Connecticut 2019 Regular Session

Connecticut Senate Bill SB00823 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 3759 \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-R01-
4		-	SB.docx
5		-	1 of 26
	3	+	LCO No. 3759 1 of 25
6	4
7	5		General Assembly Raised Bill No. 823
8	6		January Session, 2019
9	7		LCO No. 3759
10	8
11	9
12	10		Referred to Committee on JUDICIARY
13	11
14	12
15	13		Introduced by:
16	14		(JUD)
	15	+
17	16
18	17
19	18
20	19		AN ACT EXTENDING THE FORECLOSURE MEDIATION PROGRAM
21	20		UNTIL JUNE 30, 2023.
22	21		Be it enacted by the Senate and House of Representatives in General
23	22		Assembly convened:
24	23
25	24		Section 1. Section 49-31l of the general statutes is repealed and the 1
26	25		following is substituted in lieu thereof (Effective from passage): 2
27	26		(a) Prior to July 1, [2019] 2023: (1) Any action for the foreclosure of a 3
28	27		mortgage on residential real property with a return date during the 4
29	28		period from July 1, 2008, to June 30, 2009, inclusive, shall be subject to 5
30	29		the provisions of subsection (b) of this section, and (2) any action for 6
31	30		the foreclosure of a mortgage on (A) residential real property with a 7
32	31		return date during the period from July 1, 2009, to June 30, [2019] 2023, 8
33	32		inclusive, or (B) real property owned by a religious organization with a 9
34	33		return date during the period from October 1, 2011, to June 30, [2019] 10
35	34		2023, inclusive, shall be subject to the provisions of subsection (c) of 11
36	35		this section. 12
37	36		(b) (1) Prior to July 1, [2019] 2023, when a mortgagee commences an 13
38		-	action for the foreclosure of a mortgage on residential real property 14
39		-	with a return date during the period from July 1, 2008, to June 30, 2009, 15 Raised Bill No. 823
	37	+	action for the foreclosure of a mortgage on residential real property 14 Raised Bill No. 823
40	38
41	39
42		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
43		-	R01-SB.docx }
44		-	2 of 26
45	40
	41	+	LCO No. 3759 2 of 25
	42	+
	43	+	with a return date during the period from July 1, 2008, to June 30, 2009, 15
46	44		inclusive, the mortgagee shall give notice to the mortgagor of the 16
47	45		foreclosure mediation program established in section 49-31m by 17
48	46		attaching to the front of the foreclosure complaint that is served on the 18
49	47		mortgagor: (A) A copy of the notice of the availability of foreclosure 19
50	48		mediation, in such form as the Chief Court Administrator prescribes, 20
51	49		and (B) a foreclosure mediation request form, in such form as the Chief 21
52	50		Court Administrator prescribes. 22
53	51		(2) Except as provided in subdivision (3) of this subsection, a 23
54	52		mortgagor may request foreclosure mediation by submitting the 24
55	53		foreclosure mediation request form to the court and filing an 25
56	54		appearance not more than fifteen days after the return date for the 26
57	55		foreclosure action. Upon receipt of the foreclosure mediation request 27
58	56		form, the court shall notify each appearing party that a foreclosure 28
59	57		mediation request form has been submitted by the mortgagor. 29
60	58		(3) The court may grant a mortgagor permission to submit a 30
61	59		foreclosure mediation request form and file an appearance after the 31
62	60		fifteen-day period established in subdivision (2) of this subsection, for 32
63	61		good cause shown. 33
64	62		(4) No foreclosure mediation request form may be submitted to the 34
65	63		court under this subsection on or after July 1, [2019] 2023. 35
66	64		(5) If at any time on or after July 1, 2008, but prior to July 1, [2019] 36
67	65		2023, the court determines that the notice requirement of subdivision 37
68	66		(1) of this subsection has not been met, the court may, upon its own 38
69	67		motion or upon the written motion of the mortgagor, issue an order 39
70	68		that no judgment may enter for fifteen days during which period the 40
71	69		mortgagor may submit a foreclosure mediation request form to the 41
72	70		court. 42
73	71		(6) Notwithstanding any provision of the general statutes or any 43
74	72		rule of law to the contrary, prior to July 1, [2019] 2023, no judgment of 44
75	73		strict foreclosure nor any judgment ordering a foreclosure sale shall be 45
76	74		entered in any action subject to the provisions of this subsection and 46 Raised Bill No. 823
77	75
78	76
79		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
80		-	R01-SB.docx }
81		-	3 of 26
	77	+
	78	+	LCO No. 3759 3 of 25
82	79
83	80		instituted by the mortgagee to foreclose a mortgage on residential real 47
84	81		property unless: (A) Notice to the mortgagor has been given by the 48
85	82		mortgagee in accordance with subdivision (1) of this subsection and 49
86	83		the time for submitting a foreclosure mediation request form has 50
87	84		expired and no foreclosure mediation request form has been 51
88	85		submitted, or if such notice has not been given, the time for submitting 52
89	86		a foreclosure mediation request form pursuant to subdivision (2) or (3) 53
90	87		of this subsection has expired and no foreclosure mediation request 54
91	88		form has been submitted, or (B) the mediation period set forth in 55
92	89		subsection (b) of section 49-31n, as amended by this act, has expired or 56
93	90		has otherwise terminated, whichever is earlier. 57
94	91		(7) None of the mortgagor's or mortgagee's rights in the foreclosure 58
95	92		action shall be waived by the mortgagor's submission of a foreclosure 59
96	93		mediation request form to the court. 60
97	94		(c) (1) Prior to July 1, [2019] 2023, when a mortgagee commences an 61
98	95		action for the foreclosure of a mortgage on residential real property 62
99	96		with a return date on or after July 1, 2009, or, with respect to real 63
100	97		property owned by a religious organization, a return date on or after 64
101	98		October 1, 2011, the mortgagee shall give notice to the mortgagor of 65
102	99		the foreclosure mediation program established in section 49-31m by 66
103	100		attaching to the front of the writ, summons and complaint that is 67
104	101		served on the mortgagor: (A) A copy of the notice of foreclosure 68
105	102		mediation, in such form as the Chief Court Administrator prescribes, 69
106	103		(B) a copy of the foreclosure mediation certificate form described in 70
107	104		subdivision (3) of this subsection, in such form as the Chief Court 71
108	105		Administrator prescribes, (C) a blank appearance form, in such form as 72
109	106		the Chief Court Administrator prescribes, (D) with respect to an action 73
110	107		for the foreclosure of a mortgage on residential real property with a 74
111	108		return date on or after October 1, 2011, to September 30, 2013, 75
112	109		inclusive, a mediation information form and a notice containing 76
113	110		contact information for authority-approved consumer credit 77
114	111		counseling agencies, which form and notice shall be in such form as 78
115		-	the Chief Court Administrator prescribes, and which form shall be 79 Raised Bill No. 823
	112	+	the Chief Court Administrator prescribes, and which form shall be 79
	113	+	designed to elicit current financial information and such other 80 Raised Bill No. 823
116	114
117	115
118		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
119		-	R01-SB.docx }
120		-	4 of 26
121	116
122		-	designed to elicit current financial information and such other 80
	117	+	LCO No. 3759 4 of 25
	118	+
123	119		nonfinancial information from the mortgagor as the Chief Court 81
124	120		Administrator, in consultation with representatives from the banking 82
125	121		industry and consumer advocates, determines will further the 83
126	122		objectives of the mediation program. The Chief Court Administrator 84
127	123		shall develop a premediation review protocol pursuant to which the 85
128	124		mediator shall request that any documents submitted to the mediator 86
129	125		for initial review that are incomplete, contain errors or are likely to be 87
130	126		found unacceptable by the mortgagee be completed or corrected and 88
131	127		that the completed or corrected documents be resubmitted to the 89
132	128		mediator for review. Such premediation review, including any 90
133	129		recommendations to complete or correct documents, shall not be 91
134	130		construed to be the practice of law on behalf of any party to the 92
135	131		mediation or the provision of legal advice by the mediator. The 93
136	132		instructions to the mediation information form shall explain that the 94
137	133		completed mediation information form, along with accompanying 95
138	134		documentation reasonably requested from the mortgagor by way of 96
139	135		such instructions, shall be delivered to the mortgagee's counsel not 97
140	136		later than fifteen business days prior to the date of the initial mediation 98
141	137		session, as identified in the notice provided pursuant to subdivision (2) 99
142	138		of subsection (c) of section 49-31n, as amended by this act, and (E) for 100
143	139		an action to foreclose a mortgage on residential real property with a 101
144	140		return date on or after October 1, 2013, the mediation information form 102
