IN THE CIRCUIT COURT         TWENTIETH JUDICIAL COURT       FORECLOSURE MEDIATION PROGRAM RULES         PURPOSE:   The Foreclosure Mediation Program (Program) is designed to alleviate the burden of                         costs and expenses to lenders, borrowers and taxpayers caused by residential mortgage                         foreclosures. The Program aims to keep families in homes and prevent vacant and                           abandoned   homes   that   negatively   impact   property   values   and   destabilize   neighborhoods. The Program also promotes greater efficiency in the administration of                       justice by reducing the backlog of court cases in the lengthy foreclosure process.                           ACTIONS ELIGIBLE FOR MEDIATION:         The Program is mandatory and limited to owner occupied residential property that               -         serves as the homeowner's primary residence. Foreclosures of non residential,                 -   investment, or commercial properties are not eligible for the Program.                     EFFECT OF THE PROGRAM RULES ON PENDING COURT CASE:                   The borrower must file an answer and appearance in the foreclosure action if he or she                                 wishes to litigate the case. The borrower does not have to file an answer and                                appearance to participate in the mandatory mediation program. No dispositive motions,                        including motion for default judgment, shall be allowed until mediation is completed. In                           addition, unless otherwise ordered by the court, no discovery shall take place until after                             the mediation is complete. If the case is subject to mandatory mediation, both parties                             are required to submit documents and provide information necessary for the mediation                         process and required by the mediation rules.               If a borrower fails to appear for the Initial Intake Conference for mandatory mediation,                             all motions shall be allowed, including but not limited to, a motion for default judgment.                                 The court retains jurisdiction to hear any and all motions relevant to mediation.                           MEDIATION PROCEDURE:     1) ADMINISTRATION OF PROGRAM/KEY COURT PERSONNEL:           The Mediation Program will be managed by an Administrator. The Administrator refers                         to an individual or organization funded to oversee the project, or if no such person                               exists, to the Circuit Clerk.               = Page 1 = 2) GRANT FUNDING AND FILING FEES:           Funding has been secured from the Attorney General to provide mediator fees and                           administrative fees for a period of three years. The start date of the grant is 05/01/2013.                                 A) FILING FEES:     The effective date of the increased filing fee will be upon notification by the Illinois                               Supreme Court that these Rules have been adopted. As of 07/01/2013, the base filing fee                               is $302.00, plus an additional $50.00 fee to fund the Foreclosure Prevention Program                           Fund. There is a second fee, ranging from $50.00, $250.00, or $500.00 pursuant to 735                               ILCS 5/15/1504.1 Thus, the total filing fee would range from $402.00 to $852.00. The                             additional $100.00 filing fee would raise the overall filing fee range to a range of $502.00                                 to $952.00.       B) MEDIATORS' FEES:     Combined funding from grant funds and additional filing fees: The Attorney General                         grant will fund 100 cases for mediation per grant year, at $250.00 per case mediated. As                                 there are approximately 1000 foreclosures filed in St. Clair County each year, additional                           funding must be available to ensure all homeowners opting into the programs can have                             their case mediated. To ensure continuation of mediators' fees after 100 mediations                         have been heard, in counties where the program is implemented, the Circuit Clerk shall                             charge an additional $100.00 filing fee on residential foreclosure filings. Any unused fees                           will be kept in reserve to supplement the 100 mediations for each remaining year of the                                 grant. After the completion of the grant, remaining funds will be used to independently                             fund the mediation program.         C) ADMINISTRATION COSTS:     The Attorney General grant will fund the Administration/Mediation Coordinator position                     for a period of three years. To ensure sustainability of the administration for this position                               after the grant expires, it is the intent of the program that any reserves from the                                 additional $100.00 filing fee on complaints filed to foreclose a real estate mortgage, will                             be used to support the cost of administration.                 3) COMPLAINT AND SUMMONS :           COMPLAINT AND ATTACHMENTS:       The Complaint shall clearly designate whether the case is subject to mediation. Beneath                           the caption title “Complaint”, the plaintiff shall include “Subject to Mandatory                       Mediation” or “Not Subject to Mandatory Mediation”. All homeowner occupied                  -   residential foreclosures are subject to mandatory mediation.                After the foreclosure complaint is filed, the homeowner is served with the summons,                           notice of mandatory mediation and the foreclosure mediation program initial                     questionnaire. The notice of mandatory mediation shall: advise the borrower to bring                            = Page 2 = certain documents to the Initial Intake Conference; contain a list of housing counselors                           certified by the Housing and Urban Development that may be available to assist the                             borrowers in foreclosure; advise the borrower of free legal assistance in the area,                           specifically, Land of Lincoln Legal Assistance Foundation; and advise the borrower that a                           language interpreter is available without cost upon contacting the Administrator.                     