By Mike Vila on April 9, 2013
Approximately 4 million borrowers will share $3.6 billion in cash as part of a settlement between federal regulators and banks accused of foreclosure-processing mistakes. Most borrowers will receive checks ranging from $300 to $1,000.
Bank regulators allowed consumers to ask for a review of their foreclosure files. About 439,000 of those getting payments under the settlement did so. Those borrowers will be paid twice as much as those who didn’t seek a review. Those who qualified for the smallest payments include many who lost their homes but weren’t offered help by banks or were placed into foreclosure despite asking for assistance. Those receiving payments don’t relinquish their right to pursue individual lawsuits. Bank regulators ordered an independent review of banks’ foreclosure files in April 2011 to determine how many borrowers should be compensated for foreclosure mistakes. Recently, the regulators and banks halted the review and reached a $9.3 billion settlement, saying the probe threatened to drag out indefinitely. The $9.3 billion settlement included $5.7 billion in non cash assistance and $3.6 billion in cash payments.
B of A (Bank of America) was to pay $1,100,000,000 in cash and provide $1.8 billion in mortgage relief. Wells Fargo will pay $766 million in cash and commit $1.2 billion in relief. The other banks in the settlement are HSBC, MetLife Bank, PNC Financial Services, Sovereign, SunTrust, U.S. Bank, Aurora, Goldman Sachs and Morgan Stanley
Rust Consulting Inc., will be distributing the settlement funds. Call 1-888-952-9105 for payment and other questions.