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» VISIT US ONLINE @ DSNEWS.COM 79 IN THE NEWS DBR proposes Mortgage Mediation Regulation amendments By Eva M. Massimino, Esq., Bendett & McHugh, PC e Rhode Island Department of Business Regulation has again proposed amendments to Banking Regulation 5 ("Reg. 5"). e proposed revisions would operate to make Reg. 5 more accurately mirror the text of RIGL 34-27-3.2. Specifically, the proposed amendments add in a carve out to allow 60 days for mailing of mediation notices after a loan is released from Servicemembers Civil Relief Act protections. e proposed amendments would also remove from Reg. 5 the exemption for loans on which the mortgagor was 120 days or more delinquent on or before September 12, 2013. e revision follows a 2014 revision to RIGL 34-27-3.2 which also eliminated the exemption for loans 120 days or more delinquent on or before September 12, 2013. e revision was further prompted by the May 15, 2015 Providence Superior Court decision in Fontaine v. US Bank National Association et al. In Fontaine, Judge Van Couyghen ruled that beginning on the effective date of the 2014 revision to RIGL 34-27-3.2 (October 6, 2014), a foreclosing Mortgagee must participate in mediation prior to foreclosure regardless of delinquency date. e statutory revision and the Fontaine decision had made it clear that Reg. 5 should be amended to remove the exemption for loans 120 days or more delinquent on or before September 12, 2013. e Reg. 5 revisions were set for public hearing on June 17, 2015 however, on that date, the Rhode Island Senate passed Bill 581 Sub A which would again revise RIGL 34-27-3.2 to re-introduce the exemption for mortgages with a default date on or before May 16, 2013. In light of this development, the public hearing for Reg. 5 revisions was held open for comment and will be heard again on July 8, 2015. On June 23, 2015 Bill 581 Sub B was passed by the House. Should the Bill be signed into law prior to July 8, 2015, the statutory revision would render the removal of the exemption for loans on which the mortgagor was 120 days or more delinquent on or before September 12, 2013 from Reg. 5 unnecessary. IN THE NEWS Chicago's Misguided Effort to Assist Renters has been Revised – Now it is worse! By Matthew C. Abad, Kluver & Platt e City Council amended the Chicago version of Protecting Tenants in Foreclosure (CPTFA) on April 8, 2015 with an effective date of August 5, 2015. e Council wanted to add timelines and obligations which were absent in the original ordinance. e amendment also adds some definitions as well as clarifies the treatment of illegal and unsafe dwelling units. ere are more questions now than there were before without answers. e four language notices are still required but must now be dated and include the phrase: You may go to the City of Chicago Department of Business Affairs and Consumer Protection's website for additional information regarding your rights and obligations under the Ordinance or pone the City of Chicago's 311 Service Center to file a complaint. e amendment requires that a Tenant In- formation Disclosure Form (which the Building Commissioner will promulgate on its website) be delivered with the Notices. e original Ordi- nance did not require the tenant to take any action in response to a Notice. e Amended CPTFA (KCR) requires that the tenant return the form within 21 days of receipt. ere is no mention, however, of whether the form must be completed, simply that it be returned. e tenant failure or refusal to return the completed form does not relieve owner of fulfilling its obligations under the ordinance to offer to either extend the lease or offer $10,600 in relocation funds. e Amend- ments define ILLEGAL and UNSAFE units and clarifies that an illegal apartment increases the owners liability. Now the owner must, make either an offer to pay the $10,600, extend the lease, or in the case of illegal/unsafe apartments, offer a rental agreement for a replacement unit within 21 days. It is the tenant option whether to accept the new unit or demand the $10,600. Vermont RANK: 11 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 1.45% 1.96% 3.6 YEAR AGO 1.77% 2.61% 4 YEAR-OVER-YEAR CHANGE -17.7% -25.0% -0.4 Top County GRAND ISLE COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.80% 4.57% YEAR AGO 2.36% 5.54% YEAR-OVER-YEAR CHANGE -23.7% -17.4% Top Core-Based Statistical Area RUTLAND, VT 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.97% 2.90% YEAR AGO 2.49% 3.89% YEAR-OVER-YEAR CHANGE -20.6% -25.4% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the March 2015 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary March 2015 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Illinois RANK: 14 90+ Day Foreclosure Unemployment Delinquency Rate Rate Rate APRIL 2015 1.90% 1.91% 6 YEAR AGO 2.43% 2.88% 7.4 YEAR-OVER-YEAR CHANGE -21.9% -33.6% -1.4 Top County PIKE COUNTY 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 1.79% 3.32% YEAR AGO 4.54% 1.00% YEAR-OVER-YEAR CHANGE -60.7% 232.8% Top Core-Based Statistical Area MACOMB, IL 90+ Day Foreclosure Delinquency Rate Rate APRIL 2015 3.06% 5.27% YEAR AGO 2.94% 5.04% YEAR-OVER-YEAR CHANGE 4.0% 4.5% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the March 2015 foreclosure rate. All fi gures are rounded to the nearest decimal. The unemployment rate refl ects preliminary March 2015 fi gures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. Illinois had the fourth-largest distressed sales share among states in April 2015 with 19.8 percent, according to CoreLogic. KNOW THIS

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