Independent Foreclosure Review: Interview of David Holland, CEO of Rust Consulting, by Senator Elizabeth Warren
Editor’s note: This is a spoof interview of David Holland, CEO of Rust Consulting, by Senator Elizabeth Warren
Senator Elizabeth Warren (EW):
Mr. Holland, you have been asked to reappear in from of the Senate Banking subcommittee because your company’s handling of the Independent Foreclosure Review settlement has been a fiasco.
David Holland, CEO of Rust Consulting (DH):
Senator, anything Rust Consulting is involved in is always a “Fee-Ass-Co.” That’s what we’re about at Rust – collecting fees. Not unlike the banks.
EW: Mr. Holland, what exactly is your company doing to correct some of the problems consumers are having with your company? Mail sent to the wrong address, refusing to change the address of record when the consumer calls, and those bounced checks.
DH: We have a call center and we’re taking calls, you know. Umm, that’s why they call it a call center. And, umm, we’re taking calls from people who received a postcard notice from us as part of the settlement. And now the first wave of checks has gone out. And, umm, you know, we’re playing music to get our staff pumped up to take all these calls. We were playing “Wipe Out” after the first wave until someone reminded me that many people have been wiped out in the foreclosure crisis. So to be more sensitive, we’ve switched to the theme from “Hawaii Five-O.”
EW: How is this helping consumers?
DH: We have a phone bank ready to answer any and all questions that we get from affected borrowers. We have on-site Spanish-speaking operators that can handle Spanish-speaking people, and there is a process by where we can use a third party to help translate I believe up to 200 languages if somebody calls, you know. So, you know, if a bank stole your home and you speak Swahili, we can probably get you a call back within a matter of weeks. We also have those, umm, Rosetta Stone tapes in the breakroom.
EW: Mr. Holland, it stands to reason that Spanish-speaking operators would converse with Spanish-speaking consumers. As far as answering any and all questions, consumers are calling my office to advise you are unable to answer any questions – dates the checks are gong out in their specific case, the amount of the check, why they are not being paid the amount under the category they were in. And why in the world would you not update the consumer’s address when they are calling to give it to you?
DH: The important thing for us, you know, is to be able to speak with the consumer. In their language. If you came from Ethiopia looking to live the American Dream – which includes home ownership – and the bank stole your property, we can talk to you. There are over 90 languages spoken in Ethiopia and chances are our third party can speak one of them. And we’re pretty damn proud of that.
EW: Enough with all of the language business, Mr.Holland. Why aren’t you answering consumer questions? Why are you not updating addresses? What exactly is the man objective for Rust Consulting in order to ensure this settlement is handled properly?
DH: Look Senator, there’s only one objective. And that’s for Rust Consulting to make it into the Guinness Book of Records for most postcards mailed. And thanks to the banks, I think we’re going to shatter the record.
EW: Mr. Holland, again I ask – what are you doing to help consumers who have questions regarding the Independent Foreclosure Review settlement?
DH: I think, umm, we’re doing a lot to help consumers. The other day a gentleman called in about the foreclosure settlement and when we punched in his name, we saw he was part of a class action settlement regarding his defective lawnmower. He was unaware of that. And had he not received his postcard about the IFR, he would have never known. Unfortunately, he missed the 90 days deadline to cash his check so we got to keep it. And we’re pretty damn proud of that.
EW: Speaking of checks and only having 90 days to cash or deposit them, there have been numerous complaints from recipients who were told insufficient funds were available to cash the checks. And why does the consumer only have 90 days to do so?
DH: It wasn’t like, that there was, umm, you know, insufficient funds. There was insufficient ink at the Treasury. Because that’s where the money is coming from to pay the consumer. It’s, umm, not coming from the banks from what I understand. And as far as the 90 days, we’re trying to replicate what the consumer is used to. They were told not to pay for 90 days in order to qualify for a loan modification. So we, umm, figured it was good number. And just like they were denied a loan modification, they probably won’t get to cash the check because we won’t get it to them in 90 days. It’s all about doing what the consumer is used to.
