An Act To Require Mediation within 90 Days of a Homeowner's Receipt of a Foreclosure Notice
Maine Legislature, Session 128, LD 0064
Committee: Judiciary
Sponsors: PIERCE, DUNPHY, HILLIARD, TIMBERLAKE, WADSWORTH, COLLINS, MIRAMANT, ROSEN, SAVIELLO
Amends: 14 MRSA §6112, 14 MRSA §6321-A

Legislative Document
No. 64
H.P. 51
House of Representatives, January 11, 2017
An Act To Require Mediation within 90 Days of a Homeowner's 
Receipt of a Foreclosure Notice
Reference to the Committee on Judiciary suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative PIERCE of Dresden.
Cosponsored by Representatives: DUNPHY of Old Town, HILLIARD of Belgrade, 
TIMBERLAKE of Turner, WADSWORTH of Hiram, Senators: COLLINS of York, 
MIRAMANT of Knox, ROSEN of Hancock, SAVIELLO of Franklin.
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  14 MRSA §6112, sub-§3, as enacted by PL 2009, c. 402, §15, is amended 
to read: 
3.  Form.  The Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection, after consultation with interested parties, shall develop for 
use by the Supreme Judicial Court a one-page form notice for making a request for 
mediation and making an answer to a foreclosure complaint as described in section 
6321-A, subsection 2.  The form must also explain the mandatory foreclosure mediation 
program established under section 6321-A. 
Sec. 2.  14 MRSA §6321-A, sub-§1, ¶B, as enacted by PL 2009, c. 402, §18, is 
amended to read: 
B.  "Program" means the mandatory foreclosure mediation program established 
pursuant to subsection 3. 
Sec. 3.  14 MRSA §6321-A, sub-§2, ¶B, as enacted by PL 2009, c. 402, §18, is 
amended to read: 
B.  A sample answer and an explanation that the defendant may fill out the form and 
return it to the court in the envelope provided as the answer to the complaint. If the 
debtor returns the form to the court, the defendant does not need to file a more formal 
answer or responsive pleading and will be scheduled for mediation in accordance 
with this section, which will commence not more than 90 days after the receipt of the 
complaint; and 
Sec. 4.  14 MRSA §6321-A, sub-§3, as enacted by PL 2009, c. 402, §18, is 
amended to read: 
3.  Foreclosure mediation program established.  Under the authority granted in 
Title 4, section 18-B, the court shall adopt rules to establish a mandatory foreclosure 
mediation program to provide mediation in actions for foreclosure of mortgages on 
owner-occupied residential property with no more than 4 units that is the primary 
residence of the owner-occupant.  The program must address all issues of foreclosure, 
including but not limited to reinstatement of the mortgage, modification of the loan and 
restructuring of the mortgage debt. Mediations conducted pursuant to the program must 
use the calculations, assumptions and forms that are established by the Federal Deposit 
Insurance Corporation and published in the Federal Deposit Insurance Corporation Loan 
Modification Program Guide as set out on the Federal Deposit Insurance Corporation’s 
publicly accessible website. 
Sec. 5.  14 MRSA §6321-A, sub-§6, as enacted by PL 2009, c. 402, §18, is 
amended to read: 
6.  Commencement of mediation.  When a defendant returns the notice required 
under subsection 2 or otherwise requests mediation or makes an appearance in a 
foreclosure action The plaintiff shall notify the court when the defendant has received the 
foreclosure complaint, at which time the court shall refer the plaintiff and defendant to 
mediation pursuant to this section.  The court shall notify both parties that the referral to 
mediation has been made.  The mediation must be scheduled to commence not more than 
days after the defendant has received the foreclosure complaint. 
Sec. 6.  14 MRSA §6321-A, sub-§7, ¶C, as enacted by PL 2009, c. 402, §18, is 
amended to read: 
C.  Notwithstanding subsection 10, establish a fee upon a foreclosure filing made on 
or after June 15, 2009 to support mediation services to be paid for equally by the 
plaintiff and defendant; and 
Sec. 7.  14 MRSA §6321-A, sub-§11, as amended by PL 2009, c. 476, Pt. B, §6 
and affected by §9, is further amended to read: 
11.  Parties to mediation.  A mediator shall include in the mediation process under 
this section any person the mediator determines is necessary for effective mediation. 
Mediation and appearance in person is are mandatory for: 
A.  The mortgagee, who has the authority to agree to a proposed settlement, loan 
modification or dismissal of the action, except that the mortgagee may participate by 
telephone or electronic means as long as that mortgagee is represented with authority 
to agree to a proposed settlement; and 
B.  The defendant;. 
C.  Counsel for the plaintiff; and 
D.  Counsel for the defendant, if represented. 
Counsel for the plaintiff and counsel for the defendant, if the defendant is represented, 
may appear in the mediation. 
Sec. 8.  14 MRSA §6321-A, sub-§12, as enacted by PL 2009, c. 402, §18, is 
amended to read: 
12.  Good faith effort.  Each party and each party's attorney, if any, must be present 
at mediation as required by this section and shall make a good faith effort to mediate all 
issues.  If any party or attorney fails to attend or to make a good faith effort to mediate, 
the court may impose appropriate sanctions.  An attorney who attends mediation shall 
make a good faith effort to mediate.  The court may impose appropriate sanctions on an 
attorney who attends but fails to make a good faith effort to mediate. 
SUMMARY 
This bill makes several changes to the foreclosure mediation program. 
First, it makes the mediation program mandatory for all parties when a plaintiff 
commences an action for the foreclosure of an owner-occupied residential property of no 
more than 4 units that is the primary residence of the owner-occupant. 
Second, it requires the mediation to start not more than 90 days after the defendant 
receives the foreclosure complaint.  The bill requires the plaintiff to notify the Supreme 
Judicial Court when the defendant has received the complaint, at which time the court 
will refer the parties to mediation.  The court is required to notify the parties of the 
referral to mediation, and the mediation must then be scheduled to begin within 90 days 
from the date the complaint was received by the defendant. 
Third, the bill requires the cost of mediation to be paid equally by the plaintiff and the 
defendant.  Currently, the plaintiff pays for mediation services. 
Fourth, the bill eliminates the requirement that the attorneys for the plaintiff and the 
defendant, if the defendant is represented, attend the mediation.  A party's attorney may 
attend mediation, and an attorney in attendance is required to mediate in good faith and is 
subject to appropriate sanctions for failing to mediate in good faith.