In a decision issued Friday, U.S. Bankruptcy Court Judge Arthur N. Votolato upheld the court’s right to establish a mediation program for homeowners facing foreclosure. Votolato implemented the program, called the loss mitigation program, in November 2009. It does not require lenders to issue loan modifications, but it requires them to engage in good-faith negotiations with borrowers who want to modify their mortgages. With the decision, Votolato overruled objections to the program filed by creditors in two bankruptcy cases. The creditors are PHH Mortgage Corp., doing business as PHH Mortgage Service Center, and Ocwen Loan Serving LLC as servicer of Deutsche Bank National Trust Co.