ADVERTISEMENT

ADVERTISEMENT

Bill on foreclosure mediation clears Senate panel

Associated Press

ST. PAUL — A bill that would offer struggling homeowners mediation with their lenders has cleared a state Senate panel.

The Homestead-Lender Mediation Act is designed to help more people avoid foreclosure by giving them a chance to modify their mortgages or refinance.

But several representatives of the banking industry on Tuesday told the Senate Commerce and Consumer Protection Committee that the bill could end up restricting the flow of credit in the state and could possibly lengthen the foreclosure process.

They also pointed to President Barack Obama’s plan that provides incentives for lenders to work with homeowners to modify mortgages.

ADVERTISEMENT

But Sen. Linda Scheid, a Democrat from Brooklyn Park, says her bill would add teeth by forcing lenders to offer mediation before starting the foreclosure process.

What To Read Next
Caitlin and Jason Keck’s two-year term on the American Farm Bureau Federation committee begins next month.
The Minnesota Public Utilities Commission met on Jan. 5, 2023, to consider the application for Summit Carbon Solutions.
Qualified Minnesota farmers will receive dollar-for-dollar matching money to purchase farmland.
Wanda Patsche, new Farm Camp director, has farmed with her husband near I-90 in southern Minnesota since the 1970s and shares her passion for farming on her blog.