Florida Mediation
Content
RMFM Mediation Procedures
American Arbitration Association, Program Manager
Mediation Mediation is a non-binding process where the parties, the Borrower and Lender, attempt to find a mutually acceptable resolution to their dispute with the help of a neutral person called the Mediator. The Residential Mortgage Foreclosure Mediation (RMFM) Program is available to Borrowers who reside in their primary, Homestead tax exempt residence. These procedures will apply except where there may be a conflict with the Florida Supreme Court or Circuit Court’s Administrative Order. Where there is such a conflict between these Procedures, and a Court’s Administrative Order, the Order will apply. The Program Manager The American Arbitration Association (AAA) is a not-for-profit and neutral dispute resolution service provider organization designated as the Program Manager to handle administration of post-suit foreclosure mediation cases by certain Florida Judicial Circuits Courts. Designation of Plaintiff Liaisons with RMFM Program Any plaintiff who has filed five (5) or more foreclosure actions in the Circuit while the Circuit Court’s Administrative Order authorizing the RMFM Program is in effect shall appoint two RMFM Program liaisons, one of whom shall be a lawyer and the other a representative of the entity servicing the plaintiff’s mortgages, if any, and, if none, a representative of the plaintiff. Plaintiff’s counsel shall provide written notice of the name, phone number (including extension), email, and mailing address of both liaisons to the chief judge and the RMFM Program Manager within 30 days after the effective date of the Circuit Court’s Administrative Order, and on the first Monday of each February thereafter while the Administrative Order is in effect. Lender Filing Information and Contact Information Within one business day after Lender files Form A with the clerk of court, counsel for plaintiff shall also electronically transmit a copy of Form A to the RMFM Program Manager along with the case number of the action and contact information for all parties. The contact information must include at a minimum the last known mailing address and phone number for each party. Form A may be filed online using AAA Webfile® at www.adr.org. Please see the fee schedule below regarding the Lender’s fees that must accompany the filing. Borrower Participation Borrowers must complete the Borrower’s Request to Participate in RMFM Program form and send to the RMFM Program Manager by emailing the completed form to [email protected]. The form is available through the Program Manager or at www.ForeclosureMediationFL.adr.org.
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Attorney Representation Both parties are entitled, but not obligated, to have representation by an attorney at the mediation. The parties must provide each other and the Program Manager with the name and contact information of their attorney. Foreclosure Counseling and Borrower Disclosures to Lender Borrowers participating in the RMFM Program are required to meet with a Certified Foreclosure Counselor and complete the required Borrower’s Financial Disclosures Worksheet, which must be provided to the Program Manager prior to the mediation session. Program Manager will schedule the mediation session for a date at least 25 days after the Borrower’s Financial Disclosures have been made available to the Lender. The Program Manager will provide the Worksheet to the Lender on a secure web-enabled information platform or through a secure email address. Lender Disclosures to Borrower Borrowers are entitled to request disclosures from the Lender, no later than 25 days prior to the scheduled mediation session. Borrower’s Request for Lender’s Disclosure for Mediation is available online at www.ForeclosureMediationFL.adr.org or from the Program Manager. Lenders disclosure must be returned to the program manager not later than five (5) business days prior to the mediation session. The Program Manager will transmit to the Borrowers and to the electronic case site. These disclosures consist of: • Documentary evidence the Lender (Plaintiff) is the owner and holder in due course of the note and mortgage sued upon. • A history showing the application of all payments by the Borrower during the life of the loan. • A statement of the Lender’s position on the present net value of the mortgage loan. • The most current appraisal of the property available to the Lender. Notice of Non-Participation in Mediation If the Borrower does not want to participate in the RMFM Program, or if the Borrower fails to complete foreclosure counseling, or if the Program Manager is unable to contact the Borrower, the Program Manager is required to file a Notice of Borrower’s Non-Participation with the Court and with the Lender. The foreclosure lawsuit may then continue in the Court. RMFM Program Mediators A list of mediators is maintained by the Program Manager and one will be appointed for each case unless the parties jointly select a qualified mediator. RMFM mediators are Supreme Court civil certified mediators trained in mediating residential mortgage foreclosure matters. The
