Independent Foreclosure Review Checks: $2 Billion; NMS Checks: $0


Independent Foreclosure Review Checks: $2 Billion; NMS Checks: $0Bank regulators keeping tally of checks cashed in the Independent Foreclosure Review (IFR) mailings put the running total at more than $2 billion as of Thursday, but that amount should have been higher if not for more fumbling by the paying agent, Rust Consulting.

Compensation checks in the IFR borrower-abuse agreement have gone through four mailing waves since April 12. The last one on May 3 turned out to have short-changed many recipients.

Rust Consulting conceded that more than 40 percent of the 217,000 checks that went out that day, or 96,000, underpaid recipients. Rust had already faced some chastising from the Federal Reserve after the first phase of payouts on April 12, when some of those initial checks actually bounced.

For the up to 4 million compensation recipients, the payments screw-up is adding to their anger over getting less than they thought they should, compared to the abuses they were dealt during wrongful or botched foreclosures in 2009 and 2010.

Borrowers see this phase in the two-year-old IFR process has yet another salvo from the big banks and their regulators, who have come under intense heat from consumer advocates and many lawmakers over the foreclosure reviews abandoned in haste this January in favor of a $9 billion settlement with 13 mortgage servicers.

Now comes the sequel to the IFR payments: compensation checks in the other agreement, the older National Mortgage Settlement (NMS), reached more than a year ago with five top U.S. lenders: Ally/GMAC; Bank of America; Citi; JPMorgan Chase; and Wells Fargo.  Up to 750,000 borrowers may be eligible for NMS payments, totaling $1.5 billion. Some borrowers are eligible for both IFR and NMS checks.

Rust Consulting is also the paying agent for the NMS, approved by bank regulators to handle mailings and payments for both settlements.

In February, the National Mortgage Settlement official website was updated to say that checks to NMS claimants would be mailed out by “mid-year 2013.” That statement went unchanged for two months until April 22, when suddenly it said checks would go out in“4 to 6 weeks.”

Borrowers were even more encouraged a few days ago when the website message was tightened to say payments would be mailed “mid to late May.”

However, suddenly the website statement’s timetable changed yet again, reverting back to “mid-2013″ this week, further infuriating many eligible NMS borrowers, many of whom have expressed their anger through comments on eCreditDaily.

Many decided to call or text executives at Rust Consulting to get a clearer answer on the NMS timetable. Others have tried contacting their state attorney general or bank regulators. Still no clear answer on the NMS payment dates.

One thing seems clear. The very latest shift back to a “mid-2013″ NMS payout timetable coincided with Rust Consulting’s latest snafu with the fourth wave of IFR checks mailed out on May 3. Those checks to 96,000 borrowers are tied to loan servicing errors or wrongdoing by Goldman Sachs (Litton Loan Servicing) and Morgan Stanley (Saxon Mortgage Services).

Rust Consulting said it has corrected the error and plans to mail supplemental checks to affected borrowers as soon as May 17, 2013, for the additional amounts they were supposed to be paid, according to the Federal Reserve.

Meanwhile, the official overseer of the NMS, appointed by state attorneys general and federal housing officials, Joseph Smith, has not made any statement about payment snafus. His oversight office is busy preparing its first official report to determine if the five NMS lenders are meeting their new mortgage servicing standards.

The report, due to be released in June, is expected to be critical, reflecting complaints from housing counselors and state AGs over continued foreclosure-prevention mishandling or delays by the big banks. New York Attorney General  Eric T. Schneiderman said this week that his office will file lawsuits against Bank of America and Wells Fargo for “repeatedly” violating the settlement’s rules.

Meanwhile, borrowers can file a complaint about their servicers through this page on the NMS overseer’s website. Or, consumers can file mortgage-related complaints directly through the Consumer Financial Protection Bureau.


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28 Responses to “Independent Foreclosure Review Checks: $2 Billion; NMS Checks: $0”

  1. brileyrac says:

    Mr. Smith’s office is expected to turn over a “critical” report in June, too funny!!! He, and the little minions in his office, should put aside their bogus report writing and focus on getting their buddies at Rust to print checks!! Hope that report has a paragraph or two about how Mr. Smith himself failed in this process!!!

