Servicing

Foreclosure settlement processor Rust Consulting reportedly facing Congressional scrutiny

Rust Consulting is known in the servicing industry as the firm selected to handle the mass mailing of payments impacted by the $9.3 billion foreclosure settlement.

The payout to borrowers, which equals about $3.6 billion, has been peppered with a few issues, including bounced checks early on and payments that fell short their intended amounts in one of the mass mailings.

The Wall Street Journal says lawmakers and federal bank regulators are increasing their scrutiny of Rust Consulting.

Executives with the firm are reportedly scheduled to meet with Congressional staffers from the office of Rep. Elijah Cummings, D-Md., this week, the publication reports.  

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