SB 823 — AN ACT EXTENDING THE FORECLOSURE MEDIATION PROGRAM UNTIL JUNE 30, 2023.

(b) (1) Prior to July 1, [2019] 2023, when a mortgagee commences an action for the foreclosure of a mortgage on residential real property with a return date during the period from July 1, 2008, to June 30, 2009, LCO 3759 \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823-R1 of 26 SB.docx Raised Bill No.

3759823 1 of 25 Raised Bill No.823 with a return date during the period from July 1, 2008, to June 30, 2009, inclusive, the mortgagee shall give notice to the mortgagor of the foreclosure mediation program established in section 49-31m by attaching to the front of the foreclosure complaint that is served on the mortgagor:

(6) Notwithstanding any provision of the general statutes or any rule of law to the contrary, prior to July 1, [2019] 2023, no judgment of strict foreclosure nor any judgment ordering a foreclosure sale shall be entered in any action subject to the provisions of this subsection and LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0082 of 26 R01-SB.docx } Raised Bill No.

3759823 2 of 25 Raised Bill No.823 instituted by the mortgagee to foreclose a mortgage on residential real property unless:

(A) A copy of the notice of foreclosure mediation, in such form as the Chief Court Administrator prescribes, (B) a copy of the foreclosure mediation certificate form described in subdivision (3) of this subsection, in such form as the Chief Court Administrator prescribes, (C) a blank appearance form, in such form as the Chief Court Administrator prescribes, (D) with respect to an action for the foreclosure of a mortgage on residential real property with a return date on or after October 1, 2011, to September 30, 2013, inclusive, a mediation information form and a notice containing contact information for authority-approved consumer credit counseling agencies, which form and notice shall be in such form as the Chief Court Administrator prescribes, and which form shall be designedLCO to3759 elicit{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00823 currentof financial26 informationR01-SB.docx and} suchRaised otherBill LCO No.

3759823 3designed ofto 25elicit Raisedcurrent Billfinancial No.823information and such other nonfinancial information from the mortgagor as the Chief Court Administrator, in consultation with representatives from the banking industry and consumer advocates, determines will further the objectives of the mediation program.

(2)LCO The3759 court{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0084 shall issue a notice of foreclosure26 mediationR01-SB.docx described} LCORaised Bill No.

3759823 4(2) ofThe 25court Raisedshall Billissue No.823a notice of foreclosure mediation described in subdivision (3) of this subsection to the mortgagor not later than the date three business days after the date the mortgagee returns the writ to the court.

With respect to actions with a return date on or after October 1, 2015, in order to ensure that all necessary consents to the disclosure of nonpublic personal financial information have been provided to the mortgagee, such that a spouse may be considered a permitted successor-in-interest, the court shall confirmLCO that3759 the{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0085 foreclosureof mediation26 certificateR01-SB.docx submitted} byRaised (A)Bill the LCO No.

3759823 5confirm ofthat 25the Raisedforeclosure Billmediation No.823certificate submitted by (A) the spouse or former spouse provides consent to the full disclosure by the mortgagee of such spouse's or former spouse's nonpublic personal financial information to any other person who is obligated as a borrower on the note, to the extent the mortgagee has such information, and (B) any other person who is a mortgagor provides consent to the full disclosure by the mortgagee of such person's nonpublic personal financial information to such spouse or former spouse, to the extent the mortgagee has such information.

The court shall issue such notice not earlier than the date five business days after the return date or by the date three business days after the date on which the court receives the mortgagor's appearanceLCO and3759 foreclosure{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0086 mediationof certificate26 forms,R01-SB.docx whichever} isRaised LCOBill No.

3759823 6appearance ofand 25foreclosure Raisedmediation Billcertificate No.823forms, whichever is later, except that if the court does not receive the appearance and foreclosure mediation certificate forms from the mortgagor by the date fifteen days after the return date for the foreclosure action, the court shall not assign the case to mediation.

Following the mediator'sLCO receipt3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00827 of such26 information,R01-SB.docx the} courtRaised shallBill assign a LCO No.

3759823 7mediator's receipt of 25such Raisedinformation, Billthe No.823court shall assign a mediator to the mediation and schedule a meeting with the mediator and all mortgagors who are relevant and necessary to the mediation and to any agreement being contemplated in connection with the mediation and shall endeavor to hold such meeting on or prior to the forty-ninth day following the return date.

As soon as practicable, but in no case later than the eighty-fourth day following the return date, or the extended deadline if such an extended deadline is established pursuant to this subdivision, the mediator shall facilitate and confirm the submission by the mortgagor of the forms and documentation to the mortgagee's counsel via electronic means and, at the mortgagee's election, directly to the mortgagee per the mortgagee's instruction, and determine, based on the participating mortgagor's attendance at the meetings and the extent the mortgagor completed the forms and furnished the documentation contemplated inLCO this3759 subdivision,{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0088 orof failed26 toR01-SB.docx perform} suchRaised tasksBill through no material LCO No.

