No one feels the pressure more than Smith and his oversight office as consumer advocates, housing counselors and lawmakers have relayed to him a litany of complaints about the lenders, one year after they settled charges of “robo-signing” and other wrongdoing and foul-ups in foreclosure cases nationwide.
More than one million eligible borrowers under the Independent Foreclosure Review agreement have cashed or deposited more than $1 billion in checks through April 25, bank regulars said Friday.
A group of House Democrats Thursday proposed the creation of an “independent monitor” to oversee the settlement between regulators and 13 mortgage servicers that in January abruptly ended the Independent Foreclosure Review for 4 million wronged borrowers.
Eligible borrowers under the Independent Foreclosure Review, many of whom have started to get compensation checks in the mail, are quickly signing up for an online petition to have the process reinstated for those who initially applied for a review.
Now these wronged borrowers who are starting to get checks of various amounts — tied to categories of mortgage-servicer wrongdoing over which they had no control — are trying to clean up their credit reports. Once again, they are on their own.Now these recipients who are starting to get checks of various amounts — tied to categories of mortgage-servicer wrongdoing over which they had no control — are trying to clean up their credit reports. Once again, they are on their own.
The next two mailings are scheduled for April 26 and May 3. A total of 434,484 checks have been cashed or deposited for a total amount of more than $418.8 million from the first mailing April 12, according to bank regulators, as of Thursday.
There were no bank regulators at Wednesday’s second Senate hearing on “ensuring accountability and transparency in foreclosure reviews” – but there were other overseers seeking the true depth of mistakes by mortgage servicers, including a director from the Government Accountability Office (GAO).
Rust Consulting, the paying agent for the Independent Foreclosure Review settlement, has resolved “early problems” with some of the 1.4 million checks sent out in the first wave of payouts to eligible borrowers, the Federal Reserve said Wednesday.
Bank regulators said Tuesday that nearly 50,000 checks totaling almost $50 million from the settlement fund for the Independent Foreclosure Review have been cashed or deposited as of the close of business Monday.
Two years after bank regulators took their initial “enforcement” action against mortgage servicers in the mostly-defunct Independent Foreclosure Review, checks to nearly 4 million eligible borrowers have started to arrive at mailboxes nationwide. But anger persists among the recipients of these checks — the vast majority amounting to hundreds of dollars each.