Spectrum: Partisan Bill (Democrat 17-0) Status: (Passed) 2020-07-07 - Chapter 4, (2020 Laws): Effective date June 30, 2020. HB 4204 (a) in certain circumstances requires secured real estate lenders with Oregon real property collateral to defer installment payments due to the lender under the governing loan documents during what the law defines as the “emergency period” until the maturity date of the loan and limits the interest rate and fees that a lender may charge; and (b) prevents lenders from foreclosing on … HB 4204 also specifically contemplates the scenario where the borrower and lender negotiate an agreement to modify the loan in lieu of reliance on the statute. It does not apply to loans secured by properties outside of Oregon, even if the lender is in Oregon. Breaking Ground: West Coast Real Estate and Land Use Blog, Deferral of any periodic payments due under a secured loan due to COVID-19 until the maturity date of the loan, Prohibition on charging penalties for late payments or other defaults, including (but not limited to) restrictions upon imposition of default interest, charges for inspections, appraisals or opinions of value, or initiation of cash management procedures, Prohibition on declaring defaults based on failure of a financial covenant such as maintenance of a specified net worth. It is unclear whether HB 4204 applies to new loans. Update: Oregon’s Mortgage Foreclosure “Emergency Period” is now extended until December 31, 2020.  By Executive Order 20-37, Governor Kate Brown has extended the emergency period of the mortgage foreclosure moratorium enacted by HB 4204 until the end of 2020. PORTLAND, Ore. - Governor Kate Brown today extended protections from foreclosure for Oregon homeowners and business owners through executive action, until December 31. Many may already know that the Oregon legislature passed HB 4204 affecting borrower defaults and foreclosures, which became effective on June 30, 2020. On June 20, 2020, Oregon Governor Kate Brown signed House Bill 4204 into law. The bill requires lenders to defer loan payments and refrain from enforcing default remedies on certain secured obligations during the “emergency period” beginning March 8, 2020, and ending September 30, 2020, unless modified by the governor. HB 4204 required the governor to announce an extension of the moratorium 30 days before the moratorium expired on Sept. 30. “Every Oregonian deserves a … There are very limited exceptions to the moratorium, specifically including tax foreclosures. July 27, 2020 (*Updated October 27, 2020*), Holland & Knight West Coast Real Estate and Land Use Blog. HB 4204 applies to any loan secured by real estate in Oregon, consumer or commercial and irrespective of whether the lender is located in Oregon. House Bill 4204: A companion of sorts to the eviction ban, this bill prohibits lenders from pursuing foreclosures against homeowners and other borrowers through Sept. 30. House Bill 4204 Establishes temporary limitations on lenders being able to enforce default … Here is a copy of the enrolled HB 4204. Oregon Governor Kate Brown signed House Bill 4204 (HB 4204) into law on June 30, 2020. Notably, this Order is an extension, … It applies to both residential and commercial real estate (and any personal property constituting a residence, such as a mobile home). By way of example, if a lender initiated judicial or non-judicial foreclosure proceedings on Feb. 1 but was set to foreclose on Aug. 1, the foreclosure is automatically void and may not be reinstated until Jan. 1 at the very earliest. The hallmark of Holland & Knight's success has always been and continues to be legal work of the highest quality, performed by well prepared lawyers who revere their profession and are devoted to their clients. Oregon State Legislature Building Hours: Monday - Friday, 8:00am - 5:00pm 1-800-332-2313 | 900 Court St. NE, Salem Oregon 97301 Judicial and Non-Judicial Foreclosures Prohibited HB 4204 prohibits lenders from foreclosing on consumer and commercial loans secured by real estate in Oregon during the “emergency period,” which runs from March 8, 2020, through September 30, 2020, unless extended by the Governor. Most notably, HB 4204 prohibits any foreclosure, whether judicial or non-judicial, during the emergency period. Specifically, lenders authorized to do business in Oregon were required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. On August 31, Oregon Governor Kate Brown issued Executive Order 20-37, extending prohibitions on residential and commercial foreclosures in Oregon through December 31, 2020.This Order was issued under the Governor’s authority given by Oregon statutes and the recent Oregon House Bill 4204, which Governor Brown signed effective June 30. Since the start of the COVID-19 pandemic, the State of Oregon and federal agencies have enacted various moratoria on residential and commercial evictions and foreclosures. The new statute affects lenders of both commercial and residential loans secured by Oregon real estate. Oregon lawmakers passed House Bill 4204 in June, prohibiting banks from foreclosing on homeowners through September, seeking to establish protections for people caught up in … Spectrum: Partisan Bill (Democrat 17-0) Status: (Passed) 2020-07-07 - Chapter 4, (2020 Laws): Effective date June 30, 2020. Attorney Advertising. Establishes temporary limitations on lenders being able to enforce default remedies on obligations