Unclaimed foreclosure review funds to be redistributed

The Federal Reserve has announced a plan to redistribute unclaimed funds under the Independent Foreclosure Review Payment Agreement (Agreement) to eligible borrowers who have cashed or deposited checks. The Agreement, overseen by the Federal Reserve and the Office of the Comptroller of the Currency, provided $3.9 billion for borrowers whose loans were serviced by 14 large servicers and 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. 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 who have previously cashed or deposited their original checks.