(TRENTON) – Assemblyman Roy Freiman today commended the New Jersey Bankers Association for requesting its members adjust the escrow accounts of property owners who prepaid their 2018 property taxes to avoid the ramifications of the new federal tax law.
Freiman raised the issue last month after hearing from a constituent who was concerned that his bank would not acknowledge his prepayment. “Homeowners were expected to continue to make their monthly mortgage payments as if they had made no prepayment at all,” said Freiman.
Freiman called on the banks to adjust their administrative practices, so that property owners who prepaid their 2018 property taxes would not end up paying more than they had to.
Last week, the New Jersey Bankers Association responded by asking all of its members to assist borrowers who have prepaid their 2018 property taxes by adjusting their escrow accounts. NJBankers represents 94 brick and mortar banks doing business in New Jersey.
In a release announcing the recommendation, the association stated, “Today our executive committee voted unanimously to commend this action to our members. We are pleased to have collaborated with Assemblyman Roy Freiman (D-16) who took a leadership role on this issue.”
“This was an additional and unnecessary burden on property owners that could be avoided by simply adjusting their escrow accounts,” said Freiman (D-Somerset/Mercer/Middlesex/Hunterdon). “I am glad the New Jersey Bankers Association recognized this and took proper action.”
“By working together, we were able to resolve this without legislation,” Freiman added. “I commend the NJBankers for their quick action and for their partnership, as we assist New Jersey homeowners adversely impacted by the federal tax law changes recently signed by President Trump.”