HB2009A Mortgage Foreclosure Protections Bill Update
April 6, 2021
HB2009A, the bill related to mortgage foreclosure protections passed the Oregon House on Tuesday by a vote of 38-21. The Northwest Credit Union Association provided substantial feedback on the bill that were incorporated into the amendment but did not take a position in order to continue the conversation on the Senate side on issues remaining in the bill.
Legislation enacted during the First Special Session of 2020 (House Bill 4204) provided temporary payment deferral and protection from foreclosure for residential and commercial borrowers through September 30, 2020. Governor Brown extended the protections through December 31, 2020, through Executive Order. Federally backed mortgages are currently protected under a federal foreclosure moratorium and payment forbearance program. It is estimated that federally backed mortgages account for 70 percent of all mortgages.
House Bill 2009A reinstates temporary mortgage payment deferral and protection from foreclosure to borrowers who own no more than five properties that each include no more than four residential dwellings. These protections will apply through June 30, 2021, with an allowance for the Governor to extend twice in three-month increments. The measure also changes the threshold to exempt a lender from participating in the Oregon Foreclosure Avoidance Program. Currently, the exemption applies if a lender commenced no more than 175 foreclosures in the prior calendar year. House Bill 2009A lowers the threshold in 2021 and 2022 to 30 foreclosures commenced in 2019.
Posted in Advocacy on the Move.