Update: Press release 4/9/2013 announces payments to be sent starting April 12th. Read the full press release on the Federal Reserve Bank website here.
Many people are asking about the newest settlement with big banks over mishandling foreclosures and then mishandling the independent foreclosure review process. Here are the main points on how the settlement will work, what to look for if you qualify for a payment, and where to go for more information:
Important information on payments:
- Borrowers don’t have to take any steps and no money or fees should be requested.
- The estimated number of people that will be receiving postcards is 4.2 million.
- If you are eligible for a payment under this settlement, you should receive a notification in the mail. They were sent on March 18. If you have questions or for more information, you can call Rust Consulting (the paying agent) at 1-888-952-9105.
- Receiving this does not bar a complainant from taking other legal actions or filing a Fair Housing complaint. If the servicers were making errors in the foreclosure and modification process we could also look at the terms of the loans and other information to try to determine if there is a FH violation.
- Beware of scams! You do not have to pay any fees to get information about your payments, or to receive a payment under the settlement. Call the number above if you are contacted by an entity you are unsure of.
Other details and where to go for more information:
- Instead of reviewing each individual complaint there will be a matrix of payments based on errors and improper actions taken by banks during modifications and foreclosures.
- Keep in mind that there are 13 banks involved, but their affiliates are also covered.
- In addition to the cash settlement that will be paid, the banks have agreed to another sum that will be used for principal reduction on loans.
- You can read more on the Office of the Comptroller of the Currency website here: http://www.occ.gov/news-issuances/news-releases/2013/nr-ia-2013-35.html
What to watch for:
Post cards were sent on March 18th to 4.2 million homeowners who may qualify for payments from the newest settlement with big banks over wrongful foreclosure practices. The images below are from the postcard we received stating that we will receive a check or more information. We almost tossed this out as junk mail but opened it instead.
If you receive something that looks like this, please open and read it carefully. Beware of anyone who charges you a fee for information or for a payment from this settlement.