Payouts Expected in April from ‘Foreclosure Review’ Fund, Regulator Says


Payouts Expected in Apirl from 'Foreclosure Review' Fund, Regulator Says

Updated 04.15.2013:
Up to nearly 4 million borrowers have started receiving payments as part of a $3.3 billion settlement fund stemming from the so-called Independent Foreclosure Review.

Read the latest:
»» Borrowers Mull ‘Class Action’ as Foreclosure Review Checks Arrive
»» Payout Disparity: Many Who Requested Reviews Getting Twice as Much
»» Lawmakers Seek Updates on Foreclosure Payouts, Other Assistance

»» Foreclosure Review Payouts: Most are in $500 to $6,000 Range

The compensation range is from hundreds of dollars to $125,000.

Regulators have published the payment amounts and number of people in each category.

Since the settlement’s announcement two months ago, regulators have only said that the payouts would range from “hundreds of dollars up to $125,000″ — the highest amount reserved for the most egregious cases of wrongful evictions.

Bryan Hubbard, Director, Public Affairs Operations for the Office of the Comptroller of the Currency (OCC), told eCreditDaily that the payout system would differ from one released last year that was tied at the time to the ongoing  foreclosure reviews.

The settlement fund is earmarked for borrowers who were victims of improper foreclosure actions in 2009 and 2010. Consent orders dated Feb. 28 required 10 major lenders, including Bank of America, JPMorgan Chase, Wells Fargo and Citibank, to provide the funds this month for regulators to begin dispersing within weeks.

The settlement announced in January totals $9.3 billion involving 13 mortgage servicers. Consumer advocates have criticized the deal because it essentially ended independent reviews of mishandled or improper foreclosures, including wrongful evictions. The depth of the wrongdoing or mistakes by most lenders may never come to light, they say.

The eligible IFR borrowers have been receiving postcards in the mail since last week from Rust Consulting, the settlement’s official paying agent. The cards inform borrowers that they are eligible and that they would receive payments or other information in four to eight weeks.

“Payments are expected to start in April,” Hubbard said. He also said that the “qualified settlement fund” has been funded.


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382 Responses to “Payouts Expected in April from ‘Foreclosure Review’ Fund, Regulator Says”

  1. Anne says:

    @RacheK I am glad you called them back and they have your file. Waiting game round two Yay!

  2. RacheK says:

    @Anne…hopefully by the end of the month, we will all know something. Lets keep our fingers crossed.

  3. Kristine says:

    Had anyone had their credit repaired? We are with Bank Of America. My husband had the foreclosure removed from his credit record. We have proof it was on their in June 2012?!?! It was a shock that they removed it. I believe it is because he was wrongfully foreclosed on.

  4. Kim says:

    I just called and got nothing different than what the website says.

  5. Wendy says:

    Kristine, the fact that you had it removed from your credit is awsome. Was it hard to do?

  6. Wendy says:

    To bad we dont have an insider working for rusk consulting that would spill the beans on check amounts :)

  7. Eric says:

    From what I read on the postcard and listened that recording, everyone who got a postcard WILL get a check. Am I right? That’s what it says unless postcards say different things.

  8. Kristine says:

    We did nothing. It was a huge surprise to find it had be taken off. It clearly stated “Foreclosure” in May of last year. Clearly it was removed because it was a wrongful foreclosure. I hope they do the same for everyone else.

  9. Miguel says:

    I just check my credit reports and the foreclosures have been removed on two of the three reports. It used to read “F” (F=foreclosure) and have 30, 60, 90 and 120 days late. It was also on the negative accounts side and now it reads pay as agreed, no late entries and is on the positive side. the one that have not updated is Experian but they don’t update a frequent as the others. I still send them a dispute telling them to remove it as agreed in the IFR settlement. Now to keep waiting to see what happens with the payments. For our family God fought this battle and won it as we went from loosing our home to where we are today, yet we always had a roof and food for us.

  10. Anne says:

    I just finished looking at my credit reports. Wells Fargo has been removed from all 3. They were not updated, but removed. I wonder why they didn’t just update them. Now lets see how long it takes for my score to go up too.

  11. Anne says:

    @Eric, yes everyone will be getting a check. I called Rust back today to try and get my category since Carol was able to. But was told it was not available nor was the framework until Mid April.

