Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 40 - Banking › Subchapter 10 - Lending › Part 4 - Mortgage Foreclosure Disclosure › Section 230-RICR-40-10-4.5 - Requirements

Current through June 14, 2024
A. In addition to any other notice or
				  disclosure required under federal or state law, the Mortgagee shall provide the
				  Notice of Mediation Conference to the Mortgagor of the Residential Real Estate
				  at issue consistent with the requirements of R.I. Gen. Laws §
										34-27-3.2 as follows:
1. The written Notice of Mediation Conference
				  must be provided to all Mortgagors of the Residential Real Estate prior to
				  initiation of foreclosure of real estate pursuant to R.I. Gen. Laws §
											34-27-4(b) at the
				  address of the Residential Real Estate and, if different, at the address
				  designated by the Individual Consumer Mortgagor by written notice to the
				  Mortgagee as the consumer Mortgagor's address for receipt of notices. Notice
				  addressed and delivered as provided in this section shall be effective with
				  respect to the Mortgagor and any heir or devisee of the Mortgagor. A copy of
				  the Notice of Mediation Conference shall also be sent by mail to the Mediation
				  Coordinator, along with contact information for a single mortgagee point of
				  contact to handle all communications with the mediation coordinator so that the
				  Mediation Coordinator may commence the Mediation process by contacting the
				  Mortgagor. The sixty (60) day timeline for scheduling the Mediation Conference
				  shall begin when a Notice of Mediation Conference, single point of contact
				  information for the Mortgagee, and payment for initiating the mediation process
				  has been received by the Mediation Coordinator. The Mortgagee may contact the
				  Mediation Coordinator to obtain information on the Mediation Coordinator's
				  procedures for Mediation.
2. If the
				  Mortgagors and/or Owners reside at the same address they may be sent the Notice
				  of Mediation Conference as one notice to listing all Mortgagors and/or Owners.
				  If the Mortgagors and/or Owners reside at different addresses, then separate
				  Notices of Mediation Conference (listing each Mortgagor and/or Owner
				  separately) shall be mailed to each Mortgagor and/or Owner at their respective
				  address. Any issues regarding mailing, addresses, and difficulty in reaching
				  all interested parties shall be communicated to the Mediation Coordinator by
				  the Mortgagee.
3. The Mortgagee
				  must designate an agent to participate in the Mediation Conference and respond
				  to all requests from the Mediation Coordinator, Mortgagor, or counselor
				  assisting the Mortgagor within a Reasonable Time not to exceed 14
				  days.
4. If the Mortgagee declines
				  to accept the Mortgagor's Workout Agreement, if any, the Mortgagee must provide
				  a detailed statement documenting the reasons for rejecting the proposal within
				  14 days.
5. Pursuant to R.I. Gen.
				  Laws §
											34-27-3.2(i), if
				  the Mortgagee and Mortgagor reach agreement after the Notice of Mediation
				  Conference is sent to the Mortgagor, but without the assistance of the
				  Mediation Coordinator, the Mortgagee shall provide a copy of the written
				  agreement to the Mediation Coordinator. Upon receipt of a written agreement
				  between the Mortgagee and Mortgagor and payment of all fees and penalties
				  required under R.I. Gen. Laws §§
											34-27-3.2(d)(1) and
				  (f), the Mediation Coordinator shall issue a
				  certificate of eligible workout agreement, if the workout agreement would
				  result in a net financial benefit to the Mortgagor as compared to the terms of
				  the original Mortgage ("Certificate of Eligible Workout Agreement") in the
				  format provided in a bulletin issued by the Department for that purpose.. For
				  purposes of this subsection, evidence of an agreement shall include, but not be
				  limited to, evidence of agreement by both mortgagee and mortgagor to the terms
				  of a short sale or a deed in lieu of foreclosure, regardless of whether said
				  short sale or deed in lieu of foreclosure is subsequently completed. Where the
				  Mediation Coordinator has issued a Certificate of Eligible Workout Agreement if
				  the Mortgagor fails to fulfill his or her obligations under the Eligible
				  Workout Agreement, the provisions of R.I. Gen. Laws §
											34-27-3.2 shall not apply to any
				  foreclosure initiated under this chapter within twelve (12) months following
				  the date of the Eligible Workout Agreement.
6. Notwithstanding the provisions of R.I.
				  Gen. Laws §
											34-27-3.2 and this Part, a
				  Mortgagee may initiate a judicial foreclosure in accordance with R.I. Gen. Laws
				  Chapter 34-27.