3759823 8in ofthis 25subdivision, Raisedor Billfailed No.823to perform such tasks through no material fault of the mortgagee, and file a report with the court indicating, (I) whether mediation shall be scheduled with the mortgagee, (II) whether the mortgagor attended scheduled meetings with the mediator, (III) whether the mortgagor fully or substantially completed the forms and furnished the documentation requested by the mortgagee, (IV) the date on which the mortgagee supplied the forms and documentation, and (V) any other information the mediator determines to be relevant to the objectives of the mediation program.

If the mediator determines that the mortgagee shall participate in mediation, the court shall promptly issue notice to all parties of such determination and schedule a mediation session between the mortgagee and all mortgagors who are relevant and necessary to the mediation and to any agreement being contemplated inLCO connection3759 with{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0089 theof mediation,26 inR01-SB.docx accordance} withRaised subsectionBill (c) of LCO No.

3759823 9in ofconnection 25with Raisedthe Billmediation, No.823in accordance with subsection (c) of section 49-31n, as amended by this act, to be held not later than five weeks following the submission to the mortgagee of the forms and documentation contemplated in this subdivision.

When determining whether good cause exists, the court shall consider whether the parties are likely to benefit from mediation and, in the case of a referral after prior attempts at mediation have been terminated, whether there has been a material change in circumstances.LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0010 of 26 R01-SB.docx } Raised Bill No.

LCO823 No.circumstances.

3759 10 of 25 Raised Bill No.823 (6) Notwithstanding any provision of the general statutes or any rule of law, prior to July 1, [2019] 2023, (A) for the period of time which shall not exceed eight months from the return date, the mortgagor shall be permitted to file an answer, special defenses or counterclaims, but no mortgagee or mortgagor shall make any motion, request or demand with respect to the other, except those motions, requests or demands that relate to the mediation program described in section 49- 31m and the mediation sessions held pursuant to such program, provided (i) a mortgagor seeking to contest the court's jurisdiction may file a motion to dismiss and the mortgagee may object to such motion to dismiss in accordance with applicable law and the rules of the courts, and (ii) if the mortgagor elects to make any other motion, request or demand with respect to the mortgagee, the eight-month limit shall no longer apply to either party;

(7) With respect to foreclosure actions with a return date during the period from July 1, 2011, to June 30, [2019] 2023, inclusive, notwithstanding any provision of the general statutes or any rule of law to the contrary, the mortgagee shall be permitted following the eight-month or fifteen-day period described in subdivision (6) of this subsection,LCO to3759 simultaneously{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0011 file, as applicable, (A) a motion for default, and (B) a motion for judgment of strict26 foreclosureR01-SB.docx or} aRaised motionBill LCO No.

3759823 11subsection, to simultaneously file, as applicable, (A) a motion for default, and (B) a motion for judgment of 25strict Raisedforeclosure Billor No.823a motion for judgment of foreclosure by sale with respect to the mortgagor in the foreclosure action.

The mediation period shall conclude not later than the conclusion of the third mediation session between the mortgagor and mortgagee or seven months after the return date, whichever is earlier, except that the court may, in its discretion, for good cause shown, upon the motion of any party or the mediator, extend the mediation period subject to the provisionsLCO of3759 subdivision{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0012 (9) of this26 subsectionR01-SB.docx or} shortenRaised theBill mediationNo. period.

LCO823 No.provisions of subdivision (9) of this subsection or shorten the mediation period.

3759 12 of 25 Raised Bill No.823 (2) The first mediation session shall be held not later than fifteen business days after the court sends notice to all parties that a foreclosure mediation request form has been submitted to the court.

A mortgagor's spouse, who is not a mortgagor but who lives in the subject property, may appear at each mediation session, provided all appearing mortgagors consent, in writing, to such spouse's appearance or such spouse shows good cause for his or her appearance and the mortgagors consent in writing to the disclosure of nonpublicLCO personal3759 information{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0013 toof such26 spouse.R01-SB.docx } Raised Bill No.

If823 thenonpublic mortgagorpersonal hasinformation submittedto asuch completespouse. package of financial documentation in connection with a request for a particular foreclosure alternative, the LCO No.

3759If 13the mortgagor has submitted a complete package of 25financial Raiseddocumentation Billin No.823connection with a request for a particular foreclosure alternative, the mortgagee shall have thirty-five days from the receipt of the completed package to respond with a decision and, if the decision is a denial of the request, provide the reasons for such denial.

