More than 4.2 million borrowers eligible for payments under the settlement tied to the Independent Foreclosure Review have started getting notices in the mail, but they contain few details — and no checks yet.
Under fire over tax refund delays to 600,000 clients, H&R Block CEO Bill Cobb apologized to clients in a statement issued late Friday, saying it was the company’s mistake that caused transmission problems with Form 8863, which is filed on behalf of taxpayers seeking valuable education tax credits.
The Internal Revenue Service said Wednesday that it is taking “special steps” to expedite a review and remedy of a filing error with Form 8863 that has caused a delay in tax refunds of possibly six weeks.
Mortgage servicers face a March 15 deadline to make initial cash payments into a specical fund from which qualified borrowers will be compensated for wrongful foreclosure actions taken in 2009 and 2010, according to the most recent consent orders between the lenders and bank regulators.
Federal Reserve Chairman Ben Bernanke took responsibility for the costly delays in getting compensation to 4 million homeowners who were victims of wrongful actions by lenders under the so-called Independent Foreclosure Review.
The “Independent Foreclosure Review” settlement’s paying agent “will send payments and correspondence” by the end of March, or within the next four weeks. The paying agent is Rust Consulting, Inc.
Checks to borrowers who submitted claim forms as part of the National Mortgage Settlement will likely be mailed out by “mid-year 2013,” according to a brief update on the settlement’s website.
Eligible homeowners in the $9 billion settlement, also known as the “Independent Foreclosure Review,” are expected to be notified by mail by the end of March with payment details. The compensation range is from hundreds of dollars to $125,000.
The credit reporting industry and the degree to which errors on consumer files go unaddressed were given the full treatment by 60 Minutes on CBS tonight, with federal authorities interviewed stating that the industry is a “mess” and the impact on consumers is “unconscionable.”
The AOTC is a tax credit of up to $2,500 of the cost of tuition, fees and course materials paid during the taxable year. Forty percent of the credit (up to $1,000) is refundable. This means you can get it even if you owe no tax.