N.J. Assembly plans to address economic woes

[Star Ledger]

N.J. Assembly plans to address economic woes
by Robert Schwaneberg/The Star-Ledger
Monday October 06, 2008, 7:39 AM

Following Congress's passage last week of a $700 billion financial rescue plan, the New Jersey Assembly is scheduled to focus its attention today on all aspects of the economy, from mortgage foreclosures to rising energy costs.

The state Assembly chambersTen Assembly committees are scheduled to meet in Trenton to explore how the nation's economic crisis is affecting New Jersey residents and what can be done to help them.

"The extraordinary economic circumstances facing the nation require extraordinary actions by lawmakers here in New Jersey," Assembly Speaker Joseph Roberts (D-Camden) said. "The Assembly will look at this current crisis from every angle."

"No longer can we think it impossible to be both pro-business and pro-consumer. We need to seek ways to boost every segment of New Jersey's economy," Roberts said.

Various committees will take testimony on how the faltering economy is affecting health care and social services, whether more should be done to regulate financial services and what the state is doing to promote the growth of jobs, particularly energy-saving "green" jobs.

One bill scheduled for consideration would create a trust fund to assist residents facing the loss of their homes through foreclosure. A $2,000 fee imposed on creditors who initiate foreclosure actions on certain subprime mortgages would fund the program.

Another measure would add a cost-of-living increase to the Lifeline program of state assistance to homeowners and tenants who need help paying for gas and electricity. Its cost, estimated at $2 million this year, is projected to increase to $10.9 million by 2013.

Other bills on the agenda would provide tax credits to businesses that allow their employees to telecommute, lessen the impact of the corporation business tax and provide some added protections to homeowners facing foreclosure.

"New Jersey policymakers cannot solve this global crisis, but we can work to ensure New Jersey's businesses and workers emerge strong," Roberts said. "We need to come together to figure out how to make that happen."

http://www.nj.com/business/index.ssf/2008/10/nj_assembly_plans_to_address_e.html

[Guest]

Recently, my homeowners insurance company Allstate told me that they were not writing new policies in NJ because the cost of business (state) and risk was too high.

Now, we have a situation where Roberts wants to assess a 2,000 charge on lenders who want to foreclose. My guess is that the mortgage companies will decide NJ is a high risk area as well and you'll see a pull out of lenders.

The economic fix is quite easy. Reduce COAH obligations, reduce tax costs for businesses, make it easier for firms to establish operations and viola you're back on your way. We make it too costly for companies and too difficult for companies to come in. They want to add more social programs, but if there were jobs created we wouldn't need the social programs.

[Star Ledger]

Assembly panel approves bill to help struggling homeowners
by Robert Schwaneberg/The Star-Ledger
Monday October 06, 2008, 3:51 PM

As the Assembly focused solely on ways to address the faltering economy today, a bill to create a fund to help homeowners avoid foreclosure won approval by a key committee.

The Assembly Budget Committee voted 8-3, with one abstention, in favor of the New Jersey Homeownership Preservation Act. It is now in position for a later vote in the full Assembly.

The bill (A2517) would impose a $2,000 fee on every lender who begins foreclosure proceedings on certain mortgages considered subprime.

The money -- estimated at $44 million by one supporter of the bill -- would go into a revolving state fund. It would be used for grants to agencies such as Citizen Action so they could counsel homeowners facing foreclosure and make emergency loans to keep them in their homes.

The bill also would give homeowners facing foreclosure a six-month period to renegotiate the terms of their mortgage or find new financing.

"This bill is directed at the individual whose home is near foreclosure,'' said Assembly Majority Leader Bonnie Watson Coleman (D-Mercer), the sponsor. In that respect, she said it differed from the $700 billion financial rescue plan passed last week by Congress to help Wall Street.

Robert Levy, executive director of the Mortgage Bankers Association of New Jersey, warned the bill "will not help; it will harm." By making it harder to foreclose on mortgages, he said, it will discourage lenders from making them. As a result, he predicted, someone who saves up for the down payment on a traditional mortgage "won't be able to get one."

Assemblywoman Joan Quigley (D-Hudson) voted for the bill but urged her colleagues to expand it. As written, she said, it aids homeowners who took out risky subprime mortgages but not those who lost their jobs and could not keep up their payments on traditional mortgages.

"We want to help people truly in need regardless of the kind of loan they have,'' Quigley said.

All of the affirmative votes came from the eight Democrats on the committee, while the four Republicans either voted no or abstained.

http://www.nj.com/news/index.ssf/2008/10/assembly_committee_approves_fo.html

[Guest]

[Guest]