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Findings from an Evaluation of Eight Foreclosure Mediation Programs

Jennifer Shack, December 5th, 2018

As I mentioned last month, I recently completed a comprehensive evaluation of eight foreclosure mediation programs in Illinois. One great benefit of evaluating eight programs with different approaches to resolving the same cases is that it allowed me to uncover program design factors and other variables that promote program success. The three big takeaways from the evaluation are that proper program design is essential, provision of services has an impact on homeowner outcomes, and data is crucial to program improvement. The evaluation was a final look at the eight programs that were funded by the Illinois Attorney General, encompassing up to four years for each program. Seven of the eight programs used relatively uniform data that was collected on the same online case management system. Further, I worked with each program to define the variables used so that we had a clear understanding of the meaning of each variable. This allowed me to develop uniform measures for the programs that enabled comparisons of program performance across them.

First, some basic findings. The eight programs helped 4,766 homeowners, representing 23% of all foreclosure filings in their jurisdictions. They saved 1,100 homes. Once homeowners entered the programs, 21% to 40% saved their homes, depending on the program. More than 90% of homeowners who completed surveys said that they gained a better understanding of their options and how to work with their lenders. Almost all homeowners felt that they were treated fairly and with respect. Most felt that they were able to talk about the issues and concerns that were most important to them and almost all felt the mediator understood what was important to them. Most were satisfied with their experience.

Now to the takeaways. Program design played a significant role in how many homeowners a program was able to help and how many homeowners participated in the program. The two variables are different because most programs helped homeowners to understand their options and the foreclosure process, even if they could not or decided not to participate. Those programs that told homeowners that they must appear for their initial session and provided a date and time for that had significantly higher proportions of homeowners appear and participate than programs that had them contact the program in other ways. And those programs that told homeowners they had to call the program coordinator, provided a deadline to do so and sent additional reminders had significantly higher proportions of homeowners contact the program and participate than those programs that informed the homeowners of the program and told them how to start the process to participate.

Participation rate is very important, not just because higher participation means that more homeowners are helped. The greater the proportion of homeowners facing foreclosure who participate in the program, the greater the proportion of homeowners who save their homes.

Other aspects matter as well. Having the homeowners meet with a representative for their lender from the outset appears to improve program completion rates and possibly improves the probability that participating homeowners save their homes. Within individual programs, those homeowners who worked with a housing counselor are more likely to complete the program. Those who worked with attorneys were much more likely to complete the program. Interestingly, they weren’t more likely to save their homes.

It was very gratifying to see that those programs that made changes based on the data they were collecting and the recommendations from my first evaluation were improved by those changes. For example, the 19th Circuit and 20th Circuit programs made changes to the manner in which homeowners contacted and entered the program, significantly improving participation. The 16thand 19th Circuits worked with mediators to improve their skills, leading to fewer mediator issues and more participants leaving mediation with a good experience.

For a quick take on the evaluation, see the Executive Summary.
To access a digital summary of the evaluation, click here.
For the Full Evaluation, download PDF .

RSI’s Director of Research Jennifer Shack Appointed to the American Bar Association Section of Dispute Resolution’s Research Advisory Committee

Nicole Wilmet, November 6th, 2018
Congratulations to our Director of Research Jennifer Shack on being appointed to the American Bar Association Section of Dispute Resolution’s Research Advisory Committee!
 
The Research Advisory Committee is charged with bringing science to the delivery of conflict prevention and dispute resolution services and sharing cutting-edge conflict resolution research with the Section. Other appointees to the committee include Donna Shestowsky, Doug Van Epps, Howard Herman, Tom Stipanowich and Lin Adrian. The committee is chaired by Nancy Welsh.
 
As the Director of Research here at RSI, Jen conducts complex evaluations of court-based mediation programs and researches the effectiveness of mediation in court settings. In addition to this work, each month, Jen shares the latest court ADR research in our Court ADR Connection newsletter. Jens work can be found on AboutRSI.org. To start reading Jen’s articles, research and program evaluations, click here.
Congratulations again to Jen and each of the other appointees!

State Certification Board and Court-Contracted Mediation Services Heather Scheiwe Kulp

Just Court ADR, September 27th, 2018

In this guest post, Heather Scheiwe Kulp, the Alternative Dispute Resolution Coordinator for the New Hampshire Judicial Branch Office of Mediation & Arbitration reports on the connection between the state of New Hampshire’s family mediator certification board and the New Hampshire Circuit Court—Family Division ADR program. The Court contracts only with board-certified mediators to provide parties in divorce/parenting cases with mediation services. Earlier in her career, Heather was a Skadden Fellow at RSI.

