"Foreclosure deal problems continue" by Ben Protess and Jessica Silver-Greenberg | New York Times, May 09, 2013
NEW YORK — At least these checks cleared.
Three weeks after checks sent to homeowners as compensation for foreclosure abuses were rejected for insufficient funds, the consulting firm at the center of the mishap erred again: A fresh round of checks was written for the wrong amounts....
This is the KIND of GIMMICKS that people who are looking to DELAY PAYMENTS do!
Also see: Foreclosure relief checks bounced for some
The developments cast another harsh spotlight on Rust Consulting, which was selected as the distributor of checks for the $3.6 billion settlement deal that regulators struck with the banks. The continued problems with Rust also raised questions about the government’s oversight of the firm — and the wisdom of hiring it....
What oversight, and who in Congress did they know?
The problems have alarmed Capitol Hill and prompted investigations into the settlement.
“This is the worst settlement I have seen in my life,’’ said Representative Elijah Cummings, Democrat of Maryland, who has opened an investigation into problems with the settlement, including the use of Rust.
With more than 50 federal contracts to its name, and its own political action committee spreading campaign donations across Washington, Rust has become a favored middleman for class-action lawsuits and government settlements.
Why didn't they just call Ken Feinberg?
But problems emerged soon after the settlement was announced in January. The consulting firm, officials said, was initially slow to alert borrowers to expected payments. Then, the officials say, Rust delayed the checks for weeks as it struggled to gear up for the payments.
What was such a struggle?
Once Rust issued the first round of checks in April, it failed to move money into the bank account used for the settlement.
Are you F***ING KIDDING? That is the LAME-ASS EXCUSE they put out?
The firm’s latest mistake stems from last week, when Rust issued checks to customers of Morgan Stanley and Goldman Sachs. Unlike the other banks involved in the settlement, Goldman Sachs and Morgan Stanley’s foreclosures were not subjected to a long independent assessment by outside auditors. As such, the banks agreed to pay some of its customers an extra sum.
But Rust, according to the officials briefed on the matter, issued checks to customers of Goldman Sachs and Morgan Stanley based on a metric adopted by the 11 other banks.
The misstep deprived some homeowners of thousands of dollars.
Ooops!
Regulators detected the problem Tuesday when a concerned borrower called the Federal Reserve to complain, according to a person briefed on the matter. The Fed then ordered Rust to devise a solution.
Oh, so if NO ONE had CALLED and COMPLAINED then NOTHING WOULD HAVE BEEN DONE!
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