Boston Fed Encourages Borrowers to Apply to Federal Independent Foreclosure Review Program
New England Response Rate 5% as December 31 Deadline Approaches
Of over 135,000 eligible borrowers in New England, only 5% have applied for the Independent Foreclosure Review. If the review finds that financial injury occurred due to in the foreclosure process, the borrower may receive remediation of up to $125,000 plus equity. Borrowers have until December 31, 2012 to submit their review forms.
"Across New England, response rates have ranged from 5% to 7%, with the majority of eligible borrowers missing out on a vital opportunity," said Ana Patricia Muñoz, Senior Policy Analyst at the Federal Reserve Bank of Boston. "With so many homeowners in New England having struggled with foreclosure, we want to be sure that every eligible borrower knows about the program and has the opportunity to apply before the deadline."
Borrowers are eligible for an Independent Foreclosure Review if they meet the following basic criteria:
- The mortgage loan was active in the foreclosure process between January 1, 2009 and December 31, 2010.
- The property securing the mortgage loan was the borrower's primary residence.
- The mortgage loan was serviced by one of these participating mortgage servicers:
For more information, borrowers can call 888-952-9105, Monday through Friday, 8 a.m.-10 p.m. ET or Saturday, 8 a.m.-5 p.m. ET or visit http://www.federalreserve.gov/consumerinfo/independent-foreclosure-review.htm or http://www.occ.gov/independentforeclosurereview.
About the Independent Foreclosure Review
As part of enforcement actions issued in April 2011, the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Office of Thrift Supervision (OTS) required 14 large mortgage servicers to retain independent consultants to conduct a comprehensive review of foreclosure activity in 2009 and 2010 to identify borrowers who may have been financially injured due to errors, misrepresentations, or other deficiencies in the foreclosure process. If the review finds that financial injury occurred, the borrower may receive compensation or other remedy.