Payment Agreement
As of January 2017, the Independent Foreclosure Review (IFR) Payment Agreement has concluded. In 2013, fifteen mortgage servicing companies subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing reached an agreement with the Office of the Comptroller of the Currency (OCC) 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 included $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. To be eligible for a payment, a borrower’s loan must have been serviced by one of the participating servicers and involved in a foreclosure action on the primary residence between January 1, 2009 and December 31, 2010.
Beginning in April 2013, the paying agent, Rust Consulting, Inc., mailed checks to eligible borrowers. As all borrowers eligible for the payment agreement were involved in a foreclosure action, Rust Consulting undertook significant efforts, under the oversight of federal regulators, to locate as many eligible borrowers as possible and ensure that they were able to cash or deposit their checks. For checks returned as undeliverable with no forwarding address, Rust Consulting conducted multiple address searches, including various commercial database searches, utilizing both batch address trace and manual search methods. At least three years have passed since the initial checks were mailed to borrowers. During that period, at least two and in most cases three attempts were made to reach each eligible borrower. Rust Consulting has advised that the efforts undertaken to locate borrowers covered by the payment agreement have exceeded efforts in similar payment distributions.
Participating servicers under the agreement, including their current and former affiliates covered under the agreement, included:
| America's Servicing Company | EMC Mortgage Corporation | PNC Mortgage | |
| Aurora Loan Services | EverBank/EverHome Mortgage Company | Saxon Mortgage | |
| BAC Home Loans Servicing | GMAC Mortgage | Sovereign Bank | |
| Bank of America | Goldman Sachs | SunTrust Mortgage | |
| Beneficial | HFC | U.S. Bank | |
| Chase | HSBC | Wachovia Mortgage | |
| Citibank | Litton Loan Servicing LP | Washington Mutual (WaMu) | |
| CitiFinancial | MetLife Bank | Wells Fargo Bank, N.A. | |
| CitiMortgage | Morgan Stanley | Wilshire Credit Corporation | |
| Countrywide | National City Mortgage |
|
In November 2015, the Federal Reserve Board approved a plan to conclude the IFR Payment Agreement and issued a press release notifying eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers of related deadlines. In August 2016, at the direction of the Federal Reserve, Rust Consulting redistributed remaining funds to nearly 650,000 borrowers of Federal Reserve supervised servicers who had cashed or deposited their initial check from the IFR Payment Agreement by March 31, 2016. All outstanding checks expired on December 31, 2016 and will no longer be accepted for payment.
Once a final reconciliation of the Qualified Settlement Funds has been completed, any remaining funds attributable to Federal Reserve supervised servicers will be remitted to the general fund of the U.S. Treasury. As stated in the July 2014 Independent Foreclosure Review Report, the Federal Reserve expects to publish data in 2017 regarding the final status of the cash payments and the foreclosure prevention assistance focused primarily on servicers regulated by the Federal Reserve.
If a borrower’s loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
More information can be found in Payment Agreement - Frequently Asked Questions.
Historical Payment Agreement Updates
December 1, 2016 Update: All outstanding checks for borrowers of Federal Reserve supervised servicers must be cashed or deposited by December 31, 2016.
Eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers that reached an agreement to end the Independent Foreclosure Review in 2013 have until December 31, 2016 to cash or deposit their checks in order to be paid. To complete the payment distribution process under the Independent Foreclosure Review Payment Agreement, the Federal Reserve has instructed the paying agent, Rust Consulting, Inc. to void all outstanding checks after the December 31st deadline.
Federal Reserve supervised servicers covered by the Payment Agreement include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase may have been covered. HSBC and JPMorgan Chase borrowers should contact Rust Consulting at 1-888-952-9105 to determine whether their loan was serviced by the part of the servicing operations of those two companies that is supervised by the Federal Reserve.
If your loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
August 8, 2016 Update: Payments to nearly 650,000 borrowers of servicers supervised by the Federal Reserve who cashed or deposited their initial checks to begin on August 8
At the direction of the Federal Reserve, on August 8 and 15, the paying agent, Rust Consulting, Inc. (Rust) will mail payments to nearly 650,000 eligible borrowers of Federal Reserve supervised servicers who cashed or deposited their initial checks from the Independent Foreclosure Review (IFR) Payment Agreement by the March 31, 2016 deadline. The redistribution of funds remaining from the IFR Payment Agreement that were attributable to Federal Reserve supervised servicers will provide a total of over $80 million to borrowers, consistent with the Federal Reserve's intention to distribute the maximum amount of funds to borrowers potentially affected by deficient servicing and foreclosure practices.
