An Act Concerning The Efficient Conclusion Of The Foreclosure Mediation Program.
Impact
If enacted, this bill modifies existing laws related to the foreclosure mediation program, which is designed to assist borrowers in negotiating with mortgage lenders before any foreclosure actions proceed. The legislation seeks to create a more efficient framework by clearly defining timelines for mediation processes, including a conclusive end to the mediation period after a set number of sessions or timeframe. Stakeholders, such as judges, mediators, and homeowners, will need to adapt to these changes in their interactions under the law.
Summary
House Bill 6751, effectively titled 'An Act Concerning The Efficient Conclusion Of The Foreclosure Mediation Program,' addresses the procedures surrounding foreclosure mediation in Connecticut. The bill stipulates that the mediation program will no longer accept new requests for mediation after July 1, 2016, allowing only ongoing mediations to proceed towards resolution. The objective is to streamline the process and to ensure that existing mediation cases are handled efficiently, minimizing the burdens on the court systems and providing clarity for the stakeholders involved.
Contention
Notably, one point of contention is the prospective cutoff for new mediation requests, which some stakeholders might view as limiting access to mediation for individuals facing foreclosure after the deadline. Some advocates fear that homeowners, especially those in financial distress, may lose an important avenue for negotiating their issues with lenders, potentially leading to increased foreclosures. Additionally, the bill's modifications could incite debate over the adequacy of the provisions for parties seeking fairness and equitable resolutions in their foreclosure disputes.
An Act Concerning Consumer Credit, Certain Bank Real Estate Improvements, The Connecticut Uniform Securities Act, Shared Appreciation Agreements, Innovation Banks, The Community Bank And Community Credit Union Program And Technical Revisions To The Banking Statutes.