The Oregon Legislature approved Senate Bill 1552 on March 5, 2012, which will require mortgage lenders to meet new requirements to effectuate a non-judicial foreclosure, including mandatory mediation. Additionally, it will end the “dual track” practice of proceeding with a foreclosure while the lender and homeowner negotiate a loan modification. The law will become effective upon signature by the governor.
Mandatory Mediation Requirement (applicable to large lenders only)
The Attorney General will appoint and pay for a mediation service provider “to coordinate a mediation program,” which will be exempt from the public contracting requirements in ORS Chapter 279A and 279B. The funds will come from a $100 fee that lenders will pay to the county clerk each time they present a Notice of Default to be recorded; the clerk will then transfer these funds to the Attorney General each month.
The Attorney General will adopt rules to prescribe qualifications of the mediators, schedule mediation fees, determine the content of the mediation notice and the certificates of compliance, and set the “mediation guidelines.”
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