Mediation Program for Distressed Homeowners: Non-Judicial Foreclosure States (2022) creates a state-run mediation process prior to a foreclosure. Prior to any foreclosure, the consumer and the state mediation agency must receive a detailed notice concerning a defaulted home mortgage. After the notice is sent and until a mediator’s report, no fees can be assessed, or a foreclosure initiated. The state agency initiates the mediation process requiring the parties to come to mediation with specified information.
Model Statute
The Model State Consumer & Employment Justice Enforcement Act (2017) includes 10 titles setting out state law provisions that are not preempted by the Federal Arbitration Act and that limit selected abuses related to mandatory arbitration requirements:
Model Statute of Limitations Reform Act (2015) establishes a three-year limitations period for collection of consumer debt, irrespective of the applicable cause of action. A debt is extinguished after that period, and a payment or affirmation of the debt does not extend the limitations period, and a contractual choice of law cannot extend the period. A five-year limitations period Is set for actions upon a judgment against the consumer.
Model Consumer Amendments to Uniform Wage Garnishment Act (2017). The Uniform Law Commission has adopted a Uniform Wage Garnishment Act setting out state law protections from wage garnishment. This NCLC model law provides consumer amendments to that law. Wage garnishment is generally prohibited except for specified types of debts, and then the model amendments protect 60 times the hourly minimum wage and also any funds necessary for the support of the judgment debtor or the judgment debtor’s family.
The Model Family Financial Protection Act (Rev. Nov. 2023) has two titles—the first deals with consumer contract and collection protections and the second with property exempt from creditors. Among other provisions, the first title limits terms that can be found in consumer form contracts, establishes verification and disclosure requirements for debt collectors, limits collector recording of calls with consumers, and restricts imprisonment for debt.
Model Medical Debt Protection Act (2024) replaces the 2019 model law. The 2024 version requires for-profit hospitals, ambulatory surgical centers outpatient clinics, and health care professionals working in those settings to adopt financial assistance policies and establish certain screening procedures. So would large health care practice groups.
The Model State Coerced Debt Law (May 2024) provides civil legal remedies for victims of coerced debt—debt that occurs when an abuser utilizes coercive control or identity theft to incur debt in the name of the victim. Under the model law, if a debtor provides a “statement of coerced debt” and “adequate documentation,” the creditor must take specific actions within a certain timeframe, such as ceasing debt collection attempts, dismissing collection lawsuits, and notifying consumer reporting agencies to delete information about the coerced debt.
Mortgage Servicer Duty of Good Faith (2023) establishes a duty of good faith for mortgage servicers. Violation of that duty can stay a foreclosure or declare a completed foreclosure sale void. Other private remedies are set out and limits on the consumer’s waiver of rights or remedies are restricted.
Model State Foreclosure Rescue Fraud Prevention Act (2008) sets out standards for when a purported absolute conveyance of title is in fact security for the performance of an obligation and deemed to be an equitable mortgage. All foreclosure rescue transactions (as defined) are equitable mortgages and disclosure must be made on any deed concerning the application of the Foreclosure Rescue Fraud Prevention Act. The model limits the enforceability of such a deed and provides rights and remedies for the homeowner to recover title to the property.
The Uniform Residential Landlord and Tenant Act (URLTA) was drafted by the Uniform Law
Commission (ULC) in 1972.
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