Life After The CDC Eviction Ban

August 27, 2021 at 9:12 am Leave a comment

The Supreme Court yesterday ruled that the CDC exceeded its authority when it enacted a nationwide ban of evictions against tenants who claim to be suffering a COVID-19 related hardship.

The court’s ruling surprised absolutely no one who has been following the issue. Just weeks ago, the court signaled that a similar moratorium was most likely unconstitutional but allowed it to expire so that there was more time to distribute federal aid intended to help states like New York avoid the need for evictions.

The precise legal issue was whether the CDC had the regulatory authority to ban evictions absent Congressional action. The court explained that “it is indisputable that the public has a strong interest in combating the spread of the COVID–19 Delta variant. But our system does not permit agencies to act unlawfully even in pursuit of desirable ends…It is up to Congress, not the CDC, to decide whether the public interest merits further action here.”

The Court’s ruling put the focus squarely back onto the states. Although the Court recently invalidated a New York statute which prohibited evictions of individuals suffering a COVID-19 hardship, the Court’s emergency ruling was not a decision on the merits and the statute under review did not give landlords the ability to contest a hardship determination. 

Without further action by Congress the primary federal regulation of which credit unions have to be mindful is the CFPB’s regulation which takes effect on September 1st, mandating that servicers take additional steps to inform delinquent homeowners of loss mitigation options that may be available to individuals delinquent because of a COVID hardship. Crucially, unlike the eviction moratorium struck down by the Court, the CFPB’s new regulation does not mandate that specific relief be made available.

Entry filed under: COVID-19, Legal Watch, Mortgage Lending, New York State. Tags: , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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