A restraining order that prevents St. Louis County from enforcing a new law that would require banks to offer mediation to homeowners facing foreclosure continues this week.
St. Louis County and bankers are in the midst of a legal battle over whether or not the county has the authority to enforce the ordinance.
No matter what happens in the court case, St. Louis City Mayor Francis Slay says the city should continue to push ahead with a similar law.
“Our attorneys are watching the court case, but in the end we’re going to be moving this forward,” Slay says. “We’re going to follow the law, and whatever happens in the court case may impact this, but we’re not going to let that deter us from going forward.”
Slay says requiring mediation before foreclosure will ensure banks take a closer look at each homeowner’s individual circumstances.
“We want to do everything we can to try to help people stay in their homes.” Slays says. “It’s good for families, it’s good for neighborhoods, it’s good for the economy, and most importantly it’s the right thing to do for people.”
Bankers, on the other hand, have long maintained that requiring mediation could hurt the availability of credit for home loans.
They’re ready for a fight, too.
The Missouri Bankers Association says it will sue the city if it moves forward with the mediation plan.