The acts says:

(8) A violation of the duty to mediate in good faith as required
 under this section may include:
. . .

f) A request by a beneficiary that the borrower waive future
 claims he or she may have in connection with the deed of trust, as a
 condition of agreeing to a modification, except for rescission claims
 under the federal truth in lending act. Nothing in this section
 precludes a beneficiary from requesting that a borrower dismiss with
 prejudice any pending claims against the beneficiary, its agents, loan
 servicer, or trustee, arising from the underlying deed of trust, as a
condition of modification.


So now such an offer is made before the session (but after request and scheduling of the mediation) and rejected by borrowers explicitly because they do not wish to waive potential causes of action against bank. Beneficiary is not the bank.  (History given potentially supports several causes of action.)

So the offer is rejected and case comes to mediation. And this previous offer is discussed but borrower is informed that it has "been withdrawn" and no other offer or mod is forthcoming.

Query- is making such an offer before the session bad faith?

How to people see action that would be bad faith in a session being interpreted if they disappear at the time of mediation?

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