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What You Need to Know: Independent Foreclosure Review: Payment Agreement
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May 12, 2014 Update: Deadline of June 30, 2014 for certain borrowers to request a split payment or a name change on a payment

Eligible borrowers, whose loans were serviced by one of the 13 servicers that reached an agreement to end the Independent Foreclosure Review in January 2013, must act by June 30, 2014 to request a form if their payment needs to be split among borrowers on the loan or if the payment needs to be reissued in another name. Completed forms, along with any supporting documentation that is required, must be received by the Paying Agent, Rust Consulting, Inc., no later than August 1, 2014 in order to be processed. Please note that borrowers whose payment amounts were based on their status under the Servicemembers Civil Relief Act (SCRA), as indicated in the letter enclosed with their payments, have two years from the date of their initial check to have their check reissued.

This deadline covers all servicers listed in the Payment Agreement section below except GMAC Mortgage and EverBank/Everhome. These two servicers entered the Payment Agreement after the other 13 servicers, so GMAC Mortgage and EverBank/Everhome borrowers will have additional time past the June 30 deadline to request a form if their payment needs to be split or reissued in another name.

Please call Rust Consulting at 1-888-952-9105 for further instructions on how to request your payment to be reissued. If you have already requested that your payment be reissued, please do not submit a new request.

January 27, 2014 Update: Payments to 232,000 Borrowers Whose Mortgages Serviced by GMAC Mortgage to Begin on Monday, January 27

Payments to more than 232,000 borrowers whose mortgages were serviced by GMAC Mortgage are scheduled to begin on Monday, January 27, following an agreement announced in July of last year by the Federal Reserve Board.

The agreement--payment details can be found here (PDF)--provides approximately $230 million in direct payments to borrowers whose homes were at any stage of the foreclosure process in 2009 and 2010 with GMAC Mortgage. The payments stem from similar agreements reached in 2013 between 15 servicers and two agencies--the Office of the Comptroller of the Currency and the Federal Reserve. The agreements provide for more than $3.9 billion in cash payments to approximately 4.4 million borrowers.

In most cases, borrowers will receive a letter with an enclosed check sent by the Paying Agent--Rust Consulting, Inc. By cashing or depositing the check, borrowers do not waive any legal claims they may have. Some borrowers may receive letters from Rust requesting additional information needed to process their payments. Previously, Rust sent postcards to borrowers notifying them of their eligibility to receive payment under the agreement.

Borrowers can call Rust at 1-888-952-9105 to update their contact information, verify that they are covered by the agreement, or with further questions. Information provided to Rust will only be used for purposes related to the agreement.

December 10, 2013 Update: GMAC Mortgage Borrower Information Postcards Mailed

On December 10, 2013, Rust Consulting, Inc. mailed postcards to more than 232,000 borrowers whose mortgage loans were serviced by GMAC Mortgage notifying them that they should expect to receive a payment, or a letter describing additional information needed to process their payment, by the end of January 2014. This payment is related to an agreement between GMAC Mortgage and the Federal Reserve Board in July 2013 to compensate borrowers who were in the foreclosure process in 2009 or 2010.

Borrowers can call 1-888-952-9105, which is the number for Rust Consulting, to update their contact information, verify that they are covered by the agreement, or to ask further questions.


July 26, 2013 Update: GMAC Mortgage joins Payment Agreement

GMAC Mortgage has reached an agreement with the Federal Reserve Board to pay $230 million in direct cash payments to eligible borrowers.  The $230 million to be paid by GMAC Mortgage includes $32 million that will satisfy GMAC Mortgage’s obligation to provide loss-mitigation assistance.  This agreement is similar to those announced in January between 13 mortgage servicing companies and the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board.  Like the other institutions, GMAC Mortgage was subject to an enforcement action for deficient practices in mortgage loan servicing and foreclosure processing. 

More than 232,000 borrowers whose homes were in any stage of foreclosure in 2009 and 2010 with GMAC Mortgage will receive cash compensation under the agreement.  Information about payments to borrowers whose mortgage serviced by GMAC Mortgage will be announced in the near future.  As a result of this agreement, the independent foreclosure reviews have concluded for GMAC Mortgage borrowers. 


