Federal Reserve Issues Update about Independent Foreclosure Review Checks

The Federal Reserve issued this Press Release this morning:

Release Date: April 17, 2013

For immediate release

The paying agent for checks being sent to borrowers under the Independent Foreclosure Review has assured the Federal Reserve Board that early problems with some checks have been corrected and that funds are available to cash all checks.

Some early recipients of checks informed the Federal Reserve’s consumer helpline on Tuesday that they were told their checks could not be cashed. Members of the Board staff contacted the paying agent, Rust Consulting, Inc., and the paying bank, The Huntington National Bank. Rust subsequently corrected problems that led to some checks being rejected.

The Board will continue to monitor the payments closely and encourages borrowers who have concerns or experience difficulties cashing their checks to call Rust at 1-888-952-9105.

As previously announced, on April 12, payments began to 4.2 million borrowers following an agreement reached by federal bank regulatory agencies and 13 mortgage servicers. More than 50,000 people have already cashed or deposited checks.

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If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Josethrough a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

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FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager to request this accommodation.

Related articles

Cash Payments for Independent Foreclosure Review Will Begin Being Mailed April 12, Senate Banking Committee Will Hold Hearing about the Independent Foreclosure Reviews

Editor’s note: Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.  However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website and if you have questions about the information below, please contact Rust Consulting (1-888-952-9105).

1) Cash Payments Being Sent Out This Week   ForeclosureHelpSCC has closely followed the Independent Foreclosure Review, so we are glad to see the press release from the Federal Reserve stating that cash payments to 4.2 million homeowners covered by the updated Independent Foreclosure Review program will start being mailed out on April 12th.  You can see a chart of the penalties and the award amounts (per penalty), and how many people are receiving compensation for each penalty using this chart on the Federal Reserve’s website: Independent Foreclosure Review Payment Agreement Details.

As a reminder, 13 of the banks and servicers are participating in the revised program.  However, GMAC Mortgage, Financial Freedom (part of IndyMac), Everbank/EverHome Mortgage Company, and OneWest Bank/IndyMac Mortgage Services are continuing with the original review, which had a deadline to apply of December 31, 2012.   For more information about the Independent Foreclosure Review, visit our earlier blog posts:  Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance.”   (Spanish version and Vietnamese version)

2) ResCap Tries to Get out of its Independent Foreclosure Review Obligations: In related news, Andrew R. Johnson reports in Fox Business NewsAlly, ResCap Spar Over Federal Foreclosure-Review Program”  that Ally Financial and ResCap (its mortgage subsidiary) are having issues around ResCap’s attempt to exit the Independent Foreclosure Review.   GMAC Mortgage, which is part of ResCap, is one of the banks that did not agree to the updated Independent Foreclosure Review program back in January.  According to the article, ResCap asked a bankruptcy judge to stop the Federal Reserve from enforcing the lender’s obligations that it agreed to under the Independent Foreclosure Review.  Instead, ResCap suggests that these obligations should be treated as other unsecured creditors in the bankruptcy process.   However, the Federal Reserve filed a court filing suggesting that Ally’s liability is limited to the reimbursement to the harmed homeowners.

3) Former SEC Chairwoman Joins Former Independent Foreclosure Review Consultant Company Gregory Mott reported for Bloomberg Promontory Adds SEC’s Schapiro to Roster of Ex-Regulators” (April 2, 2013) that Mary Schapiro, who was chairwoman of the US Securities and Exchange Commission until December 2012, has joined Promontory.   As a refresher, Promontory was one of several high-priced consulting companies that was hired to do the Independent Foreclosure Reviews.   Yves Smith, founder of the Naked Capitalism blog, wrote a scathing account of Pomontory on a February blog post entitled  Bank of America Foreclosure Reviews: Why the OCC Overlooked “Independent” Reviewer Promontory’s Keystone Cops Act (Part VB).” 

She quotes Doug Smith, a former partner at McKinsey, who reviewed accounts from contractors who worked on the reviews.  He said:

“It’s hard to imagine a more unprofessional, atrociously managed effort. In my more than three decades of working with, observing and advising teams and projects, I cannot identify a single worse example.”

Smith continues:

But the surprise was how inept Promontory proved to be in its efforts to hide how much damage was done to borrowers. The scale of the exercise, combined with the pervasive reliance on contractors and temps who were told only the official story that their mission was to find evidence of damage done to borrowers, meant they went down that path, often surprisingly far.

4) GAO Releases Critical Report about Independent Foreclosure Review.  The New York Times has a summary Blame Abounds Over a Flawed Foreclosure Review (April 3, 2013) of the GAO’s recently released report Foreclosure Review: Lessons Learned Could Enhance Continuing Reviews and Activities under Amended Consent Orders  about the Independent Foreclosure Review.   Our favorite quote in the article is from New York’s Banking Regulator, Benjamin M. Lawksy, who was quoted in a recent speech as saying:“It is worth considering the monitors’ lack of independence…The monitors are hired by the banks, paid by the banks, and depend on the banks for future engagements.”   The Senate Banking Committee has a hearing scheduled for April 11 “Outsourcing Accountability? Examining the Role of Independent Consultants” (this Thursday) about the Independent Foreclosure Reviews, and it will be interesting to watch.

5) Cash Floods into Silicon Valley Neighborhoods: Part Two?   Here in Silicon Valley, Pete Carey recently reported in the San Jose Mercury News Bay Area’s average homebuyers shut out by cash offers, (April 3, 2013) about the bidding wars that have taken on what many would consider a bubble like quality.  Carey discusses a recent “fixer upper” in Santa Clara that needed $100,000 in repairs.  It was listed at $419,000 and later sold for $629,500.  Of the 69 offers, 65 of them were “cash offers.”   This trend of Wall Street cash flooding into neighborhoods has happened before, and some advocates are concerned about the effect this has on pushing out first time homebuyers and on having so many homes not owner-occupied.    CNBC reports that large amounts of student debt may be another large obstacle for first-time homebuyers in their recent article: “Student Loan Debt Hurts Housing

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.