EW: Mr. Holland, cashing the checks within 90 days would not be a problem for most affected by this settlement had Rust sent the checks to the current address. What database did Rust use to verify this information. IRS? Social Security? Credit reporting agencies?
DH: Blockbuster.
EW: Blockbuster Video?
DH: Yes. We have a kid in the mailroom that works part-time there. Time permitting, when we get returned mail he cross checks it against their database.
EW: Wouldn’t it have been easier and more effective to work with the postal service?
DH: We are working with the postal service. We have instructed their carriers if this is the first piece of mail they have delivered to that address in more than 3 years – don’t deliver it. If there are more than 4 windows boarded up in the front of the house – don’t deliver it. If there is shrubbery or vegetation concealing the entire house or more than 2 years worth of newspapers in the driveway – don’t deliver it.
EW: Mr. Holland, I have to admit – I am amazed at some of your responses, the lack of inaction at your company. What was your prior relationship with the OCC? How in the world – why in the world – was Rust Consulting chosen to handle this huge and important task?
DH: I have to admit it, before getting the gig I thought the OCC was that television show about kids on the beach in California. That Kelly Rowan chick was hot. Anyways, umm, you know, I’ll let our record speak for itself. Due some money for your defective lawnmower? We’ll handle it. Are you due a check for a boat motor gone bad? Chances are you’ll deal with us. I’m not saying you’ll get a check that you can cash, but you’ll deal with us. And as far as inaction, as you put it, yes – there’s a culture of inaction here. Hence the name “Rust.”
EW: Mr. Holland, your testimony was a wake up call up call for me. And I hope it was a wake up call for you as well. What are your takeaways from this meeting today?
DH: Senator, I think you fail to realize that we run a very sophisticated operation at Rust Consulting. This isn’t just two tin cans tied together and, umm, you know, talking to each other. That being said, I do realize there is always room for improvement. We’ve just hired a girl – Peggy from Prime Credit – and she starts on Monday. And we just hired another guy for the mailroom – and that makes three now. I just sent a text to our CFO and asked him to order some posters for the breakroom. The ones, umm, you know, that say something about soaring with the eagles. And to order some Tony Robbins books and videos for the breakroom.
EW: Mr. Holland, thank you for your testimony. Is there anything further you would like to add?
DH: When the rubber meets the road, or the check, Rust Consulting will be here for the consumer. And, umm, you know, that’s all folks.
by Wrongedfellow
Original transcript of the 4/17/13 Senate IFR Hearing here…
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I was told by a Rust Consulting supervisor that according to banking regulations they are unable to issue two separate checks for half the total amount each; one to myself and the other to the co-signer on my original loan. The co-signer and myself have no communication with each other. I do not even know where this other person is. Yet, Rust told me it is my problem that I have to resolve on my own. What good is a check I am unable to cash?
It matters not what any of us did to save our homes; it was a “plan” for the big banks & government to “stick it to the homeowner”; NO ONE WAS ON THE SIDE OF THE HOMEOWNER”! Writing my Congressman, now a Senator (who is asking OCC “why” they did not reply to a letter from my Congressman), who also turned MY letter to the Comptroller over to the Consumer Protection Agency, who confirmed they (CPA) are contacting – guess “who” … CitiMortgage & Freddie Mac for THEIR “side” of what happened in my particular case!! It’s gone full circle … back to the crooks! There is NO FAIRNESS OR JUSTICE for the Homeowner! THEY have the power and they KNOW THIS! These politicians and agencies will back the government’s viewpoint AND THEIR LIES! So –
WHERE IS THE ATTY WHO POSTED THAT WE HOMEOWNERS – COLLECTIVELY – CAN WIN IN A LAWSUIT AGAINST THESE BIG BANKS AND THE GOVERNMENT … IT REQUIRES A LOT OF PAPERWORK & MONEY, BUT IF “WE” BAND TOGETHER PITCHING IN AT LEAST, $1.00 PER HOMEOWNER, THERE WOULD BE ENOUGH MONEY TO ACCOMPLISH THIS MONUMENTAL TASK?!! ALL OF WE HOMEOWNERS WOULD HAPPILY, PITCH IN AS MUCH MONEY AS NECESSARY – MOST, WILLING TO GIVE MORE THAN $1.00 !!!
