Federal judge in R.I. rules against banks seeking to halt foreclosure mediation process
The federal judge overseeing lawsuits challenging mortgage foreclosure proceedings across Rhode Island on Monday ruled against the finance companies seeking to halt a court-supervised mediation process.
U.S. District Court Judge John J. McConnell said the mediation process is "far along" and on the verge of getting the numerous sides to negotiate a settlement.
In August 2011, McConnell ordered a stay in the more than 60 cases challenging foreclosures, and in January of this year appointed former banker Merrill W. Sherman as special master to mediate a settlement. Banks challenged her appointment on a number of grounds, including that their due process rights were violated.