Payout to 4.2 Million Borrowers Beginning April 12th

There was an agreement between the Office of the Comptroller of the Currency (OCC),  the Federal Reserve Board, and 13 mortgage servicers that will make payments to 4.2 million borrowers starting April 12th. This agreement will provide $3.6 billion in cash payments to homeowners that have found themselves in any stage of foreclosure in 2009 or 2010. Those defaulted loans must have been serviced by by one of the following companies or their subsidiaries  Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

The checks will be sent in several waves starting with 1.4 million checks being sent out on April 12th, and ending sometime in mid-July 2013.  The payments are expected to range from $300 to $125,000. There will be a bit of a delay for borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley, but information regarding this is not yet available.

Borrowers who qualify to receive this servicing settlement payout can expect a letter with an enclosed check sent by the paying agent, Rust Consulting, Inc. Rust previously sent postcards to the 4.2 million borrowers to notify them about their eligibility. If you received a postcard but need to update your contact information, call Rust at (888) 952-9105. Any information that you provide to Rust will only be used in regards to the agreement, at the direction of the OCC and the Federal Reserve.  However, you should beware of scams. If anyone asks you to call a different phone number or to pay a fee in order to receive your payment, do not do so. Stop and call the number above. Remember, servicers are not permitted to ask borrowers to sign a waiver of any legal claims they may have against their servicer in connection with accepting a payment.

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