Company that bungled foreclosure checks in charge of another $1.5 billion in housing reparations

The company accused of bungling some payouts from the Independent Foreclosure Review is also tasked with distributing $1.5 billion in checks to homeowners eligible for the National Mortgage Settlement.

Rust Consulting, which has an office in Palm Beach Gardens, is expected to begin mailing those checks mid-year, according to the National Mortgage Settlement website.

Although the amount of the checks and how many will be doled out is still unknown, it is expected the payments will exceed the original expected minimum of $840 that was noted on a homeowner claim form.

Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, said today that an update on the distribution and details on the checks is expected soon. Miller was lead negotiator in the $25 billion settlement between the nation’s five largest banks and 49 attorneys general.

About $1.5 billion from the settlement is to compensate borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011.

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