Oregon Senate Committee Holds Hearing on Foreclosure Mediation Bill
February 28, 2013
Feb. 28, 2013
Oregon’s Senate General Government, Consumer and Small Business Protection Committee heard testimony Wednesday on Senate Bill 558, a bill that would make several updates to the Foreclosure Avoidance Mediation Program passed in the 2012 legislative session. The most significant provisions are technical changes to Oregon’s foreclosure mediation law that allow homeowners to have access to a resolution conference with a lender prior to either judicial or non-judicial foreclosure proceedings.
The bill puts the onus on the borrower to initiate the process, requiring the beneficiary under a residential trust deed to request a resolution conference with the grantor for purposes of negotiating a foreclosure avoidance measure, unless that beneficiary is eligible to claim exemption from the requirement.
It also specifies the manner in which the beneficiary must request the resolution conference and permits the grantor to request a resolution conference under certain circumstances as well. The bill further specifies the documents that both the beneficiary and the grantor would need to provide and outlines the procedure for and duties of the beneficiary and grantor throughout the resolution conference proceedings. The beneficiary would also be required, in certain circumstances, to obtain a certificate of compliance after the resolution conference in order to foreclose the residential trust deed.
Under current law, only those lenders initiating 250 or more foreclosures in Oregon in a calendar year are required to offer mediation. SB 558 would cut that figure, applying the law to all lenders doing at least 100 or more foreclosures in the state per year.
The Northwest Credit Union Association (NWCUA) is working with the proponents of the bill to make several technical changes to the bill to help reduce some of the regulatory burden of both the current law and the newly proposed legislation.
Questions? Contact a member of the Association’s Legislative Affairs team: