Rust Consulting is expected to mail the final wave of Independent Foreclosure Review checks in mid-July 2013, according to a statement updated Thursday by the Office of the Comptroller of the Currency.
Previous statements had said that the final batch of compensation checks for eligible borrowers would be sent “during the summer.”
As of Wednesday, 2.5 million checks totaling $2.3 billion had been cashed or deposited. Check mailings began April 12.
The IFR agreement calls for $3.6 billion to cover the wrongful foreclosures or mishandled attempts at mortgage modifications by 13 servicers.
The vast majority of nearly 4 million borrowers fall under servicer errors paying out $300 to $6,000 in compensation.
Rust Consulting, the payments administrator selected by the servicers and approved by regulators, has mailed more than $3.4 billion worth of IFR checks since April 12, with the bulk of that amount sent out by April 26.
Only about 1,100 borrowers qualify for the top amount of $125,000 under the payment framework published by regulators.
But borrowers have been kept in the dark as to the process of determining compensation. With no option to appeal the payment amount under the settlement, thousands of borrowers have signed online petitions and have sought legal advise on pursuing class-action or individual lawsuits to seek rightful compensation.
The following banks, their affiliates, or subsidiaries, are party to the Independent Foreclosure Review settlement: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.