“Insufficient Funds” to cash early foreclosure review checks, borrowers told
by Kim Miller
More than one million checks were sent out Friday to borrowers eligible to receive money from the Independent Foreclosure Review program, but people trying to cash the awards were told insufficient funds existed to make the transaction.
The checks, which range from a few hundred dollars to $125,000, were from Rust Consulting, the contracted paying agent for the review.
The company sent out a press release Tuesday saying it can guarantee there is $3.6 billion in an account to make the checks good.
“We apologize to anyone who experienced problems trying to cash their checks. We are working hard and communicating with the banking regulators, the servicers, and other banks to ensure those issues are not repeated,” Rust Consulting Senior Vice President James Parks said. “We want to assure the public that checks we have mailed under the Independent Foreclosure Review Payment Agreement process are valid.”
The Board of Governors of the Federal Reserve System said this morning that the problems have been corrected and that funds are available to cash all checks.
More than 50,000 people have already deposited or cashed checks, according to the board.
Borrowers with questions regarding payments should contact Rust Consulting at 1-888-952-9105, Monday through Friday, 8 a.m. – 10 p.m. ET or Saturday, 8 a.m. – 5 p.m. ET.
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