California, Florida Draw One-Third of Foreclosure Review Checks

California, Florida Draw One-Third of Foreclosure Review ChecksRecipients in California and Florida have received nearly one-third of the checks distributed under the Independent Foreclosure Review, according to new data released by bank regulators.
That’s out of $2.326 billion cashed or deposited as of May 31, 2013, according to a state-by-state table released by the Office of the Comptroller of the Currency, the regulator overseeing a total of $3.6 billion in payouts to about 4 million borrowers.
The state-specific data represents the mailing address of the recipient — and not necessarily the address of the eligible property.
The states with the top five dollar amounts for checks cashed or deposited are — not surprisingly — some of the hardest hit of the foreclosure crisis: California ($452,917,548); Florida ($306,412,612); Arizona ($127,842,971); Michigan ($108,540,951); and Georgia ($106,882,789).
California and Florida also claim the bulk of the checks issued — 657,037 and 645,277, respectively.
The payouts stem from wrongdoing or errors by more than a dozen mortgage servicers representing the largest U.S. lenders. Recipients were in the foreclosure process in 2009 or 2010, and were victims of wrongdoing ranging from messed-up mortgage modifications to outright illegal eviction from their homes. Compensation ranges from $300 to $125,000 — but the vast majority of borrowers have received a few hundred dollars each.
The newly-released table is based on data from Rust Consulting, which is handling the mailings under the supervision of regulators. And the information “may vary from other published numbers because of check clearance, processing and reporting.”
There are variations between the table and the official tally of checks cashed or deposited.
Nearly 2.9 million checks, totaling more than $2.5 billion, in the IFR payment agreement have been cashed or deposited through July 11, 2013, the OCC said in a statement Friday.
However, more than 3.9 million checks, worth more than $3.4 billion, have been sent to eligible borrowers since payments began on April 12.
“The remaining checks will be issued this summer,” the OCC said.
Regulators have not reported how many checks have been returned because of wrong addresses and what will be the course of action for checks unclaimed. Recipients have 90 days from the issue date to cash or deposit the checks.
Borrowers with questions about payments should contact Rust Consulting at 1-888-952-9105.

One thought on “California, Florida Draw One-Third of Foreclosure Review Checks

  • July 14, 2013 at 5:59 pm

    There is a possibility that this report is incorrect. It was my understanding that the funds from Goldman/Saxon settlement, these funds were coming from a totally different settlement fund altogether. Just like the OCC provided a different matrix on how the funds were to be disbursed, then they need to separate the funds accountability.

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