145	141		shall instruct the mortgagor as to the objectives of the mediation 103
146	142		program, explain the preliminary process of meeting with the 104
147	143		mediator as described in subdivision (4) of this subsection, instruct the 105
148	144		mortgagor to begin gathering financial documentation commonly used 106
149	145		in foreclosure mediation for use in meeting with the mediator and in 107
150	146		mediation, and include a notice containing contact information for 108
151	147		authority-approved consumer counseling agencies, which shall be in 109
152	148		such form as the Chief Court Administrator prescribes. The content of 110
153	149		the mediation information form shall be designed by the Chief Court 111
154	150		Administrator in consultation with representatives from the banking 112
155		-	industry and consumer advocates. 113 Raised Bill No. 823
	151	+	industry and consumer advocates. 113
	152	+	(2) The court shall issue a notice of foreclosure mediation described 114 Raised Bill No. 823
156	153
157	154
158		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
159		-	R01-SB.docx }
160		-	5 of 26
161	155
162		-	(2) The court shall issue a notice of foreclosure mediation described 114
	156	+	LCO No. 3759 5 of 25
	157	+
163	158		in subdivision (3) of this subsection to the mortgagor not later than the 115
164	159		date three business days after the date the mortgagee returns the writ 116
165	160		to the court. 117
166	161		(3) The notice of foreclosure mediation shall instruct the mortgagor 118
167	162		to file the appearance and foreclosure mediation certificate forms with 119
168	163		the court not later than the date fifteen days from the return date for 120
169	164		the foreclosure action. With respect to actions with a return date 121
170	165		during the period from October 1, 2011, to September 30, 2013, 122
171	166		inclusive, such notice shall remind the mortgagor to deliver the 123
172	167		completed mediation information form and the accompanying 124
173	168		documentation described in subdivision (1) of this subsection and 125
174	169		encourage such delivery in advance of the required date. With respect 126
175	170		to actions with a return date during the period from October 1, 2013, to 127
176	171		June 30, [2019] 2023, inclusive, such notice shall instruct the mortgagor 128
177	172		to begin gathering financial information commonly used in foreclosure 129
178	173		mediation for use in meeting with the mediator and in mediation. The 130
179	174		mediation information form and accompanying documentation shall 131
180	175		not, without the explicit written instruction of the mortgagor, be 132
181	176		publicly available. Such notice of foreclosure mediation shall be 133
182	177		accompanied by materials from the Department of Banking, as 134
183	178		prescribed by the Chief Court Administrator, which shall describe the 135
184	179		community-based resources available to the mortgagor, including 136
185	180		authority-approved housing counseling agencies that may assist with 137
186	181		preparation for mediation and application for mortgage assistance 138
187	182		programs. The foreclosure mediation certificate form shall require the 139
188	183		mortgagor to provide sufficient information to permit the court to 140
189	184		confirm that the defendant in the foreclosure action is a mortgagor, 141
190	185		and to certify that said mortgagor has sent a copy of the mediation 142
191	186		certificate form to the plaintiff in the action. With respect to actions 143
192	187		with a return date on or after October 1, 2015, in order to ensure that 144
193	188		all necessary consents to the disclosure of nonpublic personal financial 145
194	189		information have been provided to the mortgagee, such that a spouse 146
195		-	may be considered a permitted successor-in-interest, the court shall 147 Raised Bill No. 823
	190	+	may be considered a permitted successor-in-interest, the court shall 147
	191	+	confirm that the foreclosure mediation certificate submitted by (A) the 148 Raised Bill No. 823
196	192
197	193
198		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
199		-	R01-SB.docx }
200		-	6 of 26
201	194
202		-	confirm that the foreclosure mediation certificate submitted by (A) the 148
	195	+	LCO No. 3759 6 of 25
	196	+
203	197		spouse or former spouse provides consent to the full disclosure by the 149
204	198		mortgagee of such spouse's or former spouse's nonpublic personal 150
205	199		financial information to any other person who is obligated as a 151
206	200		borrower on the note, to the extent the mortgagee has such 152
207	201		information, and (B) any other person who is a mortgagor provides 153
208	202		consent to the full disclosure by the mortgagee of such person's 154
209	203		nonpublic personal financial information to such spouse or former 155
210	204		spouse, to the extent the mortgagee has such information. If a 156
211	205		foreclosure mediation certificate is not submitted by a mortgagor, 157
212	206		other than a spouse or former spouse claiming to be a permitted 158
213	207		successor-in-interest, the court shall confirm, in lieu of the 159
214	208		requirements of subparagraph (B) of this subdivision, that the 160
215	209		foreclosure mediation certificate submitted by the spouse or former 161
216	210		spouse contains a statement, signed by the spouse or former spouse, 162
217	211		certifying that all persons who are obligated on the note have 163
218	212		otherwise given documentation to the mortgagee which allows for the 164
219	213		full disclosure by the mortgagee of such person's nonpublic personal 165
220	214		information to the spouse or former spouse, to the extent the 166
221	215		mortgagee has such information. Such a certification may be rebutted 167
222	216		conclusively by the mortgagee if the mortgagee submits a written 168
223	217		statement to the court in which the mortgagee certifies that, based 169
224	218		upon reasonable belief, the mortgagee does not possess such 170
225	219		documentation. 171
226	220		(4) Upon receipt of the mortgagor's appearance and foreclosure 172
227	221		mediation certificate forms, and provided the court confirms the 173
228	222		defendant in the foreclosure action is a mortgagor and that said 174
229	223		mortgagor has sent a copy of the mediation certificate form to the 175
230	224		plaintiff, the court shall assign the case to mediation and issue notice of 176
231	225		such assignment to all appearing parties, which notice shall include an 177
232	226		electronic mail address for all communications related to the 178
233	227		mediation. The court shall issue such notice not earlier than the date 179
234	228		five business days after the return date or by the date three business 180
235		-	days after the date on which the court receives the mortgagor's 181 Raised Bill No. 823
	229	+	days after the date on which the court receives the mortgagor's 181
	230	+	appearance and foreclosure mediation certificate forms, whichever is 182 Raised Bill No. 823
236	231
237	232
238		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
239		-	R01-SB.docx }
240		-	7 of 26
241	233
242		-	appearance and foreclosure mediation certificate forms, whichever is 182
	234	+	LCO No. 3759 7 of 25
	235	+
243	236		later, except that if the court does not receive the appearance and 183
244	237		foreclosure mediation certificate forms from the mortgagor by the date 184
245	238		fifteen days after the return date for the foreclosure action, the court 185
246	239		shall not assign the case to mediation. Promptly upon receipt of the 186
247	240		notice of assignment, but not later than the thirty-fifth day following 187
248	241		the return date, the mortgagee or its counsel shall deliver to the 188
249	242		mediator, via the electronic mail address provided for communications 189
250	243		related to the mediation, and to the mortgagor, via first class, priority 190
251	244		or overnight mail, (A) an account history identifying all credits and 191
252	245		debits assessed to the loan account and any related escrow account in 192
253	246		the immediately preceding twelve-month period and an itemized 193
254	247		statement of the amount required to reinstate the mortgage loan with 194
255	248		accompanying information, written in plain language, to explain any 195
256	249		codes used in the history and statement which are not otherwise self-196
257	250		explanatory, (B) the name, business mailing address, electronic mail 197
258	251		address, facsimile number and direct telephone number of an 198
259	252		individual able to respond with reasonable adequacy and promptness 199
260	253		to questions relative to the information submitted to the mediator 200
261	254		pursuant to this subdivision, and any subsequent updates to such 201
262	255		contact information, which shall be provided reasonably promptly to 202
263	256		the mediator via the electronic mail address provided for 203
264	257		communication related to the mediation, (C) current versions of all 204
265	258		reasonably necessary forms and a list of all documentation reasonably 205
266	259		necessary for the mortgagee to evaluate the mortgagor for common 206
267	260		alternatives to foreclosure that are available through the mortgagee, if 207