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mediators are independent and impartial and shall be governed by the Standards of Professional Conduct in the Florida Rules for Certified and Court Appointed Mediators adopted by the Florida Supreme Court. Mediation Process and Timeline All mediation communications occurring as a result of the Court’s Administrative Order, including information provided to the Program Manager that is not filed with the court, shall be confidential and inadmissible in any subsequent legal proceeding pursuant to Chapter 44, Florida Statutes, the Florida Rules of Civil Procedure, and the Florida Rules for Certified and Court-Appointed Mediators, unless otherwise provided for by law. Mediation sessions will be held at a suitable location(s) within the Circuit. The mediation is not scheduled in the first 60 days after Form A is filed. Mediation may not take place unless the Borrower has completed Foreclosure Counseling and a Financial Disclosure Worksheet has been provided. If the parties cannot settle at the initial mediation, the parties may agree to negotiate further on their own, or may ask the Program Manager and mediator to schedule a second session if they believe it will help. If a third or subsequent session is scheduled, an additional mediation fee will be required from the Lender. If the parties, do not settle the matter in mediation, the RMFM Program case will be closed and the foreclosure suit may continue in court. Attendance Requirements Certain persons are required to be physically present at the mediation session: the Lender’s attorney; the Borrower; and the Borrower’s attorney of record, if any, and the mediator. The Lender business representative will also attend the mediation but may attend by telephone as the Lender may be located outside of the area. When the Lender’s representative will appear at mediation through the use of communication equipment, the Lender’s attorney will file and serve a Notice that Plaintiff’s Representative Will Appear Through the Use of Communication Equipment and Designation of Authority to Sign Settlement Agreement at least five (5) days prior to the mediation. When attending mediation by use of communication equipment, the Lender’s representative must attend the entire mediation. When a mediation results in an impasse and following attendance at mediation through the use of communication equipment, Lender’s attorney must serve a Certification Regarding Attendance at Mediation Through the Use of Communication Equipment with the Court within five (5) days of the mediation session. Junior lienholders and counsel, if any, may also appear at mediation by a representative with full settlement authority.
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Fees The fee structure for the RMFM Program assumes a settlement is reached in one mediation session. The Borrower is not responsible for any fees in connection with the RMFM Program. The program fees, paid by the Lender, are $750.00 payable as follows:
Lender’s Staged Fees Initial Outreach and Foreclosure Counseling (F/C) Fee
Fees $400
Refunds or Credits $175 if within 15 days of Receipt of Form A the Lender withdraws the case; or Borrower opts-out from the Program; or if the case is closed in 15 days due to inability to contact Borrower; or if Borrower is determined ineligible in that time period. $100 if Borrower chooses not to proceed to Foreclosure Counseling once Borrower contacted $350 if cancelled in writing more than 5 days before Mediation date – No refund if cancelled less than 5 days before to Mediation date
Mediator Fee 3rd and subsequent Mediation Sessions Fee
$350 $350
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American Arbitration Association, Program Manager
Mediation Mediation is a non-binding process where the parties, the Borrower and Lender, attempt to find a mutually acceptable resolution to their dispute with the help of a neutral person called the Mediator. The Residential Mortgage Foreclosure Mediation (RMFM) Program is available to Borrowers who reside in their primary, Homestead tax exempt residence. These procedures will apply except where there may be a conflict with the Florida Supreme Court or Circuit Court’s Administrative Order. Where there is such a conflict between these Procedures, and a Court’s Administrative Order, the Order will apply. The Program Manager The American Arbitration Association (AAA) is a not-for-profit and neutral dispute resolution service provider organization designated as the Program Manager to handle administration of post-suit foreclosure mediation cases by certain Florida Judicial Circuits Courts. Designation of Plaintiff Liaisons with RMFM Program Any plaintiff who has filed five (5) or more foreclosure actions in the Circuit while the Circuit Court’s Administrative Order authorizing the RMFM Program is in effect shall appoint two RMFM Program liaisons, one of whom shall be a lawyer and the other a representative of the entity servicing the plaintiff’s mortgages, if any, and, if none, a representative of the plaintiff. Plaintiff’s counsel shall provide written notice of the name, phone number (including extension), email, and mailing address of both liaisons to the chief judge and the RMFM Program Manager within 30 days after the effective date of the Circuit Court’s Administrative Order, and on the first Monday of each February thereafter while the Administrative Order is in effect. Lender Filing Information and Contact Information Within one business day after Lender files Form A with the clerk of court, counsel for plaintiff shall also electronically transmit a copy of Form A to the RMFM Program Manager along with the case number of the action and contact information for all parties. The contact information must include at a minimum the last known mailing address and phone number for each party. Form A may be filed online using AAA Webfile® at www.adr.org. Please see the fee schedule below regarding the Lender’s fees that must accompany the filing. Borrower Participation Borrowers must complete the Borrower’s Request to Participate in RMFM Program form and send to the RMFM Program Manager by emailing the completed form to [email protected]. The form is available through the Program Manager or at www.ForeclosureMediationFL.adr.org.
