Arbitration & Mediation

Mandatory Mediation Foreclosure Workout Bill Defeated

By Victoria Pynchon

On Friday, a proposed Facilitated Mortgage Workout Program quietly passed from the California legislative scene after its defeat the day before, three votes shy of passage. Although the bill's proponents thereafter won a short stay of execution, the law making body's failure to reconsider the bill by Friday's deadline made it dead on arrival.

Given the concerted opposition of the lending and banking industries, as well as by the national Chamber of Commerce, it is surprising that the margin of the defeat was so narrow, suggesting that many in this (and other state legislatures) are continuing to feel considerable  pressure from their constituents to take bolder action in response to the nationwide housing collapse -- a collapse that has been particularly severe in the Golden State after years of annual double-digit inflation in housing prices.

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Full post as published by Settle It Now Negotiation Blog on June 07, 2010 (boomark / email).