268	261		any, (D) a copy of the note and mortgage, including any agreements 208
269	262		modifying such documents, (E) summary information regarding the 209
270	263		status of any pending foreclosure avoidance efforts being undertaken 210
271	264		by the mortgagee, (F) a copy of any loss mitigation affidavit filed with 211
272	265		the court, and (G) at the mortgagee's option, (i) the history of 212
273	266		foreclosure avoidance efforts with respect to the mortgagor, (ii) 213
274	267		information regarding the condition of mortgaged property, and (iii) 214
275	268		such other information as the mortgagee may determine is relevant to 215
276		-	meeting the objectives of the mediation program. Following the 216 Raised Bill No. 823
	269	+	meeting the objectives of the mediation program. Following the 216
	270	+	mediator's receipt of such information, the court shall assign a 217 Raised Bill No. 823
277	271
278	272
279		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
280		-	R01-SB.docx }
281		-	8 of 26
282	273
283		-	mediator's receipt of such information, the court shall assign a 217
	274	+	LCO No. 3759 8 of 25
	275	+
284	276		mediator to the mediation and schedule a meeting with the mediator 218
285	277		and all mortgagors who are relevant and necessary to the mediation 219
286	278		and to any agreement being contemplated in connection with the 220
287	279		mediation and shall endeavor to hold such meeting on or prior to the 221
288	280		forty-ninth day following the return date. The notice of such meeting 222
289	281		shall instruct the mortgagor to complete the forms prior to the meeting 223
290	282		and to furnish such forms together with the documentation contained 224
291	283		in the list, as provided by the mortgagee following the filing of the 225
292	284		foreclosure mediation certificate, at the meeting. At such meeting, the 226
293	285		mediator shall review such forms and documentation with the 227
294	286		mortgagor, along with the information supplied by the mortgagee, in 228
295	287		order to discuss the options that may be available to the mortgagor, 229
296	288		including any community-based resources, and assist the mortgagor in 230
297	289		completing the forms and furnishing the documentation necessary for 231
298	290		the mortgagee to evaluate the mortgagor for alternatives to 232
299	291		foreclosure. The mediator may elect to schedule subsequent meetings 233
300	292		with the mortgagor and determine whether any mortgagor may be 234
301	293		excused from an in-person appearance at such subsequent meeting. 235
302	294		The mediator may excuse any mortgagor from attending such meeting 236
303	295		or any subsequent meetings, provided the mortgagor shows good 237
304	296		cause for nonattendance. Such good cause may include, but is not 238
305	297		limited to, the mortgagor no longer owning the home pursuant to a 239
306	298		judgment of marital dissolution and related transfer via deed, or no 240
307	299		longer residing in the home and not being a necessary party to any 241
308	300		agreement being contemplated in connection with the mediation. As 242
309	301		soon as practicable, but in no case later than the eighty-fourth day 243
310	302		following the return date, or the extended deadline if such an extended 244
311	303		deadline is established pursuant to this subdivision, the mediator shall 245
312	304		facilitate and confirm the submission by the mortgagor of the forms 246
313	305		and documentation to the mortgagee's counsel via electronic means 247
314	306		and, at the mortgagee's election, directly to the mortgagee per the 248
315	307		mortgagee's instruction, and determine, based on the participating 249
316	308		mortgagor's attendance at the meetings and the extent the mortgagor 250
317		-	completed the forms and furnished the documentation contemplated 251 Raised Bill No. 823
	309	+	completed the forms and furnished the documentation contemplated 251
	310	+	in this subdivision, or failed to perform such tasks through no material 252 Raised Bill No. 823
318	311
319	312
320		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
321		-	R01-SB.docx }
322		-	9 of 26
323	313
324		-	in this subdivision, or failed to perform such tasks through no material 252
	314	+	LCO No. 3759 9 of 25
	315	+
325	316		fault of the mortgagee, and file a report with the court indicating, (I) 253
326	317		whether mediation shall be scheduled with the mortgagee, (II) whether 254
327	318		the mortgagor attended scheduled meetings with the mediator, (III) 255
328	319		whether the mortgagor fully or substantially completed the forms and 256
329	320		furnished the documentation requested by the mortgagee, (IV) the 257
330	321		date on which the mortgagee supplied the forms and documentation, 258
331	322		and (V) any other information the mediator determines to be relevant 259
332	323		to the objectives of the mediation program. The mediator may file, and 260
333	324		the court may grant, a motion for extension of the premediation period 261
334	325		beyond the eighty-fourth day following the return date if good cause 262
335	326		can be shown for such an extension. Any such motion shall be filed, 263
336	327		with a copy simultaneously sent to the mortgagee and as soon as 264
337	328		practicable to the mortgagor, not later than the eighty-fourth day 265
338	329		following the return date. The mortgagee and mortgagor shall each 266
339	330		have five business days from the day the motion was filed to file an 267
340	331		objection or supplemental papers, and the court shall issue its ruling, 268
341	332		without a hearing, not later than ten business days from the date the 269
342	333		motion was filed. If the court determines that good cause exists for an 270
343	334		extension, the court shall therewith establish an extended deadline so 271
344	335		that the premediation period shall end as soon thereafter as may be 272
345	336		practicable, but not later than thirty-five days from the date of the 273
346	337		ruling, taking into account the complexity of the mortgagor's financial 274
347	338		circumstances, the mortgagee's documentation requirements, and the 275
348	339		timeliness of the mortgagee's and mortgagor's compliance with their 276
349	340		respective premediation obligations. If the court denies the mediator's 277
350	341		motion, the extended deadline for purposes of this subdivision shall be 278
351	342		three days after the court rules on the motion. No meeting or 279
352	343		communication between the mediator and mortgagor under this 280
353	344		subdivision shall be treated as an impermissible ex parte 281
354	345		communication. If the mediator determines that the mortgagee shall 282
355	346		participate in mediation, the court shall promptly issue notice to all 283
356	347		parties of such determination and schedule a mediation session 284
357	348		between the mortgagee and all mortgagors who are relevant and 285
358		-	necessary to the mediation and to any agreement being contemplated 286 Raised Bill No. 823
	349	+	necessary to the mediation and to any agreement being contemplated 286
	350	+	in connection with the mediation, in accordance with subsection (c) of 287 Raised Bill No. 823
359	351
360	352
361		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
362		-	R01-SB.docx }
363		-	10 of 26
364	353
365		-	in connection with the mediation, in accordance with subsection (c) of 287
	354	+	LCO No. 3759 10 of 25
	355	+
366	356		section 49-31n, as amended by this act, to be held not later than five 288
367	357		weeks following the submission to the mortgagee of the forms and 289
368	358		documentation contemplated in this subdivision. The mediator may 290
369	359		excuse any mortgagor from attending the mediation session or 291
370	360		subsequent meetings, provided good cause is shown for 292
371	361		nonattendance. Such good cause may include, but is not limited to, the 293
372	362		mortgagor no longer owning the home pursuant to a judgment of 294
373	363		marital dissolution and related transfer via deed, no longer residing in 295
374	364		the home or not being a necessary party to any agreement being 296
375	365		contemplated in connection with the mediation. If the mediator 297
376	366		determines that no sessions between the mortgagee and mortgagor 298
377	367		shall be scheduled, the court shall promptly issue notice to all parties 299
378	368		regarding such determination and mediation shall be terminated. Any 300
379	369		mortgagor wishing to contest such determination shall petition the 301
380	370		court and show good cause for reinclusion in the mediation program, 302
381	371		including, but not limited to, a material change in financial 303
382	372		circumstances or a mistake or misunderstanding of the facts by the 304
383	373		mediator. 305
384	374		(5) Notwithstanding the provisions of this subsection, the court may 306
385	375		refer a foreclosure action brought by a mortgagee to the foreclosure 307
386	376		mediation program at any time, for good cause shown, provided the 308
387	377		mortgagor has filed an appearance in [said] such action and further 309
388	378		provided the court shall, not later than the date three business days 310
389	379		after the date on which it makes such referral, send a notice to each 311
