State of Nevada Foreclosure Mediation Program Verise V. Campbell, Deputy Director

Joint Meeting of the Assembly Committee on Commerce and Labor and the Senate Committee on Commerce, Labor and Energy

Friday, February 15, 2013 Assembly Committee: Commerce & Labor Exhibit: H Page 1 of 14 Date: 02/15/13 Submitted by: Verise V. Campbell

Foreclosure Mediation Program (FMP)  Created during the 2009 session of the Nevada Legislature 

Amended NRS Chapter 107

 Homeowners meet face-to-face with lender representatives who must have

the authority to negotiate and modify the terms of a loan. Mediations can result in loan modification, a short sale agreement or other resolution. 

Brings together key stakeholders, including property owners, lenders, and their respective representatives, in a neutral setting to discuss alternatives to foreclosure. By working together to explore various options, agreements can be reached that benefit both sides and avoid foreclosure.

 Funding 

$44.33 of the $200 fee for each Notice of Default and Intent to Sell filed

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$400 Mediation Service Fee  

The lender and the homeowner each pay $200 Passed through to the mediator 2

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FMP Program Evolution  July 2009

Program began September 2009 – November 2009  Mediations began; Manual Processing of Documents/Information December 2009  Case Management System (CMS) implemented  Direct processing of payments March 2011  Intake Unit begins using SIRE Electronic Document Storage April 2011  Certificate Unit begins using CMS July 2011  Mediation/Certificate Units begin using SIRE March 2012  Metrics collected into CMS July 2012  Statistical reporting on website 

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3

FMP Staffing  9 Employees Administrative Assistant/ Customer Service Rep.

Intake Manager

Deputy Director

Mediation/ Certificate Supervisor

Mediators (208)

Quality Assurance Manager

Clerks (2)

Clerks (2)

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FMP Operations  Deputy Director (1)

Daily operations  Mediator training and management  Advisory Committee Chair  Partner Liaison (Homeowner Representatives, Lender/Trustee Representatives and Government Officials)  Administrative Assistant (1)  Customer Service  Administrative Support  Intake (3)  Case Creation  Mediation Service Fees  Homeowner and Lender Documents  Petitions for Judicial Review/Court Orders  Case Management System (reporting and data entry) 

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FMP Operations  Mediation/Certificate Unit (3)

Mediator Assignments  Mediation Tracking  Mediator Statements and Billings  Case Management System (reporting and data entry)  Certificate Requests  Certificate Issuance  Quality Control and Assurance (1)  Operating Policies and Procedures  Quality Checks  Statistical Reporting  Employee Training  Public Awareness  Complaints 

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FMP Statistics  Program statistics available on-line: http://foreclosure.nevadajudiciary.us Category

FY 11

Notices of Default and Intent to Sell

FY 12

FY 13 Thru Dec

54,191

16,818

8,528

6,370

4,803

596

Agreement Outcomes Retained Property

3,227 1,941

989 547

173 80

Non-Agreement Outcomes

3,143

3,814

423

47,919

22,219

4,758

45,936

19,125

4,388

1,983

3,094

370

Mediations Held

Certificates Issued Non-Applicable Properties Applicable Properties

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Notice of Default Filings 1800

1681

1600

1417

1400 1180

1200 1000 800

717 605

600 400

1676

1662

347

314

Jan-12

Feb-12

878

772

515

200 0

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

January 2013 NOD’s - 1921 8

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FMP Participation  Since July 2009, an average 25% of eligible homeowners receiving an NOD

have elected to participate in foreclosure mediation.  An average 13% of eligible homeowners receiving an NOD participated in

mediation between December 2011 and December 2012.

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Historical Outcomes  July 2009 – December 2012

Total Elections Accepted into FMP 19,851 Distinct Case Request Outcomes1 Mediation Held 17,057

1

Mediation Not Held

Settled Prior to Mediation

Ineligible

1,967

807

1,198

Total does not reflect 20 cases with unknown outcomes.

Source: State of Nevada Foreclosure Mediation Program Case Management System. Reflects preliminary totals through January 14, 2013 and subject to revision by the Quality Assurance Manager.

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Results of Mediations Held  July 2009 – December 2012

Total Number of Mediations 17,057 No Agreement 1 10,304 (60%)

1

2 3

Agreement Relinquish Property

Retain Property2

Unknown3

2,451 (36%)

4,282 (63%)

20 (>1%)

Parties failed to reach an agreement to avoid foreclosure or beneficiary failed to provide required documents, e.g., mortgage note, deed of trust, assignments, and endorsements or participate in good faith. Parties agreed to Retain Property through temporary or permanent loan modification. Less than 1% of cases represent unknown outcomes.

Source: State of Nevada Foreclosure Mediation Program Case Management System. Reflects preliminary totals through January 14, 2013 and subject to revision by the Quality Assurance Manager. 11

H-11

FMP Revenue Projections  Notice of Default Fee (NODs) projections are based on those

of the Economic Forum (NRS 353.246) 

FY 14: $404,100 for 9,117 NODs projected to be filed 

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FY 15: $363,600 for 8,203 NODs projected to be filed 

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FY 14 program expenses: $1,141,356 FY 15 program expenses: $1,170,125

The program is spending down its general reserves

 Mediation Service Fees  Expected requests for mediations (based on 12% of NODs filed @ $400 each  

FY 14: 1,094 requests FY 15: 984 requests 12

H-12

FMP Revenue: NOD Fees $4,500,000 $4,000,000

$3,903,732

$3,500,000 $3,000,000

$2,708,626

$2,500,000 $2,000,000 $1,500,000 $745,837

$1,000,000

$693,210 $404,100

$500,000 $-

FY 10

FY 11

FY 12 Actual

FY 13

FY 14

$363,600

FY 15

Projected 13

H-13

FMP Enhancement  The FMP exhausts general reserves ($370,144) mid FY15.  Requested a $202,727 general fund appropriation to continue the

program  

9 full-time positions Costs to operate (rent, administrative services, security, travel, supplies, postage, etc.)

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