secured by mortgages, trust deeds, land sale contracts or other instruments. House Bill 4204 (HB 4204) was signed into law on June 30, 2020, after a short, special session of the legislature. If you hold a mortgage and are having difficulty making payments, from decrease in rental income or otherwise, we encourage you to reach out to your lender. The bill requires lenders to defer loan payments and refrain from enforcing default remedies on certain secured obligations during the “emergency period” beginning March 8, 2020, and ending September 30, 2020, unless modified by the governor. While the restrictions were initially slated to expire on Sept. 30, Gov. The statute's impact is not limited to a moratorium on foreclosures and contains the following restrictions on lenders during the emergency period: While the foreclosure moratorium is automatic under the statute, borrowers were required under HB 4204 to deliver notice within 60 days of the June 30 effective date to gain the benefit of the restrictions noted above. More specifically, unless a judgment was "issued or given" prior to March 8, a foreclosure is automatically void. the State of Oregon – House Bill 4204 Please accept this as notice of rights which may apply to you, as a borrower, under Oregon House Bill 4204, which became effective June 30, 2020. Emergency period: This is the period between March 8, 2020, and September 30, 2020, with an option to extend by executive order. Gov. In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary … There are specific distinctions as to the evidence a borrower must provide with the notice, depending upon whether the property is commercial or residential, the number of dwelling units (if residential) and whether the borrower has received funds under the Paycheck Protection Program (PPP). Please visit the State of Oregon website to print a copy of Summary (2020-07-07) Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. Specifically, lenders authorized to do business in Oregon are required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. House Bill 4204 is known as the “Foreclosure Moratorium;” however, that name is a misnomer because it does a lot more than halt foreclosures in the State of Oregon. Here is a link to Oregon Division of Financial Regulation Guidance for its 1-4 residential property licensees. All rights reserved. Oregon Governor Kate Brown signed House Bill 4204 (HB 4204) into law on June 30, 2020. Real Estate Team summarizes impact of Oregon HB 4204. Published July 13, 2020 by Caulin M. Price, Attorney. It does not apply to loans secured by properties outside of Oregon, even if the lender is in Oregon. As of August 31, The Governor of Oregon extended House Bill 4204 until the end of the year, effectively prohibiting commercial and residential foreclosures until 2021. All lenders authorized to do business in Oregon must provide notice of the HB 4204 protections by mail to "all of the lender's borrowers" within 60 days following passage of the Act. [Chapter 4, (2020 Laws): Effective date June 30, 2020.] Click "accept" below to confirm that you have read and understand this notice. Bill Title: Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. Executive Order 20-37 will extend House Bill 4204’s current moratorium on foreclosures, as allowed by that legislation. House Bill 4204: Directs lenders to defer both residential and commercial mortgage payments during the pandemic emergency period until September 30, 2020 if a borrower is unable to pay due to the COVID-19 pandemic. HB 4204 is the first of its kind, and other states, particularly along the … House Bill 2001 aims to provide Oregonians with more housing choices, especially housing choices more people can afford. The new statute affects lenders of both commercial and residential loans secured by Oregon real estate. HB 4204: Foreclosure Moratorium and Mandatory Payment Deferral. The new law protects borrowers from foreclosure and the effects of default which arise as a result of the COVID-19 pandemic. On June 30th, 2020, Oregon governor Kate Brown signed into law HB 4204, providing sweeping protections to mortgagors and putting a moratorium on foreclosure proceedings.This law also requires all lenders operating within the state to provide written notice by mail to every borrower by August 29, 2020 of the protections added by the bill. Details on Oregon HB 4204 (Oregon 2020 Special Session) - Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. Specifically, lenders authorized to do business in Oregon are required to provide their borrowers with written notice of their rights and accommodations under HB 4204 within 60 days of the June 30 effective date. Deferred payments would be due at the end of the loan, unless the borrower and lenders determine alternate, agreeable terms. On June 30th, 2020, Oregon governor Kate Brown signed into law HB 4204, providing sweeping protections to mortgagors and putting a moratorium on foreclosure proceedings.This law also requires all lenders operating within the state to provide written notice by mail to every borrower by August 29, 2020 of the protections added by the bill. Governor Kate Brown has signed into law HB 4204, which imposes a foreclosure … Bill Title: Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. “Every Oregonian … As extended, HB 4204 is automatically repealed on April 1, 2021, 90 days after expiration of the emergency period. for