390	380		appearing party assigning the case to mediation and requiring the 312
391	381		parties to participate in the premediation process described in 313
392	382		subdivision (4) of this subsection, with the court establishing deadlines 314
393	383		to ensure that the premediation process is to be completed by the 315
394	384		parties as expeditiously as the circumstances warrant and permit. 316
395	385		When determining whether good cause exists, the court shall consider 317
396	386		whether the parties are likely to benefit from mediation and, in the 318
397	387		case of a referral after prior attempts at mediation have been 319
398		-	terminated, whether there has been a material change in 320 Raised Bill No. 823
	388	+	terminated, whether there has been a material change in 320
	389	+	circumstances. 321 Raised Bill No. 823
399	390
400	391
401		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
402		-	R01-SB.docx }
403		-	11 of 26
404	392
405		-	circumstances. 321
	393	+	LCO No. 3759 11 of 25
	394	+
406	395		(6) Notwithstanding any provision of the general statutes or any 322
407	396		rule of law, prior to July 1, [2019] 2023, (A) for the period of time which 323
408	397		shall not exceed eight months from the return date, the mortgagor 324
409	398		shall be permitted to file an answer, special defenses or counterclaims, 325
410	399		but no mortgagee or mortgagor shall make any motion, request or 326
411	400		demand with respect to the other, except those motions, requests or 327
412	401		demands that relate to the mediation program described in section 49-328
413	402		31m and the mediation sessions held pursuant to such program, 329
414	403		provided (i) a mortgagor seeking to contest the court's jurisdiction may 330
415	404		file a motion to dismiss and the mortgagee may object to such motion 331
416	405		to dismiss in accordance with applicable law and the rules of the 332
417	406		courts, and (ii) if the mortgagor elects to make any other motion, 333
418	407		request or demand with respect to the mortgagee, the eight-month 334
419	408		limit shall no longer apply to either party; and (B) no judgment of strict 335
420	409		foreclosure nor any judgment ordering a foreclosure sale shall be 336
421	410		entered in any action subject to the provisions of this subsection and 337
422	411		instituted by the mortgagee to foreclose a mortgage on residential real 338
423	412		property or real property owned by a religious organization unless: (i) 339
424	413		The mediation period set forth in subsection (c) of section 49-31n, as 340
425	414		amended by this act, has expired or has otherwise terminated, 341
426	415		whichever is earlier, and, if fewer than eight months has elapsed from 342
427	416		the return date at the time of termination, fifteen days have elapsed 343
428	417		since such termination and any pending motion or request to extend 344
429	418		the mediation period has been heard and denied by the court, or (ii) 345
430	419		the mediation program is not otherwise required or available. Nothing 346
431	420		in this subdivision shall affect any motion made or any default or 347
432	421		judgment entered on or before June 30, 2011. 348
433	422		(7) With respect to foreclosure actions with a return date during the 349
434	423		period from July 1, 2011, to June 30, [2019] 2023, inclusive, 350
435	424		notwithstanding any provision of the general statutes or any rule of 351
436	425		law to the contrary, the mortgagee shall be permitted following the 352
437		-	eight-month or fifteen-day period described in subdivision (6) of this 353 Raised Bill No. 823
	426	+	eight-month or fifteen-day period described in subdivision (6) of this 353
	427	+	subsection, to simultaneously file, as applicable, (A) a motion for 354
	428	+	default, and (B) a motion for judgment of strict foreclosure or a motion 355 Raised Bill No. 823
438	429
439	430
440		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
441		-	R01-SB.docx }
442		-	12 of 26
443	431
444		-	~~subsection, to simultaneously file,~~ ~~as applicable,~~ ~~(A) a motion for 354~~
445		-	~~default, and (B) a motion for judgment of strict foreclosure or a motion 355~~
	432	+	LCO No. 3759 12 of 25
	433	+
446	434		for judgment of foreclosure by sale with respect to the mortgagor in 356
447	435		the foreclosure action. 357
448	436		(8) None of the mortgagor's or mortgagee's rights in the foreclosure 358
449	437		action shall be waived by participation in the foreclosure mediation 359
450	438		program. 360
451	439		Sec. 2. Section 49-31n of the general statutes is repealed and the 361
452	440		following is substituted in lieu thereof (Effective from passage): 362
453	441		(a) Prior to July 1, [2019] 2023: (1) Any action for the foreclosure of a 363
454	442		mortgage on residential real property with a return date during the 364
455	443		period from July 1, 2008, to June 30, 2009, inclusive, shall be subject to 365
456	444		the provisions of subsection (b) of this section, and (2) any action for 366
457	445		the foreclosure of a mortgage on (A) residential real property with a 367
458	446		return date during the period from July 1, 2009, to June 30, [2019] 2023, 368
459	447		inclusive, or (B) real property owned by a religious organization with a 369
460	448		return date during the period from October 1, 2011, to June 30, [2019] 370
461	449		2023, inclusive, shall be subject to the provisions of subsection (c) of 371
462	450		this section. 372
463	451		(b) (1) For any action for the foreclosure of a mortgage on residential 373
464	452		real property with a return date during the period from July 1, 2008, to 374
465	453		June 30, 2009, inclusive, the mediation period under the foreclosure 375
466	454		mediation program established in section 49-31m shall commence 376
467	455		when the court sends notice to each appearing party that a foreclosure 377
468	456		mediation request form has been submitted by a mortgagor to the 378
469	457		court, which notice shall be sent not later than three business days after 379
470	458		the court receives a completed foreclosure mediation request form. The 380
471	459		mediation period shall conclude not later than the conclusion of the 381
472	460		third mediation session between the mortgagor and mortgagee or 382
473	461		seven months after the return date, whichever is earlier, except that the 383
474	462		court may, in its discretion, for good cause shown, upon the motion of 384
475		-	any party or the mediator, extend the mediation period subject to the 385 Raised Bill No. 823
	463	+	any party or the mediator, extend the mediation period subject to the 385
	464	+	provisions of subdivision (9) of this subsection or shorten the 386
	465	+	mediation period. 387 Raised Bill No. 823
476	466
477	467
478		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
479		-	R01-SB.docx }
480		-	13 of 26
481	468
482		-	~~provisions~~ of ~~subdivision (9) of this subsection or shorten the 386~~
483		-	~~mediation period. 387~~
	469	+	LCO No. 3759 13 of 25
	470	+
484	471		(2) The first mediation session shall be held not later than fifteen 388
485	472		business days after the court sends notice to all parties that a 389
486	473		foreclosure mediation request form has been submitted to the court. 390
487	474		The mortgagor and mortgagee shall appear in person at each 391
488	475		mediation session and shall have the ability to mediate, except that (A) 392
489	476		if a party is represented by counsel, the party's counsel may appear in 393
490	477		lieu of the party to represent the party's interests at the mediation, 394
491	478		provided the party has the ability to mediate, and the party is available 395
492	479		(i) during the mediation session by telephone, and (ii) to participate in 396
493	480		the mediation session by speakerphone, provided an opportunity is 397
494	481		afforded for confidential discussions between the party and party's 398
495	482		counsel, (B) following the initial mediation session, if there are two or 399
496	483		more mortgagors who are self-represented, only one mortgagor shall 400
497	484		be required to appear in person at each subsequent mediation session 401
498	485		unless good cause is shown, provided the other mortgagors are 402
499	486		available (i) during the mediation session, and (ii) to participate in the 403
500	487		mediation session by speakerphone, (C) if a party suffers from a 404
501	488		disability or other significant hardship that imposes an undue burden 405
502	489		on such party to appear in person, the mediator may grant permission 406
503	490		to such party to participate in the mediation session by telephone, and 407
504	491		(D) a mortgagor may be excused from appearing at the mediation 408
505	492		session if good cause is shown that the presence of such mortgagor is 409
506	493		not needed to further the interests of mediation. Such good cause may 410
507	494		include, but is not limited to, the mortgagor no longer owning the 411
508	495		home pursuant to a judgment of marital dissolution and related 412
509	496		transfer via deed, no longer residing in the home or not being a 413
510	497		necessary party to any agreement being contemplated in connection 414
