4 Million Borrowers Receive Part of $3.6 Billion Settlement Between Banks and Federal Regulators

The main banks involved in the settlement are Bank of America, Wells Fargo, J.P. Morgan Chase, Citigroup and several others. Bank regulators had ordered a review of bank foreclosures in April 2010 to find out how much borrowers should receive for foreclosure mistakes. Regulators and banks decided to end the review by consultants because the review was time-consuming, the consultants were costly and bank errors were not numerous enough. Others said the consultants were finding many errors when the reviews ended. The 9.3 billion settlement included $5.7 billion in non-cash assistance and $3.6 billion in cash payments. The chart below is interesting for the amounts disbursed.
Consumers that did not ask for reviews of their foreclosure files received approximately half of the amount people who asked for reviews of their files received. All the money should be disbursed by the middle of July. Rust Consulting, Inc. is disbursing the checks so contact the company at 1-888-952-9105 if you think you should get a check and to make sure your contact information is current. The banks did not admit fault. Those receiving some of the settlement money may still file individual lawsuits.

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