Section 230-RICR-40-10-4.5 - RequirementsA. 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 § 34-27-9 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.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 § 34-27-9(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 §§ 34-27-9 (d)(1), (d)(4)(ii) 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. Notwithstanding any other provisions of R.I. Gen. Laws § 34-27-9, where a Mortgagor and Mortgagee have entered into a written agreement and 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 § 34-27-9 shall not apply to any foreclosure initiated under this Chapter within twelve (12) months following the date of the Eligible Workout Agreement. In such case, the Mortgagee shall include in the foreclosure deed an affidavit establishing its right to proceed under R.I. Gen. Laws § 34-27-9.6. Notwithstanding the provisions of R.I. Gen. Laws § 34-27-9 and this Part, a Mortgagee may initiate a judicial foreclosure in accordance with R.I. Gen. Laws Chapter 34-27-1.B. Exemptions 1. The following Mortgages are exempt from the provision of this Part. For such Mortgages, Mortgagees may submit the form provided in a bulletin issued by the Department for that purpose as evidence of compliance with R.I. Gen. Laws § 34-27-9. a. Mortgages on which the date of default under the mortgage is on or before May 16, 2013.b. Mortgages made and serviced by any entity qualifying as a Locally-based Mortgagee. Any Mortgagee seeking clarification regarding its status as a "Locally-Based Mortgagee" for purposes of meeting the requirements of this Part may contact the Department of Business Regulation with a detailed written description of its operations specifically with regard to: the location of its Headquarters, the location and description of its mortgage operations including the acceptance and processing of mortgage payments and local customer service and loss mitigation, and the identification of Rhode Island staff with the authority to approve loan restructuring and other loss mitigation strategies.c. Reverse Mortgages as described in R.I. Gen. Laws § 34-25.1-1.C. Any Mortgagee subject to this Part and supervision by the Division must maintain a duplicate of the Notice of Mediation Conference including information regarding delivery in Individual Consumer Mortgagor's file consistent with the Division's record-keeping requirements.D. If the Mortgagee decides to send a "substantially similar" document there shall be no changes to the wording, font or information required by the forms for "Notice of Pending Foreclosure" and "Notice of Mediation Conference" provided in a bulletin issued by the Department for that purpose. "Substantially similar" only allows the Mortgagee to put the notice on its own letterhead or insert a logo and to add information required by federal laws such as the Fair Credit Reporting Act on the same form as the Disclosure.E. Mortgagees may provide contact information for a dedicated customer service group as authorized representative so long as the consumer can obtain the required information from the contact information given.F. All Mortgagees are required to comply with R.I. Gen. Laws § 34-27-9 no later than September 14, 2013.230 R.I. Code R. 230-RICR-40-10-4.5
Amended effective 10/15/2024