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How Much Entertainment Can $3.6 Billion Buy?

May 9, 2013

The National Mortgage Settlement may not be solving the housing crisis, but it’s providing plenty of entertainment.

Under the terms of the settlement, some of the country’s largest mortgage lenders are paying out $3.6 billion to former homeowners whose homes they foreclosed on.

As we previously reported, some of the checks from third-party vendor Rust Consulting have bounced.  So first homeowners were foreclosed on, then they received checks from their banks that bounced.

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.