CIVIL RULE 5: LOAN MODIFICATION SETTLEMENT CONFERENCE (LMSC)
The Loan Modification Settlement Conference (LMSC) program is designed to facilitate faster resolution for alleged wrongful foreclosure cases. The LMSC program is available in any case wherein Plaintiff’s complaint is accompanied or followed by a Request for Temporary Restraining Order (TRO) to stop the sale of the Plaintiff’s home.
The Plaintiff will receive information from the Case Management judge about the Loan Modification Settlement Conference (LMSC) program at the initial application for temporary restraining order (TRO). Plaintiff is responsible for notifying Defendant of the LMSC program. The parties must stipulate to an LMSC within 15 days after the TRO hearing, or seven days before Preliminary Injunction hearing, whichever is later. If the parties stipulate, the judge will sign the LMSC stipulation (attached local form CV-5059 ), and the Preliminary Injunction hearing will be taken off calendar. If the LMSC stipulation is not timely filed, and signed by the judge, the Preliminary Injunction hearing will normally be held within 22 days of the TRO hearing.
When an LMSC stipulation is filed, foreclosure activity is stayed 90 days. A Readiness Conference will be set 30 days after the filing of the LMSC stipulation. Notice of the hearings will be mailed to all parties. The LMSC hearing date will be set on a Wednesday Mandatory Settlement Conference calendar. A specially assigned temporary judge will hear the case. The initial Case Management Conference will remain set at the date set 120 days after filing, or will be rescheduled for 90 days after the filing of the LMSC stipulation, whichever is later.
The case will be assigned to a specially trained LMSC temporary judge. The assignment will be made at the time the stipulation is filed (approximately 45 days prior to the LMSC) based on the LMSC neutrals’ availability. A letter of neutral assignment will be mailed to the parties, counsel and neutral. All parties will provide worksheet and other materials prepared for the LMSC to the assigned neutral at least 10 days in advance of the LMSC. LMSC materials will not be filed or lodged with the Court.
If a settlement is reached at the LMSC hearing, parties will sign a written agreement memorializing the terms of the settlement (attached local form CV-5060 ). Plaintiff will notify the Court of the settlement. The Court will set the case for Dismissal Review in 90 days to allow completion of the settlement. Once the settlement terms are performed, plaintiff will dismiss the case. If there is no settlement, parties will appear at the scheduled CMC and proceed with the lawsuit.