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

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

PR Newswire

WASHINGTON, April 9, 2013

WASHINGTON, April 9, 2013 /PRNewswire-USNewswire/ -- 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
www.occ.gov/independentforeclosurereviewand
www.federalreserve.gov/consumerinfo/independent-foreclosure-review-payment-agreement.htm.

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
www.makinghomeaffordable.gov) to be put in touch with a U.S. Department of
Housing and Urban Development-approved nonprofit organization that can provide
free assistance.

SOURCE Office of the Comptroller of the Currency

Website: http://www.occ.gov
 
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