by Susan Sowards
Executive Director
The Jacksonville Bar Association
The Jacksonville Bar Association administers the Residential Mortgage Foreclosure Mediation Program (RMFMP) for the Fourth Judicial Circuit as outlined in the Florida Supreme Court’s Administrative Order for Case Management of Residential Foreclosure Cases and Mandatory Referral of Mortgage Foreclosure Cases Involving Homestead Residences.
Because of the high number of mortgage foreclosures, the Florida Supreme Court issued this administrative order, which was adopted by the Fourth Judicial Circuit and requires all lenders to participate in a managed mediation program upon filing a residential homestead foreclosure case.
We are honored that the Fourth Judicial Circuit Court entrusted The Jacksonville Bar Association with this program. We are grateful to Chief Judge Donald Moran for his consideration in doing so. Judge Frederick Tygart and Senior Judge A.C. Soud have been thorough and patient in addressing the many queries that arise in developing a brand-new program, and we appreciate the time and effort that they have invested to assure the program’s success.
This program creates an opportunity for borrowers first to obtain credit counseling, and then to meet with a mediator and the lender’s representative to determine if an agreement can be reached to help the borrower stay in the home. Such mediations may result in a loan modification, a short sale, a deed in lieu of foreclosure, or else an impasse, which usually proceeds to foreclosure. Participation is mandatory for lenders, but optional for borrowers, and the borrower pays no fee.
The RMFM Program covers all residential homestead exemption mortgage foreclosure lawsuits filed in Duval, Clay and Nassau counties following the effective date of the order, March 1, 2010.
Through Aug. 31, 2010, The JBA has had 3,450 cases filed with our office. The RMFM Program’s monthly case volume since April has ranged from 503 to 775.
The process for the RMFM Program includes the commencement of the lawsuit and receipt of “Form A” (Certifications Pursuant to Fourth Judicial Circuit Administrative Order 2010-1) from the lender, communicating with the borrower, scheduling financial counseling, processing paperwork, monitoring compliance of court orders by all entities, setting and conducting mediation, and providing reports throughout the entire process to the court. The program cycle can take up to 120 days.
Accompanying the foreclosure summons to the borrower is a letter from the court that briefly explains the program. After the lawsuit has been filed, the RMFM Program Manager receives from plaintiff’s counsel a copy of a completed Form A, with the case number of the action and contact information for all parties, which should include the last known mailing address and telephone number for each.
Upon receipt of Form A, the RMFM Program Manager begins efforts to contact the borrower to explain the RMFM Program and the requirements that the borrower must satisfy to participate in mediation.
One letter and up to four telephone calls are made to the borrower. If the borrower is unable to be contacted after these attempts, a notice of nonparticipation is filed with the court.
Once the borrower agrees to participate in the mediation process, the RMFM Program Manager refers the borrower to a HUD-certified mortgage foreclosure counselor for a credit counseling session.
Family Foundations of Jacksonville and Jacksonville Area Legal Aid, both local 501(c)(3) charitable organizations that provide prepurchase housing counseling and foreclosure intervention services, conduct the required credit counseling sessions. Each organization receives an equal number of cases. For cases with completed intake, 20 to 25 percent of borrowers are participating in credit counseling.
With the counselor’s help, the borrower completes and returns to the RMFM Program Manager a Financial Disclosure for Mediation Form and a Borrowers’ Request for Plaintiff’s Financial Disclosure.
These documents are transmitted by the RMFM Program Manager via a secure encrypted web-enabled information platform to the plaintiff/lender.
The JBA developed this platform, which is also being used by other metro bar associations who manage similar RMFM Programs throughout Florida.
After the Borrower’s Financial Disclosure forms have been transmitted to the plaintiff, the RMFM Program Manager schedules a mediation session. The JBA partners with the Jax Mediation Center to provide the mediation location as well as support staff.
Supreme Court Certified Circuit Civil Mediators specially trained to mediate residential mortgage foreclosure disputes conduct the mediations.
Our panel includes more than 50 mediators who have received foreclosure mediation training and attended two additional procedural meetings. An automated rotation program is used for scheduling mediators.
Regardless of whether a full or partial settlement agreement is reached, the result of mediation is reported to the court. A survey is provided to the plaintiffs and borrowers following the mediation process to determine whether the parties are satisfied with the RMFMP.
These surveys are returned to the Court for review monthly.
To handle the caseload, The JBA has essentially doubled the size of our staff. The new employees have rapidly coalesced into a team that has a willingness to work, a can-do attitude, and a driving desire to succeed in this effort, which is designed to help both the courts and our community.