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Correcting Foreclosure Practices
Updated December 2, 2013
Independent Foreclosure Review Payment Agreement
As of August 22, 2013 almost all of the 4.2 million checks, totaling $3.6 billion, have been issued as a result of the Independent Foreclosure Review Payment Agreement.
Because checks were issued with a 90-day expiration date to prevent fraud, checks issued in the early waves of distribution that have not been cashed or deposited have begun to expire. Borrowers wishing to cash checks that have expired can contact Rust Consulting to request a new check at 1-888-952-9105, Monday through Friday, 8 a.m. - 10 p.m. ET or Saturday, 8 a.m. - 5 p.m. ET.
The payments began on April 12 and result from agreements between the Office of the Comptroller of the Currency, the Federal Reserve Board, and 13 servicers to provide $3.6 billion in 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.
In July 2013, GMAC Mortgage also reached an agreement with the Federal Reserve Board that ended the Independent Foreclosure Review. The agreement reached in July with GMAC Mortgage added more than 232,000 borrowers and required approximately $230 million in direct cash payments to those borrowers.
In August, the OCC announced that EverBank has agreed to pay approximately $37 million in cash payments to more than 32,000 eligible mortgage borrowers and provide $6.3 million to organizations certified by the U.S. Department of Housing and Urban Development or other tax-exempt organizations that have as a principal mission providing affordable housing, foreclosure prevention and/or educational assistance to low- and moderate-income individuals and families. Eligible borrowers will be contacted directly by a third-party paying agent. Eligible borrowers will receive compensation whether or not they filed a request for review form, and borrowers do not need to take further action to be eligible for compensation. Additional information about payments to eligible borrowers will be announced in the near future.
Expired IFR Check?
Checks issued as part of the Independent Foreclosure Review Payment Agreement expire 90 days after they are issued as a means to limit fraud. If your check has expired and you would like to have the check reissued, please contact the paying agent, Rust Consulting, at 1-888-952-9105, Monday through Friday, 8 a.m. - 10 p.m. ET or Saturday, 8 a.m. - 5 p.m. ET.
Notice to Financial Institutions
Institutions processing checks are reminded that checks require positive identification. Financial institutions should follow the instructions on the back of the check to validate authenticity.
Borrowers with questions regarding payments should contact the Rust Consulting, Inc. at 1-888-952-9105, Monday through Friday, 8 a.m. - 10 p.m. ET or Saturday, 8 a.m. - 5 p.m. ET.
A phone number for EverBank customers to contact the paying agent who can answer their questions will be published soon.
Regulators encourage borrowers needing foreclosure prevention assistance to work directly with their servicer or contact the Homeowner's HOPE Hotline at 888-995-HOPE (4673) (or at www.makinghomeaffordable.gov) to be put in touch with a U.S. Department of Housing and Urban Development-approved nonprofit organization that can provide free assistance.
Accepting a payment will not prevent borrowers from taking any action they may wish to pursue related to their foreclosure.
Watch out for scams. Beware of anyone who asks you to call a different phone number than the number above or to pay a fee to receive a payment under the agreement. Beware of anyone who asks you to call a different phone number than the number above or to pay a fee to receive a payment under the agreement. See frequently asked questions about the agreement.
Continuing Reviews for Customers of OneWest
For borrowers with mortgage loans serviced by Financial Freedom (OneWest) and IndyMac Mortgage Services (OneWest), the Independent Foreclosure Review process continues. More about the continuing reviews.
OCC and Federal Reserve examiners are continuing to closely monitor the servicers' implementation of plans required by the enforcement actions issued in April 2011 to correct the unsafe and unsound mortgage servicing and foreclosure practices.
Financial Remediation Framework for the Continuing Reviews
For servicers whose Independent Foreclosure Review continues, the consultants will use the framework to recommend remediation for financial injury identified during the Independent Foreclosure Review. The servicers will prepare remediation plans based on the consultants' recommendations. The federal banking regulators must approve each servicer's remediation plan. The framework helps ensure that similarly situated borrowers receive similar treatment.
Foreclosure Prevention Assistance
Regulators encourage borrowers needing foreclosure prevention assistance to work directly with their servicer or contact the Homeowner's HOPE Hotline at 888-995-HOPE (4673) (or at Making Home Affordable) to be put you in touch with a U.S. Department of Housing and Urban Development approved nonprofit organization that can provide free assistance.
In April, the OCC issued guidance applicable to large and midsize national banks and federal savings associations that requires mortgage servicers to review foreclosures prior to their completion to ensure the servicer is complying with applicable laws and regulations and that appropriate foreclosure prevention efforts have been made. This guidance issued in April applies to all large and midsize national banks and federal savings associations not just those servicers covered by our foreclosure-related enforcement actions issued in April 2011.
Additional Background Information
Request for Review Response Data
The OCC and Federal Reserve have released data on the number of eligible borrowers who have requested a review by state and county through the end of September 2012. Click to view that data.
The OCC released engagement letters that describe how the independent consultants, retained by the servicers, will conduct their reviews and claims processes in accordance with the OCC's consent orders. See the engagement letters.
On June 21, 2012, the OCC released its second interim report on the status of the Independent Foreclosure Review and actions required by consent orders issued in April 2011 to correct deficient mortgage servicing and foreclosure processes. Read the report.
About the Enforcement Actions
The enforcement actions were based on interagency examinations conducted in the fourth quarter of 2010. A summary of the findings of the interagency reviews is available in the Interagency Review of Foreclosure Policies and Practices, which was produced by the OCC, the Board of Governors of the Federal Reserve System, and the OTS.
Links to the OCC and former OTS Enforcement Actions (Issued April 2011):
Links to Enforcement Action Amendments for Servicers Entering the Independent Foreclosure Review Payment Agreement (Issued February 2013):