  12. Denise says:

    I too called to see if I could get category info but to no avail. Mid April is when the monetary amounts are to be assigned to
    The Waterfall categories. I got the impression that there was new ibinformation distributed but a reluctance to share because she said there was new information and put me on hold but when she came back to the phone she only read back what was already communicated on the postcard.

    I did get a direct number for HSBC inquires:: 1-888-568-7642

    I would also like to get anyone’s feedback about the verbiage within the financial-remediation-framework “Servicer may offset missed and unpaid principal&interest payments and property taxes paid on behalf of the borrower, subject to certain limitations”.

  13. Melissa says:

    Anne, did you say that you did a short sale on your home? My husband and I did a short sale in 2009 – just wondering if/when it will be removed from our credit reports…Thanks for your help!

  14. anne says:

    @Melissa, yes we did a short sale. The offer was place in January of 2009 but the sale was not completed until May, 2009. Did you get a chance to pull your credit report to see if it was removed. I would have never thought to check that until I read the post here that someones report had been updated. You can get it for free at annualcreditreport.com. It will give you all 3 reports. If you haven’t checked your report lateley it may already be updated or removed. I am wondering why some are updated to a current paid as agreed but mine was removed completely.

  15. JW says:

    Just called and they could only tell me to check the website in mid April for an update with categories. I’m active duty military and filled for bankruptcy when my house was foreclosed on. It would just be nice to have some answers.

  16. Melissa says:

    Thanks, Anne! I checked after I read your earlier message and it’s still there :/ Wells Fargo didn’t offer us a modification or anything. Also, our offer was in place in January and completed in May of 2009 as well. I will keep checking. Thanks again!

  17. anne says:

    @Denise, I am not sure but I do know that you can either pay your house taxes yourself or have them put into your mortgage payment. We had ours in our mortgage payment. If your bank paid your house taxes on your behalf then your bank does not pay that back to you in the settlement, they deduct it because it had to be paid to the state or county. Property taxes are only paid back to you if you should have paid for the whole year, sold you home within that year then the borrower reimburses thier portion of the taxes when you go to closing. As far as the rest of the sentence I am not sure but somehow must apply the same way the taxes do.

  18. Pamela says:

    I just checked my credit and its still there I pray mine get removed soon!

  19. Denise says:

    @Anne-Thanks! That is sort of what I thought, but I was wondering if they will find a way to reduce the payments somehow. “Unpaid principal and interest payments” could it mean missed payments up to the time of foreclosure?

    You would have thought all of this would have been worked out by now!

  20. anne says:

    @Denise, that would be my assumption regarding the missed payments. I wonder too about them reducing the payments. However, in my case they increased our mortgage by $700.00 for the modification which was outrageous for us. So I feel that we shouldn’t be penalized for the earlier missed payments because it was more than made up for by paying the extra $700.00 per month during our modification. After making those payments we were then informed that we did not meet the quidelines for a permanent modification, which to this day I don’t understand that whole mess.

  21. Michelle says:

    Anyone have any updates? Has anyone received a check? I read on some other website that this lady received a payment of 1500 from Countrywide. I find this whole thing hard to believe. I was foreclosed on. I requested a modification but was always denied over the phone. They never even bothered to send any paperwork. I’m still finding this whole thing hard to believe but after receiving the postcard, I am very curious!

  22. Michelle says:

    My loan was through Aurora.

  23. Cautious says:

    @Michelle do you have the link to the site you read someone actually got a check? I have been obsessed with this whole mess and have googled hourly for updates. Just curious. Thank you!

  24. Michelle says:

    Cautious- I don’t have the website. I was googling last night too. I’m surprised there arn’t more forums for this topic since so many people received this postcard. It was just a random post so I didn’t even think to save the site/link. I don’t even believe it though because it was a random post with no follow-up.

  25. anne says:

    @Cautious, like you I am constantly looking for updates. If someone already received payment I think others would have too, and we would have seen them posted on the different sites. It also may be a payment from the Settlement fund, and not the Review fund. Everyone that has posted here in the last day or two has spoken to Rust and posted the same thing, no payment framework or payment date till mid April. I am going to assume that is the earliest anyone would receive payment from the IFR.

  26. Carol says:

    Did someone say in an earlier post that a short sale only stays on a credit report for three years? If so could that be the reason it’s no longer showing up on some credit reports?