  2. VMM says:

    Never recv’d modification from WELLS FARGO. They doreclosed on my Primary Residence while I was waiting on a modification. They assigned two different claim numbers to me. One to the Attorney General’s office & a different one to Russ Mgnt. Recv’d a check for $500.00. In their own words is a min. Of $50,000. They coded my check as modification granted. How in God’s name can banks get away with this? Did justice just die in front of oue eyes?

  3. kp says:

    I find it not only coincidental that the change in the NMS payment date shifted to mid 2013 the same time their “clerical error” was discovered, but it also coincides with the final wave of the IFR checks which for some reason won’t be released before mid July into August.

    What bullshit. Why are the rest of the IFR payments being held up? Don’t bother calling Rust.. their “temporary call center employees” will just read you the script they have been handed.

    What a joke. But hey, as long as Chase and the rest of the big banks don’t “fail” right ?

  4. kp says:

    and lets not forget that Rust Consulting is now partially owned by a CitiGroup company – Citi Venture..

    what a crock. This whole thing reeks of corruption.. from the feds to the banks.

  5. ms.R says:

    What goes around comes back around.and I hope all those crooks get whats coming to them

  6. Ericajohnson says:

    Unbelievable, why in the world do they keep changing the mailing date. Just cut the damn check and send it us. They have had all our information since Last year those who send back there information when they receive the letter from the US Attorney’s Office, back in October 2012, now they are saying we have to wait until June, that is basically what they are saying, read between the lines. I would like to also inform everyone please check your CREDIT REPORTS, THE BANKS ESPECIALLY IF YOU HAD A MORTGAGE WITH CHASE AS UPATED OUR CREDIT FILES. MY EXPERIAN IS SHOWING AS NEVER HAVING A MORTAGE, TOTALLY REMOVED, TRANSUION 0 BALANCE, EQUIFAX 0 BALANCE. As of result of this My Credit score has climb. I guess this is part of the SO CALLED DEBT FOREGIVENESS THAT THE BANKS MADE WITH THE BIG BANKS TO CORRECT OUR CREDIT REPORTS. We are all in this Big Mess together. What bunch of CROOKS.

  7. Ericajohnson says:

    CORRECTION I MEANT TO GOVERNMENT MADE WITH THE SO CALL BIG BANKS, SORRY ABOUT THAT, I GET A LITTLE PISS OFF WHEN I THINK ABOUT HOW THESE CROOKS HAVE TREATED ALL OF US.

  8. donna says:

    They are collected tons of interest on your money that is why they are delaying, to maximize their profit and no other reason

  9. donna says:

    I got $500 for modification denied and had to file a BK and house in foreclosure. Gee, thanks.

  10. Donna says:

    How can you find out if you have refund coming?

  11. brileyrac says:

    Seeing todays posting on Minnesotas AG website: (NMS checks going out in June) showed me that “official overseer Smith” rolled to Rust Consulting. For some reason I had faith that Mr. Smith was going to preserve his integrity, his positon as overseer, and hold Rust to the May 20th payment date as his NMS case was older, more respected, and much more above board then the IFR—-silly me. In 1976 I was so over the top excited to turn 18………why….because I could VOTE!! That July I parked my 18 yr old butt in front of the TV munching PEZ candy watching the Democratic National Convention all in anticipation for that all important vote in November. I have never missed an opportunity to vote since. However, those days are over, I too have now rolled as Mr. Smith’s inertia was my last straw.

  12. debra says:

    CAN SOMEBODY PLEASE HELP???? Tired of getting the run around about the amount of this check I received. I want to see the review that warrant me a 600.00 check. I have my paperwork to show what really happened, but nobody will help me. I waited almost 2 yrs for this slap in the face. I wrote my state senators, news, fed, and even the president, no answers from anyone but to pass the blame. It’s very shamefully when you write the people you voted into office and they’re too busy to answer.