511	498		with the mediation. A mortgagor's spouse, who is not a mortgagor but 415
512	499		who lives in the subject property, may appear at each mediation 416
513	500		session, provided all appearing mortgagors consent, in writing, to such 417
514	501		spouse's appearance or such spouse shows good cause for his or her 418
515		-	appearance and the mortgagors consent in writing to the disclosure of 419 Raised Bill No. 823
	502	+	appearance and the mortgagors consent in writing to the disclosure of 419
	503	+	nonpublic personal information to such spouse. If the mortgagor has 420
	504	+	submitted a complete package of financial documentation in 421
	505	+	connection with a request for a particular foreclosure alternative, the 422 Raised Bill No. 823
516	506
517	507
518		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
519		-	R01-SB.docx }
520		-	14 of 26
521	508
522		-	nonpublic personal information to such spouse. If the mortgagor has 420
523		-	submitted a complete package of financial documentat ion in 421
524		-	connection with a request for a particular foreclosure alternative, the 422
	509	+	LCO No. 3759 14 of 25
	510	+
525	511		mortgagee shall have thirty-five days from the receipt of the completed 423
526	512		package to respond with a decision and, if the decision is a denial of 424
527	513		the request, provide the reasons for such denial. If the mortgagor has, 425
528	514		in connection with a request for a foreclosure alternative, submitted a 426
529	515		financial package that is not complete, or if the mortgagee's evaluation 427
530	516		of a complete package reveals that additional information is necessary 428
531	517		to underwrite the request, the mortgagee shall request the missing or 429
532	518		additional information within a reasonable period of time of such 430
533	519		evaluation. If the mortgagee's evaluation of a complete package reveals 431
534	520		that additional information is necessary to underwrite the request, the 432
535	521		thirty-five-day deadline for a response shall be extended but only for 433
536	522		so long as is reasonable given the timing of the mortgagor's submission 434
537	523		of such additional information and the nature and context of the 435
538	524		required underwriting. Not later than the third business day after each 436
539	525		mediation session held on or after June 18, 2013, the mediator shall file 437
540	526		with the court a report indicating, to the extent applicable, (i) the 438
541	527		extent to which each of the parties complied with the requirements set 439
542	528		forth in this subdivision, including the requirement to engage in 440
543	529		conduct that is consistent with the objectives of the mediation program 441
544	530		and to possess the ability to mediate, (ii) whether the mortgagor 442
545	531		submitted a complete package of financial documentation to the 443
546	532		mortgagee, (iii) a general description of the foreclosure alternative 444
547	533		being requested by the mortgagor, (iv) whether the mortgagor has 445
548	534		previously been evaluated for similar requests, whether prior to 446
549	535		mediation or in mediation, and, if so, whether there has been any 447
550	536		apparent change in circumstances since a decision was made with 448
551	537		respect to that prior evaluation, (v) whether the mortgagee has 449
552	538		responded to the mortgagor's request for a foreclosure alternative and, 450
553	539		if so, a description of the response and whether the mediator is aware 451
554	540		of any material reason not to agree with the response, (vi) whether the 452
555	541		mortgagor has responded to an offer made by the mortgagee on a 453
556		-	reasonably timely basis, and if so, an explanation of the response, (vii) 454 Raised Bill No. 823
	542	+	reasonably timely basis, and if so, an explanation of the response, (vii) 454
	543	+	whether the mortgagee has requested additional information from the 455
	544	+	mortgagor and, if so, the stated reasons for the request and the date by 456
	545	+	which such additional information shall be submitted so that 457 Raised Bill No. 823
557	546
558	547
559		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
560		-	R01-SB.docx }
561		-	15 of 26
562	548
563		-	whether the mortgagee has requested additional information from the 455
564		-	mortgagor and, if so, the stated reasons for the request and the date by 456
565		-	which such additional information shall be submitted so that 457
	549	+	LCO No. 3759 15 of 25
	550	+
566	551		information previously submitted by the mortgagor, to the extent 458
567	552		possible, may still be used by the mortgagee in conducting its review, 459
568	553		(viii) whether the mortgagor has supplied, on a reasonably timely 460
569	554		basis, any additional information that was reasonably requested by the 461
570	555		mortgagee, and, if not, the stated reason for not doing so, (ix) if 462
571	556		information provided by the mortgagor is no longer current for 463
572	557		purposes of evaluating a foreclosure alternative, a description of the 464
573	558		out-of-date information and an explanation as to how and why such 465
574	559		information is no longer current, (x) whether the mortgagee has 466
575	560		provided a reasonable explanation of the basis for a decision to deny a 467
576	561		request for a loss mitigation option or foreclosure alternative and 468
577	562		whether the mediator is aware of any material reason not to agree with 469
578	563		that decision, (xi) whether the mortgagee has complied with the time 470
579	564		frames set forth in this subdivision for responding to requests for 471
580	565		decisions, (xii) if a subsequent mediation session is expected to occur, a 472
581	566		general description of the expectations for such subsequent session 473
582	567		and for the parties prior to such subsequent session and, if not 474
583	568		otherwise addressed in the report, whether the parties satisfied the 475
584	569		expectations set forth in previous reports, and (xiii) a determination of 476
585	570		whether the parties will benefit from further mediation. The mediator 477
586	571		shall deliver a copy of such report to each party to the mediation when 478
587	572		the mediator files the report. The parties shall have the opportunity to 479
588	573		submit their own supplemental information following the filing of the 480
589	574		report, provided such supplemental information shall be submitted 481
590	575		not later than five business days following the receipt of the mediator's 482
591	576		report. Any request by the mortgagee to the mortgagor for additional 483
592	577		or updated financial documentation shall be made in writing. The 484
593	578		court may impose sanctions on any party or on counsel to a party if 485
594	579		such party or such counsel engages in intentional or a pattern or 486
595	580		practice of conduct during the mediation process that is contrary to the 487
596	581		objectives of the mediation program. Any sanction that is imposed 488
597		-	shall be proportional to the conduct and consistent with the objectives 489 Raised Bill No. 823
	582	+	shall be proportional to the conduct and consistent with the objectives 489
	583	+	of the mediation program. Available sanctions shall include, but not be 490
	584	+	limited to, terminating mediation, ordering the mortgagor or 491
	585	+	mortgagee to mediate in person, forbidding the mortgagee from 492 Raised Bill No. 823
598	586
599	587
600		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
601		-	R01-SB.docx }
602		-	16 of 26
603	588
604		-	of the mediation program. Available sanctions shall include, but not be 490
605		-	limited to, terminating mediation, ordering the mortgagor or 491
606		-	mortgagee to mediate in person, forbidding the mortgagee from 492
	589	+	LCO No. 3759 16 of 25
	590	+
607	591		charging the mortgagor for the mortgagee's attorney's fees, awarding 493
608	592		attorney's fees, and imposing fines. In the case of egregious 494
609	593		misconduct, the sanctions shall be heightened. The court shall not 495
610	594		award attorney's fees to any mortgagee for time spent in any 496
611	595		mediation session if the court finds that such mortgagee has failed to 497
612	596		comply with this subdivision, unless the court finds reasonable cause 498
613	597		for such failure. 499
614	598		(3) If the mediator reports to the court that the parties will not 500
615	599		benefit from further mediation, the mediation period shall terminate 501
616	600		automatically. If the mediator reports to the court after the first or 502
617	601		second mediation session that the parties may benefit from further 503
618	602		mediation, the mediation period shall continue. 504
619	603		(4) If the mediation period concludes and certain issues have not 505
620	604		been resolved pursuant to the mediation, the mediator may refer the 506
621	605		mortgagor to any appropriate community-based services that are 507
622	606		available. 508
623	607		(5) The Chief Court Administrator shall establish policies and 509
624	608		procedures to implement this subsection. Such policies and procedures 510
625	609		shall, at a minimum, provide that the mediator shall advise the 511
626	610		mortgagor at the first meeting required by subdivision (4) of 512
