Nevada Legislation Would Require Mandatory Mediation

Legislation has been introduced in the Nevada legislature that would require all foreclosures to be served a 60 day notice and give the trustor the authority to request mandatory mediation to negotiate a loan modification, at which the trustee is required to appear.  If a trustee does not attend the mediation with proper documents, such as a copy of the note, or authority, the judge would be allowed to modify the loan as he/she sees fit.  ‘Loan modification’ is not defined.  The bill only applies to high cost loans under the HOEPA Federal Act. 

“The authors of the legislation apparently are not aware that the trustee doesn’t hold a beneficial interest in the Note and Deed of Trust,” said Michael Brooks, Esq., of Jolley Urga Wirth Woodbury & Standish, a UTA Board member.  “This seems an unconstitutional taking and a violation of the contract clause.”

UTA will lobby against the legislation and work to defeat the bill.  “Right now, education is our task,” said Rande Johnsen, President of UTA.  “The bill is impractical, unreasonable, and quite honestly, indefensible.  Our task is to explain quickly why.”

A joint hearing was held on Wednesday, February 11th by the Assembly and Senate Commerce & Labor Committees.  Michael Brooks testified on behalf of UTA at the hearing.  Scott Sibley joined Michael at the hearing. Scott, a UTA member and former Nevada Assemblyman, has a good relationship with several of the bill’s sponsors.
Read AB 149

Read UTA’s testimony

Another bill, AB 140, would create an Office of the Ombudsman for Foreclosures in the state of Nevada.