NPLA Advocates for Private Lender Amendments to NJ Community Wealth Preservation Program
Authored by the National Private Lenders Association Satff
In collaboration with the Mortgage Bankers Association (MBA) and Auction.com, the National Private Lenders Association (NPLA) effectively advocated for the interests of private lenders in New Jersey concerning the recently enacted legislation known as the Community Wealth Preservation Program.
Understanding the Community Wealth Preservation Program
The bill signed into law in New Jersey primarily focuses on providing homeowners facing foreclosure with the right of first refusal to purchase their homes at a sheriff’s sale. Under this legislation, eligible homeowners, their families, and certain nonprofits can buy their homes back at a price equal to the original upset price or the final starting upset price, whichever is lower. Additionally, successful bidders are required to use the reclaimed property as their primary residence for at least seven years. The bill includes penalties for those attempting to sell the property within the seven-year period, except in cases of hardship. The legislation aims to slow down investor purchases of foreclosed homes in New Jersey.
Lobbying Efforts By the NPLA and Industry Partners
Efforts led by Jon Hornik, Esq., in his capacity as general counsel for the NPLA, played a crucial role in ensuring that this bill does not impact business purpose private lenders. The NPLA, in collaboration with Auction.com and the MBA, engaged in extensive conversations with legislators and the Governor’s office to advocate for the protection of business-purpose loans in this context.
Through these discussions, the NPLA successfully lobbied to limit the applicability of the bill to safeguard the interests of business-purpose private lenders. As a result, those lenders can continue to provide financing for real estate investors without having to address the additional procedural requirements placed on owner-occupied properties under the community wealth preservation program. This proactive effort by the NPLA ensures that business purpose private lenders can maintain their business operations and continue serving their clients in New Jersey without disruption.
If you have any questions regarding the New Jersey Community Wealth Preservation program or need help navigating the various State, City or County regulations, please feel free to contact [email protected].