  13. brileyrac says:

    debra: copied from facebook ifr page……The office of the Comptroller of the currency OCC will respond to your complaints about the amount of money you received from the ridiculous independent foreclosure review their telephone number is 800 613 6743 you need to call them and complain about what happened. You also need to contact your servicers and tell them your complaints too. keep a written record of who you talk to and when you talk to them because the OCC is going to want to know

  14. Dawn says:

    Latest email from RUST CONSULTING

    I have reviewed your email and understand your concern about the timing of payments. Our office is working closely with the attorneys general in the National Mortgage Settlement to ensure both timely and accurate payments to eligible borrowers.
    Claims processing in the National Mortgage Settlement is nearly complete, with our current estimate for completion of claims processing in June 2013. While no new claims are being accepted, we are working with borrowers whose claims required supplemental information to ensure as many potentially eligible borrowers as possible receive payments under this settlement. We anticipate that the payment process will begin in June 2013.
    I understand your concerns and appreciate your patience. It is our standard to utilize scripted responses to borrowers’ questions, as you have received from our email information team. I am not able to provide any different information from what the email team is able to provide, but I hope the information above is helpful.
    Best Regards,
    Amy Lake
    moc.gnitlusnoctsur@ekala

  15. Herman Smith says:

    If I received the Attention notice stating that I would receive a check. Does that mean that I have a check coming. I was foreclosed on during the dates specified. How do I find out how much I am due. Chase had me in a modification program for eight months and then they foreclosed on my home and they charged me late fees on the eight months that I was in the modification program. Now how wrong was that. The modification was supposed to be limited to three months but they continued to give me the run-a-round for eight months. They should all be held accountable and the issuing agent should get his or her job done.

  16. Sandy says:

    To: Herman Smith

    Did u get a notice from NMS? What does it say? Also, what state are you located in?

  17. Rick the Lucky says:

    Just got off the phone with the wonderful people at Rust. Second time I called. Why are they playing the role of “secret squirel?” They know when my check is coming. They know how much it is. They say sometime before August. 4 waves, 90% of all involved have been paid (granted not correctly). I received the same card others did. They did not put me in the category of needing more information (tax issues). It has been my experience in life when information is purposely held back, it is because someone did something naughty (see my pre-teen kids). It serves little benefit to withold this. Rust could eliminate 90% of the calls they are getting at their call center if they were just upfront about what it is they are doing. Stop blaming the OCC, Treasury, Banks, Federal Reserve. Rust has the money, they are making a determination as to when they give it out, or tell us when we get it. Shame on your company!

  18. A.Hall says:

    They’re ALL crooks. My husband and I had never been late on a payment. We made the trial payments on time, then Wells Fargo tried to say they never received the packet back for the final modification. They even started the foreclosure process, even though they won’t admit to it.

    I contacted then Gov. Bev Purdue. Her office directed me on the steps to take. I filed a complaint with the district attorney as well as the OCC. Five months later, after so much back and forth and lies from Wells Fargo, the modification was finalized.

    My husband passed from a massive heart attack a few weeks later. Believe it or not, RUST does NOT have my name on the list of recipients for a check. I called them last night.

    I honestly believe RUST is a scam. They are pocketing the money they are refusing to pay eligible homeowners.

  19. A.Hall says:

    P.S. to my earlier post….they owe me a check for the Independent Foreclosure Review settlement and not the NMS.

  20. Unknown says:

    Came Across This… INTERESTING!!

    http://www.hofj.org/default.asp.pg-FilingComplaints

    More Sharing ServicesShare |

    FILING AN OCC COMPLAINT

    It seems that servicers/banks cannot foreclose with an open OCC complaint. This is probably one of the best helps an owner can have in dealing with the banks. Use it wisely and frequently.

    1. File the complaint on the OCC Website.

    2. An OCC complaint response is returned by email. Print this response for your records.

    3. Forward this open OCC complaint ticket to the legal department of the Foreclosure Trustee.
    This is the company that will postpone the foreclosure auction.
    A List of Trustee contact information is at the bottom of this page.

    4. Resubmit Complaint to Foreclosure Trustee 10 days prior to the next scheduled Auction.

    HELP WITH DRAFTING AN OCC COMPLAINT
    sample complaint in word format sample complaint pdf format

    Complaints would center around bad/illegal servicer treatment like:
    not getting a single point of contact
    not having calls returned as promised
    not receiving promised loan mod documents
    being lied to by the servicer
    having the loan impound accounts messed up by the servicer
    having the servicer refuse to accept your loan payment
    not getting a loan mod
    servicer not responding reasonably to reasonable requests…
    false notarizations and forged signatures on the recorded documents
    threatened with foreclosure or foreclosed during a loan mod or short sale.