627	611		subsection (c) of section 49-31l, as amended by this act, that a judgment 513
628	612		of strict foreclosure or foreclosure by sale may cause the mortgagor to 514
629	613		lose the residential real property to foreclosure. 515
630	614		(6) In no event shall any determination issued by a mediator under 516
631	615		this program form the basis of an appeal of any foreclosure judgment. 517
632	616		(7) Foreclosure mediation request forms shall not be accepted by the 518
633	617		court under this subsection on or after July 1, [2019] 2023, and the 519
634		-	foreclosure mediation program shall terminate when all mediation has 520 Raised Bill No. 823
	618	+	foreclosure mediation program shall terminate when all mediation has 520
	619	+	concluded with respect to any applications submitted to the court prior 521
	620	+	to July 1, [2019] 2023. 522
	621	+	(8) At any time during the mediation period, the mediator may refer 523 Raised Bill No. 823
635	622
636	623
637		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
638		-	R01-SB.docx }
639		-	17 of 26
640	624
641		-	concluded with respect to any applications submitted to the court prior 521
642		-	to July 1, [2019] 2023. 522
643		-	(8) At any time during the mediation period, the mediator may refer 523
	625	+	LCO No. 3759 17 of 25
	626	+
644	627		a mortgagor who is the owner -occupant of one-to-four family 524
645	628		residential real property to the mortgage assistance programs, except 525
646	629		that any such referral shall not prevent a mortgagee from proceeding 526
647	630		to judgment when the conditions specified in subdivision (6) of 527
648	631		subsection (b) of section 49-31l, as amended by this act, have been 528
649	632		satisfied. 529
650	633		(9) (A) The mediation period shall conclude following the third 530
651	634		mediation session or if more than seven months have elapsed since the 531
652	635		return date. Not later than fifteen days following the conclusion of the 532
653	636		mediation period, and any extended mediation sessions held in 533
654	637		accordance with this subdivision, any party may move for, or the 534
655	638		mediator may request, an extension of the mediation period. The court 535
656	639		shall grant only one additional mediation session per motion or 536
657	640		request upon a finding that it is highly probable the parties will reach 537
658	641		an agreement through mediation. The court may also grant one 538
659	642		additional mediation session per motion or request upon a finding that 539
660	643		any party has engaged, either intentionally or by a pattern or practice, 540
661	644		in conduct that is contrary to the objectives of the mediation program. 541
662	645		The court shall make its ruling not later than twenty days after the 542
663	646		filing of such motion or request, and no judgment of strict foreclosure 543
664	647		or any judgment ordering a foreclosure sale shall be entered until (i) 544
665	648		the court denies the motion or request, or (ii) the conclusion of the 545
666	649		extended mediation session, except as provided in subparagraph (B) of 546
667	650		this subdivision. Upon the grant of an additional mediation session 547
668	651		following the proper finding, the court shall establish an expeditious 548
669	652		deadline for such extended mediation session to occur. Such extended 549
670	653		mediation period shall conclude following such extended mediation 550
671	654		session. 551
672	655		(B) The mediation period may be extended for one additional 552
673		-	mediation session without a hearing held pursuant to this subdivision 553 Raised Bill No. 823
	656	+	mediation session without a hearing held pursuant to this subdivision 553
	657	+	provided all parties to the mediation agree that such parties would 554
	658	+	benefit from such a session and, in consultation with the mediator, 555
	659	+	establish an expeditious deadline for such session to take place. 556 Raised Bill No. 823
674	660
675	661
676		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
677		-	R01-SB.docx }
678		-	18 of 26
679	662
680		-	provided all parties to the mediation agree that such parties would 554
681		-	benefit from such a session and, in consultation with the mediator, 555
682		-	establish an expeditious deadline for such session to take place. 556
	663	+	LCO No. 3759 18 of 25
	664	+
683	665		(C) To determine whether to extend mediation, the court may 557
684	666		consider all matters that have arisen in the mediation, including, but 558
685	667		not limited to, the number of motions to extend mediation, the reasons 559
686	668		for which an agreement has not been reached, the objectives of the 560
687	669		mediation program, the extent to which the parties will benefit from 561
688	670		further mediation, the reports submitted by the mediator, papers 562
689	671		submitted in connection with any motion, and any supplemental 563
690	672		reports submitted by a party. The court shall articulate its reasons in 564
691	673		the order granting or denying any such motion or request to extend 565
692	674		mediation. 566
693	675		(10) For any case pending as of October 1, 2013, in which mediation 567
694	676		is ongoing, (A) if three or fewer sessions have been held, such case 568
695	677		shall be treated as if no sessions have been held as of said date for 569
696	678		purposes of subdivision (9) of this subsection, and (B) if four or more 570
697	679		sessions have been held, then any party or the mediator may move to 571
698	680		terminate the mediation period or extend such period in accordance 572
699	681		with subdivision (9) of this subsection and, if no such motion to extend 573
700	682		is made, the mediation period shall conclude after the third mediation 574
701	683		session occurring after October 1, 2013. 575
702	684		(c) (1) For any action for the foreclosure of a mortgage on residential 576
703	685		real property with a return date during the period from July 1, 2009, to 577
704	686		June 30, [2019] 2023, inclusive, or for any action for the foreclosure of a 578
705	687		mortgage on real property owned by a religious organization with a 579
706	688		return date during the period from October 1, 2011, to June 30, [2019] 580
707	689		2023, inclusive, the mediation period under the foreclosure mediation 581
708	690		program established in section 49-31m shall commence when the court 582
709	691		sends notice to each appearing party scheduling the first foreclosure 583
710	692		mediation session. The mediation period shall conclude not later than 584
711	693		the conclusion of the third mediation session between the mortgagor 585
712		-	and mortgagee or seven months after the return date, whichever is 586 Raised Bill No. 823
713		-
714		-
715		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
716		-	R01-SB.docx }
717		-	19 of 26
718		-
	694	+	and mortgagee or seven months after the return date, whichever is 586
719	695		earlier, except that the court may, in its discretion, for good cause 587
720	696		shown, upon the motion of any party or request by the mediator, 588
721	697		extend the mediation period subject to the provisions of subdivision 589
722		-	(9) of this subsection or shorten the mediation period. 590
	698	+	(9) of this subsection or shorten the mediation period. 590 Raised Bill No. 823
	699	+
	700	+
	701	+
	702	+	LCO No. 3759 19 of 25
	703	+
723	704		(2) The mortgagor and mortgagee shall appear in person at each 591
724	705		mediation session and shall have the ability to mediate, except that (A) 592
725	706		if a party is represented by counsel, the party's counsel may appear in 593
726	707		lieu of the party to represent the party's interests at the mediation, 594
727	708		provided the party has the ability to mediate and the party is available 595
728	709		(i) during the mediation session by telephone, and (ii) to participate in 596
729	710		the mediation session by speakerphone, provided an opportunity is 597
730	711		afforded for confidential discussions between the party and party's 598
731	712		counsel, (B) following the initial mediation session, if there are two or 599
732	713		more mortgagors who are self-represented, only one mortgagor shall 600
733	714		be required to appear in person at each subsequent mediation session 601
734	715		unless good cause is shown, provided the other mortgagors are 602
735	716		available (i) during the mediation session, and (ii) to participate in the 603
736	717		mediation session by speakerphone, (C) if a party suffers from a 604
737	718		disability or other significant hardship that imposes an undue burden 605
738	719		on such party to appear in person, the mediator may grant permission 606
739	720		to such party to participate in the mediation session by telephone, and 607
740	721		(D) a mortgagor may be excused from appearing at the mediation 608
741	722		session if cause is shown that the presence of such mortgagor is not 609
742	723		needed to further the interests of mediation. Such cause may include, 610
743	724		but is not limited to, the mortgagor no longer owning the home 611
744	725		pursuant to a judgment of marital dissolution and related transfer via 612
745	726		deed or no longer residing in the home or not being a necessary party 613
