State of NevadaFORECLOSURE MEDIATION PROGRAM

VERISE V. CAMPBELLDEPUTY DIRECTOR – FORECLOSURE

MEDIATION PROGRAMSUPREME COURT - AOC

January 26, 2010

Assembly Bill 149

Passed by the Nevada Legislature during the 2009 Session and signed by Governor Jim Gibbons AB 149 amends NRS Chapter 107, Nevada’s non-judicial foreclosure

statute, adding a mediation requirement for certain residential properties before the Trustee can proceed with a notice to sell the property

Purpose of AB 149 To directly address the foreclosure crisis Help keep families in their homes Provides for alternative resolutions for lender and homeowner

Program Applicability Owner – occupied residential properties Foreclosure notices (formally know as Notice of Default (NODs) and

Election to Sell filed on or after July 1, 2009 Located in Nevada

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FORECLOSURE MEDIATION PROGRAM (PROGRAM) CREATION

Program Effective Date: July 1, 2009

Administration of the Program was assigned to the Administrative Office of the Nevada Supreme Court (AOC)

Legislation was passed at the end of May 2009 and went into effect July 1, 2009 WITHOUT:

Staff Rules Forms Funding Offices Equipment Information Technology Trained mediators

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IMPLEMENTATION/OPERATION

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IMPLEMENTATION/OPERATION

No Dedicated Staff

Manual process (pending Case Management System)

Liquid Process – fast pace/dynamic

Avalanche of Paper

Initial Funding advanced by the Administrative Office of the Courts

Program Advantages

Best Practices from other Foreclosure Mediation States

Knowledge Base of AOC Information Technology Accounting/Finance Legal Administration

Input from and involvement of Community Stakeholders Judges Attorneys Mediators HUD approved housing counselors Homeowners Trustees Lenders

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IMPLEMENTATION/OPERATION

Accomplishments To Date

Initial Rules and Forms adopted June 30, 2009; Amended Rules and Forms adopted on September 28, 2009 and November 4, 2009

Locations (2) Carson City Las Vegas

Staff Carson City (4) Las Vegas (8)

Mediators Trained (170)

Website: www.nevadajudiciary.us

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IMPLEMENTATION/OPERATION

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Verise CampbellFMP Program Manager

Kathie Malzahn-BassProcessing Supervisor

(Carson City)

Sandra Reed BottinoMediation Supervisor

(Las Vegas)

Annie YanezCust Service Rep

Betty CarterAdmin Asst

VacantData Processing

Clerk

VacantData Processing

Clerk

Lilliette BrooksMediation Clerk

Debra CrewCertificate Clerk

VacantAdministrative Aide

Janice TerryCoordinator

VacantCoordinator

PROGRAM STAFF

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BENEFITS OF MEDIATION

Resolution Mechanism that is:

Quick 4 Hour Mediation sessions Mediation takes place within 80 days of recording a

Notice of Default

Efficient Decision makers must be present Participation in good faith Necessary documents required from both parties

before mediation begins

Cost Effective Other than the filing fee, lender and homeowner

equally share the cost for a nominal fee of $200 each

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MEDIATOR ROLE

The mediator is in charge of the process

The parties are in charge of the outcome

Stresses process over agreement

Assist parties in finding and analyzing options

Mediator skills used: Non-judgmental and unbiased, listen, Reflect, Restate, Validate, Reframe, and Summarize

Stays optimistic, affirming and flexible

Focuses on present and future

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NEGOTIATION STRATEGIES

Ask open-ended questions

Listen

Reframe

Identify a common interest

Brainstorming

Reality test

Patience

Role reversal

Body Language

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MEDIATION PROCESS OUTLINE

1. Homeowner goes into Default

2. Notice of Default and Election to Sell Recorded with the County Recorder (this starts the foreclosure process). Copy is sent to the Homeowner via certified or registered mail

3. Election/Waiver of Mediation Sent to the homeowner with the Notice of Default Homeowner has 30 days to return the Election form to the FMP Administrator Homeowner sends a copy of the completed form to the Administrator with the $200 fee Homeowner sends the Trustee a copy

4. FMP notifies Trustee of Homeowner’s election for mediation and requests Trustees $200 fee from Lender

5. Trustee Notifies Lender and other interested parties of the request for mediation

6. Program Administrator or designee appoints a mediator

7. Mediator contacts both the Lender and the Homeowner

8. Mediation Scheduling Notice is sent by the Mediator to the parties

9. Lender and Homeowner exchange documents at least 7 days prior to the mediation

10. Mediation is conducted, and Mediation Agreement is signed by the parties if a resolution is reached

11. Mediator issues a Mediator’s Statement and Agreement to the parties, files the originals with the Program Administrator, and submits billing

12. Program Administrator reviews the Mediator’s Statement to determine if a Certificate to proceed to foreclosure should be issued

13. Petition for Judicial Review The Lender or the Homeowner may file a Petition for Judicial Review with the District Court within 15 days of the date of the Mediator’s

Statement

Funding

NO TAX $$

Program pays for itself –

Additional NOD fee of $50 on ALL Notices of Default and Elections to Sell

Mediator Fee is shared cost between the homeowner and the Lender ($200 each)

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IMPLEMENTATION/OPERATION

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NOTICES OF DEFAULTS FILED IN NEVADA

5,615

10,187

6,157 5,8705,2025,246

0

2,000

4,000

6,000

8,000

10,000

12,000

July '09 Aug '09 Sept'09

Oct '09 Nov'09

Dec'09

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Second Wave of Adjustable MortgageReset Through 2012

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MEDIATIONS

First mediations were held on September 14, 2009

As of January 26, 2010:

4,400 Requests for mediations received

2,233 Cases have been assigned to mediators

1,021 Mediations have been completed

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MEDIATOR’S STATEMENT The Mediator files the following report of the proceedings:

The parties resolved the matter. No further action is required.

The parties participated but were unable to agree to a loan modification or make other arrangements.

The beneficiary or his representative failed to attend the mediation. No further action is required.

The beneficiary or his representative failed to participate in good faith. No further action is required. (Explanation required).

The beneficiary failed to bring to the mediation each document required. No further action is required.

The beneficiary did not have the required authority or access to a person with the required authority. No further action is required.

The Grantor or person who holds the title of record (homeowner) failed to attend the mediation.

The Grantor or person who holds the title of record (homeowner) failed to participate in good faith. (Explanation required).

The Grantor or person who holds the title of record (homeowner) failed to bring to the mediation each document required.

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FOR MORE INFORMATION PLEASE GO TO:

WWW.NEVADAJUDICIARY.USCLICK ON

“FORECLOSURE MEDIATION”

Contact: Annie Yanez, Customer Service Representative (702) 486-9386 or Ayanez@nvcourts.nv.gov