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Oregon Extends Mortgage Forbearance Mandate
Oregon Governor Kate Brown issued an executive order extending Oregon’s foreclosure moratorium through December 2020, citing the continuing COVID-19-related recession. The prior eviction moratorium, House Bill 4204, was scheduled to expire at the end of September. It mandates mortgage forbearance for commercial, multifamily and single-family, mortgage borrowers.
Gov. Brown says, “Extending the moratorium on foreclosures will ensure that more Oregonians do not lose their homes this year, and that businesses can continue to provide vital goods and services to our communities.”
While the latest order will provide homeowners and business owners certainty through the end of the year, the state notes it is not a long-term solution. The Governor’s office says it will be working with landlords, lenders, and other stakeholders in the coming weeks to craft a solution for the legislature to consider.
In August, the Oregon Bankers Association and several Oregon banks filed suit in federal court to challenge HB 4204. They say the law prevents servicers from exercising certain remedies, such a cash sweeps, in response to non-payment.
The complaint asks the court to prevent enforcement of sections of HB 4204 that change the loan payment due date, interest and fee limitations, and required notice to borrowers. The suit also requests the court to declare that the law does not apply retroactively, and that the retroactive application of HB 4204 be declared unconstitutional.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Lease
