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MEDIATION OVERVIEW

Mediation

• A neutral mediator helps the homeowner and the beneficiary reach an agreement, when possible
• The goal is to explore alternatives to foreclosure
• The mediator cannot force the parties to reach agreement or require the beneficiary to offer a loan
modification. The mediator also cannot force the parties to honor the agreement.
• The mediator issues a Certification, including the outcome of the mediation and the determination of
“Good Faith” or “Not in Good Faith” participation

Both Parties Have a Duty of Good Faith

• Participate timely
• Provide required documentation in a timely manner
• Pay the mediation fee
• Designate a representative with adequate authority to reach a resolution with the homeowner in
mediation
• Not require waiver by homeowner of any future claims

Homeowner Must Provide:

• Current and future income
• Record of debts and obligations
• Asset information
• List of household expenses
• Tax returns for the past two years
• Hardship information
• Any other relevant information

Beneficiary Must Provide:

• Note and Deed of Trust
• Proof of ownership of Note
• Balance of the loan
• Itemized list of missed payments and fees
• Payment history
• Explanation of any denial for a loan modification, forbearance, or other alternative to foreclosure
• Appraisal (not more than 90 days old by date of mediation session)
• Pooling and Servicing Agreement or other investor restrictions (if applicable)

January 2020 | Page 48