LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 1630

STATE OF NEW JERSEY

221st LEGISLATURE

DATED: JANUARY 14, 2025

SUMMARY

Synopsis:	Requires DMVA to provide mortgage loan counseling under certain circumstances.
Type of Impact:	Annual State expenditure increase.
Agencies Affected:	Department of Military and Veterans Affairs; New Jersey Housing and Mortgage Finance Agency.

Office of Legislative Services Estimate
Fiscal Impact	Annual
State Expenditure Increase	Indeterminate

· The Office of Legislative Services (OLS) determines that requiring the Department of Military and Veterans Affairs to provide mortgage loan counseling under certain circumstances will result in an indeterminate State expenditure increase.

· It is unclear to which extent the department currently provides these mortgage loan counseling services, if at all, and whether the department currently has adequate staffing to comply with the provisions of the bill.

BILL DESCRIPTION

      This bill requires the Department of Military and Veterans Affairs to provide mortgage loan counseling under certain circumstances.

      Under the bill, residential mortgage lenders are required to provide a separate disclosure form with each application stating that a veteran seeking a housing loan under Chapter 37 of Title 38 of the United States Code has been offered loan counseling services.  Upon the request of an eligible applicant, the department is required to refer the applicant to the New Jersey Housing and Mortgage Finance Agency for mortgage loan counseling.  The bill also requires the department to provide counseling and assistance to applicants for a mortgage loan upon the request of any veteran.

FISCAL ANALYSIS

EXECUTIVE BRANCH

      None received.

OFFICE OF LEGISLATIVE SERVICES

      The OLS determines that requiring the Department of Military and Veterans Affairs to provide mortgage loan counseling under certain circumstances will result in an indeterminate State expenditure increase.

      The OLS expects the department will see an increase in administrative costs due to the bill’s requirement to provide mortgage loan counseling upon the request of any veteran.  It is unclear to which extent the department currently provides mortgage loan counseling services, if at all, and whether the department currently has adequate staffing to comply with the provisions of the bill.

      The OLS notes there will be a one-time State expenditure increase to develop and distribute the disclosure form required by the bill.

Section:	State Government
Analyst:	Camryn Mathews Assistant Fiscal Analyst
Approved:	Thomas Koenig Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).