After Bouncing Checks, Now The Government Is Sending Mortgage Settlement Checks In The Wrong Amounts

First the checks bounced

Now, the New York Times says some mortgage relief checks sent to distressed homeowners contain the wrong amounts.

The blame appears to fall on Rust Consulting, the contractor hired by the feds to distribute the checks.

From the Times:

In recent days, according to officials briefed on the matter, Rust Consulting issued nearly 100,000 checks for less than the homeowners were owed. The mistake potentially cheated consumers out of millions of dollars they were owed under a deal reached between the government and the nation’s biggest banks.

Federal regulators ordered Rust to fix its mistake. And in a statement, Rust said late Wednesday that it had “corrected the error and plans to mail supplemental checks to affected borrowers as soon as May 17.” It attributed the mistake to a “clerical error.”

Here’s a brutal quote about the matter from one homeowner married to a veteran:

“First we are wrongfully tossed out of our home while serving this country and then we get basically no money.” 

The checks are part of a $3.6 billion settlement deal regulators struck with banks.  

The Times’ story goes a lot more in depth into how heavily Rust is embedded into government services. Check out the full story here >

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