On March 18, 2013, approximately 4.2 million people were sent notices that they will receive remuneration as a result of an agreement between federal banking regulators and 13 mortgage servicers. The mailer comes from the paying agent, Rust Consulting (1-888-952-9105), and Rust Consulting is the only agency that should be contacted if (previously) distressed borrowers have any questions or concerns.
As you may recall, the Independent Foreclosure Review is part of the settlement associated with the robo-signing debacle of 2010 (title my own). As part of this review, fourteen mortgage servicers and their affiliates are identifying customers who were part of a foreclosure action on their primary residence during the period of January 1, 2009 to December 31, 2010.
Originally, 13 mortgage servicers sent solicitation letters to 4.2 million potential victims of robo-signing and other foreclosure-related (and potentially fraudulent) matters. These letters provided homeowners the opportunity to request an independent review of their foreclosure process (a.k.a. Independent Foreclosure Review). If the review found that financial injury occurred as a result of errors, misrepresentations, or other deficiencies in the servicer’s foreclosure process, the customer might receive compensation or another remedy.
The postcards/letters that were sent out by Rust Consulting on March 18, 2013 are small and white and sealed on three sides. They state that a check is in the mail and should be arriving within six to eight weeks. Questions about the status of the check or any other issues surrounding the Independent Foreclosure Review should be directed to Rust Consulting only, as they are the paying agent for the Federal Reserve Board.
As short sale agents, you will likely get lots of questions about this matter as many folks are eager to get their hands on the money. After all, this money will be seen as Christmas in April (or May)… depending upon when the check is in the mail.