GMAC Adds $230M to 'Independent Foreclosure Review' Payouts

GMAC Adds $230M to 'Independent Foreclosure Review' PayoutsMore than 232,000 borrowers whose homes were in any stage of foreclosure in 2009 and 2010 with GMAC Mortgage will now receive cash compensation under the Independent Foreclosure Review agreement.
GMAC Mortgage is required to make approximately $230 million in cash payments to borrowers, the Federal Reserve said Friday.
GMAC now becomes the 14th major mortgage servicer under the agreement that ended costly but mostly fruitless foreclosure reviews in favor of $3.8 billion in payouts to about 4.4 million borrowers. Ranging from $300 to $125,000, the payouts are suppose to compensate victims for botched mortgage modifications, erroneous documentation or wrongful evictions. The vast majority of recipients qualify for a few hundred dollars.
The bankruptcy court that is overseeing proceedings involving GMAC Mortgage approved GMAC’s entry into the IFR settlement Friday.  As a result of this amendment, the independent foreclosure reviews will conclude for GMAC Mortgage borrowers, regulators say.
“Information about payments to borrowers whose mortgages were serviced by GMAC Mortgage will be announced in the near future,” the Federal Reserve said.
GMAC Mortgage is a unit of Residential Capital LLC (ResCap), which owned most of the mortgage business of U.S. auto lender Ally Financial. ResCap filed for bankruptcy last year.
As is the case with the other 13 mortgage servicers in the IFR agreement, borrowers whose mortgages were serviced by GMAC Mortgage who accept a payment will not be prevented from taking any action related to their foreclosure.
The Fed said borrowers with all 14 servicers can call 1-888-952-9105 to update their contact information, verify that they are covered by the agreement, or to ask further questions.

One thought on “GMAC Adds $230M to 'Independent Foreclosure Review' Payouts

  • September 8, 2013 at 10:09 am

    Independent Foreclosure Review Payment Checks not sent out as promised!!!!
    The Paying Agent “Rust Consulting” in conjunction with OCC have issued a number of press releases and updates on the payments made and to be made under this program; However Rust Consulting has not lived up to these promises and now can offer no explanation, nor any update as of September 4th as to when these eligible Claimants checks will be mailed.
    In the Spring requests for 1099 information were mailed and the one for Linda Gxxx Ref 1813089053 SSN: xxxxx5365 Property Address xxx Harbor Place Unit xxx Dadeville, AL 36853 Bank of America Loan was returned completed on May 6, 2013. In news releases by Rust and OCC it was promised these checks would be mailed to these 37,000 borrowers in July 2013, which did not happen. Without explanation it was then promised buy OCC and Rust that these checks would be mailed so that they would be received before the end of August 2013. THIS AGAIN DID NOT HAPPEN!!
    Phone calls these morning at 8:30 AM this morning to Rust and in a discussion with Keith confirmed this check would go out at some point, but had not and he could give no explanation nor could he say when it would go out except to say in the Fall of this year. HE CONFIRMED THAT THEY HAD ALL THE INFORMATION REQUIRED; IT’S JUST THAT IT DIDN”T HAPPEN AND NO NEW DATE HAD BEEN SET FOR THE MAILING!
    37,000 people need your help!
    Please, please investigate this problem and help me and the others to get our checks mailed from Rust.
    Thanks you,
    Linda Gxxx
    September 4, 2013 9:45 AM
    Subject: Re: Failure of Rust and OCC to send out 37,000 checks in the Independent Foreclosure Settlement 154299

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