The “Independent Foreclosure Review” settlement’s paying agent “will send payments and correspondence” by the end of March, or within the next four weeks.
The paying agent is Rust Consulting, Inc.
But borrowers still don’t know the precise payment structure, except that the types of errors that occurred in foreclosures will place those eligible in 11 basic groups, covering wrongdoing from relatively minor to the very egregious.
Compensation ranges from hundreds of dollars up to $125,000.
U.S. bank regulators overseeing the $9.3 settlement reached in January today released amendments to their enforcement actions against 13 mortgage servicers “for deficient practices in mortgage loan servicing and foreclosure processing.”
The amendments officially require the servicers to provide $9.3 billion in payments and other assistance to borrowers, as previously announced.
The amendments “memorialize” agreements in principle announced in January with Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.
The amount includes $3.6 billion in cash payments and $5.7 billion in other assistance to borrowers, such as loan modifications and forgiveness of deficiency judgments.
Borrowers covered by the amendments include 4.2 million homeowners whose homes were in any stage of the foreclosure process in 2009 or 2010, and whose mortgages were serviced by one of these companies.
Borrowers are not required to take any additional steps to receive the payments. In addition, 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.
Borrowers can call the Paying Agent at 1-888-952-9105 to update their contact information or to verify that they are covered by the amendments.
The Office of the Comptroller of the Currency (OCC) said borrowers seeking assistance should work directly with their servicer or a counselor approved by the U.S. Department of Housing and Urban Development (HUD). Borrowers can reach HUD-approved counselors by calling 888-995-HOPE (4673).
OCC and Federal Reserve said: “examiners continue to monitor the servicers’ implementation of corrective actions required by the original enforcement actions to address unsafe and unsound mortgage servicing and foreclosure practices.”
Here are the consent order amendments released today:
- Consent Order Amendment for Aurora Bank, FSB (PDF)
- Consent Order Amendment for Bank of America (PDF)
- Consent Order Amendment for Citibank (PDF)
- Consent Order Amendment for HSBC Bank (PDF)
- Consent Order Amendment for JPMorgan Chase Bank, N.A. (PDF)
- Consent Order Amendment for MetLife Bank, N.A. (PDF)
- Consent Order Amendment for PNC Bank, N.A. (PDF)
- Consent Order Amendment for Sovereign Bank (PDF)
- Consent Order Amendment for U.S. Bank National Association, U.S. Bank National Association ND (PDF)
- Consent Order Amendment for Wells Fargo Bank, N.A. (PDF)