ML-Implode News - Independent Foreclosure Review Payments Amount to Comedy of Errors

``Immediately after the first checks were mailed last month borrowers started reporting that their checks were returned for insufficient funds. Rust Consulting, settlement agent for the banks, downplayed the incident saying it only affected a handful of customers and happened because Rust had forgotten to move funds into the account to cover the checks. Now the New York Times, Los Angeles Times and other media outlets are reporting even more serious problems with the payout.
The New York Times said today that a fresh round of checks that had gone out from Rust were written for the wrong amounts. The paper, quoting sources that had been briefed on the matter, said the firm had issued nearly 100,000 checks for less than homeowners were owed. Federal regulators have ordered Rust to fix the mistake and the company said late Wednesday it had corrected what it called "a clerical error" and rather than issuing replacement checks would be sending checks for difference owed by May 17.''

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Independent Foreclosure Review Payments Amount to Comedy of Errors