In cases subject to mandatory mediation, in addition to the forms required by the Illinois                               Supreme Court Rules, plaintiff shall use the following forms: Summons (Exhibit A), Notice                           of Mandatory Mediation (Exhibit B), and Foreclosure Program Initial Questionnaire                     (Exhibit C).      SUMMONS:   In all mandatory mediation cases, the plaintiff shall select a date and time for the Initial                                 Intake Conference from a list of dates issued by the Circuit Court, to be included in the                                   Summons. The date shall be at least thirty (30) days from the issuance of the Summons.                                    If service is by Publication, the plaintiff shall pick a date from the Circuit Court list at least                                     sixty (60) days from the date of first publication.                     The Circuit Clerk will set the case to the Initial Intake Conference calendar on the date                                 selected on the summons or the affidavit for publication, both of which shall contain an                               Initial Intake Conference date.          Where there is more than one homeowner subject to the mortgage, and at least                             one of the homeowners appears at the initial intake conference, the Mediation                         Administrator (Administrator) shall accept the case into the Program, which shall                       include each homeowner subject to the mortgage.               4)   REQUIRED DOCUMENTS TO BE PROVIDED AT THE INITIAL INTAKE CONFERENCE AND                       PRE MEDIATION CONFERENCES: -         Initial Intake Conference         The lender or its representative shall provide the following at or before the initial                             intake conference:     The lender’s current loan modification packet and information on the loan. The                         plaintiff may mail an assistance packet directly to the homeowner and send a                           copy to the Administrator, or the plaintiff may send an assistance packet to the                             Administrator to provide to the homeowner at the Initial Intake Conference. The                         plaintiff will provide a list of supporting documents and the plaintiff counsel's                         information for submissions by email or mail. The plaintiff shall notify the                         Administrator who is the owner of the loan and if there are any issues that                               prevent a loan modification or non retention option.           -         = Page 3 =   Pre Mediation Conference -       The lender or its representative shall provide the following at the first pre                         - mediation conference:     A) Proof of the Plaintiff's standing to file the foreclosure;                   B) Proof of the mortgage holder's standing and status as the real party in                           interest;   C) Any pooling and servicing agreement;           D) Loan origination documents;       E) Appraisal at the time of the loan origination and any subsequent appraisal;                         F) Payment history records with respect to the mortgage, including all fees and                         costs incurred;      G) An itemization of the amounts needed to cure and payoff the mortgage.                            The homeowner shall provide the following at the first pre mediation                   -   conference:    Proof of income, e.g. pay stubs or benefit statements.                     5) PURPOSE AND GOALS OF THE INITIAL INTAKE CONFERENCE, PRE MEDIATION                 -   CONFERENCES AND MEDIATION CONFERENCES:         The purpose of these conferences and the Program itself is to assist homeowners to                             reach mutually acceptable solutions with lenders regarding their homes. Solutions                     include but are not limited to a loan modification or other options that may be available                                 in lieu of foreclosure.         INITIAL INTAKE CONFERENCES:       The Circuit Clerk and the Administrator shall work together to compile a list of available                               dates for Initial Intake Conferences. The Circuit Clerk shall notify the Administrator when                            Initial Intake Conferences are scheduled.            The location of the Initial Intake Conferences will be included in the Summons and will be                                 held in the St. Clair County Courthouse Law Library, unless otherwise noted.                          The Initial Intake Conference will not count for the purposes of Rule 7's limitation on the                                 number of pre mediation conferences.     -     During the Initial Intake Conference, the homeowner and the Administrator will discuss                         options available for the borrower through the Program. If the homeowner(s) fails to                           attend the Initial Intake Conference and have been properly served under the mediation                           rule, the mediation case will be terminated. Homeowners who are currently in                         bankruptcy or are not residing in the residence of which the mortgage is being                             foreclosed cannot proceed with mediation. When possible, housing counseling and legal                       service agencies will be present to present information to the borrowers, screen the                             = Page 4 = homeowner to see if they qualify for the services the agency provides, and answer                             questions on the foreclosure process. If the Administrator believes a loan modification or                           dignified exit option is feasible, the Administrator shall give the assistance packet,                         provided by the plaintiff prior to the conference, to the homeowner if the homeowner                             does not have one, and the homeowner will be given time to submit the packet to the                                   plaintiffs’ counsel. The Administrator shall set a first pre mediation conference between                 -       the plaintiff, plaintiff counsel and the homeowner within 45 days of the Initial Intake                             Conference, and theAdministrator will send notice of the first pre mediation conference                   -     to the plaintiff and homeowner.             