Borrowers eligible for payment under the Independent Foreclosure Review relief settlements, who have not yet cashed or deposited their check, are facing a deadline of Dec. 31 of this year. They have until the end of the year to request a replacement check.
Any funds not claimed will go to borrowers who have already cashed their initial checks.
The Federal Reserve Board announced this week that those borrowers who request a new check will then have until March 31, 2016 to cash their new checks.
The Independent Foreclosure Review payment agreement was overseen by the Federal Reserve and the Office of the Comptroller of the Currency. It provided $3.9 billion for borrowers of 14 servicers whose homes were in any stage of the foreclosure process in 2009 or 2010. These borrowers have been compensated for being victims of foreclosure-related wrongdoing or “deficiencies” by the mortgage servicers, as regulators have said.
As of October 2015, more than $3.5 billion had been cashed or deposited by eligible borrowers.
In mid-2016, the Federal Reserve said it will direct the paying agent, Rust Consulting, to redistribute any funds remaining after March 31, 2016, to borrowers of these servicers who have previously cashed or deposited their original checks.
The Fed said borrowers whose mortgages were serviced by one of the 14 servicers that entered into agreements in 2013 should call Rust Consulting with questions at 888-952-9105. Here is the official Independent Foreclosure Review site.