As I stated to the Comptroller and the Senator actively pursuing my circumstances – I want MORE than my home back! I want it back FREE & CLEAR as well as restitution for the emotional duress, pain & suffering!!! What government has caused American, hardworking citizens, not to mention, destroying the “American Dream” of home ownership, is outrageously inhumane and SCREAMS prosecution and jail time and huge fines for ALL THOSE RESPONSIBLE!!
I feel the same way you guys feel!!!! Waited almost 2 years for them to send me 300.00. Then I requested the information they used to say that all I deserved was that amount. WHY CANT THEY SEND OUT WHAT THEY FOUND OUT??? Wrote to a lot of different agencies, senators etc. no help from anyone. I’m so upset because they did not do the review they took a settlement. If they had of done the review I would be buying me a new home with my check
It’s just a sad situation for every homeowner involved. It does not matter to these people that we lost our homes, something that I worked very hard for. I am now paying rent to live. What made them think that $300 is sufficient for such a major loss? The majority of the homes that they foreclosed on, remain empty. Makes no sense, but after all this is America. The land that can rip you off and expect for you to go along your merry way. I am so furious about this whole situation! I want my home back, not $300.
Believe it or not I have had the address issues with Rust Consulting since February. I have followed 3 procedures to change may address. Then they again sent me a change of address form to my home I live in now after the denied every having it. The original post card was sent to an address that does not exist today I checked with the other Settlement National Mortgage. This is also being handled by Rust Consulting…..Guess what they had the right address for that issue. I also contacted Wells Fargo several weeks ago…..Rust has not returned any of my calls, the OCC has not returned any of my calls……But guess who called me today listened to the rest of my dreaded story (Corporate Offices) Wells Fargo calling to make sure I got my pay out. They are less then pleased at the way the OCC and Rust Consulting are handling these payouts. They were not responsible for providing the addresses….Rust was to do skip traces. The pleasant woman from Wells Fargo had kept all my information took detailed notes 3 weeks ago. I never in a million years thought that I would ever hear from them again. Well, she did call is sending a letter to me, Rust and the Occ demanding to know why people that are going through efficient measures to see that they receive. She stated that there was an agreement made on behalf of Wells Fargo for the consumers to be awarded the monies and obviously the measures are not being taken to see to it we are notified and paid. I can tell you right now that Wells Fargo is not to happy. And I believe that the other banks that were involved are in the same boat…..Rust Consulting is being paid by the OCC and collecting interest off our money…my theory and the woman at Wells Fargos. Oh, by the way my check did get mailed to the address that does not exist and is sitting in my file. I will be receiving a replacement in July that is when those go out. The woman from Wells Fargo said that I will be getting my money way before then and is also having me speak to some other people about this nightmare.
Just got my check 4/29/13 $300.00 and also my bank was Wachovia now Wells Fargo. I was forclosed 12/2009 went into bankruptcy 2/2009 that chart is not accurate don’t belive it for one second! What a waste of time! We live in salinas ca. for any bodies reference?
