(3) “Good faith” means that the mortgagor and mortgagee deal honestly and fairly with
the mediation coordinator with an intent to determine whether an alternative to foreclosure
is economically feasible for the mortgagor and mortgagee, as evidenced by some or
all of the following factors:
(i) Mortgagee provided notice as required by this section;
(ii) Mortgagee designated an agent to participate in the mediation conference on its behalf
and with the authority to agree to a work-out agreement on its behalf;
(iii) Mortgagee made reasonable efforts to respond in a timely manner to requests for information
from the mediation coordinator, mortgagor, or counselor assisting the mortgagor;
(iv) Mortgagee declined to accept the mortgagor’s work-out proposal, if any, and the mortgagee
provided a detailed statement, in writing, of its reasons for rejecting the proposal;
(v) Where a mortgagee declined to accept the mortgagor’s work-out proposal, the mortgagee
offered, in writing, to enter into an alternative work-out/disposition resolution
proposal that would result in net financial benefit to the mortgagor as compared to
the terms of the mortgage.
(4) “HUD” means the United States Department of Housing and Urban Development and any
successor to such department.
(5) “Mediation conference” means a conference involving the mortgagee and mortgagor, coordinated
and facilitated by a mediation coordinator whose purpose is to determine whether an
alternative to foreclosure is economically feasible to both the mortgagee and the
mortgagor, and if it is determined that an alternative to foreclosure is economically
feasible, to facilitate a loan workout or other solution in an effort to avoid foreclosure.