  27. anne says:

    @Carol, you can apply for a home loan after 2-3 years of a short sale, otherwise a short sale stays on your report for I think 7 years. I checked my reports today and my short sale is completely removed. However, I kept a copy last years credit reports and it showed that my Wells Fargo short sale wouldn’t be removed until 05/2015. Foreclosure and Bankruptcy I believe is 10 years, but can qualify for a home after 5 years.

  28. robdagain says:

    This whole process is sneaky if you ask me. Especially the part where they say that none of us can appeal the amount we get. We all know that some checks won’t find their rightful owner and will be returned to Rust as “undeliverable” and some checks just plain won’t get cashed. That money should be redistributed back out to harmed homeowners – but that won’t happen because “they” are already telling us that one payment is all we’re going to see – so you KNOW who will get the money from those uncashed checks….it will be RUST who gets to keep it – or probably Rust has a deal to split OUR money with those sneaky little “regulators”. I hope that Elizabeth Warren, in her attempt to get to the bottom of this, asks “regulators” what happens to the “unclaimed” monies……bet they tell her if she’s a good girl, and stops asking questions they’ll cut her in.

  29. matt says:

    The TRULY SNEAKY part is where it says the SERVICER CAN REDUCE REMEDIATION PAYMENT AMOUNT!!!! Are you kidding me???? Wtf???

  30. Melissa says:

    @Anne – I have one more question – did you also do the National Mortgage Settlement? I only did the IFR – when I realized they were separate the deadline had passed to submit a claim form for the NMS.

  31. Dave says:

    I called on the National Mortgage Settlement and I was told that I don’t qualify. I had Aurora who foreclosed on my home.

  32. Tess says:

    I just checked my equifax report and it is no longer showing “foreclosure” on my mortgage account. It has a 0 balance and just says sold/transferred. Before it did say foreclosure. I have not dispute anything in years. I wonder what is going on…

  33. Anne says:

    @Melissa, No I did not. I don’t know that a short sale would have qualified for the Mortgage Settlement. Plus I didn’t know about it till it was settled. The National Mortgage Settlement sounds like another mess. I think I can only handle one mess at a time! LOL

  34. Anne says:

    @Tess, that is great! Obviously they are starting to correct the credit reports. I am glad because I thought that would have been done last or not at all. I am not expecting a “big” payout because we did do a short sale. However, I am so glad my credit report was wiped clean.

  35. Kristine says:

    My husband and I both agreed that they could never repay us enough for what they did. We are just happy that they cleaned up his credit. Its like a fresh start!

  36. Anne says:

    @Kristine, I agree and I always said from day one if it was a choice between a couple hundred dollars or my credit fixed, I wanted my credit fixed. A couple of hundred dollars or so can easily be spent, our credit is our worth. I wonder how long it will take for the score to start to go up? I know that as soon as a foreclosure/short sale hit the report it automatically goes down immediately, I hope now that its been removed it will go up automatically!

  37. Miguel says:

    So far my reports have been cleaned like I updated yesterday. By reading the comments, it is obvious we are all anxious to hear some sort of news regarding payment and pay dates. This I think will come sometime in April as at least they have been consistent with this date so far. My big issue is, why no appeal process? Like many, our family endured quite an ordeal (thanks God He provided) and we have decided that no $ amount will ever ease what we endured. Yet, the $ is a way of “getting even” for lack of a better term. My question is, has anyone contacted his/her senator / congressman to see if we can have some sort of appeal should we get some crazy low amount from the settlement?

  38. Melissa says:

    @Anne – Thanks, then hopefully Wells Fargo will remove the short sale from our credit reports. If you don’t mind me asking, what did yours say? Ours says something like “settled for less than owed.” Also, I completely agree – don’t think I could handle another one either!!! LOL

  39. Lisa says:

    I have been googling this myself ever since the postcard was received. I also saw the post about the woman who claimed to have recieved a check from Rust Consultanting for $1,500 and her servicer was Countrywide. I have seen no other posts about people receiving payments. I called Rust Consultanting to try and get additional information about the payment categories or the amounts assigned to those categories and was told that the OCC would be releasing that information in mid-April, and that the payments were going to be sent in “batches” with the last batch being mailed in mid-June, but they could not tell me what category I fell into, how much I was getting…only that my loan was eligble for payment. The mid-June batch however falls past the postcard information of payments being mailed in four to eight weeks. I unfortunately think they are giving us false hope and this is going to drag out alot longer than four to eight weeks. If anyone receives additional information or actually receives a check…it would greatly appreciated if you would share that information!

