Fed Reports on Mortgage Servicing Settlement: Borrowers Cash $3.1B in Checks

An approach by bank regulators to remediate harm flowing from the housing crisis has been criticized for confining a look into abuses by mortgage servicers, but a report by one agency shows the settlement has put more than $3 billion into the pockets of borrowers.

The Federal Reserve report says borrowers have cashed or deposited around 85 percent of the payments that mortgage servicers were required to make under a settlement meant to address deficient practices in mortgage loan servicing and foreclosure processing. The payment agreement replaced the Independent Foreclosure Review (IFR) 05 DER EE-14, 1/8/13.

As of April ...