Foreclosure Avoidance Mediation Program
Offered by OMA as an information service. OMA is not involved in the management of this program. If you are interested in learning more about the program or would like to request mediation, please call 855-658-6733 or visit the program website at http://www.foreclosuremediationor.org
December 2012 Update
Background summary
Governance: The 2012 Legislature mandated that a foreclosure mediation program be implemented in Oregon within 90 days of the bill being signed. During that time a number of dedicated and knowledgeable individuals came together to assist the Department of Justice in developing the Oregon Administrative Rules that will govern the program. The Collins Center for Public Policy, a Florida not-for profit organization with experience in implementing mortgage mediation programs, was selected by the Department of Justice to manage Oregon's Foreclosure Avoidance Mediation Program (FAMP). The Attorney General has appointed a FAMP Advisory Committee to assist the Department of Justice with improvements to program administrative rules, evaluation of program performance and recommendations for program improvement.
Mediator Preparation: During June, July and August of 2012, 119 mediators meeting the minimum qualifications set by the rules participated in the required 24 hour foreclosure mediation specialty training which was offered in Bend, Medford, Salem and Portland. This is the pool of mediators eligible to conduct FAMP cases. From this pool, Collins identified an initial roster of approximately 30 mediators to handle the early cases. These mediators are intended to gain some experience and help inform subsequent continuing education based on lessons learned in the early months. As the caseload grows, the roster will be expanded to meet the need.
Implementation: Mediation sessions will take place in specific locations around the state; mostly at local community dispute resolution centers. Sessions will be scheduled between 45 and 90 days after the lender serves the borrower with a Notice of Mediation. Presently, mediation is available pre-foreclosure for borrowers at risk of default and after a non-judicial foreclosure is commenced.
Only days after the mediation program officially launched, the Oregon Court of Appeals clarified the requirements for non-judicial foreclosure. Lenders who are unable or unwilling to comply must foreclose judicially. Some lenders have temporarily halted new foreclosures while they review their options and revise their procedures. Unfortunately, as a direct result of that decision, the mediation program is off to a slower start than anticipated despite a large reported backlog of unfiled foreclosures
Update December 2012
According to Collins Center, which manages the program, the number of requests for foreclosure mediation is on the rise. The numbers are still substantially lower than those projected during the program's development. Additionally,the major portion (approximately 80% at this writing) are requests from homeowners not yet in foreclosure. Banks are not required to participate in these cases, and Collins reports that for the most part lenders are choosing not to engage in mediation for these "at risk" cases. The Advisory Committee was recently told that it is likely that the numbers of non-judicially filed cases will continue to increase over the next several months.
The Department of Justice recently held public hearings on the subject of revision to the rules governing the program. A small number of administrative fixes have been suggested, mostly relating to the cumbersome nature and distribution of the required paperwork.
At this time there remains a Supreme Court decision which could change the dynamics affecting FAMP yet again. There may also be legislation proposed during the coming session that would affect the program. OMA will update this page as appropriate as additional information becomes available.
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