Oregon Legislation: Mandatory Mediation Compromise to Emerge

UTA's Oregon lobbyists, Drew Hagadorn and Dave Fiskum, stalled legislation before the Oregon Senate Consumer Protection Committee that would make the foreclosure process even more complicated and risky for trustees. They now are working with the bill's proponents -- lenders and Senate leadership -- to craft an acceptable compromise.

As currently composed, Senate Bill 628, legislation sponsored by Oregon-based consumer advocacy groups, would thrust foreclosure trustees into a mandated mediation process with borrowers prior to a foreclosure sale. The bill also would require trustees to pay for the mediation process, in addition to mandating translation of mediation notices to all world languages.

Given strong industry opposition, the committee's chair, Sen. Suzanne Bonamici, (D-Beaverton), punted the bill to the Senate Rules Committee in advance of a key legislative deadline to keep the bill alive. Bonamici, who supports the bill in its original form, is negotiating with the bill's opponents at the behest of legislative leadership.

The negotiations appear headed toward a compromise that would replace the original bill with a watered down alternative aimed at enhancing mediation notice requirements to grantors. It also would include language allowing grantors to petition lenders for a modification of their loan. UTA board is working in concert with lenders to ensure that trustees are not adversely impacted.

The negotiations should be finalized during the first or second week of June.

UTA Kills Adverse Amendment, Negotiates a Win for Trustees

UTA lobbyists killed an amendment proposed by lobbyists for bidders that would have required trustees, at their own expense, to cover the cost of providing notice to speculative purchasers of foreclosed properties.

The amendment, which the proponents attempted to tack on to House Bill 3004, a measure unrelated to the bidders’ proposal, prompted negotiations between the bidders and the UTA. That produced a consensus amendment which allows trustees simply to post a true copy or a link to a true copy of an amended notice of sale on the trustee's web site or via mail, if the trustee prefers. In late May, the House Rules Committee approved the amendment to HB 3004 and the bill now is headed to the Oregon Senate.

The UTA also is exploring an additional amendment with the bidders that could be tacked onto HB 3004 in the Senate. If successful, the negotiations could result in limiting a trustee's liability in instances where a trustee must void a foreclosure sale.