State of Nevada FORECLOSURE MEDIATION PROGRAM VERISE V. CAMPBELL DEPUTY DIRECTOR – FORECLOSURE MEDIATION PROGRAM SUPREME COURT - AOC January 26, 2010

Assembly Bill 149  Passed by the Nevada Legislature during the 2009 Session and signed by Governor Jim Gibbons  AB 149 amends NRS Chapter 107, Nevada’s non-judicial foreclosure statute, adding a mediation requirement for certain residential properties before the Trustee can proceed with a notice to sell the property  Purpose of AB 149  To directly address the foreclosure crisis  Help keep families in their homes  Provides for alternative resolutions for lender and homeowner  Program Applicability  Owner – occupied residential properties  Foreclosure notices (formally know as Notice of Default (NODs) and Election to Sell filed on or after July 1, 2009  Located in Nevada 2 FORECLOSURE MEDIATION PROGRAM (PROGRAM) CREATION

Program Effective Date: July 1, 2009  Administration of the Program was assigned to the Administrative Office of the Nevada Supreme Court (AOC)  Legislation was passed at the end of May 2009 and went into effect July 1, 2009 WITHOUT:  Staff  Rules  Forms  Funding  Offices  Equipment  Information Technology  Trained mediators 3 IMPLEMENTATION/OPERATION

4  No Dedicated Staff  Manual process (pending Case Management System)  Liquid Process – fast pace/dynamic  Avalanche of Paper  Initial Funding advanced by the Administrative Office of the Courts

Program Advantages  Best Practices from other Foreclosure Mediation States  Knowledge Base of AOC  Information Technology  Accounting/Finance  Legal  Administration  Input from and involvement of Community Stakeholders  Judges  Attorneys  Mediators  HUD approved housing counselors  Homeowners  Trustees  Lenders 5 IMPLEMENTATION/OPERATION

Accomplishments To Date  Initial Rules and Forms adopted June 30, 2009; Amended Rules and Forms adopted on September 28, 2009 and November 4, 2009  Locations (2)  Carson City  Las Vegas  Staff  Carson City (4)  Las Vegas (8)  Mediators Trained (170)  Website: 6 IMPLEMENTATION/OPERATION

7 Verise Campbell FMP Program Manager Kathie Malzahn-Bass Processing Supervisor (Carson City) Vacant Data Processing Clerk Vacant Data Processing Clerk Vacant Administrative Aide Sandra Reed Bottino Mediation Supervisor (Las Vegas) Lilliette Brooks Mediation Clerk Debra Crew Certificate Clerk Janice Terry Coordinator Vacant Coordinator Annie Yanez Cust Service Rep Betty Carter Admin Asst PROGRAM STAFF

8 BENEFITS OF MEDIATION Resolution Mechanism that is: Quick  4 Hour Mediation sessions  Mediation takes place within 80 days of recording a Notice of Default Efficient  Decision makers must be present  Participation in good faith  Necessary documents required from both parties before mediation begins Cost Effective  Other than the filing fee, lender and homeowner equally share the cost for a nominal fee of $200 each

9 MEDIATOR ROLE  The mediator is in charge of the process  The parties are in charge of the outcome  Stresses process over agreement  Assist parties in finding and analyzing options  Mediator skills used: Non-judgmental and unbiased, listen, Reflect, Restate, Validate, Reframe, and Summarize  Stays optimistic, affirming and flexible  Focuses on present and future

10 NEGOTIATION STRATEGIES  Ask open-ended questions  Listen  Reframe  Identify a common interest  Brainstorming  Reality test  Patience  Role reversal  Body Language

11 MEDIATION PROCESS OUTLINE 1.Homeowner goes into Default 2.Notice of Default and Election to Sell  Recorded with the County Recorder (this starts the foreclosure process).  Copy is sent to the Homeowner via certified or registered mail 3.Election/Waiver of Mediation  Sent to the homeowner with the Notice of Default  Homeowner has 30 days to return the Election form to the FMP Administrator  Homeowner sends a copy of the completed form to the Administrator with the $200 fee  Homeowner sends the Trustee a copy 4. FMP notifies Trustee of Homeowner’s election for mediation and requests Trustees $200 fee from Lender 5. Trustee Notifies Lender and other interested parties of the request for mediation 6. Program Administrator or designee appoints a mediator 7. Mediator contacts both the Lender and the Homeowner 8. Mediation Scheduling Notice is sent by the Mediator to the parties 9. Lender and Homeowner exchange documents at least 7 days prior to the mediation 10. Mediation is conducted, and Mediation Agreement is signed by the parties if a resolution is reached 11. Mediator issues a Mediator’s Statement and Agreement to the parties, files the originals with the Program Administrator, and submits billing 12. Program Administrator reviews the Mediator’s Statement to determine if a Certificate to proceed to foreclosure should be issued 13. Petition for Judicial Review  The Lender or the Homeowner may file a Petition for Judicial Review with the District Court within 15 days of the date of the Mediator’s Statement

Funding NO TAX $$  Program pays for itself –  Additional NOD fee of $50 on ALL Notices of Default and Elections to Sell  Mediator Fee is shared cost between the homeowner and the Lender ($200 each) 12 IMPLEMENTATION/OPERATION

13 NOTICES OF DEFAULTS FILED IN NEVADA

14 Second Wave of Adjustable Mortgage Reset Through 2012

15 MEDIATIONS First mediations were held on September 14, 2009 As of January 26, 2010:  4,400 Requests for mediations received  2,233 Cases have been assigned to mediators  1,021 Mediations have been completed

16 MEDIATOR’S STATEMENT The Mediator files the following report of the proceedings:  The parties resolved the matter. No further action is required.  The parties participated but were unable to agree to a loan modification or make other arrangements.  The beneficiary or his representative failed to attend the mediation. No further action is required.  The beneficiary or his representative failed to participate in good faith. No further action is required. (Explanation required).  The beneficiary failed to bring to the mediation each document required. No further action is required.  The beneficiary did not have the required authority or access to a person with the required authority. No further action is required.  The Grantor or person who holds the title of record (homeowner) failed to attend the mediation.  The Grantor or person who holds the title of record (homeowner) failed to participate in good faith. (Explanation required).  The Grantor or person who holds the title of record (homeowner) failed to bring to the mediation each document required.

17 FOR MORE INFORMATION PLEASE GO TO: CLICK ON “ FORECLOSURE MEDIATION ” Contact: Annie Yanez, Customer Service Representative (702) or