Oklahoma House Bill HB2519

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Mortgages; declaring legislative intent; defining terms; disallowing certain actions by lenders; effective date.

Impact

The bill is designed to mitigate the economic impact of the COVID-19 pandemic on homeowners and small business owners affected by lost income. By disallowing foreclosure actions and related penalties during the emergency period, HB2519 seeks to balance the interests of borrowers, who may be unable to meet their obligations, with the rights of lenders. This legislation recognizes the heightened vulnerabilities many borrowers face during emergencies, thereby aiming to safeguard their homes and businesses until recovery is more feasible.

Summary

House Bill 2519 aims to provide temporary protections for borrowers in mortgage agreements during the ongoing effects of the COVID-19 pandemic. The bill outlines specific actions that lenders are prohibited from taking against borrowers who notify them of their inability to make payments due to loss of income from the pandemic. Key provisions disallow lenders from collecting fees or declaring defaults based on missed payments during the declared emergency period, thus preventing foreclosure actions and ensuring that borrowers are protected from aggressive collection practices.

Contention

Notable points of contention surrounding HB2519 include concerns from lenders and real estate professionals regarding the long-term implications of these protections. While lenders acknowledge the need for borrower support during the pandemic, they argue that the restrictions placed on their ability to manage overdue accounts may lead to increased financial risks and instability in the housing market. Furthermore, some lawmakers may question whether such temporary measures should become permanent aspects of mortgage law or if they adequately address the issue without fostering dependency on governmental protections.