Independent Foreclosure Review Payments to Begin Shortly

Consumers are warned to be careful!

At the end of March, Rust Consulting, the private contractor hired by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to oversee applications and payments for the Independent Foreclosure Review began mailing postcards to 4.2 million homeowners.  These postcards officially notify these consumers that they will be receiving IFR settlement payments.   The payments themselves will be mailed in the next four to eight weeks.

For more information about IFR, view some of our previous blog posts, here and here.

DON’T BECOME A VICTIM OF A SCAM.

Scam artists are ALWAYS looking to prey on consumers.  If you receive a postcard, make sure that the information is coming from Rust Consulting, that the phone number on the card is 1-888-952-9105, and that the website to visit is one of the following: 

• The Office of the Comptroller of the Currency (OCC: http://www.occ.gov/independentforeclosurereview), 
• The Federal Reserve Board (http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review-payment-agreement.htm), or
• The Independent Foreclosure Review (http://independentforeclosurereview.com/).
  
  Any other solicitation may be a scam!

DO NOT PAY TO GET HELP:

• No one has to pay a fee to receive payment through the IFR.
• No one can ‘help you get more money’ as the amount of the payment has been decided by federal regulators.  The amount cannot be negotiated.
• The opportunity to request an independent foreclosure review is OVER.  If you were not on the regulators and the servicers lists – the deadline to apply was December 31, 2012 – paying someone will NOT get you added to the list.

For additional information, visit the Frequently Asked Questions page on the independent foreclosure review website, here.

NOTE:
The most recent postcards ONLY cover settlements with 27 major servicers.  (Click here for a complete list).  There are still 3 major servicers that have not settled:

• Ally (GMAC Mortgage), 
• Everbank, and 
• OneWest Bank (IndyMac).

If you have questions regarding the Independent Foreclosure Review or any mailing you receive about IFR, please contact a Homeownership Advisor in your area.  

If you, or someone you know is struggling with mortgage payments... visit www.hocmn.org or call the Minnesota Homeownership Center at 866-462-6466 today!  Waiting limits your options!

Foreclosure Review Deadline Extension and Details Released

The Office of the Comptroller of the Currency (OCC), one of the Federal regulators that took enforcement action against large residential mortgage servicers for unsafe and unsound practices related to residential mortgage loan servicing and foreclosure processing, announced today that they have extended the deadline for borrowers to request an Independent Foreclosure Review (IFR) until September 30^th, 2012.

This announcement is so new that as of today, even the official IFR website still states that the deadline is July 31^st.

More importantly, the OCC and the Fed have released a “Financial Remediation Framework” document which outlines the possible remedies borrowers can expect to receive - and the financial compensation they may be eligible for - as a result of the IFR process.

For months, consumers and their advocates have asked us - why bother??  And now the answer is clear... the financial 'remedy' consumers may receive if the independent review finds that their lender committed an error in their foreclosure process can be SUBSTANTIAL - - Up to $125,000 plus equity losses!

For additional information about IFR... view our past blog posts here and here.

If you were in the foreclosure process in 2009 or 2010... don't let this opportunity slip by.  Contact us today to learn more.

Postcard: Independent Foreclosure Review

Did you receive a postcard about the Independent Foreclosure Review?


The Minnesota Homeownership Center and members of the Homeownership Advisors Network have participated in a mailing to thousands of Minnesota families that may have been involved in a foreclosure or tried to work on a loan modification in 2009 or 2010, to let them know that they may be eligible for financial compensation or another remedy.


Here's a copy of the postcards that have been mailed:

Front of Postcard - Click to Enlarge

Back of Postcard - Click to Enlarge

While the Center doesn't have exact numbers... we do know that homeowners, or former homeowners, requesting a formal review of their bank's foreclosure procedures have been far less than the regulators anticipated.  In a nutshell: families that may be eligible for some sort of payment may be leaving money on the table.


WHAT IS THE INDEPENDENT FORECLOSURE REVIEW (IFR)?
Federal banking regulators (the Office of the Comptroller of the Currency, simply known as the OCC, the Office of Thrift Supervision and the Board of Governors of the Federal Reserve System have created a process by which homeowners may request an independent review of their foreclosure process if they meet two major criteria:

1. They were part of a foreclosure action on their primary residence any time from January 1, 2009 to December 31, 2010;
2. Their loan was serviced by one of the 14 participating mortgage servicers.  (See list below).

If the review finds that financial injury occurred because of the servicer’s errors, misrepresentations or other deficiencies in the foreclosure process, the customer may receive compensation or other remedy.

NOTE:  "Foreclosure Action" can mean anything from receiving a notice of intent to foreclose (even if your payments were brought up to date) all the way through having lost the home at a foreclosure or Sheriff's sale.  Even homeowners whose loan entered any point of the foreclosure process in 2009 or 2010... and are still delinquent, but the Sheriff's sale has not yet taken place, are eligible.

