Approximately 4.2 million borrowers are slated to receive funds from the recent foreclosure review settlement deal cut between federal regulators and 13 mortgage servicers. The checks will arrive from April through July.
The Office of the Comptroller of the Currency and the Federal Reserve said $3.6 billion in payments will be sent to borrowers harmed by foreclosure processing issues in the 2009 or 2010 fiscal years.
The borrowers impacted had loans serviced by Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank and Wells Fargo.
Earlier this year, the massive independent foreclosure review process was abruptly ended as part of an agreement between prudential regulators and servicers after both parties found the process of studying individual loans timely and expensive.
Instead, a deal was reached for servicers to send one-time payments to harmed borrowers, ending the issue once and for all through a one-time $9.3 billion settlement—a large portion of which is slated for borrowers.
Impacted borrowers are now slated to receive anywhere from $300 to $125,000 as victims of foreclosure processing issues, the regulators said Tuesday.
The checks will not arrive at once, but in waves, with 1.4 million checks scheduled to go out on April 12.
The last wave of payments hits in mid-July.
The abrupt end to the national foreclosure review spawned criticism, with some lawmakers pushing the OCC and Fed for more information on how the reviews were handled.