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Protecting Tenants at Foreclosure Act Resurrected by Banking Legislation

Posted By USFN, Tuesday, June 19, 2018
Updated: Monday, June 18, 2018

June 19, 2018

by Richard M. Nielson
Reimer Law Co. – USFN Member (Kentucky, Ohio)

On May 24, 2018 President Trump signed into law Senate Bill 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act. These revisions to the Dodd-Frank financial reform law have wide-ranging impact on the banking and lending industries.

S.2155 has an item of particular interest to those dealing with mortgage default: Title III, Section 304. This section of the new law repeals the sunset provisions of the Protecting Tenants at Foreclosure Act of 2009 (PTFA). This repeal restores the notification requirements and other protections related to the eviction of renters in foreclosure properties. S.2155 provides that the law and any regulations promulgated pursuant to the PTFA that were in effect on December 30, 2014 are restored and revived 30 days after the enactment of S.2155.

Mortgage servicers, REO vendors, and law firms that represent those entities or otherwise manage post-foreclosure sale activities need to be aware of this restoration. Some states have previously enacted their own versions of the PTFA; however, other states (such as Kentucky) did not, so restoration of PTFA will have an immediate impact upon eviction activities in a number of states. In general, the PTFA may provide tenants with more time to vacate after a foreclosure and increase some notice requirements.

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Note for consideration of the USFN Award of Excellence: This article is not a "Feature."

 

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