HB 205

1	A bill to be entitled
2	An act relating to mortgage foreclosure diversion pilot
3	programs; providing legislative intent; authorizing each
4	judicial circuit to establish a mortgage foreclosure
5	diversion pilot program; providing for construction with
6	other laws; providing for applicable rules of practice and
7	procedure; requiring when such a mortgage foreclosure
8	diversion pilot program exists, a conciliation conference
9	must be held before an order of foreclosure may issue in a
10	foreclosure proceeding concerning an owner-occupied
11	residential property; prescribing a time period in which
12	such a conference must be held; specifying items that may
13	be included in the order for such a conference; providing
14	for a person to preside over such a conference; specifying
15	issues that must be addressed in such a conference;
16	specifying consequences if a defendant fails to attend the
17	mandatory conciliation conference; providing for
18	termination of pilot programs and repeal of provisions;
19	providing legislative intent concerning construction of
20	provisions with regard to the constitutional prerogatives
21	of the judiciary; providing an effective date.
22
23	Be It Enacted by the Legislature of the State of Florida:
24
25	Section 1.  (1)  The intent of the Legislature is to
26	provide for a mortgage foreclosure diversion pilot program in
27	each judicial circuit if implemented by the chief judge of that
28	circuit. Such programs would be implemented in an effort to
29	reduce foreclosures on owner-occupied residential properties by
30	encouraging the restructuring of loans to allow borrowers to
31	resume regular payments and thus to allow Floridians to remain
32	in their homes, while protecting the interests of lenders. In
33	addition, the Legislature recognizes that the foreclosure of
34	large numbers of residential properties in an area has a
35	negative effect on the value of all residential properties in
36	that area, with negative consequences for property owners, local
37	governments, and the state as a whole.
38	(2)  Each judicial circuit may establish a mortgage
39	foreclosure diversion pilot program as provided in this section.
40	The provisions of this section shall prevail to the extent that
41	they conflict with any other provisions of law. All proceedings
42	provided for under this section shall be governed by the
43	applicable rules of practice and procedure in the courts of this
44	state.
45	(3)(a)  In a judicial circuit in which a mortgage
46	foreclosure diversion pilot program exists, after a complaint in
47	a foreclosure proceeding has been filed concerning an owner-
48	occupied residential property, a conciliation conference must be
49	held before an order of foreclosure may issue. A case management
50	order shall schedule such a conference to be held within 45 days
51	of the filing of the complaint.
52	(b)  A case management order for a conciliation conference
53	shall include all necessary and appropriate terms and may
54	include, but is not limited to, the following:
55	1.  The time, date, and location of the conference.
56	2.  A requirement that the mortgagee and the mortgagor or
57	their representatives attend.
58	3.  A requirement that the defendant, immediately upon
59	receipt of the case management order, contact a housing
60	counseling agency approved by the United States Department of
61	Housing and Urban Development serving the area in which the
62	property is located.
63	4.  A requirement that the defendant cooperate with the
64	housing counseling agency, including providing it with requested
65	financial and employment information and completing any loan
66	resolution proposals and applications.
67	5.  A requirement that the defendant exchange the
68	information he or she provided in subparagraph 4. with the
69	plaintiff or plaintiff's representative, as appropriate.
70	6.  A provision allowing for the service of any motions
71	necessary for entry of a default judgment, but delaying the
72	entry of such a judgment until after the date of the
73	conciliation conference.
74	(4)(a)  As appropriate, the conciliation conference may be
75	presided over by a judge of the court in which the foreclosure
76	action has been filed, a case manager, or another person
77	designated by the court.
78	(b)  The following issues shall be addressed in the
79	conciliation conference:
80	1.  Whether the defendant is represented by counsel and, if
81	not represented, whether volunteer counsel may be obtained.
82	2.  Whether the defendant met with and cooperated with the
83	housing counseling agency as required.
84	3.  Whether the housing counseling agency has prepared an
85	assessment or report providing an available loan work-out
86	arrangement for the defendant.
87	4.  The defendant's income and expense information.
88	5.  The defendant's employment status.
89	6.  The defendant's qualifications for any of the available
90	loan work-out arrangements.
91	7.  The necessity for and availability of assistance with
92	the preparation of loan work-out plans and required court
93	orders, as appropriate.
94	8.  The necessity of a subsequent conference.
95	9.  If there is no prospect of an amicable resolution,
96	whether the case may proceed to foreclosure.
97	10.  Any other relevant issue.
98	(c)  At the conclusion of the conciliation conference, an
99	appropriate order may issue memorializing the results of the
100	conference.
101	(5)  If the defendant fails to attend the mandatory
102	conciliation conference, the requirement for a conference
103	required by this section shall be deemed satisfied upon
104	verification that the required notice was served and an order
105	may be issued authorizing the plaintiff to proceed.
106	(6)  All mortgage foreclosure diversion pilot programs
107	shall terminate on December 31, 2010, and this section shall be
108	repealed on that date.
109	Section 2.  It is the intent of this act and the
110	Legislature to accord the utmost comity and respect to the
111	constitutional prerogatives of the judiciary of this state, and
112	nothing in this act should be construed as an effort to impinge
113	upon those prerogatives. To that end, if the Florida Supreme
114	Court enters a final judgment concluding or declaring that any
115	provision of this act is deemed to improperly encroach upon the
116	authority of the Florida Supreme Court to determine the rules of
117	practice and procedure in the courts of this state, the
118	Legislature intends that such provision be construed as a
119	request for rule change pursuant to Section 2, Article V of the
120	State Constitution and not as a mandatory legislative directive.
121	Section 3.  This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.