Protecting Tenants at Foreclosure Act

“I’ll be back.” – PTFA

Effective Date: June 23, 2018

As you are probably aware, the Protecting Tenants at Foreclosure Act (PTFA) had expired in December 2014. Amidst all the recent changes in Washington (i.e., the EGRRCPA), however, you may have missed its recent revival. That’s right, the PTFA has lived to see another day. As of June 23, 2018, the requirements and prohibitions of the PTFA have been reinstated, and as such, so should your institution’s PTFA policies and procedures. You should also ensure that you update your audit/internal monitoring scopes to include PTFA once again.

Let’s recap how the PTFA might affect your institution. As the name implies, it protects tenants from eviction due to foreclosure on properties they have been renting.


  • If your institution forecloses on a property, you must provide any “bona fide tenants” of that property with at least 90 days’ notice prior to eviction. It’s important that your special assets and/or ORE departments restore adequate procedures.
  • If “bona fide tenants” with leases reside in a foreclosed property, the PTFA also allows for the tenant to remain in the property until the end of their lease.
  • If the tenant fails to meet the definition of “bona fide tenant” as outlined in the rule, PTFA does not apply.
  • Your auditor/examiner might ask for a list of foreclosed properties the Bank has taken ownership in. Of those properties, they will want to know how many had tenants at the time of foreclosure.

Fortunately, the reinstating of PTFA does not bring with it any new requirements or prohibitions, but it’s important to understand when this rule applies and when it does not. If you or your institution would like more information on the PTFA and its requirements, including assistance with the development of policies and procedures, Sentry Advisors is here to help.

Allen B. (Joey) Croom, II

Copyright © 2018 by Sentry Advisors, LLC
(No claim to original U.S. government material.)
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