PRE MEDIATION CONFERENCES: -       At the first pre mediation conference, the lender will provide the homeowner with all       -                     the required documents as listed in the rules. The homeowner will provide the                           information available regarding proof of income, if any. If the defendant did not submit                             the assistance packet before the pre mediation conference, the mediation may be           -             terminated unless otherwise agreed to by the parties. The Administrator will inquire as                           to the status of the assistance packet. Additional pre mediation conferences to review                 -         the status of the case will be scheduled according to Rules 7, 8 and 9 or as agreed to by                                         the parties. The time period between pre mediation conferences will depend on the             -             options for which the defendant is being reviewed, which may include: a loan                           modification; a deed in lieu of foreclosure; a consent to a judgment waiving any                             deficiency judgment against the homeowner; a shortsale; or any other agreement or                         settlement resulting in a dignified exit from the residence.                   If the information provided by the borrower indicates a substantial loss of income so                             severe that a loan modification could not be feasible, and the homeowner desires to                             keep the house and will not accept another option resulting in a dignified exit from the                                 resident, the Administrator shall terminate the premediation and remand the case back                         to court.     As noted in Rules 10 and 12, it is not acceptable for a lender as a matter of the lender's                                         policies, to refuse to offer an option other than a loan modification or other workout. If a                                   lender refuses to offer another option, the Administrator will set the case for mediation.                             The mediator will inquire further, as to why another feasible option is not available.                             If a pre mediation conference results in a temporary agreement or a permanent     -                     agreement, the Administrator will not send the case to mediation, but follow the steps                             as outlined in Rule 11         .             = Page 5 = MEDIATION CONFERENCES:       A mediator can set subsequent mediation conferences 30 or 45 days apart, depending                           on the progress of mediation and the likelihood that the case will be resolved by                               mediation.     At any time during these conferences, the mediator may refer a borrower to a housing                               counseling agency, an organization providing mortgage assistance, lawyer referral                   agency, or the local legal aid office.                 6) PARTIES REQUIRED TO ATTEND INITIAL INTAKE, PRE MEDIATION AND MEDIATION             -       CONFERENCES:   The following persons must appear at the initial intake conference:                       The homeowner       The following persons must participate in the pre mediationand mediation               -     conferences:   The homeowner; and       The homeowner's attorney if any;           The lender; (in person or by telephone) and                 The lender's attorney with actual settlement authority.               Additional parties:     The mediator may include in the mediation any person the mediator                       determines would assist in the mediation.             7) NUMBER AND DURATION OF CONFERENCES:           There is a limit of two pre mediation conferences and two mediation conferences unless             -               one extension is granted as provided in these rules. Each conference is limited to two                               hours, but can be extended beyond the time limit if the mediator believes an agreement                               appears imminent.     8) CONTINUANCES:   Unless a temporary agreement has been reached as outlined in Rule 11, a party may,                               upon good cause shown, request a continuance of one pre mediation or one mediation.                   -         If a party is requesting a continuance, the request must be sent to all parties and the                                   Administrator. The Administrator will continue the conference and provide the parties                       and mediator (if applicable) with a new date.                 9) EXTENSION REQUEST BEYOND THE FOUR CONFERENCES:             Unless a temporary agreement has been reached as outlined in Rule 11, a party may for                                 good cause shown, request one extension of the conferences, resulting in a total of 5                                 = Page 6 = conferences. The party must support the request for extension with substantial facts                         that the mediator believes will result in a successful mediation.                     10) OBLIGATION TO MEDIATE IN GOOD FAITH:             Each mediation party or authorized representative of a mediation party shall                       make a good faith effort to mediate all issues, including production of all                           documents outlined in these rules to be produced.                 A mediation party shall cooperate with the Administrator and mediator to produce the                           information requested to permit the mediation process to function effectively.                     A good faith effort to mediate requires the lender to conduct the following loss                             mitigation analysis:     A) Evaluate the borrower(s) eligibility for alternatives to foreclosure, including                   but not limited to reinstatement, loan modification, forbearance, short sale,                     and deed in lieu of foreclosure.              B) Offer the borrower a loan modification at the best terms available for a loan                             modification if the borrower(s) is eligible for one.                 C) If the lender does not reach a loan modification with the borrower(s) during                           the mediation, the lender shall provide a written analysis of its position,                         demonstrating that the net present value of receiving payments pursuant to                       a modified mortgage loan is less than the anticipated net recovery following                         foreclosure.   