On March 18, 2013, more than 4.2 million people were sent postcard notices about payments they will receive as a result of an agreement between federal banking regulators and 13 mortgage servicers. For more information, please call 1-888-952-9105, which is the number for Rust Consulting--the Paying Agent--that is printed on each postcard.

Watch out for scams. Beware of anyone who asks you to call a different phone number than the number above or to pay a fee to receive a payment under the agreement.

Payment Agreement

In January 2013, thirteen mortgage servicing companies subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing reached an agreement in principle with the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System to provide more than $9.3 billion in cash payments and other assistance to help borrowers. The sum includes $3.6 billion in direct cash payments to borrowers covered by the agreement and $5.7 billion in other foreclosure prevention assistance, such as loan modifications and forgiveness of deficiency judgments.

For the participating servicers, fulfillment of the agreement satisfies the foreclosure review requirements of enforcement actions issued by the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System and the Office of Thrift Supervision in April and September 2011 and April 2012.

As of February 28, 2013, the above agreement has been memorialized by amendments to the consent orders for each of the participating servicers. The amendments to the consent orders are publicly available on the websites of the Office of the Comptroller of the Currency (OCC), and the Board of Governors of the Federal Reserve System.

The OCC and the Federal Reserve accepted this agreement because it provides the greatest benefit to consumers subject to unsafe and unsound mortgage servicing and foreclosure practices during the relevant period in a more timely manner than would have occurred under the Independent Foreclosure Review process.

Participating servicers under the agreement, including their current and former affiliates covered under the agreement, include: 

As a result of this agreement, the Independent Foreclosure Review, which involved case-by-case reviews, has ceased at the participating servicers and been replaced with a broader framework allowing all of the borrowers of the participating servicers covered by the agreement to receive compensation significantly more quickly.

Borrowers Covered Under the Payment Agreement

Borrowers whose mortgage loan was serviced by one of the thirteen participating servicers and who were involved in a foreclosure action on their primary residence between January 1, 2009, and December 31, 2010, will receive compensation.  Borrowers are included, whether or not they filed a request for review form. Borrowers are not required to take any additional steps to receive payments.

Borrowers covered by the agreement are expected to receive compensation ranging from hundreds of dollars up to $125,000, depending on the type of possible servicer error.

Payment Process

A Paying Agent, Rust Consulting Inc., has been retained to administer payments to borrowers on behalf of the servicers. Borrowers covered by the agreement are expected to be contacted by the Paying Agent by the end of March 2013 with additional information regarding their payment.

Receiving 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 receiving payment.

Borrowers can call Rust Consulting, Inc. at 1-888-952-9105 to update their contact information or to verify that they are covered by the payment agreements.