Houghtaling & Downey Urge Banks to Extend Mortgage Payments

OCEAN TOWNSHIP - Assembly Members Eric Houghtaling and Joann Downey today called for New Jersey financial institutions to implement Governor Phil Murphy’s COVID-19 mortgage relief grace period by extending the length of borrowers’ mortgages by an additional three months, rather than requiring a single three-month lump sum payment at the conclusion of the grace period.

“This is not a situation where someone might be down on their luck in April and financially well-off in June,” said Houghtaling (D-Neptune). “With unemployment rates reaching record highs, thousands of households will be barely able to cover day-to-day expenses, let alone save money for a single massive mortgage payment. Families deserve the benefit of the doubt - not another source of stress.”

“Extending mortgage terms isn’t just the right thing to do - it’s the responsible and economically sustainable thing to do,” said Downey (D-Freehold). “Banks would gain nothing from forcing a huge fraction of their customers into bankruptcy and foreclosure in the midst of a national crisis - especially when the only thing keeping those customers from paying their loans back is a national quarantine. It’s far more profitable to practice forbearance and forgiveness now and allow borrowers to pay back what they owe when they’re able to do so.”

Sign up for our monthly newsletter!

get updates