“Mediation is a joke,” said a Maryland Legal Aid client interviewed for a special msnbc.com investigative report on a new mediation law meant to forestall foreclosure in Maryland. A year after the law went into effect, fewer than 1,000 borrowers had applied for mediation, and just 56 borrowers had received a loan modification as of the end of May, said the report, “Mediation efforts fail to stem foreclosure tide.”
The report focused on Prince George’s County, where the market flew high in the boom years: “It’s where movers and shakers were going,” said Vicki Taitano, director of Maryland Legal Aid’s Foreclosure Legal Assistance Project. “People (were) really thinking like they were getting the American dream, establishing themselves.”
But the “combination of predatory loans and a weak economy have had a ‘rather lethal effect’ in Prince George’s County,” the report said, quoting the manager of systemic investigations for the National Community Reinvestment Coalition.
To read the report, click here.