Urges Congress to pass legislation requiring mortgage lenders to consider rent payments when determining people's credit worthiness.
Impact
The intention of AR77 is to potentially expand home ownership access for individuals who have primarily been tenants and may possess a reliable payment history but lack formal credit reporting. The resolution references data from Fannie Mae, which indicates that approximately 17% of renters who have not owned a home in the past three years could qualify for mortgages if their rent payments were considered in credit evaluations. This demographic includes a significant number of individuals from historically marginalized groups who have been systematically excluded from home ownership due to their credit status.
Summary
Assembly Resolution No. 77 (AR77) is a legislative proposal from New Jersey that urges Congress to pass legislation requiring mortgage lenders to factor rent payments into their assessments of an individual's creditworthiness. The resolution highlights a critical issue faced by many lower-income individuals who are currently denied mortgage opportunities due to insufficient credit history despite demonstrating financial responsibility through consistent rent payments. The primary sponsor of the bill is Assemblyman William F. Moen, Jr., from District 5, which encompasses parts of Camden and Gloucester counties.
Contention
A notable point of contention surrounding the proposed legislation concerns the limits placed on state regulation due to federal law, which currently inhibits New Jersey from mandating that mortgage lenders consider rent payments for credit assessments. This federal overreach raises concerns among proponents who argue for greater autonomy at the state level to address local financial issues. However, the resolution emphasizes the need for federal action to ensure that more lenders adopt rent payment consideration across the board, advocating for broader legislative alignment to facilitate equitable access to housing for all residents.
Drains: appeals; period to appeal apportionment or assessment costs on drain projects; modify. Amends secs. 72 & 72a of 1956 PA 40 (MCL 280.72 & 280.72a).