Dodd-Frank Amendments Restore the Protecting Tenants at Foreclosure Act of 2009

A recently-passed law reinstates the federal Protecting Tenants at Foreclosure Act (PTFA), which was previously in effect from 2009 through 2014.

On May 24, 2018, President Trump signed the Economic Growth, Regulatory Relief, and Consumer Protection Act (Senate Bill 2155) into law. This Act amends the Dodd-Frank Act, and the most commonly-discussed goal of the law was to make it easier for banks to lend to customers. But another part of the new law—one that hasn’t been widely reported—restores the Protecting Tenants at Foreclosure Act of 2009 (PTFA).

What’s the PTFA? The PTFA was first passed in 2009 and established protections for tenants after their landlord failed to make the mortgage payments for the rented property. Specifically, the PFTA gave tenants facing eviction from a foreclosed home the right to live in the property until either:

  • the end of the lease or
  • for at least 90 days after the foreclosure, depending on the circumstances.

(To learn more about how the PTFA protects tenants following a foreclosure, see Protections for Tenants After a Landlord’s Foreclosure.)

The PTFA will be permanent. The PTFA previously expired on December 31, 2014. However, the Economic Growth, Regulatory Relief, and Consumer Protection Act repealed the PTFA’s sunset date as of 30 days after the enactment of the Act. As a result, the PTFA will go back into effect permanently as of June 23, 2018.

Effective date: June 23, 2018