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Who Says Rust Never Sleeps?

April 24, 2013

It’s a story rich in irony.  As part of a multi-bank settlement, some of the country’s largest mortgage lenders are paying out $3.6 billion to former homeowners whose homes they foreclosed on.

Except some of the checks are bouncing, thanks to a big oops by third-party vendor Rust Consulting.

Steve Viuker, a writer for The Warren Group who is based in New York City, wrote about the bouncing checks for Total Mortgage Services in his article, “Follow the Bouncing (Mortgage Settlement) Checks.”

He quoted this blogger as follows: “When does tragicomedy become farce?  Foreclosed homeowners who failed to pay what they owe now have big banks failing to pay them what they owe.  Hopefully, the banks whose checks bounced will be adding a bounced-check fee to their payments to the foreclosed homeowners.”

Best of luck to Rust Consulting.  We hope the float was worth it.