The much-anticipated notices from Rust Consulting — the bank regulators’ paying agent — was suppose to clear up how much compensation wronged foreclosure victims would get for actions taken three to four years ago.
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.
Regulators should have a distribution plan finalized, or near ready, for more than $3.3 billion in a settlement fund earmarked for borrowers who were victims of improper foreclosure actions in 2009 and 2010, according to consent orders.
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.
Big banks wrongfully foreclosed on more than 700 military members and seized homes from about two dozen other borrowers who were current on their mortgage payments in actions taken during the peak of the housing crisis.
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.
The deal has essentially failed to keep families in their homes, and the settlement’s shortcomings has allowed the big banks to play a “shell game” with second mortgages.
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.
Comptroller of the Currency Thomas J. Curry said today that it was right of regulators to end the delayed and unproductive “independent foreclosure review” in favor of a settlement with more than a dozen lenders over improper or wrongful foreclosures against 4.2 million borrowers.