Oregon Extends HB 4204 Commercial/Multifamily Mortgage Forbearance Provisions Until Year-End
Oregon Governor Kate Brown (D.) took executive action on Monday to extend forbearance and foreclosure provisions in HB 4204.
Limitations on lenders’ ability to enforce default remedies on obligations secured by commercial and residential mortgages, trust deeds, land sale contracts or other instruments have been extended until December 31, 2020. The provisions had been set to expire on September 30.
Governor Brown has the power to potentially extend this deadline further.
Compliance Resources
A few resources that should help affected companies to continue to comply with the notice requirement:
–Oregon DFR Template: Oregon Division of Financial Regulation released guidance and a sample notice-of-compliance template. The guidance and template apply only to loans on one-to four-family properties and are not directly applicable to commercial and multifamily lenders. However, they may provide a useful and credible starting point for commercial and multifamily lenders.
–Agency Multifamily Notice: Fannie Mae recently released guidance and a Notice of Accommodations form, which they are requiring for properties secured in Oregon.
–MBA member call/Oregon Attorneys: Jesse M Calm, Partner, McEwen Gisvold LLP, and David Shirk, Managing Director, Shirk Law PLLC, discussed the notice of accommodation requirement and other aspects of the new law on an August 12th MBA member call. A recording of the call can be found here.
Summary of HB 4204
The new law HB 4204 establishes temporary limitations on lenders’ ability to enforce default remedies on obligations secured by commercial and residential mortgages, trust deeds, land sale contracts, or other instruments. For example, a lender may not treat a borrower’s failure to pay as a default if the borrower notifies the lender during the emergency period that he or she cannot make the payment and attests that it is due to loss of income due to the pandemic. Any missed payments are deferred until the end of the term of the loan. In addition, the lender may not charge any fees, penalties, charges, other amount, or default interest rate as a result of the missed payments. For more information, contact Grant Carlson at 202-557-2765.
