1. (a) The neutral's closing report shall indicate if the mortgagee or the owner-occupant failed to comply with requirements of the mortgage foreclosure dispute resolution program.

   1. (1) In the case of the mortgagee, failure to comply with the requirements of the program may consist of:

      1. (A) Participation in dispute resolution without the authority to negotiate a loan modification or without access at all stages of the dispute resolution process to a person who is so authorized;
      2. (B) Failure to provide the required information or documents;
      3. (C) Refusal to cooperate or participate in dispute resolution; or
      4. (D) Refusal or failure to pay program fees under section 667-79 in a timely manner.

   2. (2) In the case of the owner-occupant, failure to comply with the requirements of the program may consist of:

      1. (A) Failure to provide the required information or documents; or

      2. (B) Refusal to cooperate or participate in dispute resolution;

         provided that failure by the mortgagee and the owner-occupant to reach an agreement to resolve the dispute shall not constitute failure by the mortgagee or the owner-occupant to comply with the requirements of the mortgage foreclosure dispute resolution program.

2. (b) If the neutral determines that the noncompliance was unjustified as a result of circumstances within a party's control, sanctions may be imposed on the noncompliant party as follows:

   1. (1) Sanctions against a mortgagee for unjustified noncompliance with the program shall include a stay of the foreclosure under section 667-83 and a fine payable to the owner-occupant not to exceed $1,500; or
   2. (2) Sanctions against an owner-occupant for unjustified noncompliance with the program shall include a removal of the stay of the foreclosure pursuant to section 667-83(b) and a fine payable to the mortgagee not to exceed $1,500.

[L 2011, c 48, pt of §1, §45(2); am L 2012, c 182, §§46, 49]