    ALWAYS log everything that occurs between you and any servicer, the OCC, the Foreclosure Trustee, on the phone, in an email, or in the mail. Track the employee names, ID numbers, phone numbers, departments, geographic location, discussion and make special note of any commitments the contact makes – like mailing out information to you. Every time the servicer says one thing during the conversation, then says something different, repeat that change to verify it – and log it into the recorded phone call. Remember these calls are being recorded. Use that to your advantage.

    This Log will prove extremely helpful in your offense and defense efforts, show patterns over time, keep you reminded of what has happened, and help present your “case” to others should that need or opportunity arise.

    List of California Foreclosure Trustees and Contact Info:
    Allied Trustee Service: 714-573-1965
    California Reconveyance Co: 9200 Oakdale Ave CA2-4379, Chatsworth, CA 91311 714-573-1965
    Cal-Western Reconveyance Corp: 525 E Main St, El Cajon, CA 92020, 619-590-1221
    ETS Services LLC: 15455 Suth F Mission Blvd Suite ??, Mission Hills, CA 92345, 714-730-2727
    Fidelity National Default Services: PO Box 250, Orange, CA 92856, 714-573-1965
    First American Title Ins: 4380 La Jolla Village Dr 110, San Diego, CA 92122
    Northwest Trustee Services Inc: 1241 E Dyer Rd 250, Santa Ana, CA 92705, 877-484-9942
    Old Republic Default Mgmt Svcs: 500 City Pkway W 200, Orange, CA 92868, 714-573-1965
    Quality Loan Service Corp: 2141 5th AVe, San Diego, CA 92101, 714-730-2727
    Recontrust: 1800 Tapo Canyon Rd, Simi Valley, CA 93063 800-281-8219
    TD Service Co: 1820 E 1st St 210, Santa Ana, CA 92705, 714-480-5690
    Trustee Corps: 17100 Gillette Ave, Irvine, CA 92614, 714-730-2727
    Wolf Firm: 2955 Main St 2nd, Irvine, CA 92614, 800-280-2832

    Out of State Foreclosure Trustees And Contact Info:
    First Am Trustee Servicing Solution: PO Box 961253, Fort Worth, TX 76161, 916-939-0772
    National Default Servicing Corp: 7720 N 16th St 300, Phoenix, AZ 85020, 602-264-6101
    NDEX West LLC: 15000 Surveyor Blvd 500, Addison, TX 75001, 916-939-0772
    Regional Trustee Services: 616 1st Avenue Suite, Seattle, WA 98104, 714-730-2727
    Western Progressive LLC: 2002 Summit Blvd 600, Atlanta, GA 30319, 866-960-8299

    Other Foreclosure Trustee Mills:
    Barrett, Daffin, Frappier, Treder, & Weiss: 855-286-5901, fax 972-661-7800
    First American Trustee Servicing Solution: 916-939-0772, no fax/email

    CFPB: Consumer Financial Protection Bureau
    A California Association of Realtors attorney told me this is the best place to file a complaint as a consumer. The consumer is given a tracking number and the banks HAVE to respond. And don’t forget whistle-blowers are protected and can remain anonymous.

    BANK SETTLEMENT BASED ON 4/4/12 CONSENT JUDGMENTS

    The bank settlement required the servicers to stop their bad practices by 10/3/12. To date, the AG’s office and Moderator of the AG Settlement, Charles Carriere, 1-949-824-3071, have received thousands of complaints.

    California Monitor Website – covers these bank reforms and has a complaint link.

    BANK RESPONSE TO THE SETTLEMENT:

    NOW the banks, in a significant and strategic move to potentially circumvent the Settlement, have sold and are selling the “loan servicing and loan modification rights” to wholly owned subsidiaries. These corporations do business off-shore and out of the reach of United States regulatory agencies.

    CA Attorney General: File a complaint against a bank or other business
    Attorney Misconduct: file a complaint with the California State Bar
    Notary Fraud: file a complaint with the California Secretary of State
    Corporate Fraud/Forgery: file a complaint with the Department of Corporations

    TEMPLATES FOR COMPLAINTS!!!

    http://www.hofj.org/virtualoffice_files … acters.pdf

  21. Roz says:

    we got a stank $300.00 check

  22. Unknown says:

    I called Rust today to send me my form that I filled out in the beginning of this process.. I was told I will receive my form in 14 Days….. I do have copies……. But wanted to see what they will send me. Just FYI for those that lost there paperwork, did it on line or didn’t fill one out cause you did’t get one in the mail or just to see what they send.. Never Know you might get one they screw up so many times….