746	727		to any agreement being contemplated in connection with the 614
747	728		mediation. A mortgagor's spouse, who is not a mortgagor but who 615
748	729		lives in the subject property, may appear at each mediation session, 616
749	730		provided all appearing mortgagors consent, in writing, to such 617
750	731		spouse's appearance or such spouse shows good cause for his or her 618
751	732		appearance and the mortgagors consent, in writing, to the disclosure of 619
752		-	nonpublic personal information to such spouse. If the mortgagor has 620 Raised Bill No. 823
753		-
754		-
755		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
756		-	R01-SB.docx }
757		-	20 of 26
758		-
	733	+	nonpublic personal information to such spouse. If the mortgagor has 620
759	734		submitted a complete package of financial documentation in 621
760	735		connection with a request for a particular foreclosure alternative, the 622
761	736		mortgagee shall have thirty-five days from the receipt of the completed 623
762	737		package to respond with a decision and, if the decision is a denial of 624
763		-	the request, provide the reasons for such denial. If the mortgagor has, 625
	738	+	the request, provide the reasons for such denial. If the mortgagor has, 625 Raised Bill No. 823
	739	+
	740	+
	741	+
	742	+	LCO No. 3759 20 of 25
	743	+
764	744		in connection with a request for a foreclosure alternative, submitted a 626
765	745		financial package that is not complete, or if the mortgagee's evaluation 627
766	746		of a complete package reveals that additional information is necessary 628
767	747		to underwrite the request, the mortgagee shall request the missing or 629
768	748		additional information within a reasonable period of time of such 630
769	749		evaluation. If the mortgagee's evaluation of a complete package reveals 631
770	750		that additional information is necessary to underwrite the request, the 632
771	751		thirty-five-day deadline for a response shall be extended but only for 633
772	752		so long as is reasonable given the timing of the mortgagor's submission 634
773	753		of such additional information and the nature and context of the 635
774	754		required underwriting. Not later than the third business day after each 636
775	755		mediation session, the mediator shall file with the court a report 637
776	756		indicating, to the extent applicable, (i) the extent to which each of the 638
777	757		parties complied with the requirements set forth in this subdivision, 639
778	758		including the requirement to engage in conduct that is consistent with 640
779	759		the objectives of the mediation program and to possess the ability to 641
780	760		mediate, (ii) whether the mortgagor submitted a complete package of 642
781	761		financial documentation to the mortgagee, (iii) a general description of 643
782	762		the foreclosure alternative being requested by the mortgagor, (iv) 644
783	763		whether the mortgagor has previously been evaluated for similar 645
784	764		requests, whether prior to mediation or in mediation, and, if so, 646
785	765		whether there has been any apparent change in circumstances since a 647
786	766		decision was made with respect to that prior evaluation, (v) whether 648
787	767		the mortgagee has responded to the mortgagor's request for a 649
788	768		foreclosure alternative and, if so, a description of the response and 650
789	769		whether the mediator is aware of any material reason not to agree with 651
790	770		the response, (vi) whether the mortgagor has responded to an offer 652
791	771		made by the mortgagee on a reasonably timely basis, and if so, an 653
792	772		explanation of the response, (vii) whether the mortgagee has requested 654
793		-	additional information from the mortgagor and, if so, the stated 655 Raised Bill No. 823
794		-
795		-
796		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
797		-	R01-SB.docx }
798		-	21 of 26
799		-
	773	+	additional information from the mortgagor and, if so, the stated 655
800	774		reasons for the request and the date by which such additional 656
801	775		information shall be submitted so that information previously 657
802	776		submitted by the mortgagor, to the extent possible, may still be used 658
803	777		by the mortgagee in conducting its review, (viii) whether the 659
804		-	mortgagor has supplied, on a reasonably timely basis, any additional 660
	778	+	mortgagor has supplied, on a reasonably timely basis, any additional 660 Raised Bill No. 823
	779	+
	780	+
	781	+
	782	+	LCO No. 3759 21 of 25
	783	+
805	784		information that was reasonably requested by the mortgagee, and, if 661
806	785		not, the stated reason for not doing so, (ix) if information provided by 662
807	786		the mortgagor is no longer current for purposes of evaluating a 663
808	787		foreclosure alternative, a description of the out-of-date information 664
809	788		and an explanation as to how and why such information is no longer 665
810	789		current, (x) whether the mortgagee has provided a reasonable 666
811	790		explanation of the basis for a decision to deny a request for a loss 667
812	791		mitigation option or foreclosure alternative and whether the mediator 668
813	792		is aware of any material reason not to agree with that decision, (xi) 669
814	793		whether the mortgagee has complied with the time frames set forth in 670
815	794		this subdivision for responding to requests for decisions, (xii) if a 671
816	795		subsequent mediation session is expected to occur, a general 672
817	796		description of the expectations for such subsequent session and for the 673
818	797		parties prior to such subsequent session and, if not otherwise 674
819	798		addressed in the report, whether the parties satisfied the expectations 675
820	799		set forth in previous reports, and (xiii) a determination of whether the 676
821	800		parties will benefit from further mediation. The mediator shall deliver 677
822	801		a copy of such report to each party to the mediation when the mediator 678
823	802		files the report. The parties shall have the opportunity to submit their 679
824	803		own supplemental information following the filing of the report, 680
825	804		provided such supplemental information shall be submitted not later 681
826	805		than five business days following the receipt of the mediator's report. 682
827	806		Any request by the mortgagee to the mortgagor for additional or 683
828	807		updated financial documentation shall be made in writing. The court 684
829	808		may impose sanctions on any party or on counsel to a party if such 685
830	809		party or such counsel engages in intentional or a pattern or practice of 686
831	810		conduct during the mediation process that is contrary to the objectives 687
832	811		of the mediation program. Any sanction that is imposed shall be 688
833	812		proportional to the conduct and consistent with the objectives of the 689
834		-	mediation program. Available sanctions shall include, but not be 690 Raised Bill No. 823
835		-
836		-
837		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
838		-	R01-SB.docx }
839		-	22 of 26
840		-
	813	+	mediation program. Available sanctions shall include, but not be 690
841	814		limited to, terminating mediation, ordering the mortgagor or 691
842	815		mortgagee to mediate in person, forbidding the mortgagee from 692
843	816		charging the mortgagor for the mortgagee's attorney's fees, awarding 693
844	817		attorney's fees, and imposing fines. In the case of egregious 694
845		-	misconduct, the sanctions shall be heightened. The court shall not 695
	818	+	misconduct, the sanctions shall be heightened. The court shall not 695 Raised Bill No. 823
	819	+
	820	+
	821	+
	822	+	LCO No. 3759 22 of 25
	823	+
846	824		award attorney's fees to any mortgagee for time spent in any 696
847	825		mediation session if the court finds that such mortgagee has failed to 697
848	826		comply with this subdivision, unless the court finds reasonable cause 698
849	827		for such failure. 699
850	828		(3) If the mediator reports to the court that the parties will not 700
851	829		benefit from further mediation, the mediation period shall terminate 701
852	830		automatically. If the mediator reports to the court after the first or 702
853	831		second mediation session that the parties may benefit from further 703
854	832		mediation, the mediation period shall continue. 704
855	833		(4) If the mediation period concludes and certain issues have not 705
856	834		been resolved pursuant to the mediation, the mediator may refer the 706
857	835		mortgagor to any appropriate community-based services that are 707
858	836		available in the judicial district, but any such referral shall not cause a 708
859	837		delay in the mediation process. 709
860	838		(5) The Chief Court Administrator shall establish policies and 710
861	839		procedures to implement this subsection. Such policies and procedures 711
862	840		shall, at a minimum, provide that the mediator shall advise the 712
863	841		mortgagor at the first meeting required by subdivision (4) of 713
864	842		subsection (c) of section 49-31l, as amended by this act, that: (A) Such 714
865	843		mediation does not suspend the mortgagor's obligation to respond to 715
866	844		the foreclosure action beyond the limited time frame described in 716
