Payout Disparity: Many Who Requested Reviews Getting Twice as Much


Payout Disparity: Many Who Requested Reviews Getting Twice as MuchCritics of the payout schedule released by bank regulators for eligible borrowers are especially concerned with a wide disparity between those foreclosure victims who sought an independent review and those who did not.

The difference: Those who requested a review are getting twice as much compensation in most cases.

However, a very critical report from the Government Accountability Office made public last week on the initial Independent Foreclosure Review points out many problems with the regulators’ outreach process that included communications with borrowers who made or attempted to make requests for reviews.

“In letters to OCC (Office of the Comptroller of the Currency) and the Federal Reserve, consumer groups indicated that these borrowers were frustrated by the lack of information on their particular file review,” the GAO report said.

The report says that the OCC and the Federal Reserve acknowledged the importance of transparency in the foreclosure review process, but that “the absence of timely and useful communications at certain stages of the process — for individual borrowers as well as the general public — hindered transparency and undermined public confidence in the processes and results.”

According to the new payout framework released Tuesday by regulators, borrowers who requested a foreclosure review are assigned a payout twice as big in seven out of the 12 categories.

In two other categories, borrowers who requested a review get $500, compared to $300 for non-requesters.

For example, if a mortgage servicer completed a foreclosure on a borrower who was performing all requirements of a written trial-period plan, then the borrower gets a $50,000 payment — but only if the individual requested a review. A borrower falling under the same category gets $25,000 if the borrower did not seek a review.

Only about 11 percent of the 3.9 million borrowers on the payout schedule actually sought a foreclosure review.

Office of the Comptroller of the Currency spokesman Bryan Hubbard told the Palm Beach Post that borrowers who applied to the original program got a bigger payout because they were expecting an independent consultant to review their case.

“The regulators determined that these borrowers should be compensated at a higher rate to acknowledge the efforts they made to request a review,” Hubbard said.

The Independent Foreclosure Review, which was initiated in 2011 lacked strong, focused and consistent guidance by banking regulators as they tried to uncover the depth of errors or wrongdoing in foreclosure actions against 4.2 million borrowers in 2009 and 2010 — many of whom lost their homes, the GAO report concluded.

By January of this year, regulators opted to enter into consent orders with 13 mortgage servicers, many of them represented by the largest U.S. banks, including JPMorgan Chase, Bank of America, Wells Fargo and Citibank. This was done to expedite compensation to eligible borrowers, regulators have said.


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36 Responses to “Payout Disparity: Many Who Requested Reviews Getting Twice as Much”

  1. hotmess says:

    you can drive a truck through those generally defined categories. i think that’s by design.

  2. carol says:

    That’s all well and good — if you got the notice originally so you could reques a review.

  3. bllie says:

    How do they place you in category? It would be nice if there were some sort of transparency. The banksters couldn’t get my info right before they foreclosed. My home was taken during Chapter 13 Bankruptcy stay. I fought the eviction, but the judge sided with the attorney for the bank even though he lied. I requested a review, but how can I be sure they will place me in the category I belong in?

  4. G says:

    What really gets me is – the way it is structured.. Those people who were lucky to qualify for the loan modification and made payments are getting $50,000 -but those who got rejected from applying for a loan modification are going to get $3-6000… How can they justify that..We all have the same stories.. that you call the bank and they say don’t make any payments -so you can apply for the loan modification ..it was like pulling teeth to get them to send the documents and then when they did.. you get rejected or send in paperwork..(because we lost it) .. I find the amount to be large for that category… Does anyone feel the same? We never got to that point -it was very frustrating and demeaning.. the whole process and to think there was light at the end of the tunnel.. Thinking we might gain some of our loss back.. We lost over $100,000 in our house .. I’m just not seeing it..Ever since that payment structure came out – I cant stop thinking about it.. how it changed from the original framework.. its like a slap in the face.. Its the fact that your fate falls in the hands of others who decide what category you fall in is the hardest thing to accept. Since no case is the same so -it will fall in all other… sad… We are all deserving of a lot more.. What people don’t realize.. is the people who went thru foreclosure all had money issues at that particular time in their life.. and most of the time it was due to the ecomony.. loss of jobs .. especially in the construction. everything came to a halt.. Therefore – should we eat and feed the kids or pay the mortgage? Cable was canceled/cell phones became a need for job hunt/food for the table.. and I’m talking mac and cheese.. and burgers/hotdogs.. I don’t think my kids want to see another hotdog again. We all have to remember it was out of our hands. AND now its time to move on.. send out the money and be done with it. already.