  40. anthony says:

    Considering only 250K filled out the paperwork the average check had better be at least $15,000 vs. $1,800!!

    I’m not expecting anything until early May! I received 3 Rust letters!!

  41. RacheK says:

    @Anthony~ WOW 3 letters! Why on Earth did you get so many (sorry if I am being too nosey). According to what I have read, everyone that received the infamous postcard will receive some sort of settlement whether they requested the review or not. I am so curious to how this is going to pan out for everyone. I honestly believe that Rust Consulting know more than what they are telling us but aren’t able to say more due to the customer service agents calls are being “monitored”.

  42. Dana says:

    Thank you all for posting.

  43. Carol says:

    I checked my credit report on freecredit.com and our foreclosure was not there. Without paying $32 it would only show me Experian. It showed the bankruptcy under “public records”, but nothing else, so obviously it was removed. I would be excited, but I didn’t know my credit score was that bad. It is so very depressing. It is because I have three small credit cards ($500-$600) at their limit, plus the bankrupcy is still showing up. I’m just praying to get enough to get everything paid off or at least down and get my score up. I thought it was around 610, but it was so much worse – and what’s even worse is *I think* most banks and credit unions use Equifax and it tends to be lower. :(

  44. Kyle says:

    We were foreclosed upon by Wells Fargo in 2010 shortly after applying for modifications.

    My wife had been laid off and was pregnant at the time. When we first applied for the mod in June of 2009 we were up to date on payments but were told by Wells Fargo that we should not make any payments while in review because we would be denied if we weren’t delinquent on payments. I questioned this idea but went along with it because, after all, it was the bank telling me to do this. Throughout the process, I was strung along and told that I was missing certain paperwork, even though I submitted it several times.

    After a 2 month review we were denied because they said we were not in default enough. (are you kidding me, i said). They suggested that I re-apply and continue to not make payments on our note. Another month went by and we were then $3500 delinquent in payments, we denied a modification and then immediately foreclosed upon. We chose short sale and were out of our house by February of 2010. We went from up to date on payments to out of our house in 8 months with a newborn and a 2 year old.

    These people caused a tremendous amount of stress and humiliation for my family so forgive me if “fixing my credit” doesn’t suffice me. I’m sure there are others who endured even more offensive actions by their bank, however, I feel that I deserve the maximum based on the circumstances and problems it caused for me and my family.

    I’m hoping the news will be good but I’m not holding my breath. All of this just makes those feelings of dispare, stress and hopelessness come rushing back.

  45. Kyle says:

    I do agree that no amount of money could repay what we endured. I do certainly want my credit fixed but that is not enough for me.

  46. Eric says:

    I posted this on the other form as well.

    Ok, I think I’m going crazy. Anyone have an idea what I will get? I ask this because I recall getting a letter in the mail about the IFR. I know now because I found it underneath 100s of papers in my shred pile. I do remember filling something out and sending it back in HOWEVER, I also remember getting some in the mail saying “I don’t qualify.” But the problem, I can’t remember who that was from and I can’t find that piece of paper.

    BUT I did get a postcard. So I have no clue. But I do have the orginal IFR letter I got in the mail. There isn’t a date on it, it just says to mail back that form by December 31, 2012.

    The letter says:

    “Step 3: Your request will be evaluated to confirm eligibility for the IFR. (Review by an independent consulant.)

    Step 4: Your request will be reviewed to determine if financial injury occurred because of errors, misrepresentation, or other deficiencies in the foreclosure process.

    Your bank will provide relevant documents along with findings or recommendations related to your request for review to the independent consulant for review. The review may take several months. You will receive a letter with the findings of the review and information about possible compensation or other remedy.”

    That was word for word. I have two questions.

    1. Did anyone received anything back?
    2. Did anyone received any “letter or findings” besides the postcard?

    For me, I got a postcard, but I also thought I received a letter back saying they didn’t find anything but I can’t confirm and I can’t find the letter, but I got a postcard. Ugh……..Help!!!

  47. Kyle says:

    Eric,

    I never received another response after returning the initial packet of information. I had actually forgotten about it until I received the postcard last week. I think you are OK.

  48. Eric says:

    Thanks, Kyle. I hope so.

  49. Former WF Customer says:

    @All – Give Russ a call they will tell you if you are eligible to receive a payout.
    They should be sending out yet another postcard to tell you how much you will receive mid April, which is only a week or two away.

    Good Luck

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