Independent Foreclosure Review. $3.3B Settlement Fund Awaits Payment Plan


Independent Foreclosure Review. $2.2B Settlement Fund Awaits Payment PlanRegulators should have a distribution plan finalized, or near ready, for more than $3.3 billion in a settlement fund earmarked for borrowers who were victims of improper foreclosure actions in 2009 and 2010, according to consent orders.

The regulators, the Office of the Comptroller Currency and the Federal Reserve, are working on a tight, self-imposed timetable, stating that eligible borrowers would be notified by the end of March.

According to the most recent OCC press release: “These borrowers are expected to be contacted by the Paying Agent—Rust Consulting, Inc.—by the end of March 2013 with payment details. The Paying Agent will send payments and correspondence.”

The settlement, which grew out of the failed Independent Foreclosure Review launched two years ago, will payout a total of $3.6 billion in cash payments and $5.7 billion in other assistance to borrowers, such as loan modifications and forgiveness of deficiency judgments.

The $3.3 billion marks the first phase of payments from 10 major lenders representing 13 mortgage servicers. Bank regulators set an immediate deadline of 15 days following the settlement’s consent decrees dated Feb. 28, 2013 for 10 lenders to fund the “Qualified Settlement Fund.”

The payments will be made based on a distribution plan developed by the two regulators.

Rust Consulting, Inc. has been retained by the mortgage servicers to distribute payments as directed by the regulators from the fund, and will serve as the “administrator” at the direction of the regulators.

The bulk of the money that was due by March 15 comes from three lenders: Bank of America ($1,127,453,261); Wells Fargo ($765,823,531); and JPMorgan Chase ($753,250,131).

Rust Consulting is not a law firm, as it states on its website, but a professional services company that helps clients with projects that require data management, notification, contact centers, claims processing, or fund distribution. Clients include government agencies, businesses, counsel for plaintiffs in class-action lawsuits or counsel for the defense (attorneys for the company that was sued).

“We have attorneys on-staff and frequently work with attorneys as we administer class action settlements or mass torts, but we typically are a neutral, third-party administrator,” Rust states on its website.

Up to 4 million homeowners may be eligible to compensation ranging from hundreds of dollars to $125,000, depending on the severity of harm inflicted by the mortgage servicers, from botched paperwork to outright wrongful evictions.

Here’s the breakdown of payments due by each lender to fund the Qualified Settlement Fund:

Bank Funding Amount
Aurora Bank $        93,237,805
Bank of America 1,127,453,261
Citibank 306,574,179
HSBC Bank   96,540,359
JPMorgan Chase 753,250,131
MetLIfe Bank 30,206,329
PNC Bank 69,433,224
Sovereign Bank 6,186,992
U.S. Bank 80,060,193
Wells Fargo 765,823,531
Total $3,328,766,004

Related Articles

116 Responses to “Independent Foreclosure Review. $3.3B Settlement Fund Awaits Payment Plan”

  1. Unknown says:

    Received a check today for $800.00 this is rediculous – after all my family and I went through and lost – this is all they have decided to give us – what a shame – I am SMH right now – real hard WOW.

  2. I got a check for 3,000.00 from Aurora today!

  3. Unknown says:

    That number is now 1210, with 380 votes for a class action suit! Getting close enough in numbers to actually start a serious discussion on finding a lawyer etc. Here is the poll, please register and vote! http://foreclosurevictims.freeforums.org/class-action-lawsuit-yay-or-nay-t94.html

  4. Addy says:

    I received my check today, $2,000 (Loan Servicer: SunTrust Mortgage Sunnyvale, CA)

  5. Mike says:

    $1,000 here (Lender: Bank of America) Wasnt expecting it at all…so I’ll take it.