In 1990, the New Hampshire legislature enacted legislation (RSA 328-C) creating the Family Mediator Certification Board (the “Board”) to certify family mediators and family mediator training programs. The statute gave the Board rule-making authority under the Administrative Procedure Act (RSA 541-A), thus housing family mediator certification functions in the executive branch. The purpose of the legislation was (and still is) to “protect and assist the public by providing standards for the practice of family mediation, training and continuing education for certified family mediators and certified family mediator training programs, and disciplinary procedures for violating ethical rules and requirements.” RSA 328-C:1. While most of RSA 328-C addresses the Board’s duties, the legislation does address some aspects of family mediation that are independent of the board: RSA 328-C:2(VI-V) defines “family mediator” and “family mediation”; and RSA 328-C:9 creates a mediation confidentiality for all family mediation, not just family mediation conducted by certified family mediators.

In 2015, the Board became part of the State’s Office of Professional Licensure and Certification—Technical Division. The duties of the 11-member Board include establishing eligibility criteria to be a certified family mediator, adopting ethical standards, and disciplining mediators after conducting complaint investigations. To fulfill its duties, the Board promulgates Administrative Rules and Practice Standards. These Rules and Standards inform mediator practice and establish what mediators must do to remain certified, including renewing their certification every three years. The Rules and Standards are also the criteria by which any complaints of misconduct are evaluated, investigated and determined.

In 2007, the New Hampshire legislature established (RSA 490-E) the Office of Mediation and Arbitration (the “Office”) within the Judicial Branch. The Office is responsible for developing and supporting alternative dispute resolution (“ADR”) programs in all courts and in pre-suit situations when ADR might be appropriate. Duties include contracting with, assigning, and overseeing court-contracted mediators, including family mediators.

Circuit Court Administrative Order 2014-11 sets out the criteria for family mediators who contract with the Court, including that a mediator “maintain [family mediator] certification at all times while contracted as a mediator with the family division of the Circuit Court.” Admin. Order 2014-11(2). Parties in a divorce or parenting case are welcome to choose their own private mediator, regardless of whether the mediator is certified. However, the Judicial Branch only contracts with (and therefore only assigns and only compensates for cases with indigent parties) family mediators who are certified pursuant to RSA 328-C. Fam. Div. Rule 2.13.

Currently, the Court contracts with approximately 40 certified family mediators to provide over 3000 court-assigned divorce or parenting mediation sessions per year. Most of these mediators also provide mediation services to private clients.

The Board and the Court have some interaction. The primary interaction is that the Court requires court-contracted mediators to be Board-certified. Thus, if a family mediator loses certification or chooses to let certification lapse, the Court terminates the mediator’s contract.  Also, the Board includes two Judicial Branch officers: one judge who regularly sits in the Family Division; and one full-time marital master. These officers share perspectives about issues before the Board that impact the Court. At times, the Board will reach out to the Office to learn more about how an issue may impact Court-based ADR. For instance, this summer, the Judicial Branch—including the Office—was invited to provide comments at the public hearing (or in writing) about the Board’s Administrative Rules changes.

Mayor Thomas McNamara Declares July 11, 2018 Resolution Systems Institute Day

Just Court ADR, July 12th, 2018

Yesterday, during our summer staff gathering in Rockford, we received a wonderful surprise! During our picnic, Matthew Flores, Assistant City Attorney for the City of Rockford, presented Susan Yates, RSI’s Executive Director, with a Proclamation signed by the City of Rockford Mayor Thomas McNamara which declared July 11, 2018 as Resolution Systems Institute Day!

In 2013, RSI received a grant from the Illinois Attorney General to incubate foreclosure mediation in Illinois. In November 2014, RSI began the 17th Judicial Circuit Court Foreclosure Mediation program. By the end of 2017, RSI assisted 694 homeowners with 202 home retentions. RSI’s grant will be ending August 31, 2018, at which time the 17th Circuit Foreclosure Mediation program will be taken over by the court.

RSI is pleased to have had the opportunity to work with the 17th Judicial Circuit and thanks Mayor McNamara for the recognition.

Matthew Flores, Assistant City Attorney for the City of Rockford, presents Susan Yates, RSI’s Executive Director, with Proclamation declaring July 11, 2018 as Resolution Systems Institute Day!

 

The Proclamation from Mayor Thomas McNamara

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