Not later than the third business day after each mediation session held on or after June 18, 2013, the mediator shall file with the court a report indicating, to the extent applicable, (i) the extent to which each of the parties complied with the requirements set forth in this subdivision, including the requirement to engage in conduct that is consistent with the objectives of the mediation program and to possess the ability to mediate, (ii) whether the mortgagor submitted a complete package of financial documentation to the mortgagee, (iii) a general description of the foreclosure alternative being requested by the mortgagor, (iv) whether the mortgagor has previously been evaluated for similar requests, whether prior to mediation or in mediation, and, if so, whether there has been any apparent change in circumstances since a decision was made with respect to that prior evaluation, (v) whether the mortgagee has responded to the mortgagor's request for a foreclosure alternative and, if so, a description of the response and whether the mediator is aware of any material reason not to agree with the response, (vi) whether the mortgagor has responded to an offer made by the mortgagee on a reasonably timely basis, and if so, an explanation of the response, (vii) whetherLCO the3759 mortgagee{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0014 hasof requested26 additionalR01-SB.docx information} fromRaised theBill mortgagor and, if so, the stated reasons for the request and the date by which such additional information shall be submitted so that LCO No.

3759823 14whether ofthe 25mortgagee Raisedhas Billrequested No.823additional information from the mortgagor and, if so, the stated reasons for the request and the date by which such additional information shall be submitted so that information previously submitted by the mortgagor, to the extent possible, may still be used by the mortgagee in conducting its review, (viii) whether the mortgagor has supplied, on a reasonably timely basis, any additional information that was reasonably requested by the mortgagee, and, if not, the stated reason for not doing so, (ix) if information provided by the mortgagor is no longer current for purposes of evaluating a foreclosure alternative, a description of the out-of-date information and an explanation as to how and why such information is no longer current, (x) whether the mortgagee has provided a reasonable explanation of the basis for a decision to deny a request for a loss mitigation option or foreclosure alternative and whether the mediator is aware of any material reason not to agree with that decision, (xi) whether the mortgagee has complied with the time frames set forth in this subdivision for responding to requests for decisions, (xii) if a subsequent mediation session is expected to occur, a general description of the expectations for such subsequent session and for the parties prior to such subsequent session and, if not otherwise addressed in the report, whether the parties satisfied the expectations set forth in previous reports, and (xiii) a determination of whether the parties will benefit from further mediation.

Any sanction that is imposed shall be proportional to the conduct and consistent with the objectives LCO 3759 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0015 of the26 mediationR01-SB.docx program.} Raised Bill No.

Available823 sanctionsof shall include, but not be limited to, terminating mediation, ordering the mortgagormediation orprogram. mortgagee to mediate in person, forbidding the mortgagee from LCO No.

3759Available 15sanctions ofshall 25include, Raisedbut Billnot No.823be limited to, terminating mediation, ordering the mortgagor or mortgagee to mediate in person, forbidding the mortgagee from charging the mortgagor for the mortgagee's attorney's fees, awarding attorney's fees, and imposing fines.

(7) Foreclosure mediation request forms shall not be accepted by the court under this subsection on or after July 1, [2019] 2023, and the foreclosure mediation program shall terminate when all mediation has concludedLCO with3759 respect{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0016 toof any26 applicationsR01-SB.docx submitted} toRaised theBill courtNo. prior to July 1, [2019] 2023.

(8)823 Atconcluded anywith timerespect duringto theany mediationapplications period,submitted to the mediatorcourt mayprior referto LCOJuly No.1, [2019] 2023.

3759(8) 16At ofany 25time Raisedduring Billthe No.823mediation period, the mediator may refer a mortgagor who is the owner-occupant of one-to-four family residential real property to the mortgage assistance programs, except that any such referral shall not prevent a mortgagee from proceeding to judgment when the conditions specified in subdivision (6) of subsection (b) of section 49-31l, as amended by this act, have been satisfied.

(B) The mediation period may be extended for one additional mediation session without a hearing held pursuant to this subdivision providedLCO all3759 parties{\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-0017 toof the26 mediationR01-SB.docx agree} thatRaised suchBill partiesNo. would benefit from such a session and, in consultation with the mediator, establish an expeditious deadline for such session to take place.

LCO823 No.provided all parties to the mediation agree that such parties would benefit from such a session and, in consultation with the mediator, establish an expeditious deadline for such session to take place.

3759 17 of 25 Raised Bill No.823 (C) To determine whether to extend mediation, the court may consider all matters that have arisen in the mediation, including, but not limited to, the number of motions to extend mediation, the reasons for which an agreement has not been reached, the objectives of the mediation program, the extent to which the parties will benefit from further mediation, the reports submitted by the mediator, papers submitted in connection with any motion, and any supplemental reports submitted by a party.