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Attorney Representation Both parties are entitled, but not obligated, to have representation by an attorney at the mediation. The parties must provide each other and the Program Manager with the name and contact information of their attorney. Foreclosure Counseling and Borrower Disclosures to Lender Borrowers participating in the RMFM Program are required to meet with a Certified Foreclosure Counselor and complete the required Borrower’s Financial Disclosures Worksheet, which must be provided to the Program Manager prior to the mediation session. Program Manager will schedule the mediation session for a date at least 25 days after the Borrower’s Financial Disclosures have been made available to the Lender. The Program Manager will provide the Worksheet to the Lender on a secure web-enabled information platform or through a secure email address. Lender Disclosures to Borrower Borrowers are entitled to request disclosures from the Lender, no later than 25 days prior to the scheduled mediation session. Borrower’s Request for Lender’s Disclosure for Mediation is available online at www.ForeclosureMediationFL.adr.org or from the Program Manager. Lenders disclosure must be returned to the program manager not later than five (5) business days prior to the mediation session. The Program Manager will transmit to the Borrowers and to the electronic case site. These disclosures consist of: • Documentary evidence the Lender (Plaintiff) is the owner and holder in due course of the note and mortgage sued upon. • A history showing the application of all payments by the Borrower during the life of the loan. • A statement of the Lender’s position on the present net value of the mortgage loan. • The most current appraisal of the property available to the Lender. Notice of Non-Participation in Mediation If the Borrower does not want to participate in the RMFM Program, or if the Borrower fails to complete foreclosure counseling, or if the Program Manager is unable to contact the Borrower, the Program Manager is required to file a Notice of Borrower’s Non-Participation with the Court and with the Lender. The foreclosure lawsuit may then continue in the Court. RMFM Program Mediators A list of mediators is maintained by the Program Manager and one will be appointed for each case unless the parties jointly select a qualified mediator. RMFM mediators are Supreme Court civil certified mediators trained in mediating residential mortgage foreclosure matters. The
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mediators are independent and impartial and shall be governed by the Standards of Professional Conduct in the Florida Rules for Certified and Court Appointed Mediators adopted by the Florida Supreme Court. Mediation Process and Timeline All mediation communications occurring as a result of the Court’s Administrative Order, including information provided to the Program Manager that is not filed with the court, shall be confidential and inadmissible in any subsequent legal proceeding pursuant to Chapter 44, Florida Statutes, the Florida Rules of Civil Procedure, and the Florida Rules for Certified and Court-Appointed Mediators, unless otherwise provided for by law. Mediation sessions will be held at a suitable location(s) within the Circuit. The mediation is not scheduled in the first 60 days after Form A is filed. Mediation may not take place unless the Borrower has completed Foreclosure Counseling and a Financial Disclosure Worksheet has been provided. If the parties cannot settle at the initial mediation, the parties may agree to negotiate further on their own, or may ask the Program Manager and mediator to schedule a second session if they believe it will help. If a third or subsequent session is scheduled, an additional mediation fee will be required from the Lender. If the parties, do not settle the matter in mediation, the RMFM Program case will be closed and the foreclosure suit may continue in court. Attendance Requirements Certain persons are required to be physically present at the mediation session: the Lender’s attorney; the Borrower; and the Borrower’s attorney of record, if any, and the mediator. The Lender business representative will also attend the mediation but may attend by telephone as the Lender may be located outside of the area. When the Lender’s representative will appear at mediation through the use of communication equipment, the Lender’s attorney will file and serve a Notice that Plaintiff’s Representative Will Appear Through the Use of Communication Equipment and Designation of Authority to Sign Settlement Agreement at least five (5) days prior to the mediation. When attending mediation by use of communication equipment, the Lender’s representative must attend the entire mediation. When a mediation results in an impasse and following attendance at mediation through the use of communication equipment, Lender’s attorney must serve a Certification Regarding Attendance at Mediation Through the Use of Communication Equipment with the Court within five (5) days of the mediation session. Junior lienholders and counsel, if any, may also appear at mediation by a representative with full settlement authority.
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Fees The fee structure for the RMFM Program assumes a settlement is reached in one mediation session. The Borrower is not responsible for any fees in connection with the RMFM Program. The program fees, paid by the Lender, are $750.00 payable as follows:
Lender’s Staged Fees Initial Outreach and Foreclosure Counseling (F/C) Fee
Fees $400
Refunds or Credits $175 if within 15 days of Receipt of Form A the Lender withdraws the case; or Borrower opts-out from the Program; or if the case is closed in 15 days due to inability to contact Borrower; or if Borrower is determined ineligible in that time period. $100 if Borrower chooses not to proceed to Foreclosure Counseling once Borrower contacted $350 if cancelled in writing more than 5 days before Mediation date – No refund if cancelled less than 5 days before to Mediation date
Mediator Fee 3rd and subsequent Mediation Sessions Fee
$350 $350
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