867	845		subdivision (6) of subsection (c) of section 49-31l, as amended by this 717
868	846		act; and (B) a judgment of strict foreclosure or foreclosure by sale may 718
869	847		cause the mortgagor to lose the residential real property or real 719
870	848		property owned by a religious organization to foreclosure. 720
871	849		(6) In no event shall any determination issued by a mediator under 721
872		-	this program form the basis of an appeal of any foreclosure judgment. 722 Raised Bill No. 823
873		-
874		-
875		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
876		-	R01-SB.docx }
877		-	23 of 26
878		-
	850	+	this program form the basis of an appeal of any foreclosure judgment. 722
879	851		(7) The foreclosure mediation program shall terminate when all 723
880	852		mediation has concluded with respect to any foreclosure action with a 724
881	853		return date during the period from July 1, 2009, to June 30, [2019] 2023, 725
882		-	inclusive. 726
	854	+	inclusive. 726 Raised Bill No. 823
	855	+
	856	+
	857	+
	858	+	LCO No. 3759 23 of 25
	859	+
883	860		(8) At any time during the mediation period, the mediator may refer 727
884	861		a mortgagor who is the owner -occupant of one-to-four family 728
885	862		residential real property to the mortgage assistance programs, except 729
886	863		that any such referral shall not prevent a mortgagee from proceeding 730
887	864		to judgment when the conditions specified in subdivision (6) of 731
888	865		subsection (c) of section 49-31l, as amended by this act, have been 732
889	866		satisfied. 733
890	867		(9) (A) The mediation period shall conclude following the third 734
891	868		mediation session or if more than seven months have elapsed since the 735
892	869		return date. Not later than fifteen days following the conclusion of the 736
893	870		mediation period, and any subsequent extended mediation sessions 737
894	871		held in accordance with this subdivision, any party may move for, or 738
895	872		the mediator may request, an extension of the mediation period. The 739
896	873		court shall grant only one additional mediation session per motion or 740
897	874		request upon a finding that it is highly probable the parties will reach 741
898	875		an agreement through mediation. The court may also grant one 742
899	876		additional mediation session per motion or request upon a finding that 743
900	877		any party has engaged, either intentionally or by a pattern or practice, 744
901	878		in conduct that is contrary to the objectives of the mediation program. 745
902	879		The court shall make its ruling not later than twenty days after the 746
903	880		filing of such motion or request, and no judgment of strict foreclosure 747
904	881		or any judgment ordering a foreclosure sale shall be entered until (i) 748
905	882		the court denies the motion or request, or (ii) the conclusion of the 749
906	883		subsequent extended mediation session, except as provided in 750
907	884		subparagraph (B) of this subdivision. Upon the grant of an additional 751
908	885		mediation session following the proper finding, the court shall 752
909	886		establish a reasonably expeditious deadline for such subsequent 753
910	887		extended mediation session to occur. Such extended mediation period 754
911		-	shall conclude following such subsequent extended mediation session. 755 Raised Bill No. 823
912		-
913		-
914		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
915		-	R01-SB.docx }
916		-	24 of 26
917		-
	888	+	shall conclude following such subsequent extended mediation session. 755
918	889		(B) The mediation period may be extended for one additional 756
919	890		mediation session without a hearing held pursuant to this subdivision 757
920	891		provided all parties to the mediation agree that such parties would 758
921	892		benefit from such a session and, in consultation with the mediator, 759
922		-	establish a reasonably expeditious deadline for such session to take 760
	893	+	establish a reasonably expeditious deadline for such session to take 760 Raised Bill No. 823
	894	+
	895	+
	896	+
	897	+	LCO No. 3759 24 of 25
	898	+
923	899		place. 761
924	900		(C) To determine whether to extend mediation, the court may 762
925	901		consider all matters that have arisen in the mediation, including, but 763
926	902		not limited to, the number of motions to extend mediation, the reasons 764
927	903		for which an agreement has not been reached, the objectives of the 765
928	904		mediation program, the extent to which the parties will benefit from 766
929	905		further mediation, the reports submitted by the mediator, papers 767
930	906		submitted in connection with any motion, and any supplemental 768
931	907		reports submitted by a party. The court shall articulate its reasons in 769
932	908		the order granting or denying any such motion or request to extend 770
933	909		mediation. 771
934	910		(10) For any case pending as of October 1, 2013, in which mediation 772
935	911		is ongoing, (A) if three or fewer sessions have been held, such case 773
936	912		shall be treated as if no sessions have been held as of said date for 774
937	913		purposes of subdivision (9) of this subsection, and (B) if four or more 775
938	914		sessions have been held, then any party or the mediator may move to 776
939	915		terminate the mediation period or extend such period in accordance 777
940	916		with subdivision (9) of this subsection and, if no such motion to extend 778
941	917		is made, the mediation period shall conclude after the third mediation 779
942	918		session occurring after October 1, 2013. 780
943	919		(d) (1) Not later than February 14, 2014, the Chief Court 781
944	920		Administrator shall submit, in accordance with the provisions of 782
945	921		section 11-4a, to the joint standing committee of the General Assembly 783
946	922		having cognizance of matters relating to banking, a summary 784
947	923		regarding the mediation program and a general summary of the data 785
948	924		collected in the reports submitted pursuant to subdivision (2) of 786
949	925		subsections (b) and (c) of this section from July 1, 2013, to December 787
950		-	31, 2013, inclusive. Such summaries shall include, but not be limited to, 788 Raised Bill No. 823
951		-
952		-
953		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
954		-	R01-SB.docx }
955		-	25 of 26
956		-
	926	+	31, 2013, inclusive. Such summaries shall include, but not be limited to, 788
957	927		the aggregate data regarding the number of cases in mediation, the 789
958	928		number of mediation sessions held, the number of agreements reached 790
959	929		before the conclusion of the mediation period, the number of motions 791
960	930		or requests for an extension or continuance and the identity of the 792
961		-	party that made such a motion or request, whether the loan at issue 793
	931	+	party that made such a motion or request, whether the loan at issue 793 Raised Bill No. 823
	932	+
	933	+
	934	+
	935	+	LCO No. 3759 25 of 25
	936	+
962	937		was serviced by a third party, the judicial district in which the 794
963	938		mediation took place and whether the mortgagor was self-represented. 795
964	939		(2) Not later than March 1, 2016, and by March first each year 796
965	940		thereafter until March 1, [2019] 2023, inclusive, the Chief Court 797
966	941		Administrator shall submit, in accordance with the provisions of 798
967	942		section 11-4a, to the joint standing committee of the General Assembly 799
968	943		having cognizance of matters relating to banking, a summary of the 800
969	944		reports submitted from July 1, 2013, to December thirty-first of the 801
970	945		immediately preceding year, inclusive, pursuant to subdivision (2) of 802
971	946		subsections (b) and (c) of this section. The detailed data points for such 803
972	947		summary, including data to be collected but not reported, shall be 804
973	948		developed by the Chief Court Administrator in consultation with 805
974	949		representatives from the Governor's office, the Department of Banking, 806
975	950		the banking industry and consumer advocates. 807
976	951		Sec. 3. Section 49-31v of the general statutes is repealed and the 808
977	952		following is substituted in lieu thereof (Effective from passage): 809
978	953		The foreclosure mediation program established pursuant to section 810
979	954		49-31m shall be funded within available appropriations and available 811
980	955		until June 30, [2019] 2023. The size of such program shall be 812
981	956		determined by available funding and the number and need of 813
982	957		participants in such program. 814
983	958		This act shall take effect as follows and shall amend the following
984	959		sections:
985	960
986	961		Section 1 from passage 49-31l
987	962		Sec. 2 from passage 49-31n
988	963		Sec. 3 from passage 49-31v
989		-	Raised Bill No. 823
990	964
991		-
992		-	LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-
993		-	R01-SB.docx }
994		-	26 of 26
995		-
996		-	JUD Joint Favorable
	965	+	Statement of Purpose:
	966	+	To extend the foreclosure mediation program until June 30, 2023.
	967	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	968	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	969	+	not underlined.]
997	970