Cohen Asks DOBI to Create Subprime Mortgage Foreclosure Hotline

COHEN ASKS DOBI TO CREATE SUBPRIME MORTGAGE FORECLOSURE HOTLINE

Toll-Free Number Would Direct Callers to Organizations Providing Mortgage Refinancing Counseling

(ROSELLE) – Assembly Deputy Speaker Neil M. Cohen today called for a state-run, toll-free telephone hotline to be established that would offer counseling and advice to New Jersey homeowners facing home mortgage foreclosure due to the continuing collapse of the nation’s subprime lending market.

“As the nation’s subprime lending market continues to implode, residents across New Jersey are facing the frightening prospect of foreclosure and the loss of their homes, seemingly without assistance,� said Cohen (D-Union), the chairman of the Assembly Financial Institutions and Insurance Committee.  “Establishing a toll-free foreclosure counseling hotline would help these residents assess their options and ensure they do not get in any further over their heads.�

In a letter sent to New Jersey Department of Banking and Insurance (DOBI) Commissioner Steven M. Goldman, Cohen requested DOBI establish a toll-free number where residents could obtain information about mortgage foreclosures and credible organizations that provide counseling and aid in refinancing.

In his letter, Cohen suggested the toll-free number be displayed prominently on DOBI’s Web site and that it provide information about the department’s counseling programs, as well as contact information for other mortgage and refinance specialty organizations, including New Jersey Citizen Action and the New Jersey Banker’s Association.

As part of his efforts to address the subprime lending crisis in New Jersey, Cohen held a special public meeting of the Assembly Financial Institutions and Insurance Committee in April on the topic.  He also has asked the state attorney general and the governor to pursue a moratorium on new subprime foreclosures, pending a government investigation into how the subprime market collapse is affecting New Jersey.

“With the condition of the subprime market expected to worsen in the coming months, we must take proactive steps to protect New Jersey homeowners,� said Cohen.  “Scrambling to offer aid after thousands have lost their homes will be too little, too late.�

--A COPY OF COHEN’S LETTER IS ATTACHED--