The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

INITIAL comments from private sector lenders on the Christie administration's proposed mortgage relief plan have been "very positive", Minister of State for Finance, Michael Halkitis, said yesterday, telling Tribune Business the administration should be in a position to formally present the plan before Parliament's summer recess.

During his contribution to the 2012-2013 Budget debate, Mr Halkitis said initial feedback from financial institutions had been received, and the Christie administration was in the process of collating the responses. "These initial responses have been very positive," Mr Halkitis said during his contribution to the debate.

He later told Tribune Business: "We have had discussions with the financial institutions, who have submitted their thoughts to us on how they think the plan should operate, and what they think would be a financially feasible plan. What we are doing is putting all of that information together. We are going to sit with them in a formal consultation and come up with a plan. We are hoping to do that before we break for the summer."

Mr Halkitis added: "Our plan calls for, at the very beginning, consultation with the financial institutions and working with them. That is what we are doing. We are getting their ideas on how they think it can work.

"At the end of the day we are going to come up with a plan they are comfortable with, we're comfortable with, one that can help people and it doesn't bankrupt the country. We are doing that right now, and before we break for the summer we should be able to present the plan we are proposing and how it's going to work, so we can get down to the business of helping people."

The Christie administration's mortgage relief plan to help struggling homeowners seeks to strike an agreement with banks and institutional lenders to write off unpaid interest and fees for homeowners facing foreclosure, in return for government guaranteed interest payments for five years.

The proposal also includes working with banks and lenders to implement a 120-day moratorium on foreclosures, and extend the loan repayment period under defaulting mortgages.