  5. zack andrews says:

    Bernie Madoff should be throwing big party’s in the pen. How are all his buddies managing not to get invited? If you didn’t have a lot of faith in the process before, you must have lost it all now. Lost all respect for the people running it. They let the criminals run a muck, and turn hard working Americans into criminals. And that’s your Independent Foreclosure Review. Never a penny for another bail out. One at time withdraw them out of business. Fugs and Fellons lock them up!

  6. italy says:

    They forget to publish in matrix 20k which was not properly used ( read stolen ) big “independent” contractors.

    Double standards, unmorality ( read Rejection of Morality ), corporate greed and discrimination 4.5 mln. people smell from this deal…

    It is clear illustrate social genocide low income population in USA, where government build tandem with Wall Street to rich this goal.

  7. Michelle says:

    Well I do agree that those of us requesting a review should be compensated at a higher rate. It took time for me to sit and fill out the paperwork for the independent foreclosure review! If you didnt receive your notice in the mail requesting information than I’m sure you heared about the review on television or online. It was your responsibility to do your own research and investigate as this has been ongoing for more than two years!! Heck I have spent a lot of time following this so on top of losing my home, I have earned my $300!! Arghh too many people complaining on all these sites. Just be happy you are getting something and if your $300 means nothing than send it my way! I’m happy to at least be getting something….

  8. Maria Martinez says:

    What, I want to know is that if we are not satisfied with the amount of monies we receive, can we hire an attorney and file a law suit. I lost my home, lost monthly income due to furloughs from the state of california, and the equity in my home that I invested $80,000.00 into and by the end of the foreclosure and economy my home was only worth 180.000.00 when the orginal price was 286,000.00. am a single parent who had her home foreclose upon. aaaaaaaahhhhhh

  9. still homeless says:

    The fact of the matter is that we were all mistreated by these servicers and they are still getting away with it! I could very well lie and state that the $300 they are offering is good enough but the truth of the matter is that it is not. I was forced to short sale my home because they did not do what “They” should have done – give me a modification. – and it cost me alot more than a measly $300. Then they wouldn’t accept the offer that was made for more than what we were asking for – anyone want to explain that one? I filled out the paperwork for the review but have no idea if they even recieved it. Everyone of us should receive a minimum of $50,000 regardless of the reasoning – digging extremely deep into their pockets is the only way they will learn their lesson. The banks pay a fine for stealing from us but you and I can will definately go to jail for stealing $500 – ironic isn’t it.

  10. Deborah says:

    well i Did all my paperwork for the forecloserand i was denied a modification by Wells Fargo..do a cording to the frame work I should get 6,000. but am sure they have found away to put me in the other category..@ 500.00whole settlement has been a harmful joke this

  11. Lorraine says:

    What about the homeowners whose servicer was not a part of the original list therefore they couldn’t request a foreclosure review. I wanted a review done was told that my servicer Saxon was not a part of the original list of banks. So, should I get penalized because I couldn’t request a review even though I wanted one?

  12. sandra says:

    In regards to Litton servicing and Saxon mortgage they are part of the IFR settlement. See website for IFR . It gives a list of all the participants in the settlement.

  13. Lorraine says:

    The new payout framework excludes borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley. The story says that homeowners that requested a review were being paid double the amount from the ones who didn’t. I tried to request a review when I first heard about but Saxon was not a part of the group and was only added recently.

