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.
The vast majority of the nearly 4 million IFR borrowers are getting checks for hundreds of dollars.
But many on the petition site, Change.org, say they should have been placed in categories tied to higher compensation for wrongfully being denied mortgage modifications or other assistance to avoid foreclosure.
According to a framework from regulators, more than 438,500 borrowers requested a review before the IFR was shut down in January in favor of a $9.3 billion settlement with 13 mortgage servicers.
Compensation ranges from $300 to $125,000. About 2.5 million are getting a few hundred dollars each.
Bill Thomas, of Lititz, Pennsylvania, initiated the petition, which was quickly nearing 200 sign-ups by
noon Wednesday. The petition is addressed to President Obama, Congress, the governor of Pennsylvania and the bank regulators overseeing the IFR agreement: the Office of the Comptroller of the Currency and the Federal Reserve.
Here is Thomas’ statement:
We are now forced to accept the pocket change from the banks. The OCC and the Federal reserve did not stand up for us. We requested a review of bank misconduct and illegal foreclosure practices. Not a small payout! We the people deserve more then $300, $500, $800, $1000, $2000, $3000, $6000. Every homeowner that applied for the IFR should receive a full review as well as a fair settlement. Not the spare change from the bank president desk drawers! We will be heard. Please sign and help all affected.
Angry IFR borrowers are also expressing their frustration and calling for a class-action lawsuit on a forum that has registered nearly 1,300 users, mostly since last week.
Nearly 9,000 IFR borrowers qualify for compensation ranging from $24,000 to $125,000. These mostly involve foreclosures that were initiated or completed against borrowers who had not defaulted on their mortgages or who were meeting all requirements of a documented forbearance plan or were protected by federal bankruptcy law.
Many borrowers are complaining that they should have been placed in these higher-range categories.