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Just Court ADR

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Posts Tagged ‘foreclosure mediation’

Counting Up the Costs and Benefits to Lenders of Foreclosure Mediation

Jennifer Shack, November 19th, 2012

Is foreclosure mediation a positive or a negative for lenders? An open letter from Connecticut’s Congressional delegation to the Federal Housing Finance Authority (FHFA) provides sound evidence that it’s a financial positive for lenders to participate in a well-functioning mediation program. FHFA, which regulates Fannie Mae and Freddie Mac , is proposing to increase guarantee fees for mortgages in Connecticut, Florida, Illinois, New Jersey, and New York, stating that laws and procedures enacted in those states have extended the foreclosure process and increased the costs of foreclosure on Fannie Mae and Freddie Mac. (more…)

Foreclosure Mediation by the Numbers

Jennifer Shack, October 5th, 2012

There has been a lot of talk about whether mediation is an effective answer to the foreclosure crisis, but there hasn’t been a lot of information. RSI is trying to rectify that.  As one step in understanding the effectiveness of these programs, RSI has pulled together all the publicly available statistics for foreclosure mediation programs in the US in Foreclosure Dispute Resolution by the Numbers.  This document visually presents the available data for each program individually and comparatively across all programs.  (more…)

Uniform Law Commission and Foreclosure Mediation

Heather Scheiwe Kulp, June 12th, 2012

This month, Resolution Systems Institute was invited to consult on residential mortgage foreclosure mediation at the Uniform Law Commission’s (ULC) Mortgage Foreclosure Committee meeting. The ULC is a non-governmental organization that drafts laws which states may voluntarily adopt in whole or use in part to create their own laws. The Committee is considering drafting a uniform law on foreclosures and is interested in including a provision on foreclosure mediation. RSI provided its Mortgage Foreclosure Mediation and Mitigation Models report, along with other materials, to the Committee prior to the meeting.  I, as staff attorney at RSI, along with four program managers from foreclosure ADR programs around the country,  addressed the Committee and forty interested observers from lending, borrowing, academic, and governmental sectors. The following are my opening remarks:

Greetings, members of the Committee and observers. Thank you for the opportunity to present you with our research and experience in foreclosure alternative dispute resolution programs. We represent a few of the 23 states, (more…)

Using Foreclosure Settlement Funds for Effective Mortgage Dispute Resolution

Heather Scheiwe Kulp, May 21st, 2012

The settlement was huge. Five major banks signed an agreement with 49 Attorneys General after the AGs instigated an investigation into the foreclosure crisis and the banks’ involvement in it. The result: an unprecedented $25 billion is flowing into states over the next three years to repair the damage the foreclosure crisis has caused to infrastructure, lending and homes. The settlement agreement earmarks $2.66 billion of this money for foreclosure prevention efforts, which could include increased housing counseling availability and more robust dispute resolution programs.

So where is the money going? (more…)

Part 3 of 3: Foreclosure Mediation Best Practices

Heather Scheiwe Kulp, March 14th, 2012

MEDIATION SESSION ELEMENTS

Ensure Mediators are Well-Trained

Some programs, fearing they will not be able to attract people to mediate, lower the requirements for training mediators. Instead of the normal 40 hour mediation training, they may require only 12 hours of training with an additional training in foreclosure law, or only require that the mediator be an attorney. This lack of training jeopardizes the mediation process itself, as people may not have the tools after 12 hours of training to manage such a complicated discussion. Connecticut’s program boasts a high settlement rate, in part because (more…)