I just received my settlement payment from the Independent Foreclosure Review Settlement. The amount I received was $500. The foreclosure was in Sacramento, CA. and the lender was Wachovia/Wells Fargo.When I requested a review back in April 2012 the settlements purpose was to compensate for financial harm. At that time I fit into multiple categories, i.e. denied a loan modification after requesting multiple times, foreclosure initiated while under bankruptcy protection and foreclosed on while participating in a forbearance agreement, they added 3 payments to the principal balance. It was never clear exactly what the requirements for these categories under the framework were but these were the areas that seemed most appropriate from what I was reading on the OCC website under the Remediation Framework. I was also a borrower that Wells Fargo added forced placed insurance to my loan when there were already 4 active policies. I had 2 policies (Homeowners and Flood) and my homeowners association had 2 policies (Homeowners and Flood). I was appalled when I learn this wasn’t even a consideration under the new agreement. This was one of the key reasons I had to go into bankruptcy and was caused financial harm. Wells Fargo knew I had lost income due to pay cuts and furloughs. They also were well aware I had submitted requests for modifications. I also became aware that Wells Fargo submitted an inflated mortgage balance to the U.S. Eastern Division Bankruptcy Courts. There were other issues also, a big one to me was when the property was still in my name and I was in the process of moving Wells Fargo went into the property and started painting. They changed the locks while I still had my personal property in the condo. I never did get my washer and dryer and other personal property back. I was never contacted prior to any of this happening. I would really like to know how Wells Fargo decided to give me $500 compensation for all this.
Are they sending checks in alphabetical order? My last name begins with a Z!!
Bought a house 2002, Adjustable rate mortgage that climbed to 16.99% by 2008. 3 month temporary modification which was perfect and affordable. After 3 payments it was bumped right back up to 16.99% Threw in the towel and house was foreclosed in four months May 2009. July 2009 Sold @ an auction for $9,000.00!!!!!!!! I sure hope i get some justice!! I calculated the payments i made and in 7 yrs i paid enough in interest that the bank got there money!!!Selling it for $9K @ the auction was an added bonus!!!!
What a joke,I got pennies you can say..300.00 and my second morgage got 500.00, what a joke, these big bankers are stealing and should be put in jail..What a sad situation, after I gave them thousand and thousand of dollars and are living the life…I hope they all get so drunk and start sending out our real checks…LOL I am the little person, so it does not make any different to them..I am so sad for everyone that should of got more…Prays to everyone..God Bless Hope you one day get throw out of your house like I did with 3 children and one disabled and they threw us out without any notice..sorry to be mean, I am not like that..but he they stoled from us…I am the little person that they do not care about. sorry how I feel. Elissa
Well, I got my huge $300.00. Our government and the banks and this consulting company are all a bunch of thieves.
please President Obama, senate, congress
prove that we are stand with the middle class we vote for change
thank you senate EW
Anybody ever feel like they’re in Groundhog Day, the movie – only our part to be the “nice guy” happened before the alarm clock went off the First Time!?
I find nothing humorous in this exchange whatsoever! It’s as though those of us who lost our homes having done all we knew to save them, are being toyed with at the expense of our emotional pain and suffering. It stinks!!!
Have you never heard the expression “if I didn’t laugh I’d cry”? Yes, of course, what has happened to the victims of fraudclosure is tragic. As is this farce of a settlement. Sometimes the best way to get a convey a message is to utilize humor. And if you look at the way this “settlement” has been handled by Rust – sending correspondence to addresses they know are bad, not having sufficient funds to over the first “wave” of checks, refusing to updating addresses when folks call in – it has been bungled beyond belief.
Do you realize it was this site – and the story & graphics about people having difficulty cashing their checks – that took the story nationwide last week? If not for that bounced check image Rust and the terrible way they are handling the settlement would not be considered newsworthy.
did you know that Rust Consulting pockets ANY money they don’t hand out
to defrauded homeowners?
no wonder they are bungling the addresses.
Rust Consulting profits every time the swindled homeowner “can’t” be found.
why is this being allowed to happened?! why??!!
i am not convinced that this tiny remittance check sent out by Rust isn’t designed to ferret out bank account information,reset the loan clock, get deficiency judgments and/or
cancel assistance that homeowner victims are receiving since they had their homes stolen
and their jobs lost.
although this spoof is hilarious, what’s sad is that it sounds almost like the real exchange before the senate committee.
when will people realize the extent of this ever-continuing bankster crime and rise up against
the banking criminals?!