The company accused of bungling some payouts from the Independent Foreclosure Review is also tasked with distributing $1.5 billion in checks to homeowners eligible for the National Mortgage Settlement.
Rust Consulting, which has an office in Palm Beach Gardens, is expected to begin mailing those checks mid-year, according to the National Mortgage Settlement website.
Although the amount of the checks and how many will be doled out is still unknown, it is expected the payments will exceed the original expected minimum of $840 that was noted on a homeowner claim form.
Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller, said today that an update on the distribution and details on the checks is expected soon. Miller was lead negotiator in the $25 billion settlement between the nation’s five largest banks and 49 attorneys general.
About $1.5 billion from the settlement is to compensate borrowers who lost their homes to foreclosure between Jan. 1, 2008 and Dec. 31, 2011.
Rust Consulting, which is based in Minneapolis, is the paying agent for the $3.6 billion in payouts going to 4.2 million borrowers nationwide who qualified for the failed Independent Foreclosure Review.
The process, which began last month, has suffered from high-profile mistakes such as early checks bouncing and the shortchanging of 96,000 homeowners who received the wrong check amounts.
Rust has since fixed both issues and sent out additional checks to homeowners who received the wrong amounts.
Florida’s share of the $1.5 billion is $170 million. About 167,400 Florida borrowers were mailed claims forms in September with a Jan. 18 deadline to apply.
When just 51 percent of eligible Florida borrowers had applied by the end of January, Attorney General Pam Bondi started drumming up publicity for the process during statewide visits and said the deadline had been extended to Feb. 15.
Greenwood said Rust was chosen by states participating in the National Mortgage Settlement through a competitive bidding process. He believes the company was hired by settlement states prior to it being hired by the Office of the Comptroller of the Currency and federal bank regulators to handle the Independent Foreclosure Review checks.
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