D) If the lender rejects a proposed settlement that offers an alternative to the                           foreclosure other than a loan modification or other renegotiated terms of                       the residential mortgage that would result in a lower cost than foreclosure to                           the lender, the lender shall provide a written explanation for the rejection of                           the proposal.       11) TEMPORARY AND PERMANENT AGREEMENTS:           A temporary or permanent agreement may be reached during mediation. A temporary                         agreement may include, but is not limited to: a trial loan modification, a deferment                             agreement or a forbearance agreement. During this time, the mediation case remains                         pending, and is not remanded back to court.                 If a temporary agreement has been reached, and such agreement will result in a longer                               period between conferences than generally allowed by these rules, the parties can                         extend the mediation conference date out to a date that incorporates the end of the                               trial period. The Administrator or the mediator will file with the court notice that a                               temporary agreement has been reached, the terms of the agreement, and the date of                             the next conference.        If a permanent agreement is reached, a Summary of Agreement, outlining the terms of                             the agreement, shall be drafted by the mediator or the lender if the mediator directs.                                 = Page 7 = The agreement shall be signed by the homeowner, the homeowners attorney or                         representative, the lender, (an attorney can sign for the lender) the lender's attorney,                           and filed in the mediation file and with the court, as outlined in Rule 14.                                 12) FAILURE TO MEDIATE IN GOOD FAITH:                 Either mediation party will be deemed to not be acting in good faith if the party:                                 A) Fails to provide the information and documentation as required by                       these rules;      B) Fails to attend a pre mediation or mediation as scheduled by the           -               mediator.     A lender, and or the lender's attorney with actual settlement                     authority, will be deemed to not be acting in good faith if the lender:                             A) Fails to make a good faith effort to evaluate the borrower for a                           renegotiation of the terms of the residential mortgage, including a loan                       modification as outlined in these rules;             B) Fails to provide a written explanation of the rejection of any possible                         renegotiation of the terms of the loan;               C) Fails to make a good faith effort to evaluate the borrower for other                           alternatives available to the homeowner, such as deed in lieu or a short sale;                             or   D) Fails to provide a written explanation of the rejection of other possible                         alternatives available to the homeowner.           13) TERMINATION OF MEDIATION CONFERENCE:           A mediator may terminate the Mediation at any time during the mediation process for                             the following reasons:       A) A permanent agreement has been reached between the parties;                   B) In the mediator's opinion, no purpose would be served by continuing the                         Mediation; or     C)     A party has failed to mediate in good faith.                   14) REPORT TO THE COURT ATTHE TERMINATION OF MEDIATION:                   The Administrator or a mediator will file with the trial court a certificate indicating the                               following:   A) The parties came to a permanent agreement, and the nature of                         that agreement;      B) There is no purpose served by continuing with the Mediation; or                         C) A party did not mediate in good faith, and the nature of the failure to mediate                                   in good faith.         = Page 8 = 15) COURT STATUS DATE POST MEDIATION REPORT:The foreclosure case shall be set for                            a status date within 21 days after the Administrators Report or the mediator's report is                               submitted to the court. If the parties were able to reach an agreement through the                               mediation process, the foreclosure case shall be dismissed at the status date unless the                             agreement includes a trial modification.           A) If the agreement includes a trial modification, the court will retain                       jurisdiction and the case will be set for review at the end of the trial                               period. If a homeowner has successfully complied with all requirements                     for the modification or loss mitigation workout at the time of review, the                           foreclosure case shall be dismissed.           B) If the parties mediated in good faith but could not reach an agreement,                           and there is no purpose in continuing with mediation, the court shall issue                           an order terminating mediation and allowing litigation to go forward.                     C) If the mediation was terminated for failure to mediate in good faith, the                           court shall review the nature of the mediator's complaint. The court may                         order sanctions including but not limited to the following:                   The court may impose a fine against the lender, order the case back to                             mediation, order the terms of a settlement agreement to be honored,                       dismiss the foreclosure action against the homeowner, and/or waive all                     costs assessed by the lender against the borrower in the foreclosure                       action.   16) JUDICIAL REFERRAL TO MEDIATION AT ANY TIME PRIOR TO THE SALE OF THE                           RESIDENCE:    During the foreclosure case, if it comes to the court's attention that there are facts                               that warrant mediation, the court can stay the foreclosure proceedings further,                       and remand the case to the Program. Facts to consider may include:                         A) The homeowner had no opportunity to attend an Initial Intake Conference                       becauseservice by publication or personal service was before the                   implementation of the mediation program, as updated.               