1. Mediating the American Dream: Marquette University Law School and the Milwaukee Foreclosure Mediation Program Professor Andrea K. Schneider and Adjunct Professor Natalie C. Fleury Marquette University Law School

2. Needs in Milwaukee Background 6,323 5,800 1,500 foreclosure filings in Milwaukee in 2009, up 11.7% from previous year. properties are currently subject to an open foreclosure filing. Milwaukee homes are currently bank owned foreclosures (REOs).

4. Milwaukee Foreclosure Partnership Initiative (MFPI) Created in September 2008 Partnership public-private Three workgroups— prevention, intervention and stabilization Charge… “Create a formal partnership that will formulate and implement coordinated policies and programs that effectively address the impact of the recent surge in mortgage foreclosures on our community as well as identify long term strategies and best practices that will prevent similar issues in the future.”

5. Milwaukee Foreclosure Mediation Program (MFMP) Marquette Law School in October 2008 Local directive in July 2009 requiring notice of mediation option attached to summons & complaint Full-time professional mediator and program coordinator

7. MFMP Applications (February 2, 2010) 574 Applications –45 ineligible –273 Accepted to mediation –87 Declined 53 declined, working directly 34 declined, other reasons –169 Pending acceptance

8. MFMP Settlement Results (February 2, 2010) 273 Accepted to mediation –48 Settled before mediation –23 Homeowner withdrawal –116 Pending 1 st or 2 nd session –86 Mediations completed

9. MFMP Mediation Results (February 2, 2010) 86 Mediations completed –59 Retentions –7 Transitions –12 No agreement –8 Post-mediation ongoing negotiation Total of 107 homeowners staying in the home.

10. Process Design—Participation Key stakeholders around the table Stakeholders help design and troubleshoot –Legal recourse –Housing counsel –Financial information sharing Joint funding from City & State Court buy-in with space & notice

11. Process Design—Suitability Is mediation the correct process? –Is this really mediation? Use of legal defenses Lenders learning to empathize Settlement opportunities –Before, during & after

12. Process Design— Process Accountability Do we need representation? Follow-up to check mediator neutrality Follow-up to see demographics

13. Process Design— Results Accountability Demographics Outcomes Representation Lender Etc.

14. Process Design—Fluidity Timing of payments When to calendar Need for two sessions Housing counselor Higher volume than expected

15. Process Design—Sustainability Actually not as much of an issue as program expiration is built in but…you never know

16. Process Design—Permeability Embedded into court system? Potential model for family mediation? Embedded into state court system & rapidly expanding

17. Mediating the American Dream: Marquette University Law School and the Milwaukee Foreclosure Mediation Program Professor Andrea K. Schneider andrea.schneider@marquette.edu Adjunct Professor Natalie C. Fleury natalie.fleury@marquette.edu