The banking community has pushed hard to make changes to and scale back Connecticut’s aggressive foreclosure mediation requirements, but the program won’t be going away anytime soon.
Lawmakers have agreed to extend the program for two more years and it will now run through June 30, 2016.
The state’s foreclosure mediation program determines whether borrowers and lenders can reach an agreement that will avoid foreclosure. The program, which was created at the height of the mortgage crisis in 2008, uses the Judicial Branch’s foreclosure mediators to conduct mediation sessions.
The foreclosure mediation process has helped some homeowners avoid, or put off foreclosure, but it also created a bottleneck in the foreclosure process, which frustrated bankers. It also led Connecticut to experience a higher-than-average rate of residential mortgages under foreclosure procedures.
– Greg Bordonaro
