The Federal court has set up a new plan for mediating Rhode Island’s extensive number of foreclosures, according to special master Merrill W. Sherman.  The report shows that in total, $4 million has already been paid by homeowners as fees to fight foreclosure.  This number covers the period between January 2012 and October 15, 2013, and currently, there are still 744 Rhode Island foreclosure cases still pending in the court. 

The legislation, however, has not been without controversy and debate.  Just last week, legal counsel representing a group of lenders affected by the program spoke out against the latest legislation involved in the Rhode Island mediation program.  Their specific concerns this time had to do with disputes between the court officials working to resolve the foreclosures and the bankers holding the mortgages.  They also voice concerns about the lack of time or monetary limits in the court. 

 According to a letter signed by Providence attorneys Maura K. McKelvey and Samuel C. Bodurtha, of Hinshaw & Culbertson, and David J. Pellegrino and Charles A. Lovell, of Partridge Snow & Hahn, “These defendants submit this objection out of their continuing concern for the absence of any temporal and monetary limitations set by this Court with respect to this mediation program since its inception.”

Representing lenders ranging from Fannie Mae to U.S. Bank and First Guaranty Mortgage Company, the lawyers who signed the letter also have expressed concerns about the amount of money paid to Merrill Sherman and her staff, who has handled 1,123 cases in the Rhode Island mediation program since its inception.