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.”
Rust Consulting has mailed more than $3.4 billion worth of checks related to the Independent Foreclosure Review since April 12, with the bulk of that amount sent out by April 26. So why hasn’t $1.2 billion in checks already mailed been cashed or deposited?
Elizabeth Warren, the freshman Senator from Massachusetts, made “too big for trial” a virtual slogan for her crusade to get regulators to explain why no big bank has been prosecuted for wrongdoing in the run-up to the crippling financial crisis. She is at it again.
Staff members from the office of Rep. Elijah Cummings, D-Maryland, one of several Democrats who are closely following the mishaps of the Independent Foreclosure Review (IFR), are scheduled to meet with executives of Rust Consulting this week. Cummings and regulators are trying to figure out what exactly is going on with the firm, which has two decades of experience in managing financial settlements and claims.
Bank 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. Now comes the sequel: delayed payments from the other agreement, the National Mortgage Settlement.
Military servicemembers are getting shortchanged when it comes to protections against foreclosures, particularly after they enter active duty, according to several House Democrats who are introducing a bill to strengthen federal law that was enacted before the U.S. entered World War II.
Rust Consulting, the agent handling the payouts for the already-controversial Independent Foreclosure Review (IFR) agreement, said Wednesday that more than 40 percent of checks mailed May 3 were less than the amount designated by bank regulators because of a “clerical error.”
The running tally from the foreclosure-review payments: More than 1.8 million people have cashed or deposited almost $1.7 billion in checks through May 2, 2013, regulators said.
Most of them amount to $300 or a little more, those foreclosure-relief checks going out to millions of Americans who were caught up in mortgage-related abuses or wrongdoing by the biggest banks, a saga that is starting to get national television attention.
Former subsidiaries of Goldman Sachs (Litton Loan Servicing) and Morgan Stanley (Saxon Mortgage Services) are the 12th and 13th mortgage servicers to start compensating a total of nearly 4 million borrowers who went through foreclosures in 2009 and 2010 that were deemed to be wrongful or botched by bank regulators.