Florida has ended its foreclosure mediation program begun in 2009. The state Supreme Court scuttled the program because it was only settling 4% of the cases. It appears the program had lots of problems, including a failure to contact borrowers and a resistance by lenders to participate actively. What else is new? The legislatures and courts who like mediation because they think it will reduce judicial case loads also think they should get it for free. And the reality is that no foreclosure mediation process can work miracles because the banks simply don’t have enough incentive to cut deals with borrowers.
So this development is probably of limited importance, both for the mediation field and for mortgage debt crisis.