Tuesday, April 23, 2013

More troubles developing with mortgage relief cash payments

More problems are developing in the distribution of nearly $3.6 billion to troubled homeowners.

A week after a number of the first checks bounced, people in families that don't look the same as they did when their mortgage deeds were inked are having issues getting their checks cashed.

The payments, which began to be sent out in mid-April, bear the names of all people who signed the mortgage documents. Between then and now, many households have changed by divorce, death or other circumstances -- meaning some homeowners due money can't access it.

Regulators are aware of the problem. Rust Consulting, which is managing the payments, is now working on a policy on how homeowners can get the checks reissued with the correct names, a spokesman with the Office of the Comptroller of the Currency said.

The payments stem from a legal settlement with mortgage servicers accused of wrongdoing, reached with the OCC and the Federal Reserve. About 4 million borrowers who were in some stage of foreclosure in 2009 or 2010 are eligible. Data from the Federal Reserve shows that nearly 60 percent will receive $300.

The settlement itself was freighted with issues. Borrowers were initially to be eligible for an independent review of their foreclosure cases to determine whether they were harmed by their servicer and compensated accordingly. As costs escalated, a second settlement was reached to end the review.


Skippy said...

You might be a liberal if you think they can take over health care...

Anonymous said...

You might be a conservative if you think $300 is enough to make a difference.

Anonymous said...

Liberals want Rust Consulting to take over health care?