IS IFR A SCAM?
NO.  However it is important to remember that NO ONE should charge you a fee to help 'facilitate' or 'improve your odds' of receiving compensation.  NEVER PAY FOR HELP.


I'VE ALREADY FILED A COMPLAINT WITH MY LENDER... IS THAT ENOUGH?
No.  Your bank or servicer may have their own internal review process.  However, if your mortgage loan meets the initial eligibility criteria, you should submit a Request for Review Form to ensure your foreclosure action is included in the Independent Foreclosure Review process.


WHAT BANKS/SERVICERS ARE PARTICIPATING?
Your mortgage must have been serviced by one of the 14 participating mortgage lenders/servicers or their affiliates:

• America’s Servicing Co.
• Aurora Loan Services
• BAC Home Loans Servicing
• Bank of America
• Beneficial
• Chase
• Citibank
• CitiFinancial
• CitiMortgage
• Countrywide
• EMC
• EverBank/EverHome
• Mortgage Company
• Financial Freedom
• GMAC Mortgage
• HFC
• HSBC
• IndyMac Mortgage Services
• MetLife Bank
• National City Mortgage
• PNC Mortgage
• Sovereign Bank
• SunTrust Mortgage
• U.S. Bank
• Wachovia Mortgage
• Washington Mutual (WaMu)
• Wells Fargo Bank, N.A.
• Wilshire Credit Corporation

I'M INTERESTED IN LEARNING MORE... WHAT DO I DO?


Step One:  Call the Minnesota Homeownership Center: 651-659-9336
or Toll Free: 866-462-6466 with any questions.


Step Two:  Visit the Independent Foreclosure Review website:

   www.IndependentForeclosureReview.com


As always... if you're struggling with your mortgage - or know someone who is - the Minnesota Homeownership Center serves as a FREE resource to Minnesota homeowners.  Call us today with questions about the Independent Foreclosure Review... or other programs, resources and assistance available to prevent foreclosure, TODAY. 

Independent Foreclosure Reviews

Banks have begun complying with enforcement action.  Homeowners may be able to receive compensation on foreclosures conducted in 2009 and 2010


Under enforcement actions taken by the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and Office of Thrift Supervision, more than a dozen large mortgage servicers are required to correct a number of problems with their servicing, loss mitigation and foreclosure processes.  These servicers are also required to engage independent firms to conduct reviews of foreclosure activities that took place during 2009 and 2010. 


Borrowers are eligible to submit a Request for Review to the independent consultants IF:

1. their loan was serviced by one of the 14 servicers or their affiliates (see list below), 
2. the property is, or was, their primary residence, and 
3. their loan was “active in the foreclosure process” between 1/1/2009 and 12/31/2010.
   
   Active in the process can mean:

• Sheriff’s sale occurred on the property
• Loan was referred to foreclosure but the sale did not take place due to a payment plan, modification, or non-retention option; and 
• Loans were referred to foreclosure but are still in delinquency.

BE CAREFUL!!
National media outreach will begin soon, and millions of homeowners will be notified by mail about the review process and will receive instructions for submitting a five-page Request for Review Form. As with any major announcement of this kind, we anticipate a number of copycat services and scams to pop up.


The independent reviews are free of charge and homeowners should never have to pay for foreclosure intervention services. 


If anyone asks you to pay for their help with a review... or sends you to a website other than the national website that has been set up by the OCC, be careful... it might be a scam!


The national website is: http://www.independentforeclosurereview.com/


Additional Information:
Requests for Review must be received by April 30, 2012. The independent consultants will confirm receipt of the form within one week, though the full reviews are expected to take several months to complete. The consultants will evaluate whether the homeowner suffered financial injury through servicer errors, misrepresentations or deficiencies in their foreclosure practices. In cases where findings indicate a homeowner suffered financial injury as a result of servicer practices, compensation or other remedies will be provided. The exact form of remediation is uncertain.


A copy of the OCC news release is here. 


Participating Lenders and Servicers (As of 11/2/2011)
     America’s Servicing Co.
     Aurora Loan Services
     Bank of America
     Beneficial
     Chase
     Citibank
     CitiFinancial
     CitiMortgage
     Countrywide
     EMC
     EverBank/EverHome Mortgage Company
     GMAC Mortgage
     HFC
     HSBC
     IndyMac Mortgage Services
     MetLife Bank
     National City Mortgage
     PNC Mortgage
     Sovereign Bank
     SunTrust Mortgage
     U.S. Bank
     Wachovia Mortgage
     Washington Mutual (WaMu)
     Wells Fargo Bank, N.A.

As always... if you have any questions about this Independent Foreclosure Review or are looking for ways to prevent the foreclosure of your home, contact a FREE, Non-Profit foreclosure prevention counselor that is a member of the Homeownership Advisors Network!  To find your local counselor, click here.