Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Fed Says Bounced Mortgage Settlement Checks Now Okay
WASHINGTON (4/22/13)--The Federal Reserve Board late last week assured troubled borrowers whose mortgage settlement checks had bounced that the independent paying agent had fixed the problem.

Some early recipients of checks being sent to borrowers under the Independent Foreclosure Review informed the Fed's consumer helpline on Tuesday that they were told their checks could not be cashed because of insufficient funds.

The Fed said its staff contacted the paying agent, Rust Consulting, Inc., and the paying bank, The Huntington National Bank, and that Rust subsequently corrected problems that led to some checks being rejected.

The Fed said it will continue to monitor the payments closely.

The payments are part of agreements between federal regulators and servicers to provide $3.6 billion in cash payments to borrowers whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the following companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

Checks are being sent in waves. The first batch of 1.4 million checks was sent on April 12. The Fed announced Friday that a second wave of 1.4 million checks totaling $1.2 billion was sent, bringing value of checks sent to $2.4 billion.

All checks are expected to be distributed by mid-July 2013.
Other Resources

Fed Release
RSS





print
News Now LiveWire
What role are #creditunions playing in @gatesfoundation's 2030 vision of financial services? Read #NewsNow Monday
11 hours ago
Consumers fear inaccurate info lingers on credit reports, says @FTC study Read @CUNA's News Now: http://t.co/RzNLMnaROO
13 hours ago
@PCUA has formed a @LinkedIn networking group for former bankers turned #creditunion employees.
13 hours ago
.@politico reports Democrats haven't picked the city yet, but their 2016 convention will be held the week of July 25.
13 hours ago
.@cuna, @DCUC_HQ urge @CFPB to exempt #CUs from changes to Military Lending Act rules cuz CUs aren't part of the targeted problem. NN Monday
15 hours ago