Under the redistribution, every eligible loan will receive a payment of $124.30. Borrowers receiving a redistribution payment will have the opportunity to request a name on a payment to be changed, a payment to be split, or a payment to be reissued. All requests must be received by Rust no later than September 30, 2016. In early-November, there will be a one-time mailing of redistribution check reissuances to accommodate all reissue, payee change, and split check requests. All redistribution checks will expire on December 31, 2016.
Servicers covered include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase may be covered. HSBC and JPMorgan Chase borrowers should contact Rust at 1-888-952-9105 to determine whether their loan was serviced by the part of the servicing operations of those two companies that is supervised by the Federal Reserve.
For borrowers who did not cash or deposit their initial distribution check by the March 31, 2016 deadline, the Federal Reserve has instructed Rust to correct any applicable tax reporting from that payment with the Internal Revenue Service and mail the borrower a corrected tax reporting document. Corrected tax reporting documents are expected to mail in August.
For additional information on the IFR Payment Agreement and the redistribution of remaining funds, please refer to Frequently Asked Questions For questions related to a redistribution payment, please call Rust at 1-877-456-1188.
If your loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
April 1, 2016 Update: All outstanding checks for borrowers of Federal Reserve supervised servicers expired on March 31, 2016 and the paying agent will no longer pay these checks. In mid-2016, unclaimed funds will be redistributed to eligible borrowers of Federal Reserve supervised servicers who cashed or deposited their checks by March 31.
Eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers that reached an agreement to end the Independent Foreclosure Review in 2013 had until March 31, 2016 to cash or deposit their original check in order to be paid. If a borrower did not cash or deposit their check by the March 31st deadline, the Federal Reserve has instructed the Paying Agent, Rust Consulting, Inc. to reverse any applicable tax reporting from that payment with the Internal Revenue Service and mail the borrower a corrected tax reporting document.
In mid-2016, at the direction of the Federal Reserve, Rust Consulting will redistribute any funds remaining to eligible borrowers of Federal Reserve supervised servicers who cashed or deposited their checks by the March 31, 2016 deadline. This direction will apply only to funds related to mortgage servicers supervised by the Federal Reserve. The Federal Reserve will provide additional information regarding the redistribution later this year.
Servicers covered include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase may be covered. HSBC and JPMorgan Chase borrowers should contact Rust Consulting at 1-888-952-9105 to determine whether their loan was serviced by the part of the servicing operations of those two companies that is supervised by the Federal Reserve.
If your loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
January 1, 2016 Update: The last day for borrowers of Federal Reserve supervised servicers to request a payment to be reissued in the name(s) on the record was December 31, 2015. All outstanding checks must be cashed or deposited by March 31, 2016. In mid-2016, unclaimed funds will be redistributed to eligible borrowers of Federal Reserve supervised servicers who have cashed or deposited their checks.
Eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers that reached an agreement to end the Independent Foreclosure Review in 2013 had until December 31, 2015 to request a payment to be reissued. Requests received after December 31, 2015 will not be processed. All outstanding checks must be cashed or deposited no later than March 31, 2016, in order to be paid.
In mid-2016, the Federal Reserve will direct the Paying Agent, Rust Consulting, Inc., to redistribute any funds remaining after March 31, 2016, to eligible borrowers of Federal Reserve supervised servicers who have cashed or deposited their checks. This direction will apply only to funds related to mortgage servicers supervised by the Federal Reserve. The Federal Reserve will provide additional information regarding the redistribution later this year.
Servicers covered include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase may be covered. HSBC and JPMorgan Chase borrowers should contact Rust Consulting at 1-888-952-9105 to determine whether their loan was serviced by the part of the servicing operations of those two companies that is regulated by the Federal Reserve.
If your loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
November 19, 2015 Update: Borrowers of Federal Reserve supervised servicers may request a payment to be reissued in the name(s) on the record through December 31, 2015. These borrowers must cash or deposit their checks by March 31, 2016. In mid-2016, unclaimed funds to be redistributed to eligible borrowers of Federal Reserve supervised servicers who have cashed their checks.
Eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers that reached an agreement to end the Independent Foreclosure Review in 2013 may request a payment to be reissued in the name(s) on the record through December 31, 2015. Requests to have a check reissued will not be processed after December 31, 2015. All outstanding checks must be cashed or deposited no later than March 31, 2016, in order to be paid.
