GMAC to Pay $230M in Foreclosure Settlement Deal

GMAC to Pay $230M in Foreclosure Settlement Deal

07/26/2013 BY: ESTHER CHO

The Federal Reserve Board announced Friday a settlement with GMAC Mortgage that will end the complex and costly foreclosure reviews required through prior enforcement actions.

GMAC will pay about $230 million in cash payments to mortgage borrowers as part of the foreclosure deal.

GMAC joins 13 other servicers who reached their own settlements with the Fed and Office of the Comptroller of the Currency (OCC) in January 2013.

According to a statement from the Fed, over 232,000 GMAC borrowers whose homes were in any stage of foreclosure in 2009 and 2010 will receive payment relief.

The deals with the servicers stem from enforcement actions issued by federal regulators over “deficient” servicing and foreclosure processing practices.

The addition of GMAC brings the total number of borrowers receiving cash compensation to 4.4 million borrowers, and raises the total amount of cash compensation to $3.8 billion, the Fed stated.

According to the latest update, more than 3.9 million checks valued at more than $3.4 billion have been sent to eligible borrowers, and about 2.9 million of those checks have been cashed or deposited as of July 11.

The Fed advised borrowers to call the Rust Consulting, the paying agent, at 1-888-952-9105 to have their questions answered or to update contact information if they expect to receive a check.

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