The postcards from Rust Consulting informing eligible borrowers of a pending payment for foreclosure “deficiencies” are real and not part of a scam or junk mail, Oklahoma’s attorney general said in a special alert after getting calls from confused recipients.
The postcards are from the administrator of the Independent Foreclosure Review, hired by U.S. bank regulators to disperse payouts in a settlement reached in January with more than a dozen mortgage servicers, including affiliates of the largest U.S. banks.
“The Attorney General’s Office has received dozens of calls from residents confused about the settlement and the postcards they received from ‘Rust Consulting,’ believing the cards were part of a scam,” stated a press release from the office of Oklahoma Attorney General E. Scott Pruitt.
The AG’s office also had to clarify that the postcards are not related to the National Mortgage Settlement, the other ongoing compensation agreement with lenders that was reached early last year.
Most of the postcards were mailed out March 18 to 4.2 million eligible borrowers who will receive amounts ranging from hundreds of dollars to $125,000, depending on the severity of the deficient foreclosure action taken in 2009 and 2010.
“Only Rust Consulting will contact you regarding your check or to request additional information if required to process your payment,” the card states. “If you have any questions, you may call toll free at 1-888-952-9105…”
The checks or request for additional information will be received within four to eight weeks, the postcard said.
A spokesman for the OCC told eCreditDaily that payouts would begin this month.
The Fed has already warned on its website that consumers should watch out for scams mentioning the settlement. “Beware of anyone who asks you to call a different phone number than the number above or to pay a fee to receive a payment under the agreement,” the Fed states.
The mortgage servicers that are part of the Independent Foreclosure Review settlement are: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.