Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X; Rescission
The interim final rule rescinds COVID-19 borrower protections under RESPA Regulation X, removing certain foreclosure moratorium and loss mitigation requirements. For HOA/condo boards, this primarily affects lenders and servicers, not directly associations, but may indirectly impact association operations if foreclosures resume.
Aforeworn detected this change in the HOA & Condo Board Rules space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Low urgency. HOA and condo boards (self-managed and management companies) that rely on lender foreclosure timelines for collecting delinquent assessments or that have properties in foreclosure. should confirm how it applies to their specific situation before acting. There is a time constraint attached: No specific deadline; effective upon publication (May 16, 2025).. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors HOA & Condo Board Rules continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
The rescission removes temporary COVID-19 protections that restricted lenders from initiating foreclosures and required specific loss mitigation procedures. Lenders may now resume normal foreclosure processes.
Who it affects
HOA and condo boards (self-managed and management companies) that rely on lender foreclosure timelines for collecting delinquent assessments or that have properties in foreclosure.
What you must do
No immediate action required for associations, but boards should monitor lender foreclosure activity and update their delinquency management procedures if needed.
Deadline
No specific deadline; effective upon publication (May 16, 2025).
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