Rust Consulting: 96K Foreclosure-Review Checks Erroneous

Rust Consulting: 96K Foreclosure-Review Checks Erroneous 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.”
In the fourth wave of settlement checks mailed Friday, about 96,000 borrowers whose loans were serviced by Goldman Sachs (Litton Loan Servicing) and Morgan Stanley (Saxon Mortgage Services) were affected by the error.
The remaining borrowers who received checks from the May 3 batch were not affected, Rust Consulting said. A total of 217,000 checks were sent to borrowers on that day.
Rust Consulting said it has corrected the error and plans to mail supplemental checks to affected borrowers as soon as May 17, 2013, for the additional amounts they were suppose to be paid, according to the Federal Reserve.
A letter explaining the reason for the supplemental check will accompany the supplemental check.
The correct total payment amounts are listed on the Federal Reserve Board’s website according to categories of financial arm. However, many borrowers say they have not been told under what category they belong in the financial framework.
This is the second snafu with the IFR payouts, which represent compensation for wrongful foreclosure actions taken against 4 million homeowners in 2009 and 2010 by more than a dozen big banks and their servicing affiliates, including Bank of America, JPM0rgan Chase, Wells Fargo and Citi.
Some checks in the first wave of payments sent out April 12 bounced because of insufficient funds with the paying bank. After that issue was resolved with the bank, the Federal Reserve said it would continue to monitor the payments closely and “encourages borrowers who have concerns or experience difficulties cashing their checks to call Rust at 1-888-952-9105.”
As of today, Rust has mailed payments to more than 3.9 million borrowers totaling approximately $3.4 billion.
To date, 2.1 million borrowers have cashed settlement checks worth $1.9 billion. In all, 4.2 million borrowers will be paid from a $3.6 billion fund established by 13 mortgage-servicing companies.
The Fed in a statement said today that “borrowers whose mortgages were serviced by all 13 of the institutions should call Rust at 1-888-952-9105 if they wish to confirm eligibility, update their contact information, or get answers to further questions.”

14 thoughts on “Rust Consulting: 96K Foreclosure-Review Checks Erroneous

  • May 9, 2013 at 8:47 am
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    Here’s a newsflash: All the checks sent out out are erroneous!!! This is yet further proof that the IFR has been a disaster. Some poor person who lost their home got $300, while some other person got $50k. Tragic

  • May 9, 2013 at 10:20 am
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    And it gets worse: The customers from IndyMac/OneWest, who didn’t join the settlement, have received nothing. And don’t even have a planned due date. The Govt provides no new information and the Bank doesn’t either.

  • May 9, 2013 at 10:23 am
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    I put down $110,000 on my home, my lifes savings. 2 years later after the auto business took a hit, and a divorce I had a remod worked out..Well, Citi bank foreclosed on my home even though payments were made on time as the remod was approved. I lost my home, citi bank sold my home and pocketed the $45000 in equity and left me with nothing, I am still paying on a 2nd mortgage for this home thanks to citi bank keeping the equity? I got a check for $1,000, called and email rust consulting daily with no answers, noone will call or email me back..I refuse to cash a $1,000 check.

  • May 9, 2013 at 1:10 pm
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    I would rather had a chance to stay in my home…Priceless….$1,000…Unemployment for 2 weeks pays more then that?

