As part of the $9.2 billion dollar settlement between federal regulators and fourteen mortgage companies, some people began receiving checks on Tuesday, April 16, 2012. Most of the checks are small, averaging less than a $1,000.00. A few number of borrowers, mostly military personnel, who were improperly foreclosed on could receive as much as $125,000.00 the maximum payout.
Numerous borrowers called the Federal Reserve hotline, on Tuesday and stated that their banks would not cash the check they received. The checks were forwarded by Rust Consulting Inc., the paying agent, and drawn on The Huntington National Bank, the paying bank. In a press release issued on April 17, 2013, the Federal Reserve stated that the problem has been rectified and that the funds are available to cash all checks.
