via the DOBI Web site.

“Homeownership is the American dream, but for those who have bought into unconventional mortgage products and have seen their mortgage payment increase to an untenable level, it has quickly become a nightmare,” said DOBI Commissioner Steven M. Goldman. “Educating and informing the public is the best defense against business arrangements with potentially catastrophic consequences. That’s what this consumer education campaign is all about.”

Each forum will include information from U.S. Department of Housing and Urban Development (HUD) certified debt adjusters and credit counselors, mortgage bankers, and mortgage servicers. Representatives from additional agencies, as well as DOBI staff, will be available to discuss potential options with homeowners and address such topics as how to spot and avoid “foreclosure prevention” scams.

All forums are scheduled from 7 p.m. to 10 p.m. For additional information on the forums, consumers can call the DOBI Office of Public Affairs at (609) 292-5064.

Dates and locations for the DOBI Community Forums include:

OCTOBER 3
Paterson
The Christopher Hope Center
60 Temple Street
Paterson, NJ

OCTOBER 4
Berkeley Township
Central Regional High School
509 Forest Hills Parkway
Bayville, NJ

OCTOBER 10
Edison
City Council Chambers
100 Municipal Boulevard
Edison, NJ

OCTOBER 23
Atlantic City
TBD

OCTOBER 24
Vineland
Vineland City Council Chambers
640 East Wood Street
Vineland, NJ

OCTOBER 25
East Orange
East Orange Public Library
21 South Arlington Avenue
East Orange, NJ

OCTOBER 29
Trenton
Trenton City Council Chambers
319 East State Street
Trenton, NJ

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association