By Donya Parrish, MCU VP- Risk Management

With all the information and news over the last ten weeks, you may be wondering what the status of charging mortgage late fees is in Montana today. It’s a valid question, and one that takes a little digging to understand.

Governor Bullock issued an initial directive prohibiting mortgage late fees, foreclosures, evictions, and similar actions on any residential properties in the state of Montana. He then extended the first directive with a second that expired on May 24, unless extended. It was not extended.

So, since May 25, credit unions are allowed to charge late fees again, but there are still prohibitions on some foreclosures.

The measures to limit foreclosures, evictions, and (utility) disconnections from service and all of their terms remain in effect through May 24, except as follows:

• For individuals who are members of a vulnerable population, who have suffered a
  significant financial hardship as a result of the outbreak, and who remain sheltered at home, the protections continue and will expire 30 days after the individual ceases to shelter at home or at the end of the emergency, whichever is sooner.
• An individual who seeks the protection of these provisions to prevent a foreclosure,
  eviction, or disconnection after June 1 must make a basic showing to their bank [credit union],
  landlord, or utility that they are
  1. sheltering in place under this order,
  2. are a member of a vulnerable population, and
  3. have been financially impacted as a result of the COVID-19 outbreak.

If your credit union is at the point of moving forward with a foreclosure, we recommend you check on the current status of prohibitions and directives, including seeking legal counsel.