It’s been a multi-year struggle for homeowners found to be victims of foreclosure abuses by the biggest banks under what is known as the Independent Foreclosure Review, and about 600,000 of them have yet to cash a check.
Bank regulators said this week that “replacement checks” are being mailed to borrowers eligible for payment under the Independent Foreclosure Review agreements. These IFR claimants have not yet cashed or deposited their check, said the Federal Reserve Board and the Office of the Comptroller of the Currency.
Agreements reached in January 2013 between federal bank regulatory agencies and 13 mortgage servicers provided $3.6 billion in cash payments to borrowers whose homes were in some stage of the foreclosure process in 2009 or 2010.
The mortgages were serviced by one of the following, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.
The payments ranged from several hundred dollars (most checks) to $125,000 plus lost equity (in much fewer cases).
The checks are being sent by the paying agent, Rust Consulting, to replace uncashed checks that have now expired.
Beginning in April 2013, payments were mailed to all of the nearly 4.2 million borrowers of these servicers who qualified for compensation. As of January 2015, more than 3.4 million of these checks, totaling more than $3.1 billion, had been cashed or deposited. That’s about 87 percent of the total amount of funds these servicers were required to pay.
Nearly 600,000 checks mailed to borrowers of these 13 servicers remain outstanding, and have now expired.
Borrowers whose mortgages were serviced by one of the 13 servicers that entered into agreements in January 2013, or by GMAC Mortgage, should call Rust Consulting with questions at 888-952-9105, Monday through Friday between 9:00 a.m. and 8:00 p.m. EST, or Saturday between 11:00 a.m. and 4:00 p.m. EST, according to the Fed and the OCC
Borrowers who had a mortgage serviced by EverBank should contact the paying agent for that agreement, Epiq Systems, with questions at 877-819-9754, regulators said.