  6. JEnn says:

    Thanks for the $3,000 check- BUT WHAT ABOUT MY CREDIT!??? My bank SOVEREIGN foreclosed on me even though I was doing my part with the temporary loan modification agreement. I sent paper work, put the house on the market to lease, short sale, and settle for a deed in leu of foreclosure… but each time I called the lender, I go put on hold, disconnected or had to leave voicemails that never were returned. Finally, weeks later I did get in touch with the loan mod department and demanded that I speak with a supervisor. I did, and he was very rude.. he was chewing gum during our conversation (>:-{) and he stated that I was denied for the loan modification. Confused as EVER! I wanted to know why! He said “Ummm Idk, looks like you are an over spender! AHHHHH I wanted to rip his face off~ Did he care to ask me what my money was spent on?? Over spend, of course I do~ Why, as stated on my loan mod request was that I was now a single mother- ex left out of the blue, left me to care for our children and did not care to help me in any shape or form! So overspend?/ YES- especially for the furnace and hot water heater I had to replace just months earlier– because the company that handled the warranty on my home some how pulled out fine print that exluded coverage for those claims!

    So, here I am 3 years later, I pay my bills promptly, have to rent a home, but I dream of owning my own home again! However, my credit is shot!
    I literally dream about my foreclosed home… because I knew that I didnt get the assistance i deserved and was left confused and deceived by big banks..
    What about fixing our credit??!!!!!!!!!!!!!!!!1

  7. judith says:

    500.00 dollars really??? Bank of America/Countrywide was partners with a broker who was unlicensed, forged my name to loan documents and ignored my pleas for an investigation, proven in court there was fraud from the beginning and broker put out of business by the Department of Real Estate and because I don’t have money to fight Bank of America in court for ignoring the court ruling you take my house! REALLY?????

  8. mary says:

    I recieved $400….Country wide/Bank of America. That’s absurd!!! I tried working out a payment plan with them and they told me to just foreclose the home. They refused to help me. I was so close to being homeless with my four children, if I didn’t have my family to help. I was told by the officer that I had just 6 mos to live in the house before the bank owned it. I was scarred as heck for my family. We left the house right before the 6 mos date was up. The house was vacant/neglect for 3 yrs.

  9. vinnie says:

    I received mine today from chase. 500 dollars. I am steaming mad. Long story short i made all my modification trial payments and 3 extra and was never converted into a new rate. I submitted all the required documentation to ifr almost 2 years ago.

  10. Robert says:

    I agree with most of the victims here. My wife was ill (cancer) and I was the only wage earner. I depleted my 401k trying to hold onto our house. I explained that to those (rat bastards) @ BOA. No help or understanding was forthcoming. They gave us a deadline and foreclosed on us. No home, credit shot and probably forced to rent for the remainder of my life. Closing in on 50 and will probably never own my own home. And for that I received a whopping $300. Thanks for nothing. Yes, I’m a little bitter……

  11. judith says:

    I don’t get it! I have been a law abiding citizen all of my life and believed in the system and never in my WILDEST dreams did I think that CROOKS could/would be allowed to rule! I am saddened by this revelation….

  12. louis says:

    Today I received my 500.00 check from Wells Fargo,,, really? Can someone please tell me where can I sign in for a class action lawsuit? I read somewhere that there’s one? Pls help thanks and God bless us all…I live in California

  13. Lorraine says:

    After 2 years of working with bank of America, Lost paperwork, indignant representatives who think we are stupid, and telling them you cannot get the title to Hawaiian Home lands There is NO title, Hawaii owns the land! They continued to add principal and interest to the back end. When the modification was done they added $50,000 to the front of the loan. I’m so angry at this 400.00 check I got today! I know darn well all that money they got has gained so much interest and they are not handing it all out properly.. Greedy jerks! I too would like to know about any valid class action law suits that I can get involved with! Please e-mail me at mpbops@gmail . com I cannot put it together as it might not take in this letter.,

    Lorraine~~

  14. Nancy says:

    got my whopping $300. like others, the banks would NOT work with me, both of us lost our jobs within months of one another, depleted savings, 401k’s now credit is shot and can’t even think of retiring. I’m sure the CEO’s and others of those banks are sitting pretty with their golden parachutes and such.

  15. judith says:

    All of the families that lost their homes in YOUR chosen time frame should have gotten no less than your max of 125,000.00! So how can you justify less??? You want to split hairs? Let’s go back to the families fighting for their homes as far back as 2006!!!! You did not not do us any favors!!!!

Leave a Reply

© 2014 ecreditdaily.com. All rights reserved. · About Us · Terms of Use · Privacy Statement · Entries RSS · Comments RSS
Powered by WordPress