  23. Ray Westphal says:

    I think they forgot to add some zeros on them there checks ! There last excuse will be there printer ran out of ink and it will have to be ordered and imported from China. Then it will be China saying we haveto make up the ink cartriges and get the ink imorted from India. Then India wil say oh sorry guys there will be a delay on that as there i a shortage. I mean they can come up with a billion excuses to no end. They don want to release that money until they have earned intrest on it for a while. Give me a break RUST!

  24. Pam says:

    Rust knows what your check amount is and when your payment is going out. Here is the procedure for changed address, changed names, etc.
    check comes back undeliverable
    you contact Rust with new address, name change, etc.
    Rust sends you a form supposedly in 7-10 days (a month later you will still not have the form)
    You send back the form and want your check
    A month later, your address and/or name has not been changed in their system and they still haven’t mailed your check.

    If you received a check with your deceased spouse name on it, you go thru the same process.

    If you are divorced and can’t locate your ex spouse, too bad. You’ll never be able to cash the check. Ask the OCC who gets your money when you can’t cash the check in the 90 day time period you have been given.

    Most banks will not cash the check. Some banks will cash if you have an account. Most banks will hold the check for more than 2 weeks before releasing the cash to you.

    People without a bank account can use one of those high cost check cashing services or travel to Huntington bank in Michigan. You will both have to be there in person to cash the check.

    If your check went out, and you received it, I can guarantee you that several weeks later, if you had a deceased persons name on it or an ex-spouse, you still have not been able to cash the check or get the forms you need to fix the problem (on ex-spouse, there is NO fix, they won’t issue separate checks).

    Did you call because you need a copy of the front/back of the check because someone committed fraud and forged your name? Forget it. Go to your State Attorney Generals office and get them to request the copy for you so you can start a criminal action. Rust is not going to send it to you even though you have a legal right to the information.

    Don’t blame the customer service reps, they are only allowed to tell you so much and nothing more even when they have the information sitting in front of them. Send your complaint letters to the OCC Board.

    The more forms Rust has to send out, get back and process, the more money they make. Why would they change your address when they can not only tie up your check but then have more expenses they get reimbursed for by sending forms back and forth. In the meantime your check sits in their account accruing interest. Maybe $300 doesn’t generate much interest but times that about a million times and it adds up.

  25. rick zavala says:

    RUST CONSULTING & JOSEPH SMITH WILL BE HELD ACCOUNTABLE FOR ALL THE DELAYS THAT WE HAVE BEEN GOING THRU FOR THE NMS PROCESS! THE IFS IS A JOKE, WE HAVE ALL READ THE ARTICLES! LET’S GIVE THEM ONE MORE CHANCE TO GET IT RIGHT WITH THE NMS DISBURSEMENT OF FUNDS. IF ANYTHING, THEY WILL NOTIFY US THAT THEY RAN OUT OF FUNDS, AND CANNOT FIND MR. SMITH. YOU KNOW THAT ONE’S COMING.I WONDER IF THEY ARE GETTING ADVICE FROM MADDOFF IN PRISON.IT’S WORKING!

  26. marty says:

    “JOSEPH SMITH WILL BE HELD ACCOUNTABLE FOR ALL THE DELAYS THAT WE HAVE BEEN GOING THRU FOR THE NMS PROCESS!”

    Unfortunately, anger directed at Mr. SMith and his office in regard to the CASH PORTION of the settlement (the checks we are expecting) is misplaced.

    His office has NO oversight authority over this portion of the settlement. It was set up that way (I don’t know why) but it simply is the way it is.

    He is responsible for the NON-CASH portion of the settlement only.

  27. barbara says:

    e mailed the national mortgage settlement adminstration Marty is correct, we will need to contact the AG offices about this issue. I have already emailed the California Attorney General, I just want to know exact dates and who is accountablity for the lack of communication

  28. robert says:

    my mortgage was serviced by ally/gmac mortgage foreclosed on in 2010, I was offered a loan modification never got the paperwork foreclosed on in 2010 got letters from national mortgage settlement abd the ifr. heard gmac filed for bankruptcy protection. dfoes that man I will get no check at all? I live in texas my claim was received in October 2012 on the national mortgage settlement January 2013 on the Ifr. have a feeling rust consulting will never pay. somebody let me know something!

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