Washington, DC – U.S. Senator Sheldon Whitehouse (D-RI) released the following statement today regarding Deutsche Bank’s decision to withdraw its appeal in its case challenging the legal authority of the Rhode Island Bankruptcy Court to run pre-trial foreclosure mediations:
“For Rhode Island homeowners who continue to fight against unfair foreclosures, this is good news,” said Whitehouse. “The Rhode Island bankruptcy court’s foreclosure mediation program helps distressed families cut through the red tape of our broken mortgage modification process and has already kept at least 120 Rhode Island families in their homes. I hope yesterday’s decision by Deutsche Bank will put an end to any further challenges to this program, and I will continue working to make sure Rhode Islanders are given every opportunity to avoid foreclosure.”
In January, U.S. Bankruptcy Court Judge Arthur N. Votolato ruled against Deutsche Bank’s case, upholding the Court’s authority to hold foreclosure mediations. While no settlement is required, the program brings together the homeowner and their mortgage company for a good faith negotiation. Deutsche Bank subsequently appealed the decision.
Whitehouse has introduced the Limiting Investor and Homeowner Loss in Foreclosure Act to clarify the authority of bankruptcy courts to run these programs and prevent future legal challenges. The bill was approved by the Senate Judiciary Committee in March, and is currently awaiting action by the full Senate.
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