accommodation under HB 4204 by August 29, 2020. the State of Oregon – House Bill 4204 Please accept this as notice of rights which may apply to you, as a borrower, under Oregon House Bill 4204, which became effective June 30, 2020. HB 4204 is the first of its kind, and other states, particularly along the west coast, could follow suit. Please note that email communications to the firm through this website do not create an attorney-client relationship between you and the firm. Loans subject to HB 4204 are those secured by Oregon commercial and residential real estate or personal property in Oregon that serves as a residence (e.g., manufactured/mobile homes, RVs, floating homes). Gov. Copyright © 1996–2020 Holland & Knight LLP. Definitions. Legislators also passed House Bill 4204 Friday, which prohibits lenders from initiating foreclosures against homeowners and other borrowers through … Loans subject to HB 4204 are those secured by Oregon commercial and residential real estate or personal property in Oregon that serves as a residence (e.g., manufactured/mobile homes, RVs, floating homes). Because of the extension, borrowers can now give the notice up through Dec. 31, 2020, and have it apply to any missed payments during the entirety of the emergency period, dating back to March 8, 2020. In addition to the protections provided within HB 4213 for tenants of rental properties, the Oregon Legislature also passed HB 4204 to provide protections for mortgage holders. HB 4204 is currently subject to legal challenge on multiple fronts, including the Oregon Bankers Association and three community banks – Lewis & Clark Bank, Bank of Eastern Oregon and People's Bank of Commerce – in U.S. District Court for the District of Oregon, filed on Aug. 13. As the threat escalated, the State’s response elevated to meet the threat. Kate Brown further extended the "emergency period," which dates retroactively to March 8, 2020, until Dec. 31, 2020, via Executive Order No. EXTENDING HOUSE BILL 4204’S MORTGAGE FORECLOSURE MORATORIUM UNTIL DECEMBER 31, 2020 Since January 2020, the State of Oregon has been engaged in responding to the public health threat posed by the novel infectious coronavirus (COVID-19). Potential Conflicts of Interest/Vote Explanations. The COVID-19 pandemic has affected business in ways unseen before. House Bill 4204 was one of the most debated measures in the Legislature — passing in the House 39-18 and passing in the Senate 19-8. Do not send any privileged or confidential information to the firm through this website. The law, passed by the 2019 Oregon Legislature, lets people build certain traditional housing types, like duplexes, in residential zones. Oregon House Bill 4204 On June 30, 2020 the Oregon House Bill 4204 came into effect. On June 20, 2020, Oregon Governor Kate Brown signed House Bill 4204 into law. HB 4204 applies to any loan secured by real estate in Oregon, consumer or commercial and irrespective of whether the lender is located in Oregon. Many may already know that the Oregon legislature passed HB 4204 affecting borrower defaults and foreclosures, which became effective on June 30, 2020. 20-37. In response to the effects of the COVID-19 pandemic, the Oregon legislature enacted House Bill 4204, dated July 7 and effective June 30, establishing temporary restrictions on commercial and residential lenders from the exercise of certain remedies through, at the earliest, Sept. 30, 2020. for accommodation under HB 4204 by August 29, 2020. During the special session held between June 24 and June 26, the Oregon legislature passed, and Governor Brown signed into law, HB 4204, which prohibits foreclosures in Oregon from March 8, 2020 until September 30, 2020. Oregon lawmakers passed House Bill 4204 in June, prohibiting banks from foreclosing on homeowners through September, seeking to establish protections for people caught up in … Enrolled House Bill 4204 (HB 4204-A) Page 3 (b) Notwithstanding ORS 18.860 to 18.993 and except as provided in subsection (10) of this section, an execution sale of subject property may not occur during the emergency period. The new law protects borrowers from foreclosure and the effects of default which arise as a result of the COVID-19 pandemic. The trio of banks joined the lawsuit because “the one-size-fits-all approach of House Bill 4204” could harm state-chartered banks that are based in Oregon, Navarro said in a statement. Relating to strategies to protect Oregonians from the effects of the COVID-19 pandemic; and declaring an emergency. 1-800-332-2313 | 900 Court St. NE, Salem Oregon 97301, Staff Measure Summary / Impact Statements, Potential Conflicts of Interest/Vote Explanation Documents, (at the request of Joint Committee on the First Special Session of 2020). HB 4204 required the governor to announce an extension of the moratorium 30 days before the moratorium expired on Sept. 30. The bill provides certain relief to borrowers who have suffered a loss of income related to the COVID-19 pandemic, if their loan is secured by Oregon real property. During the 2020 Special Session, the Oregon Legislature passed House Bill (HB) 4204 as a strategy to protect Oregonians from the effects of the Covid-19 pandemic. Since the start of the COVID-19 pandemic, the State of Oregon and federal agencies have enacted various moratoria on residential and commercial evictions and foreclosures. 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