Federal Reserve States Plan to Redistribute Unclaimed Funds
November 20, 2015 / Source: Federal Reserve
The Federal Reserve Board on Thursday announced a plan to redistribute unclaimed funds under the Independent Foreclosure Review Payment Agreement to eligible borrowers who have cashed or deposited checks. The plan covers borrowers of mortgage servicers regulated by the Federal Reserve. The Independent Foreclosure Review Payment Agreement, overseen by the Federal Reserve and the Office of the Comptroller of the Currency, provided $3.9 billion for borrowers of 14 servicers whose homes were in any stage of the foreclosure process in 2009 or 2010. As of October 2015, more than $3.5 billion had been cashed or deposited by eligible borrowers. Borrowers of servicers regulated by the Federal Reserve have cashed or deposited checks with a value of $798 million as of mid-October, which amounts to approximately 91 percent of the total value of the payments issued to these borrowers.
Borrowers of servicers regulated by the Federal Reserve who have not yet cashed or deposited their original check have until December 31, 2015, to request a replacement check. These borrowers must cash or deposit their checks by March 31, 2016.
In mid-2016, the Federal Reserve will direct the paying agent, Rust Consulting, Inc., to redistribute any funds remaining after March 31, 2016, to borrowers of these servicers who have previously cashed or deposited their original checks. The Federal Reserve intends to distribute the maximum amount of funds to borrowers affected by deficient servicing and foreclosure practices.