  14. ann says:

    SERIOUSLY? THEY PUT ME INTO FORCLOSURE BY ACCIDENT ON A HOME I PUT 500 GRAND DOWN ON AND PAID 200 GRAND IN INTEREST AND I WILL GET 300 BUCKS? FOR REAL? SERIOUSLY? I SPENT 6 GRAND ON THE LAWYER WHO HELPED ME ONCE I GOT FUCK YOURSELF BANK OF AMERICA SR VP TO SHOW UP FOR THE PARTY AND PUT A GAG ORDER ON ME NOW NULL AND VOID AFTER THREATENING TO TAKE MY 17 HRS OF TAPES OF BOFA WITH PERMISSION TELLING ME THEY WERE GOING TO FIX IT AND DID NOT. THEN DIDNT EVEN ALERT ME THAT I WAS IN FORCLOSURE OOPS BY ACCIDENT. WT F EVER. AND THE AUDITORS THAT THE BANKS HIRED THATS RIGHT SUCKED UP ALL THE OCC MONEY ON 500 DOLLAR AND HOUR AUDITS TO POLICE THE BANKS? WTF. I DONT DO DRUGS BUT MAYBE I SHOULD START.

  15. mickey says:

    I really understand all the outrage. I am thankful that I will be getting one of the bigger payouts. I did send in over 30 pages including an original copy of the trial modification agreement (because they sent me 2 copies) and a copy of the acceptance into the program on EMC letterheard. I was in the trial mod for 9 mos from November 2009 to July 2010. EMC was taking the money directly from my checking account on the first so I was never late. They told me it was taking so long because they had so many permanent modifications to process and not enough staff. Then Chase took over EMC and stated I didn’t qualify because of some NPV model, but could never give me the numbers they used. The trial was only for 60 months and at the end of each year they paid $1000 to your principal. So you can imagine how stunned I was after 9 months in to have the house stolen from under me. While the money won’t bring back my 6000 square foot custom dream home of 13 years I will use the money for a new start. I am sorry that everyone didn’t get the $125,000 payout because I think we all should. The banks took our tax money with the bail out and then stole our homes. The only people who are happy are the ones buying our homes for pennies on the dollar.

  16. c says:

    mickey I hope you are right and you do get a large payout but I wouldn’t count on it. The problem is the banks decide where we all fall in the categories. I was in a trial loan mod and made two payments on time. We were told after the three payments they would make it permanent. We thought we were all set and finally settled the matter. That was until an officer showed up at my door and served me an eviction notice. My bank sent certified foreclosure letters to my mother in laws house and she signed for them. We did not know this and received the letter at a much later time. In the letter it aid we had to go to court for a foreclosure review and because we didn’t show due to the date having already passed when I got the letter we lost and the house was foreclosed on. I have no idea why the sent those letters to my mother in laws but every other correspondence before and after to my primary residence. We had thirty days to be out, a week after the officer served us I got a check from my provider stating we didn’t send in some signed paperwork. Mind you I had this faxed to them twice and sent by mail so I know for a fact they received this. I don’t know what category I fall into but I am assuming it will be the $500 one seeing as I did request a review years ago.

  17. dan says:

    Our review included 100 pages. Had to send in a box. Went through 18 mos trial. Loan was withWamu and changed to chase. They denied 2 times and reported 3 foreclosures. Fought with lawyer and congressman — tthat’s the only reason we got a mod — woopdedo a whole 200 deduction. Now we’re fighting foreclosure again. Don’t know where they will place us.

  18. Unknown says:

    A lot of good information is being posted: http://foreclosurevictims.freeforums.org/index.php

  19. elsatorres says:

    I just would like to know if ARE THEY going to fix the credit as they offer in the independent folclosure review?

  20. fc says:

    I requested review, I filed complaints with the OCC, FTC, AG of my state (back then), twice. With the servicer, JPMorgan Chase.
    This program, as well as HAMP and the other modification programs, forbearance, or alternatives to foreclosure were shams. Lies.
    By the way, regarding “the absence of timely and useful communications at certain stages of the process — for individual borrowers as well as the general public — hindered transparency and undermined public confidence in the processes and results.”
    Who the H*LL is Suzanne Tinsley at extension xxxxxxx who was assigned to my case? I could never get in touch with her and no one at Chase seemed to know who she was (or how to pronounce her name). I got a lot (and I mean a stack) of letters with that “name-value” pair at the bottom saying that the “Independent Reviewers” needed more time to review my files. They should have been looking at what I sent them and filed with the OCC and the FTC and the AG of my state as well as the bank. Liars, all of them. RICO. Can we spell RICO?