April 29, 2013 Update: Payments to 220,000 Borrowers Whose Mortgages Serviced by Goldman Sachs and Morgan Stanley to Begin on Friday, May 3

Payments to more than 220,000 borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley are scheduled to begin on Friday, May 3 following an agreement announced earlier this year by the Federal Reserve Board. The agreement provides $247 million in direct payments to borrowers whose homes were at any stage of the foreclosure process in 2009 and 2010 with the former subsidiaries of Goldman Sachs (Litton Loan Servicing LP) and Morgan Stanley (Saxon Mortgage Services, Inc.). The payments stem from agreements reached earlier this year between 13 servicers and two agencies--the Office of the Comptroller of the Currency and the Federal Reserve. The agreements provide for a total of $3.6 billion in cash payments to 4.2 million borrowers. 

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 borrowers notifying them of their eligibility to receive payment under the agreement.   

Borrowers can call Rust at 1-888-952-9105 to update their contact information, verify that they are covered by the agreement, or with further questions. Information provided to Rust will only be used for purposes related to the agreement. 

April 9, 2013 Update: Payments to 4.2 Million Borrowers Covered by Foreclosure Agreement to Begin April 12 

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.

In most cases, eligible 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. 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.

March 18, 2013 Update: Borrower Information Postcards Mailed

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.

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. In July 2013, one additional mortgage servicing company joined the payment agreement, bringing the total number of mortgage servicing companies participating in the payment agreement to 14. With the addition of that servicer, $230 million in direct cash payments will be made to GMAC Mortgage borrowers under the agreement. In August 2013, EverBank also reached an agreement to pay approximately $37 million in cash payments to more than 32,000 eligible mortgage borrowers.   

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.

The agreement has been memorialized by amendments to the consent orders for each of the initial group of 13 participating servicers as of February 28, 2013, for GMAC Mortgage as of July 26, 2013, and for EverBank as of August 23, 2013. 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: 

America's Servicing Company EMC Mortgage Corporation PNC Mortgage
Aurora Loan Services EverBank/EverHome Mortgage Company2 Saxon Mortgage1
BAC Home Loans Servicing GMAC Mortgage Sovereign Bank
Bank of America Goldman Sachs1 SunTrust Mortgage
Beneficial HFC U.S. Bank
Chase HSBC Wachovia Mortgage
Citibank Litton Loan Servicing LP1 Washington Mutual (WaMu)
CitiFinancial MetLife Bank Wells Fargo Bank, N.A.
CitiMortgage Morgan Stanley1 Wilshire Credit Corporation
Countrywide National City Mortgage


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 15 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 all the servicers except EverBank. Borrowers whose mortgages were serviced by the initial group of 13 participating servicers were contacted by Rust Consulting beginning in March 2013 with information regarding their payment. Borrowers whose mortgages were serviced by GMAC Mortgage were contacted by Rust Consulting in December 2013 with information regarding their payment, and payments were mailed to most GMAC Mortgage borrowers at the end of January 2014. The majority of payments to all servicers except EverBank have now been sent, with the remaining payments expected to be mailed by the summer of 2014. If a borrower has requested a check to be split amongst borrowers or a change of payee, those checks take longer to process.

The Paying Agent for the EverBank agreement is Epiq Systems. For questions related to the EverBank agreement, please visit www.EverBankIndependentForeclosureReview.com or you can contact Epiq Systems at 1-877-819-9754.

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, to verify that they are covered by the payment agreements, or to inquire about the status of their payment.

 


1. Although not part of the Independent Foreclosure Review, on January 16, 2013, Goldman Sachs (Litton Loan Servicing LP) and Morgan Stanley (Saxon Mortgage Services, Inc.) reached similar agreements in principle with the Federal Reserve related to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing. With the addition of Goldman Sachs (Litton Loan Servicing LP) and Morgan Stanley (Saxon Mortgage Services, Inc.), nearly 4.2 million borrowers will receive a total of $3.6 billion in cash compensation while an additional $5.7 billion will be provided by the thirteen servicers for mortgage assistance. Return to text

2. On August 23, 2013, the OCC announced that EverBank has agreed to pay approximately $37 million in cash payments to more than 32,000 eligible mortgage borrowers and an additional $6.3 million to organizations certified by the U.S. Department of Housing and Urban Development or other tax-exempt organizations that have as a principal mission providing affordable housing, foreclosure prevention and/or educational assistance to low- and moderate-income individuals and families. More information can be found on the OCC's website at http://occ.treas.gov/news-issuances/news-releases/2013/nr-occ-2013-126.html. Return to text


 

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 Related Resources Useful terms
  • mortgage loan
    A loan that uses your property as collateral to guarantee repayment.
Other Resources More of this series: What you need to know

 

Last update: August 29, 2014