US banks to send checks to 4.2M who lost homes US banks this week begin sending checks to 4.2M who lost homes to foreclosure Associated Press – WASHINGTON (AP) -- The nation's largest banks will begin sending payments this week to millions of Americans who may have been wrongfully foreclosed on during the housing crisis. A total of $3.6 billion in cash will be distributed to 4.2 million borrowers, the Federal Reserve and the U.S. Comptroller of the Currency said Tuesday. Payments will range from $300 to $125,000. About 90 percent of borrowers whose mortgages were serviced by 11 of the banks will receive payments by the end of April, the agencies said. The last group of payments is expected in mid-July. The banks, which include Bank of America, JPMorgan Chase, Wells Fargo and Citigroup, reached a settlement with the federal agencies in January. They agreed to pay a total $9.3 billion in cash and in reductions of mortgage balances. The 13 banks settled the regulators' complaints that they wrongfully foreclosed on borrowers with abuses such as "robo-signing," or automatically signing off on foreclosures without properly reviewing documents. The settlement covers foreclosures in 2009 and 2010. It ended an independent review of loan files that the two agencies ordered in 2011. Banks and consumer advocates had complained that the loan-by-loan reviews were time-consuming and costly and didn't reach many affected borrowers. Some questioned the independence of the consultants who performed the reviews, who often ruled against borrowers. Consumer advocates have criticized the deal, saying the regulators settled for too low a price by letting banks avoid full responsibility for wrongful foreclosures. The other banks in the settlement are HSBC, MetLife Bank, PNC Financial Services, Sovereign, SunTrust, U.S. Bank, Aurora, Morgan Stanley and Goldman Sachs. __ Borrowers can call Rust Consulting, the paying agent, at 1-888-952-9105 to update their contact information or verify that they are covered by the settlement.
Update from OCC and Federal Reserve
Payments to 4.2 million eligible borrowers under the Independent Foreclosure Review (IFR) Payment Agreement began on April 12. The checks range from $300 to $125,000, and they will go out in waves according to the following schedule:
- April 12 – approximately 1,391,000
- April 19 – approximately 1,391,000
- April 26 – approximately 927,000
- May 3, 10 – approximately 232,000
Borrowers eligible for these payments would have been in some stage of foreclosure in 2009 or 2010 and their loan would have been serviced by one of the firms listed on the Websites listed below. If you encounter borrowers who you believe are eligible for payment under the IFR Payment Agreement, but who have not received the postcard sent in March 2013, please instruct them to call the payment agent - Rust Consulting at 1-888-952-9105 Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m.–5 p.m. ET to verify eligibility and discuss the change of address process. Eligible borrowers who have not received their checks after the last group of checks is mailed in May are also encouraged to call this number about the status of their payments.
In addition, the OCC and the Federal Reserve Board have released several pieces of information pertaining to the Independent Foreclosure Review Payment Agreement that will be helpful as you field questions from borrowers. The “IFR Payment Toolkit” can be accessed here:
- On the OCC’s website in the “Related Links” section at: http://www.occ.gov/independentforeclosurereview
- On the Federal Reserve Board’s website in the “Related Resources” section at: http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review-payment-agreement.htm
If borrowers contact you for guidance, the IFR Payment Toolkit contains the following resources you can use to assist them:
- Press Release – Payment Agreement Details (4/9/13)
- Table – Payment Agreement Details
- Press Release - IFR Payment Agreement Announcement (1/17/13)
- Press Release - Amended Consent Orders (2/28/13)
- Frequently Asked Questions
- IFR Payment Agreement Public Service Announcement
- Independent Foreclosure Review: Important Changes audio conference (includes presentation and question and answer session)
Please share these resources with constituents, stakeholders, and other interested parties. In addition, a link to the Public Service Announcement mentioned above is attached for your convenience. Please see: http://occ.gov/news-issuances/psa/payments-and-foreclosure-assistance-to-begins-april-2013.html The announcement can be used for posting on websites, to list serves, and for local media.
Additional information and answers to frequently asked questions for eligible borrowers are also available at: https://independentforeclosurereview.com/settled.aspx. For borrowers serviced by mortgage servicing companies still continuing with the independent foreclosure review process, information and answers to frequently asked questions is available at: https://independentforeclosurereview.com/nonsettled.aspx. Once again, the OCC and Federal Reserve Board thank you for your continued support of the IFR Payment Agreement.