WASHINGTON — About 4.2 million borrowers who went through foreclosures will hear from Rust Consulting Inc. within 31 days to outline their compensation under a settlement with 13 mortgage servicers, according to U.S. bank regulators.
The final details of an agreement with the largest U.S. mortgage servicers were released Thursday by the Federal Reserve and Office of the Comptroller of the Currency, who said that Rust was hired as the agent tasked with giving out $3.6 billion in cash payments to those foreclosed on in 2009 and 2010. Individual borrowers will receive as much as $125,000, depending on how their harm is categorized by the servicers.
The regulators reached the settlement last month for foreclosure faults after a U.S. housing-market collapse contributed to the worst financial crisis since the Great Depression. Another $5.7 billion is to be used by the firms to prevent future foreclosures.