  • May 9, 2013 at 1:30 pm
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    ACTION::::::: It’s time to end Too Big To Fail::::By Sherrod Brown, U.S. Senator
    To be delivered to: The United States House of Representatives and The United States Senate
    PETITION STATEMENT
    Give Wall Street megabanks a choice: Carry enough capital to cover your own losses, or downsize until you’re no longer a threat to American taxpayers.
    Petition Background
    Big Wall Street megabanks are still putting American taxpayers at risk. Big banking institutions like Bank of America and Citibank carry more assets than they have capital to cover. That means that if those assets go south, the banks can’t recover on their own. And when a bank’s failure means the failure of the American economy, the taxpayers are forced to step in. It’s called “Too Big To Fail.” It should also be called “too risky for the American economy” and “too reckless to continue.”
    This is the practice that brought our economy to the brink once before. That’s why I have a new, bipartisan plan to end Too Big To Fail, and break up Wall Street megabanks for good. It would require that banks carry enough capital to cover their own losses, or force them to downsize so that they are no longer a risk to the American economy.
    This is a common sense solution — but I need all of us to help. So sign your name today, and make sure members of Congress know that you’re in favor of the ending “Too Big to Fail.”
    There are currently 91,710 signatures
    http://pac.signon.org/sign/action-its-time-to-end?source=mo&id=67400-17965358-IEw3NOx

  • May 10, 2013 at 3:49 pm
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    Received $300.00 for my troubles with Saxon/Mortgage Stanley, after being put in a 1 year period in foreclosure 3 times, working on modifications that includes being unemployed for over 2 years and a sick spouse, had to work with ESOP of Cleveland to finally get somewhere and this is what we were offered. Was told one payment and when the new payment statement came it was double to what we agreed on. Spoke to the Ohio Attorney General’s office and they asked that all forms be sent to them after they contacted me. So for $300. I am suppose to be happy about it. My cousin did a modification in 2011 and they took 80,000 off of the loan that was foregiven and then they gave him $5000.00 what is wrong with this picture. I have spoken to my Congressman’s Office and your local Congressman does not know how the amounts are being sent out. I will believe it when I see if I am one of the lucky ones in receiving the difference because the chart said for us was $38k

  • May 12, 2013 at 11:42 am
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    I received 3k in settlement for my loss but lets see how it went signed up for hard ship program trying to keep my house when that time exp. after paying $600.00 plus a month hsbc wanted a payment of ten thousand to keep my house well I guess I should have just tried to make my monthly payment of a thousand fifty because that’s what figured out to the only thing I never new is were the 600.00 a month went got the run around on that they did say if you send a cashiers check for like 1380.00 will defer the rest so like a dummy I did they could not find that said they never received funny how that worked as well now I know its my word against theirs after all the run around the only thing we could do is file bankrupt but you know its been a learning experience I don’t want nothing from anyone for free just an old poor boy trying to scratch out a living and raise a family happy in life o yea. happy with the 3k nope but every little bit helps. o yeah they got the house anyway.

  • May 16, 2013 at 8:22 am
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    Called to see if we are receiving another check. Spoke to the Customer Service Rep and she said you should be happy you got anything. Very rude. I have spoken to my Congressman’s office locally and have reported everything that we have dealt and have spoken to the Congressman and he did not know anything about it. Maybe Congress needs to start getting involved because first of all everyone should have received more than 300.00 and Saxon we were never allowed to have our records reviewed.

  • May 20, 2013 at 6:21 am
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    We were robbed we got a stanky $300.00 check. You’re lucky if you got anything over that. It seems like everyone just got $300.00, we should have been in the bankruptcy category.

  • May 24, 2013 at 9:58 pm
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    So what is 300 x 217,000 so where is all the rest of the money going Mr RUST

  • May 28, 2013 at 8:39 pm
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    I hear ya JAY…I’ve voiced the same concern elsewhere and my comments were DELETED…be careful, some ppl don’t want that opinion expressed…PEOPLE WHO ACTUALLY LOST THEIR HOME DUE TO MORTGAGER INCOMPETENCE RECEIVED THE SMALLER AMOUNTS WHILE OTHERS STILL IN THEIR HOMES RECEIVED MORE!!!..I’m confused to say the least, but who am I? My comments will probably be deleted anyway…lol 🙂

  • May 28, 2013 at 8:42 pm
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    I meant to reference the comments made by JAX, NOT JAY…SORRY…

  • June 4, 2013 at 12:40 am
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    Are there any attorneys following this thread? We have some serious issues here! Can you help us??? I have a court order that was ignored by Bank of America! Help!!!!

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