Banks Sue Over Oregon's Foreclosure Moratorium

Two recent lawsuits filed in the U.S. District Court for the District of Oregon illustrate that Oregon banks are none too pleased about HB 4204. This legislation, passed by the Oregon legislature in June 2020, prohibits residential and commercial real estate foreclosures in Oregon from March 8, 2020 until December 31, 2020.¹ The legislation was initially set to expire in September 2020, but was extended by executive order. In response to this legislation, the Oregon Bankers Association ("OBA") and a number of other banks sued the State of Oregon in August, stating that the lawsuit "challenges Oregon's attempt to interfere with the ability of banks and other financial institutions to make and manage real-estate loans to Oregon consumers and businesses as agreed by the parties."