ABA joined six financial, housing and consumer groups in a letter to Oregon Gov. Kate Brown urging her to allow two new state laws related to mortgage foreclosure and forbearance to sunset as scheduled on Sept. 30, 2020. The laws—which apply to both commercial and residential mortgages—prohibit lenders from foreclosing on mortgages and implementing a forbearance program during an “emergency period” between March 3 and Sept. 30. In the letter, the groups noted that the laws contain provisions that are both duplicative of and contradictory to the CARES Act coronavirus relief law and to the federal government’s affordable housing programs.
“These issues have the potential to significantly limit access to credit for Oregon borrowers by disrupting the securitization market that provides needed liquidity for the mortgage market, increasing the size of losses for struggling rental property owners, and discouraging lending and the development of additional housing in Oregon,” the groups said. “In addition, by not aligning the law to the federal standards, it could potentially prevent Oregon families from taking advantage of ongoing improvements to these programs.”