Attorney General Scott Pruitt issued an unusual alert Tuesday about a new federal mortgage settlement from the U.S. Department of the Treasury:
The attorney general's office has received dozens of calls from people confused about the settlement and postcards they received from Rust Consulting, thinking the cards were part of a scam.
Pruitt said the settlement is a legitimate agreement between the U.S. Treasury Department's Office of the Comptroller of the Currency and several mortgage servicers.
It is not related to the major national $25 billion mortgage settlement struck last year by the Justice Department, 49 states and Bank of America, Citigroup, GMAC, JPMorgan Chase and Wells Fargo.
Nor is the Rust Consulting settlement related to the separate $18.6 million settlement that Pruitt signed last year with the same banks and mortgage service providers.
AGBeat, a business news and information website, reported that 4.2 million people were sent the Rust Consulting notices on March 18 letting them know “that they will receive remuneration as a result of an agreement between federal banking regulators and 13 mortgage servicers.” Rust Consulting is the paying agent.
“The mailer is one piece and sealed on three sides; it's small and white and looks a bit like a piece of junk mail that you'd throw away without opening. ... It's not junk mail. And for many folks that were involved in a loan modification, a short sale, or a foreclosure, it's an alert stating that ‘the check is in the mail' (in about eight more weeks),” AGBeat reported.
Call for details
Pruitt said people who receive the postcards should call the toll-free number on them — (888) 952-9105 — to determine their eligibility for foreclosure compensation. He said borrowers will not be required to waive any legal claims they may have against their servicer as a condition for receiving payment.
But, the attorney general said: Beware of anyone who requires a call to a different number than the one on the card or to pay a fee to receive a payment under the agreement.
For more information, call (888) 952-9105 or go online to www.