  21. Unknown says:

    PLACE YOUR VOTE & PLEASE REGISTER SO WE CAN COUNT… YOU CAN FIND IT UNDER GENERAL INFO @ http://foreclosurevictims.freeforums.org/index.php

  22. Jeff says:

    Just curious how many people actually lost there homes to foreclosure after completing a 3 payment trial period and filed a review?

  23. Jeff says:

    Hard to believe that there are only 239 of us that the banks say went through what i mentioned above. Something isnt right?

  24. mickey says:

    @jeff see my post from 4/10 10:56pm. I was given 2 choices foreclosure or short sale. I took short sale but it is the same??

  25. mickey says:

    whatever happens we should all do a class action lawsuit

  26. Veronica says:

    Lost my house after 3 trial payments. Paperwork stated to make payments of certain amt. while BofA worked on a permanent modification. What a joke! They took 2 yrs & finally foreclosed on us. When I called to check on my modification status no one ever knew what I was talking about. Then to put salt on the wound they said if I paid $16,000 they would look into a modification for me, but it wasn’t guaranteed. I told them if I had that kind of money laying around I wouldn’t be in the situation I was in. I did request a review & I’ll probably get $500. Oh well I’m just glad I’m done with that mess and living happy again in a much nicer home.

  27. Christie says:

    @ Jeff same situation however the young lady that was on my case submitted emails to let her boss know that they(jp Morgan)did not handle my case correctly and she sent me the emails which I kept and was able to send to Ifr so not sure where I stand .

  28. Cindy says:

    I agree with Mickey that a class action lawsuite should happen. I’m on board. I’m writing to my senators and congressmen to file a complaint. I get a card in the mail from Rust Consulting stating that checks would be mailed in the amount between $500-$125,000, then I read that some individuals may not get but $300. How can an amount be published, get people’s hopes up high, then they publish a different amount. How can they publish a framework in March 2013 showing amounts being dispersed, then change that framework completely. Was my individual case reviewed or did they just put me in a category? Too many unanswered questions.

  29. Nikki says:

    For those wanting a class action please register and vote. Trying to get everyone interested in one place. So far we have 70 confirmed people wanting a class action lawsuit and 274 registered members http://foreclosurevictims.freeforums.org/class-action-lawsuit-yay-or-nay-t94.html

  30. Luke says:

    I’m all for a class action lawsuit provided it will mean that we, the foreclosed upon, receive real money. It seems that often the only ones who receive any money from class action lawsuits are the lawyers.

  31. mickey says:

    @nikki…I’m one of those registered 274

  32. GySgt C says:

    I am an active duty Marine that was foreclosed on in 2009. This is after being overseas and submitting 2 loan modification request that both did not get answered. After using our life savings to stay afloat and pay the mortgage I was forced to file chapter 7 bankruptcy. I almost lost my family at the same time. The fact that the government got involved is great but on the other hand the banks did not take the government serious in any way. Today I recieved a check for 600 dollars. This is a great slap in the face for them violating the law that says not to foreclose on active duty military. And yet they do these things and get away with it. Us the peasants of the country would have been thrown in prison for not paying or share. We are taxed on our pay then we pay taxes on purchases at the store. Then pay taxes at the end of the year. All this to still be treated like the lowest things imagined.

  33. Amanda says:

    I got my checks today for $6,000 from WF. Lost my home in 2010 becuz WF will not modify my loan, sent in all document that they requested and still not qualify. Ask about the HAMP program and was told that the program is no longer available. Have been fighting for yrs and they will not help…so I give up. Credit is ruined and cannot get a loan for a car or a student loan for my daughter to go to college. Thanks a lot WF for ruining everybody’s life.

  34. Unknown says:

    That number is now 592, with 197 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

  35. Unknown says:

    That number is now 790, with 270 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

  36. Unknown says:

    That number is now 1022, with 340 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

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