Expirations Loom on Up to $1B in Foreclosure Review Checks


Expirations Loom on Up to $1B in Foreclosure Review ChecksNearly all of the 4.2 million payout checks from the failed Independent Foreclosure Review have been issued, worth about $3.5 billion.

Rust Consulting, the paying agent, will mail about 37,000 remaining checks totaling more than $43 million later this summer to complete the distribution of checks, according to the latest update from the Office of the Comptroller of the Currency.

However, about $1 billion worth of checks have gone uncashed or undeposited. No numbers have been released as to how many represent checks mailed to wrong addresses, or checks that have been lost or checks that recipients have simply refused to claim, one way or another.

Although the check amounts were from $300 to $125,000, depending on the degree of wrongdoing by 13 mortgage services, the vast majority were at the lower end of the range,  a few hundred dollars each.

The OCC is reminding recipients that checks — the first wave was mailed April 12 — carry a 90-day expiration date to prevent fraud. So checks issued in the early waves of mailings that have not been cashed or deposited have begun to expire.

Borrowers wishing to cash checks that have expired can contact Rust Consulting to request a new check at 1-888-952-9105, Monday through Friday, 8 a.m.-10 p.m. ET, or Saturday, 8 a.m.-5 p.m. ET.

Meanwhile, Federal Reserve Chairman Ben Bernanke said this past week that regulators who supervised the Independent Foreclosure Review settlement plan will release more data on what consultants found when studying foreclosures from 2009 and 2010.

The new information won’t likely mean much to consumer advocates, many lawmakers and the IFR recipients themselves who have sought more transparency on how payout amounts were decided and the true extent of wrongful actions by the servicers.

During a Senate Banking Committee hearing Thursday, Bernanke told Sen. Elizabeth Warren, D-Massachusetts, that regulators are currently working on a report regarding loans files that were reviewed before the IFR settlement was reached in January of this year.

Warren is among a handful of Democratic lawmakers who have been very critical of the regulators’ handling of the foreclosure reviews and the subsequent settlement valued at more than $9 billion.

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.


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6 Responses to “Expirations Loom on Up to $1B in Foreclosure Review Checks”

  1. journey says:

    The FEDs and OCC Regulators need to explain how were payments made to homeowners who properties were not foreclosed until after December 2010, which exceeded the time-frame noted in the settlement agreement. How did these homeowners who filed BK Chpt 13 and are currently in their homes rcvd payments ranging from $600-$6000 much higher payments than those homeowners who actually met all the requirements, and rvcd ONLY $300; lost their homes, and were F/C in 2009-2010? These are serious questions that need to be addressed.

  2. Peggy says:

    Well I’m glad it’s coming to a close. Now maybe they (the OCC & FRB) will check on why the ongoing IFR is taking so long for the remaining servicers that weren’t part of this settlement. My servicer was One West Bank, and I haven’t heard anything except “thank you for your patience”. My patience is wearing thin.

  3. Connie says:

    This is BS, been trying for 3 months to do an address change, and still getting the run around, no diff that the forclosure BS. United States is now turning into the land of fuck over the US Citizens and make way to pay for all the wet backs.

  4. Frankp says:

    Connie….

    Have you emailed jason at rust?

  5. Lena says:

    Some people who just received checks in the mail last week got checks that were dated April 12th and April 26th, so they are no good and expired! What else can Rust screw up? I am still waiting for a check myself, they have not even sent it yet! No idea what the hold up is, I am have confirmed my address and name are correct since April!

  6. Don says:

    I am one of the 37000, checks that have been promised to be mailed back in July, then august and then silence. This is unbelievable!! The Keith and others in customer service at the number given cannot give you any information as to when these checks will go out and now this is December 19th 2013, 12 days! to the end of the year and still yet no word on when these checks will be mailed!!!

    I believe the staff at Rust working on this program are being paid for tier services and that Rust as a company is getting paid for doing coordinating this program, which brings to wonder if this was a company doing work for another company and being this sloppy and inadequate; how long would it have taken for them to loose this business.

    Is there a law firm out there ready to look into taking on a class action against Rust and BofA demanding an answer to why they have 37,000 checks still not dispersed and to clearly and honestly if they can manage that state what the issue is and when they will be mailed. Please let us know, thanks in advance.

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