Independent Foreclosure Review: Payments to 4.2 Million Borrowers Covered by Fraudclosure Agreement to Begin April 12

Office of the Comptroller of the Currency

Payments to 4.2 Million Borrowers Covered by Foreclosure Agreement to Begin April 12

WASHINGTON — Payments to 4.2 million borrowers are scheduled to begin on April 12 following an agreement reached by the Office of the Comptroller of the Currency and the Federal Reserve Board with 13 mortgage servicers.

The agreement, which was reached earlier this year, provides $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.

The payments will range from $300 to $125,000.  For borrowers whose mortgages were serviced by 11 of the 13 servicers—all servicers but Goldman Sachs and Morgan Stanley—checks will be sent in several waves beginning with 1.4 million checks on April 12.  The final wave is expected in mid-July 2013.  More than 90 percent of the total payments to borrowers at those 11 servicers are expected to have been sent by the end of April.  Information about payments to borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley will be announced in the near future.

In most cases, borrowers will receive a letter with an enclosed check sent by the Paying Agent—Rust Consulting, Inc.  Some borrowers may receive letters from Rust requesting additional information needed to process their payments.  Previously, Rust sent postcards to the 4.2 million borrowers notifying them of their eligibility to receive payment under the agreement.

Rust is sending all payments and correspondence regarding the foreclosure agreement at the direction of the OCC and the Federal Reserve.

Borrowers can call Rust at 1-888-952-9105 to update their contact information or to verify that they are covered by the agreement.  Information provided to Rust will only be used for purposes related to the agreement.  Borrowers should beware of scams and anyone asking them to call a different number or to pay a fee to receive payment under the agreement.

Accepting a payment will not prevent borrowers from taking any action they may wish to pursue related to their foreclosure.  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 payment.

In determining the payment amounts, borrowers were categorized according to the stage of their foreclosure process and the type of possible servicer error.  Regulators then determined amounts for each category using the financial remediation matrix published in June 2012 as a guide, incorporating input from various consumer groups.  Regulators have published the payment amounts and number of people in each category on their Web sites at and

While the agreement ended the Independent Foreclosure Review for the 13 companies identified above, the review continues for OneWest, Everbank, and GMAC Mortgage.

Regulators continue to monitor the servicers’ actions to correct the unsafe and unsound mortgage servicing and foreclosure practices required by other parts of regulators’ enforcement actions, which remain in effect.

Regulators have issued guidance to the servicers under foreclosure-related enforcement actions directing a review before foreclosure sales for all pending foreclosures.  These reviews help prevent avoidable foreclosures by ensuring foreclosure-prevention alternatives are considered and foreclosure standards are met.  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 to be put in touch with a U.S. Department of Housing and Urban Development-approved nonprofit organization that can provide free assistance.


Copy of the payout agreement details below…



Independent Foreclosure Review Payment Agreement Details

9 Responses to “Independent Foreclosure Review: Payments to 4.2 Million Borrowers Covered by Fraudclosure Agreement to Begin April 12”
  1. darling says:

    Anyone know about a class action, please let me know. I also will like to take part on it. My e-mail is Thank you, this is for Wells Fargo.

    • Angelique Rider-Mitchell says:

      My intention is absolutely to file suit, my nemesis is Wells Fargo, but from what little I know about class action suits this I’m clear on – people in class actions don’t get shit! But, if anyone could give me some guidance on what sort of action to bring, I’d be greatful. The basis for my suit will be having received incorrect compensation d/t having been incorrectly categorized. So, Breach of Contract, Fraud, etc.? Thanks.

  2. Angelique Rider-Mitchell says:

    When we finally receive our check ( btw does anyone know when the 2nd wave is due to mail?) I intent to initiate a suit against W.F. based on being placed in the wrong group & therefore being incorrectly compensated. B/c after all how likely is it that after yrs of screwing us that now they’re finally going to do right by us? Zip, zilch, Nada!
    Anyway, what I’m wondering is if anyone has any guidance regarding the type of suit I should file? Breach of Contract, Fraud, etc.? Also, W.F. is based in California as am I, but I wonder if State or. Federal Court would be more appropriate? I actually grew up with attorneys (we’re currently estranged)& have successfully represented myself several times in several different types of cases. So, I’m familar with case preperation & already anticipate doing a great deal of research & “leg work” for this, but if someone has any suggestions to point me in the right direction that would be great.

    Thanks, Angie.

  3. Ken says:

    Everyone is going to need more ammo to solve this problem.

  4. After following all what has been said and done over the years of fraudclosures..the lies ..the shit slung from the mouths of the banks,,Federal Reservce…the government…from every agency ..the International Bankers..the Vatican..and the list goes on…time has come to kick ass…enough said and done…it has come to the point of the people need to stand and take action…the Bankers Association just keeps playing the role to halt the victims from proving this was all to hide the Original Fraud…that’s right…all the fraud started at the Origination …no records of the wires…no hard money passed thru hands…no records found at Title Companies…there were no loans…the Notes and Mortgages were to make it look official….to deceive the victims…lets stop playing their games…this will never end if they are left to keep on with their crap….and remember to kick all Florida Tallahassee..a part or individual used as a whole or group… when voting is on….corrupt is their game…open all the doors and give one swift kick….remember..they work for us….we are their boss….you don’t want to work for us…get out as fast as you came in…thru the same swinging door….or the foot will shove you out. No more bullshit…it’s over …………….

  5. Anonymous says:

    Once again…when you thought it couldn’t get any worse the servicers getvaway with twisting the proverbial knife and we are yet again knocked on our ass gasping for breath from another malicious blowI. I is no wonder the world has gone to hell in a hand basket….dangling the carrot in front of our face taunting us with the possibility that some how we would finally have our day in court -.for the last year and a half waiting on the vultures to make it right… But alas u spent my money paying the chickens or “consultant whores” you were sleeping with while the OCC wolves pretended to be guarding the coop against the predators.. Turns out u were never really in the ‘making it right chicken coop’ at all…no you were living in the mansion .u bought with the money u screwed me out of when u wrongly foreclosed on my house and now u think u can steel from me …AGAIN.? I will fight u to my death hold ur ass to the fire so u know what its like to really feel whats it like to burn in hell!! U had one last chance to make it right & U BLEW!.

  6. katheryn says:

    Boot them all out…ALL of THEM. We need new people and a new party. Our two parties are the laughing stock everywhere. They all look and act like a bunch of buffoons. It is a tragic comedy.

  7. John Ragno says:

    This is a total joke. This is why we need new elected officials. Now we will have the class action lawsuit so the corporate law firms can make some blood money.

    • Carmen M. Roman says:

      Mr. Ragno
      do you really have a class action against these people I will like to have more information for me taking part on it. My email is
      Thanks for any information that anybody can give me of any law action against Aurora Loan services, Thanks

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