Fed: 96K Foreclosure Review Checks to Be Sent to Underpaid Borrowers
By: Esther Cho DSNews.com 05/09/2013
About 96,000 borrowers who received a check under the foreclosure review settlement should expect a second payment since their checks were for a lesser amount than what they should have received, the Federal Reserve announced in a statement.
The second round of payments to make up for the difference is only for eligible borrowers who had their mortgage serviced by former subsidiaries of Goldman Sachs and Morgan Stanley.Rust Consulting, the paying agent, stated the supplemental checks are scheduled to be sent around May 17 and will include a letter explaining the reason for the additional check.
In a release, Rust Consulting said “a clerical error” led to the lesser amount. The original payments were sent May 3 to over 217,000 recipients.
The Fed became aware of the issue Tuesday and directed Rust Consulting to send out supplemental payments as soon as possible, according to a statement.
The error is not the first issue check recipients have encountered. In April, regulators revealed early recipients had issues with cashing their checks due to insufficient funds.
More information on the foreclosure settlement can be found by visiting the Fed’s website.
Borrowers with questions regarding their payment can contact Rust Consulting 1-888-952-9105.
The settlement was first reached in January 2013 between federal regulators and 13 mortgage servicers. The agreement replaces the Independent Foreclosure Review first required as part of consent orders issued by regulators.