Up to 4.2 million wronged foreclosure victims can anticipate cash payments or other compensation from a “paying agent” who will help determine precise eligibility and contact homeowners by the end of March with an update.
But borrowers that are part of the nearly $9.3 billion settlement in the previously-labeled Independent Foreclosure Review cannot appeal their compensation amount, according to a recently updated FAQs web page for the settlement.
“The payment amount is final, and there is no appeal process of the compensation payment amounts distributed to you as a result of the Independent Foreclosure Review settlement,” according to bank regulators.
However, any settlement amount does not prevent a borrower from taking any action against the mortgage servicer. Simply said: You’ll have to hire a lawyer and sue.
“Borrowers will not be required to execute a waiver of any legal claims they may have against their servicer as a condition for receiving payment,” according the Office of the Comptroller of the Currency, one of the lead regulators in overseeing the settlement.
Thirteen banks have agreed to provide more than $9.3 billion in cash payments and other assistance to help borrowers, under the settlement. The sum includes $3.6 billion in direct cash payments to eligible borrowers and $5.7 billion in other foreclosure prevention assistance, such as loan modifications and forgiveness of deficiency judgments.
But critics of the deal contend there is no way to measure if compensation is fair because the degree of wrongdoing by the mortgage servicers may never come to light with the end of the review process.
The settlements spells the end of the reviews of foreclosure actions taken in 2009 and 2010 by the following banks: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.
There are three mortgage servicers not participating in the Independent Foreclosure Review Settlement: Ally, EverBank, and OneWest. The independent consultants retained by these servicers continue with the review process.
Here’s another important Q&A from the OCC web page:
How much will I receive as a result of the Independent Foreclosure Review settlement?
The Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System are in the process of determining compensation amounts. After the compensation amounts have been determined, the agencies will make information about the distribution plan publicly available. Please continue to regularly check the Office of the Comptroller of the Currency’s Web site, www.occ.gov, and the Board of Governors of the Federal Reserve System’s Web site, www.federalreserve.gov, for additional details regarding compensation amounts.