SB 429 Creates the Mortgage Foreclosure Mediation Code
Sponsor: Schaaf
LR Number: 2125S.01I Fiscal Notes
Committee: Financial and Governmental Organizations and Elections
Last Action: 2/24/2015 - Second Read and Referred S Financial and Governmental Organizations and Elections Committee Journal Page: S426
Title: Calendar Position:
Effective Date: August 28, 2015

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Current Bill Summary


SB 429 - This act creates the Mortgage Foreclosure Mediation Code which provides for mediation conferences between lenders and homeowners for the purpose of facilitating a mutually beneficial alternative to foreclosure.

Under the act, lenders may seek a certificate of compliance, which would permit them to file a foreclosure deed. In order to receive such a certificate, lenders must go through the mediation process described in this act. The process begins with the lender sending a notice of foreclosure and notice of right to request mediation to the homeowner and the mediation coordinator. Upon receiving such notices, the homeowner has the option of requesting mediation for the purpose of facilitating a more beneficial alternative to foreclosure.

In the event that a settlement is reached between the lender and homeowner prior to the mediation conference, a copy of the settlement agreement shall be sent to the mediation coordinator. Subsequently, the mediation coordinator shall issue the lender a certificate of compliance.

In the event that a settlement agreement is reached during the mediation conference, the mediator shall submit a copy of the settlement agreement to the mediation coordinator. Subsequently, the mediation coordinator shall issue the lender a certificate of compliance.

In the event that the parties fail to reach a settlement agreement, the mediation coordinator shall nevertheless issue a certificate of compliance to the lender if the lender or representative of the lender 1) sent a notice of foreclosure and notice of right to request mediation to the homeowner; 2) provided all necessary paperwork to the homeowner that was required to be sent by this act; 3) had authority to negotiate and modify the loan in question; and 4) paid all fees required by this act.

If a lender fails to comply with any of the provisions of this act, the mediation coordinator shall not issue a certificate of compliance to the lender.

SCOTT SVAGERA