Foreclosure Victims Get New Round of Botched Checks

Last month 's checks bounced, so maybe this is progress

By Matt Cantor,  Newser Staff

Posted May 9, 2013 6:59 AM CDT

(Newser) – The very same institutions that apparently couldn't foreclose on homes properly are having a run of it: Following regulators' $3.6 million settlement with 13 banks, the Federal Reserve told Goldman Sachs and Morgan Stanley to send affected borrowers $247 million, doled out in amounts between $300 and $125,000, the Wall Street Journal reports. But some 100,000 borrowers received checks for too little money, the Fed says. The company in charge of the payments is Rust Consulting—yep, the same firm that last month sent mortgage-abuse victims rubber checks. As for the latest mistake, Rust says it "has corrected the error and plans to mail supplemental checks to affected borrowers."

In this March 15, 2012 photo, a trader works in the Goldman Sachs booth on the floor of the New York Stock Exchange.
In this March 15, 2012 photo, a trader works in the Goldman Sachs booth on the floor of the New York Stock Exchange.   (AP Photo/Richard Drew, File)
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