In an appellate mediation over the fate of a mediation program, two sides have agreed to preserve mediation. Back in 2011, Springfield, MA, passed two ordinances to deal with the foreclosure problem in the city. The first instituted a mediation program. The second required lenders to post a $10,000 bond for any foreclosures filed for vacant properties. Lenders filed suit in U.S. District Court, where the judge affirmed Springfield’s right to mandate both the bond and mediation. You can read about the rationale for both the suit and the court’s decision here. The lenders appealed and the two sides voluntarily entered mediation. (more…)
Posts Tagged ‘foreclosure mediation’
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…)
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…)
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…)
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…)