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Independent Foreclosure Review Payments Exceed $2.5 Billion

JUL 15, 2013 11:20am ET
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Rust Consulting Inc. is almost done delivering compensation checks to borrowers whose homes were illegally foreclosed upon in 2009 and 2010 by 13 of the country’s largest servicers.

Since April 12 when payments started being sent related to the Independent Foreclosure Review Payment Agreement, more than 3.9 million checks, worth at least $3.4 billion, have been delivered to eligible borrowers.

As part of the agreement made by 13 servicers and the Federal Reserve and Office of the Comptroller of the Currency, Rust was hired to give out $3.6 billion in cash payments to homeowners whose property were in any stage of the foreclosure process during the two-year span.

The OCC said the remaining checks will be issued by the Minneapolis-based administrative services firm this summer.

Through July 11, about 2.9 million checks totaling more than $2.5 billion have been cashed or deposited.

Overall, 4.2 million borrowers are expected to receive payments that could be as much as $125,000, depending upon on how their harm is categorized by the servicers.

The independent foreclosure review agreement involves mortgages that were serviced by the following 13 servicers: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo.

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