B) The homeowner has been working with the lender and has been placed in a                             loan modification, but the case has continued to move through the                       foreclosure process.     C) The homeowner has actively engaged the lender with the possibility of a                         loan modification, but has met with insurmountable barriers such as being                       advised the documents have been lost, misplaced, or not received.                     D) The homeowner now has income with which to enter into a loan                         modification.   E) Other circumstances the court find persuasive.                     = Page 9 = TRAINING OF JUDGES,       KEY COURT PERSONNEL AND VOLUNTEER MEDIATORS             1) JUDGES:   The Chief Judge shall select Associate and Circuit Judges to be trained in the                             Twentieth Judicial Court Foreclosure Mediation Program (Foreclosure Mediation                 Seminar).     2) ADMINISTRATION/KEY COURT PERSONNEL:       The Administrator shall review the Foreclosure Mediation Program Rules and will                       develop and implement a process for foreclosure mediation. After development and                       implementation, the Administrator will present on the relevant portion at the                       Foreclosure Mediation Seminar.       In addition, the Circuit Clerk shall assign individual clerks to attend the Foreclosure                           Mediation Seminar.     3) MEDIATORS:   Unless a retired judge or previously certified mediator, all individuals wanting to                         participate as mediators must attend a court approved mediation skills program to                         become certified. In addition, all individuals must attend the Foreclosure Mediation                       Seminar.   MEDIATORS   1) QUALIFICATIONS, APPOINTMENT, AND COMPENSATION:         Applicants shall be eligible for appointment to serve as mediators by filing with the                             Program Administrator an application form certifying the following:                 A) Is a retired judge, or;           B) Is a certified mediator in any Illinois Circuit Court mediation program or any                           federal mediation program, and;         C) Has attended a mandatory Foreclosure Mediation Seminar, and;                 D) Has read and is informed of the rules of Supreme Court relating to                           Mediation Programs, and the Foreclosure Mediation Program Rules of the                     Twentieth Judicial Circuit.       Each application must be reviewed and approved by the Chief Judge or his or her                               designee.     = Page 10 = The Administrator shall maintain an alphabetical list of persons qualified to serve as                           mediators who shall be assigned on a rotating basis.                   Mediators shall be compensated $250.00 for each case that is subject to mediation.                            Upon completion of the mediation process, the mediator will file a voucher with                           theAdministrator. The Administrator shall process the vouchers for payment to the                       mediators.     2) CONFIDENTIALITY:   Unless otherwise authorized by the parties, all oral or written communications made in                           the course of mediation, other than written agreements between the parties and                         documents filed of record, shall be exempt from discovery and shall be confidential and                             inadmissible as evidence in the underlying cause of action.                   3) IMMUNITY:   Any person approved to act as a mediator under these rules, while acting within the                               scope of his or her duties as a mediator, shall have judicial immunity in the same manner                                   and to the same extent as a judge in the State of Illinois, as provided in Illinois Supreme                                     Court Rule 99.       4) IMPARTIALITY:   A mediator shall conduct mediation in an impartial manner and avoid conduct that gives                             the appearance of partiality. Mediators shall not act with partiality or prejudice based on                             any participant's personal characteristics, background, values and beliefs, or any other                       reason. If at any time a mediator is unable to conduct mediation in an impartial manner,                                 the mediator shall withdraw.         5) CONFLICT OF INTEREST:         A mediator shall avoid a conflict of interest or the appearance of a conflict of interest                                 during the mediation process. A mediator shall not mediate a foreclosure case without                           both parties' consent if the mediator has any past or present personal or professional                             relationship with either party involved in the mediation that reasonably raises a question                           of a mediator's impartiality. A mediator shall disclose, as soon as possible, all actual and                               potential conflicts of interest that are reasonably known to the mediator and could                           reasonably be seen as raising a question about the mediator's impartiality. After                         disclosure, if all parties agree, the mediator may proceed with the mediation.                         CAPACITY TO PROVIDE LANGUAGE ASSISTANCE           For those individuals whose principal language is not English, or for individuals that are                             hearing impaired, the Judicial Case Coordinator will provide assistance using either local                         language interpreters, or level five certified deaf interpreters.                   = Page 11 = QUARTERLY AND ANNUAL REPORTING         TO THE ILLINOIS SUPREME COURT             The Administrator will capture specific case information on each residential foreclosure                       filed in St. Clair County. This information will include the number of homeowners that                             entered into the mediation program and the outcome of the mediation.                       The information will be submitted to the Supreme Court on a quarterly basis. The                             report is to be received by the 30th day following the month the quarter has ended.                                 An annual report will be submitted to the Supreme Court by the 31st day of January,                                 following the end of the previous fiscal year.                   = Page 12 =