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Oregon Community Banks Seek to Limit State’s Pandemic Relief Law

Aug. 14, 2020, 5:00 PM

Oregon community banks filed a lawsuit against a state coronavirus relief law that establishes a retroactive foreclosure ban and mortgage forbearance requirements.

The retroactive mortgage relief requirements dating back to March 8 put banks at heightened risk of private litigation from borrowers, the Oregon Bankers Association and three of its members said in a lawsuit filed Thursday in the U.S. District Court for the District of Oregon.

Because the June 30 law includes a private right of action, banks could be sued by consumers that were put into foreclosure or denied payment forbearance before the measure took effect, even though ...