In mid-2016, the Federal Reserve will direct the Paying Agent, Rust Consulting, Inc., to redistribute any funds remaining after March 31, 2016, to eligible borrowers of Federal Reserve supervised servicers who have cashed or deposited their checks. This direction will apply only to funds related to mortgage servicers supervised by the Federal Reserve.
Servicers covered include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase may be covered. HSBC and JPMorgan Chase borrowers should contact Rust Consulting at 1-888-952-9105 to determine whether their loan was serviced by the part of the servicing operations of those two companies that is regulated by the Federal Reserve.
Please call Rust Consulting by December 31, 2015 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.
If your loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
August 12, 2015 Update: Borrowers of Federal Reserve supervised servicers may still request a payment to be reissued in the name(s) on the record.
Eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers that reached an agreement to end the Independent Foreclosure Review in 2013 may still request a payment to be reissued in the name(s) on the record.
Servicers covered include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase may still request a payment to be reissued. HSBC and JPMorgan Chase borrowers should contact the Paying Agent, Rust Consulting, Inc. directly to determine whether their loan is eligible to have a payment reissued.
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.
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.
If your loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
June 17, 2015 Update: Deadline of August 21, 2015 for borrowers to request a payment to be reissued in the name on the record.
Eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers that reached an agreement to end the Independent Foreclosure Review in 2013 must act by August 21, 2015 to request a payment to be reissued in the name on the record.
The deadline to request a form to split the payment among borrowers on the loan or to be reissued in another name has passed. Completed forms, along with any supporting documentation that is required, must be received by Rust Consulting, Inc., no later than July 15, 2015 in order to be processed.
Servicers covered include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase are also subject to these deadlines. HSBC and JPMorgan Chase borrowers should contact the Paying Agent, Rust Consulting, Inc. directly to determine whether their loan is subject to the August 21, 2015 deadline or a prior deadline.
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.
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.
If your loan was serviced by one of the mortgage servicers under the Office of the Comptroller of the Currency's supervisory authority, please refer to the OCC's website for additional information.
May 19, 2015 Update: Deadline of June 8, 2015 for borrowers to request a split payment or a name change on a payment
Eligible borrowers whose loans were serviced by one of the Federal Reserve supervised servicers that reached an agreement to end the Independent Foreclosure Review in 2013 must act by June 8, 2015 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.
Servicers covered include GMAC Mortgage, Goldman Sachs/Litton Loan Servicing, Morgan Stanley/Saxon Mortgage Services, and SunTrust. In addition, some borrowers whose loans were serviced by HSBC or JPMorgan Chase are also subject to these deadlines. HSBC and JPMorgan Chase borrowers should contact the Paying Agent, Rust Consulting, Inc. directly to determine whether their loan is subject to the June 8, 2015 deadline or a prior deadline.
Completed forms, along with any supporting documentation that is required, must be received by Rust Consulting, Inc., no later than July 15, 2015 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.
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.
February 18, 2015 Update: Replacement check to be sent to all borrowers who have not yet cashed their checks
Federal banking regulators have directed the Paying Agent, Rust Consulting, Inc., to complete an additional mailing of replacement checks to all borrowers who have not yet cashed their checks. These replacement checks are expected to be mailed by the end of February 2015 for borrowers of all servicers except GMAC Mortgage and EverBank/Everhome. Replacement checks for GMAC Mortgage are expected to mail by May 2015. Borrowers who had a mortgage loan with EverBank/EverHome should contact the Paying Agent, Epiq Systems at 1-877-819-9754.
Borrowers who have not yet cashed their checks will also continue to be able to request a reissue of their payment for a limited time. If you require a check to be reissued, a change of payee, or separate checks for each payee, you must contact Rust Consulting, Inc. at 1-888-952-9105. Borrowers must cash or deposit the check within 90 days of the date it is issued or the check will be void.
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.
More information can be found in the Payment Agreement - Frequently Asked Questions.
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.
- Payment Agreement Details for GMAC Mortgage Borrowers (PDF)
- July 26, 2013 Update: GMAC Mortgage joins Payment 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 2013 Update: GMAC Mortgage joins Payment Agreement
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
- May 8, 2013 Update: Federal Reserve provides additional information on borrowers whose mortgages were serviced by Goldman Sachs and Morgan Stanley
- Payment Agreement Details for Goldman Sachs and Morgan Stanley Borrowers (PDF)
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.
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