Yet More Problems Surface with the Foreclosure Settlement
WASHINGTON — The Federal Reserve Board said Wednesday that the independent consultant overseeing payments to millions of consumers as part of its mortgage settlement had fixed problems that had caused troubled borrowers’ checks to bounce.
The firm, Rust Consulting Inc., and the paying bank, The Huntington National Bank, began making payments to the 4.2 million borrowers as part of the agreement reached by federal bank regulators and the 13 largest mortgage servicers in January. (According to Rust, 1.4 million payments had been sent.)
However, consumers were unable to cash or deposit their checks due to insufficient funds.